The value of data in the context of industry 4.0 business case analysis: development of an evaluation model

Abstract This paper deals with the development of a model for assessing the value of production data for Industry 4.0 business case analysis. The aim is to demonstrate the profitability of investments in Industry 4.0 use cases in a comprehensible way, to improve the decision-making for companies. A five-phase model is being developed. The first three phases serve as preparatory work by elaborating Industry 4.0 applications for the further development of the production system. Phases 4 and 5 are the innovative features, as they create the essential substance of an Industry 4.0 use case evaluation. The focus here is on the data capabilities created as a result of the use case. Using a shell model, data is evaluated according to aspects such as quality, maturity and usability. This is complemented by a metric for non-financial valuation of data, which enables a granular analysis of data impact. The business case analysis (Phase 5) combines the financial benefits and costs of the use case with the value of data. For this purpose, approaches are presented that enable the non-financial data metrics to be converted into a monetary value. Application of the model in the context of quality management for a vacuum cleaner assembly illustrates the effectiveness of the approach. The targeted evaluation of the data impact and its integration into the business case led to a comprehensible presentation of the economic efficiency. While a conventional analysis deemed the investment unsustainable, the inclusion of the proposed model demonstrates that it would pay for itself in less than three years. At the same time, it became clear that uncertainties surrounding the valuation and monetary consideration of data continue to present a challenge.