**4.2 Horizontal integration through a new generation of global value chain networks**

In the Industry 4.0 concept, horizontal integration refers to the network of diverse processes, companies, and services that make up a product's global value chain. This can be viewed at the production level as a total consolidation of all associated manufacturing processes. Vertical integration, on the other hand, refers to a high level of coordination between production and top management layers such as quality management, product management, and production control [33].

The horizontal integration in an Industry 4.0 enterprise occurs at different levels: production floor, multiple production facilities, and entire value chain. Each connected machine or production unit becomes a node with well-defined properties within the production network. These nodes continuously communicate their status to respond autonomously to dynamic production requirements cost-effectively and reduce system downtime through predictive maintenance . If an enterprise owns several production sites, the horizontal integration enables to share inventory levels and unexpected delays, and possibly redistribute work among owned facilities to respond to market demand fluctuations rapidly or increase the efficiency and speed of the production process. However, the most critical and global horizontal integration remains the integration across the entire value chain [12].

Industry 4.0 offers a highly automated and transparent collaboration across the complete value chain, using CPPSs, from the inbound assembly, packaging, storing, production, quality control, marketing, and sales, to outbound distribution, logistics, and retail services. The horizontal integration across all these activities creates a transparent value chain that is updated in real-time. Hence, this feature provides a high level of flexibility to respond more rapidly to changing market demands, shortcomings, and problems, facilitates the optimization of the production process, increases its efficiency, and reduces the generated waste [17]. Additionally, the fact that any part or product's history is logged and can be accessed at any time ensures constant traceability, also known as "product memory" [19].

#### **4.3 Through-life engineering across the entire value chain**

Among the characteristics of the Fourth Industrial Revolution is also the impact of the ten components of the 4th Industrial Revolution *"ten types of innovation,"* Efficient management of innovation, and finally, Efficient life cycle management. These are shown below.

*The "ten types of innovation" (Components of Industry 4.0).* Industry 4.0 will enable integrated and cross-disciplinary engineering throughout the value chain, as well as throughout product and customer life cycles. Industry 4.0 applications are intended to ensure the traditional domain of product innovation. Innovation is not limited, innovation has traditionally been related mainly to product offerings, but it also has significant potential in areas such as company structures, processes, networks, and profit models, as well as customer-facing functions [5].

*Efficient management of innovation.* The digital transformation to industry 4.0 will make it possible to improve further the efficiency of innovation management in all the Components of Industry 4.0. Interactive and designed curricula make individualized learning achievable, thereby, speeding up strategic implementation and organizational development [34]. Industry 4.0 solutions in project portfolio management make it easier to track not only the return on investment (ROI) in innovation, but also to identify risks by utilizing global comparative project data for monitoring and remediation. Information technology can be utilized to speed up R&D in the field of product development [5].

*Efficient life cycle management.* The digital transformation industry 4.0 will allow essential data for life cycle management to be provided at any time and from any location. These data will include not just information and reports, but also the outcomes of big data processing, which will be used to develop appropriate early indicators using artificial intelligence (Al). Al will employ global cross-checking to determine the plausibility of developing suitable bases for data-driven decision-making. It will allow businesses to better understand and address the needs of their customers, as well as customize product cycles [5].

#### **4.4 The impact of exponential technologies**

*Exponential technologies solutions.* Corporate venture capital firms have a strong chance of profiting from disruptive innovation and exponential technology by investing in new trends early on. Corporate venture capital Investing in start-ups allows businesses to participate in the development of new products and services while also ensuring their long-term competitiveness. This type of investment allows for early and convenient access to new technologies. Companies must be given more leeway

*Industry 4.0 and Its Implications: Concept, Opportunities, and Future Directions DOI: http://dx.doi.org/10.5772/intechopen.102520*

to "see around the next corner." Only then can a new business region be formed, which will eventually become the company's new heart. Companies' survival may be jeopardized if such possibilities are neglected [2].

*The learning organization*. If companies are to fully use the promise of exponential technologies in making the digital transformation to industry 4.0, they must change into learning organizations. Exponential technology adoption and integration must be slow but continuous. Learning is essential for long-term organizational development. It is time to make a change that is not so counterproductive. New ideas, processes, and business sectors are most successful when they begin as a learning niche and eventually migrate to the center of the organization, establishing themselves as a new leading segment [5].
