Industry 4.
A Journey Towards Industrial
Transformation
The Fourth Industrial Revolution, 4IR, or Industry 4.0, conceptualizes rapid change to
technology, industries, and societal patterns and processes in the 21st century due to increasing
interconnectivity and smart automation. The third industrial revolution introduced computers to
the industrial process, making them an essential tool for manufacturing, logistics, and service
delivery. Under Industry 4.0, computers will achieve greater connectivity, gain greater
autonomy, and work to build more independent and efficient industrial systems.
Industry 4.0 is a term encompassing a
promise of the innovative industrial
revolution – that married advanced
techniques in manufacturing with the IoT
(Internet of Things). The idea is to create
new and interconnected manufacturing
systems that can communicate, use
information, and analyze data to drive
intelligent actions in this physical world.
Hence, it is also called Industrial
Revolution 4.0.
As of 2019, it is estimated that the
market value of Industry 4.0 technologies would be $71.7 billion. After that, the same market
value is expected to reach $156.6 billion in 2024, at a 16.9% CAGR from 2019 to 2024.
Increasing industrial internet adoption worldwide in the manufacturing units, better focus on
improving the efficiency of systems and machinery, and reducing production costs are
significant factors responsible for the growth of this market globally.
Industry 4.0
What is Industry 4.0?
Industry 4.0 is defined as the name for the latest trends of data exchange and automation in
manufacturing technologies, such as the Internet of Things, cyber-physical systems, cognitive
computing, cloud computing, and building intelligent factories.
It is the revolutionary digital transformation of production/manufacturing and other related
industries and processes that create value.
Cyber-physical systems are the basis of this revolutionary technology. Using advanced control
systems, they have successfully embedded software systems and dispose of the Internet
address for connecting and are addressed through IoT.
In this way, products and manufacturing processes are networked to communicate to enable
the industry 4.0 technologies to create value and optimize in real-time. Cyber-physical systems
are the source that makes capabilities for modern smart factories, which includes remote
tracking, monitoring, etc.
Interchangeably used with the fourth worldwide industrial revolution, industry 4.0 represents
another stage in the organization and controls the on-ground value chain. Its characteristics
include:
More automation compared to the third revolution
Bridging gaps between the digital and physical world through cyber-physical systems
introduced by IoT
A significant shift from the central industrial control to a place where the latest
intelligent products define the steps of production
Closed-loop control systems and data models
Product customization/personalization
Why is Industry 4.0 Needed?
How would you know if your existing business needs Industry 4.0 technologies?
Here's a checklist.
Your business belongs to a competitive industry with many tech-savvy rivals
You are facing difficulties recruiting resources at your organization
You expect greater visibility across the supply chain
You must identify minor issues before they turn into more significant problems and
address them
You are eager to boost profitability and efficiency across the organization
You want the entire organization to be informed and stay updated with a relevant view
of business processes and production
Industry 4.0
You want timely and rich analytics
You require help to digitize and make the information relevant
You aspire to improve overall customer satisfaction and experience
You want to scale up the quality of your product and maintain it
You want to create an integrated ERP system spanning across inventory as well as
planning, financials, supply chain management, manufacturing execution, and customer
relationships
You expect a flexible and consistent view of business operations and production tailored
to exact areas
You are looking for real-time insights to feel better and make faster business decisions
each day
Different Concepts Under Industry 4.0
There are several hundred terms and concepts related to Industrial 4.0. Of these, 12
foundational phrases and words are essential, irrespective of you want to invest in these
solutions or not:
i) ERP: Enterprise resource planning is an
essential tool for business process
management. It is used for managing
information across the organization.
ii) IoT: The Internet of Things refers to
connections between physical industrial
objects, such as machines or sensors, and the
internet.
iii) IIoT: Industrial Internet of Things is the link
between human resources, data, and
machines/equipment related to
manufacturing.
iv) Big Data: A large set of structure and unstructured data compiled, stored, analyzed, and
organized to disclose patterns, associations, trends, and opportunities.
