Nico Röpnack · March 6, 2026 · 7 min read
Germany invests €10.5 billion annually in Industry 4.0. Nevertheless, 45 percent of transformation projects fail. McKinsey has proven this in 2,900 projects. The problem is not technology. It is the execution gap.
The challenge
Why do 45% of all
Industry 4.0 projects fail ?
McKinsey & Company analyzed over 2,900 large-scale transformation projects worldwide. The findings are alarming for manufacturing companies.
exceed the budget
Almost every second project exceeds the originally approved budget, in some cases significantly.
deliver less value
More than half of the projects deliver less benefit than originally promised.
become "black swans"
200 to 400% cost overrun. They jeopardize the economic existence of the organization.
Source: McKinsey & Company, “Delivering large-scale IT projects on time, on budget, and on value” (2,900+ projects)
The cause
Not technology, but
lack of control
When Industry 4.0 initiatives fail, it is rarely due to the technology. Sensors work. Machines communicate. The problem lies one level higher: in the management of the transformation itself.
Sample 01
No portfolio overview
Qualification, MES, ERP, and automation run in parallel, in silos, without shared prioritization.
Sample 02
Resources torn apart
The same skilled workers who are supposed to set up the new line are also maintaining ongoing operations.
Sample 03
Subsidies without ROI control
Many apply for subsidies, but very few have a system in place to ensure actual ROI.
The solution
The LHC model for
Full transformation control
Manufacturing companies do not need a generic project management tool. They need a system that covers three control levels simultaneously.
portfolio management
All projects. One truth.
Prioritization based on strategic value contribution. Clear visualization of which initiatives are running and which should be stopped.
More on this →resource transparency
Who is working on what, in real time.
No theory in the organizational chart. Dynamic capacity planning that immediately shows when a team is overloaded.
More on this →Smartsheet Integration
Operational in weeks, not months.
Native integration with SAP, Teams, and Jira. PMO teams customize workflows themselves without having to submit a ticket to IT.
More on this →The result
FEW Automotive:
Measurable Transformation
FEW Automotive faced a classic execution gap problem. Approval processes took 2 to 3 weeks. Resources were allocated in an unclear manner. There was no overview of the portfolio. After implementation with Lighthouse Consultings and Smartsheet:
From 2 to 3 weeks to 2 to 3 days
With complete real-time transparency
For all projects and locations worldwide
“Before Smartsheet, it took us 2 to 3 weeks to get approval to mass produce new parts. Now it only takes us 2 to 3 days.”
Konstantin Gross, FEW Automotive · Read reference →
self-check
5 questions: Can you answer them right away?
If not, you have an execution gap:
How many active Industry 4.0 projects do you currently have, and which one has the highest strategic priority?
Which employees are currently involved in more than two transformation projects?
Which funding measure has been running for more than six months without any measurable progress being documented?
How long does it currently take to obtain approval for a new process step?
Which of your projects is most likely to exceed its budget, and who knows this?
Next step
Where does your company stand today?
Find out how big your execution gap is and where the greatest leverage lies.
Request a free expert gap analysis Or: Start potential analysis (2 min.) →