Global megatrends and the resulting challenges for manufacturing companies, have brought up the concept of Industry 4.0 (I4.0) and its heart the Smart Factory (SF). Through I4.0 and the application of SF companies can increase their creation of value, however the degree of value depends on the way of implementation. Scholars and studies of successful SF implementation are still in an infant stage, and companies find little guidance in literature. Therefore, research question one targets on how to implement the SF and research question two on the investigation of success factors, challenges and outcomes of the successful SF implementation.

The literature review included 216 scholars in the field of SF implementation. On this basis, a theoretical proposition was developed, to guide data collection and analysis. For development of the practical framework, multiple case studies have been chosen. Through an orientation study, seven cases in a multinational manufacturing company have been selected for the research. The developed framework has been validated again with the experts in the company.

The developed implementation framework consists out of two parts. A strategic implementation process, including a SF maturity model to support the gradual advancement towards the SF and an operational implementation process for SF technologies, to advance to the higher maturity level. The framework represents a step-by-step approach including key activities, success factors and challenges of each phase. To justify an implementation, different outcomes have been clustered and organized to provide an overview.

As this work is based on the current advancement of the research field, it first provides a condensed summary of SF implementation and second, through answering RQ1 and RQ2 closes research gaps. Hence, it contributes to the further advancement of the research field by providing a clear framework on the implementation approach and key factors, as well as a starting point for further research.

With the SF implementation framework, this work provides the missing connection between a directed strategic approach and new technology implementation with a step-by-step guideline to facilitate the implementation of SF. The framework represents a guideline, to be used by managers, including the most important aspects to consider.