Industry 4.0
v) AI: Artificial Intelligence is another concept, which refers to the computer's ability to perform
tasks and make decisions historically requiring human intelligence.
vi) Digitization: It refers to the method of collecting information and converting them into a
digital format.
vii) M2M: Machine-to-machine is a communication taking place between two distinct machines
through wired or wireless networks.
viii) Smart Factory: It is a facility that invests in and leverages Industry 4.0 technologies,
approaches, and solutions.
ix) Cloud Computing: The act of using multiple interconnected remote servers on the internet
for storing, managing, and processing information.
x) Real-time Data Processing: Computer systems and machines can automatically and
continuously process data to provide real-time or simply near-time outputs plus insights.
xi) Ecosystem: In manufacturing, an ecosystem means the potential connection or
connectedness of the entire operation, including inventory planning, financials, supply chain
management, customer relationships, manufacturing execution, etc.
xii) Cyber-physical System (CPS): Also called cyber manufacturing, is the Industry 4.0-enabled
environment for manufacturing, which provides real-time data collection and analysis, with
transparency across different aspects of the manufacturing operations.
Benefits of Industry 4.0
Industrial revolution 4.0 spans an entire lifecycle of a product as well as its supply chain. It
involves designs, inventory, sales, quality, scheduling, engineering, field service, and customer
service. Everyone wants up-to-date, informed, and relevant views of their business processes
and production. Noted below is a non-exhaustive list stating the key benefits of Industry 4.0 in
the modern business model:
Industry revolution 4.0 could make your business more competitive, typically against
disruptors such as Amazon. Companies such as Amazon optimize supply chain and
logistics continuously. Hence, you must invest in a technology or solution that helps you
optimize and improve operations. Your business must have the processes and systems
to ensure you can provide better services to customers and remain competitive.
Industry 4.0 technologies also make you attractive and presentable to the youth
workforce. Companies investing in modern and innovative Industry revolution 4.0 are
better positioned to allure and retain workers. With this, you can have a stronger team
with better collaboration.
Industry 4.0
Companies investing in these solutions can increase efficiency, enable prescriptive and
predictive analysis, and let people like operators, executives, and managers leverage the
real-time data and intelligent insights for decision-making while managing their daily
responsibilities.
It empowers businesses to address potential threats and issues before they turn into
more significant problems. Real-time data, predictive analytics, automation, and
internet-enabled machinery can make your business more proactive in addressing or
resolving potential issues with supply chain and maintenance.
Lastly, you can cut costs, boost profit, and increase growth with Industry 4.0
technologies. It helps you optimize and manage various aspects of the manufacturing
process, supply chain, etc. and boost the bottom line and efficiency of the entire
operation.
Industry 4.0 Challenges
Anything that comes with a lot of benefits also has a few challenges. Industry 4.0 challenges
include incorporating new technology or process into the organization. Besides, there are
some other real-time challenges, such as:
Industry 4.0
Data Security: The first and foremost challenge is to ensure data security. There is a
constant threat of cybercrime for many businesses regarding customer data.
Switching to the cloud means moving out of their comfort zone – which makes them
vulnerable. Data security is the primary concern of cloud-based technologies and
Industrial 4.0 technologies.
Trained Human Resources: To adopt new technology, the frontline executives need
training. Investing in new technology like Industry 4.0 doesn't indicate that you
should rely on IT management to maintain systems. Instead, you can benefit from
the frequent workforce training and constant guidance that the service provider
conducts.
Team Support: Having team support is highly crucial when moving to new
technology. The new model may be challenging to accept and adopt. You must set
clear expectations, state the purpose and the benefits of this investment, and be
transparent with the team throughout the implementation.
Leveraging Data: Another Industry 4.0 challenge is to leverage information and data
and make informed decisions. You need training, knowledge, and documentation to
understand the pattern to use data and improve, change, or grow a business.
Conclusion
To build one of the most scalable and sustainable business environments, you must use
tools to streamline tasks, collaborate, boost productivity, and leverage real-time data. Industry
4.0 solutions can be highly effective for your business to get on the right track and leverage the
ever-increasing clout of emerging technologies like IoT Services.
