Study On The VOLVO Jinan R&D Organizational Change

The term "Industry 4.0" originated from a project in the high-tech strategy of the German government in 2012,which promoted the computerization of manufacturing.Industry 4.0,it is a collective term embracing a number of contemporary automation,data exchange and manufacturing technologies.It has been defined as a collective term for technologies and concepts of value chain organization which draws together Cyber-Physical Systems,the Internet of Things and the Internet of Services."Made in China 2025" is an initiative to comprehensively upgrade Chinese industry.The initiative draws direct inspiration from Germany's "Industry 4.0" plan,which was first discussed in 2011 and later adopted in 2013.The core of the "Industry 4.0" idea is intelligent manufacturing,i.e.,applying the tools of information technology to production.Chinese government wants to upgrade the technology of manufacturing industry as well as the structure through implementing this strategy.Under the industry 4.0 background,this article focuses on the possible organizational change of VOLVO Construction Equipment Jinan Research and Development Center,to take the challenge as well as the advantage to increase the company's competitive capability.This article applies the McKinsey 7S model to analyze Jinan R&D from structure,system,shared value,strategy,staff,skills and style.After examining all seven factors and the connection between them,this article proposes that Jinan R&D should change its organizational structure to increase its competitive capability.