Purpose- This study seeks to investigate the collaboration between Digitalization and traditional manufacturing industry and investigate, how digitalized management brings new chances and challenges of management. Design/methodology/approach – The author designed a content analytical study researching the role of digitalization in traditional manufacturing industries. The article presents a selective but systematical review of recent digitalization trend and digital twin to be applied for innovative management in Industry 4.0 era. Findings– Digitalization is highly correlated with traditional manufactory in Industry 4.0 era. The study brings a new outlook on the next wave of Digitalization and review of associated challenges and opportunities for management and innovation in traditional manufacturing industries. Research limitations/implications – The research focuses on two branches of traditional industries only: machine tools building and metalworking industries. Future research needs to examine other traditional industries. The research is limited to 2 high related traditional manufacturing industries, machine tools and metalworking industry. Practical implications – The study and application of digitalization should be highly recommended and launched in traditional manufacturing industries. Universities, institutes and vocational schools should update, optimize their courses systems according to prediction of future industry. Originality/value – The paper enhances understanding about the collaboration between digitalization and traditional manufacturing industry. This paper analyzes an important issue the digitalization serves traditional industries. It is unique in its broad analysis of the related terms – Digitalization, Machines 4.0, Industry 4.0 and innovative management in Industry 4.0 era.