UNIT-1 (ETGB)

SYLLABUS

Meaning and Nature of Industry 4.0 and Latest Trends. Realignment in

Political, Economic, Socio-Cultural, and Technological Factors that are
driving change in International Business Management, the changing nature
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of Globalization, The changing nature of the regulatory environment,
natural environment, and new age ethics. Overview of Digital
Transformation.
 Industry 4.0 – The 4th Industrial Revolution

Industry 4.0, was first declared by the German

government during the Hannover Fair in 2011 as the
beginning of the 4th industrial revolution.
It is also called 4IR

Revolution: A sudden and great change.

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Industry: Economic activity concerned with the
processing of raw materials and manufacture of goods
in factories
Industry revolution: Development of new technologies
approaches. a rapid major change in an economy
marked by the general introduction of power-driven
machinery or by important changes in the prevailing
types and methods of use of such machines.
 Industrial Revolution
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▪ The Industrial Revolution was the transformation of agriculture and handicraft

economies into industries and urbanized ones which included machines, new
chemical manufacturing iron production processes, etc.

▪ This technological advancement transformed this society by introducing a way of living

and working.

▪ Innovation began great during the mid-18th century and early 19th century and later
spread throughout much of the world.

▪ 1st Industrial Revolution (1760-1870)

▪ 2nd Industrial Revolution (1970-1070)

▪ 3rd Industrial Revolution (1970 to early 2000)

 1. Industrial Revolution
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End of 18th Century: The introduction of manufacturing plants with the

help of hydropower and steam power.

▪ First mechanical loom 1784

▪ Mechanization

▪ Water power

▪ Steam power
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The First Industrial Revolution

▪ The first Industrial Revolution began in England in about 1750-1760 and lasted
between 1820 and 1840.

▪ During this period human and animal labor technology transformed into machinery,
such as the steam engine, the spinning jenny, coke smelting, pudding, and rolling
processes for making iron, etc.

▪ The Industrial Revolution is renewed for global economic growth, increase in

production and consumption of common people.

▪ The system of transportation communication through canals, road and rails had
improved.
 2. Industrial Revolution
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▪ The introduction of shared mass production with the help of
electric energy
▪ Beginning of 20th Century

▪ First assembly line Union Stock Yards 1870

▪ Mass Production

▪ assembly line
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Second Industrial Revolution

▪ The 2nd Industrial Revolution, also known as the technological revolution.

▪ The phase of rapid scientific discovery, standardization, mass production, and

industrialization from the late 19th century.

▪ Rapid advances in the creation of steel, chemicals, and electricity helped fuel
production, including mass-produced consumer goods and weapons.

▪ It become far easier to get around on trains automobiles and bicycles. At the same
time, ideas and news spread via newspapers, the radio and the telegraph.
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3. Industrial Revolution :Beginning of
the 1970s

by electronics and IT for enhanced automation in production. First Programmable

Logic Controller (PLC) Modicon 084 1969.

Computer and automation

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Third Industrial Revolution

▪ The 3rd industrial revolution also called the digital revolution

▪ The digital revolution is the shift from mechanical and analog electronic technology to
digital electronics.

▪ Many remarkable technologies are converging: clever software, novel materials, more
dexterous robots, new processes (notably three-dimensional printing), and a whole
range of web-based services
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4. Industrial Revolution: Today

▪ based on Cyber-Physical Systems(CPS). It enables communication, monitoring,

and control like a smart city
 The Impact of Information and
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Communication Technology
1-Hypermedia Interlinked Documents (1995 ) World Wide Web Web

2- Multimedia Interlinked Media (2000) Java, Web 1.0

3-Social Media Interlinked People (2005 ) Web Services Web 2.0

4- Social Media Interlinked Enterprises (2010) App Technologies Web 3.0

5-Cyber-Physical Media (2015 ) IoT, IoS, IoD, ... Industries Web A.B
Interlinked Systems

6- Future Media ( 2020 ) ? Web X.Y

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The Impact of Information and
Communication Technology

1-Hypermedia Interlinked Documents 2- Multimedia Interlinked Media

▪ World Wide Web Web Java, Web 1.0

▪ 1995 2000
 To be contd…..
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3-Social Media Interlinked People 4- Social Media Interlinked Enterprises

Web Services App Technologies

Web 2.0 Web 3.0

2005 2010
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To be contd
5-Cyber-Physical Media
Interlinked Systems 6- Future Media

Web A.B Web X.Y ?

IoT, IoS, IoD, ... Industrie 4.0 Components

2015 2020
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Meaning and Nature of Industry 4.0

▪ The 4th Industrial Revolution also known as 4IR or Industry 4.0

▪ The rapid change in technology, industries, social relations, and processes in the 21st
century is due to increasing interconnectivity and smart automation.

▪ A part of this phase of industrial change is the joining of technologies like artificial
intelligence, and gene editing to advanced robotics that blur the lines between the
physical, digital, and biological worlds.

▪ The nature of 4IR is the trend towards automation and data exchange in manufacturing
technologies and processes which include cyber-physical systems, IoT, industrial
Internet of things, cloud computing, cognitive computing, and artificial intelligence
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Benefits of 4IR

▪ Improved productivity and less machine downtime, increasing thought put while
allocating your resources more cost-effectively and efficiently.

▪ Improve efficiency, multiple areas of your production line will become more efficient as
a result of industry4.0 related technologies.

▪ Optimized product, production line, and factory lifecycles with digital twins.

▪ Empowered people, with industry4.0, also include enhanced flexibility and agility

▪ Increased knowledge sharing and collaborative working

 The latest trend of industrial revolution 4.0
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▪ The fourth industrial revolution is the trend towards automation and data exchange in
manufacturing technologies.

▪ Cyber-physical system(CPS) Robotics

▪ IoT, Industrial Internet of Things cognitive Computing

▪ Cloud Computing Artificial Intelligence Smart factories

▪ AI and machine learning are also the foundation on which many other technology trends
are built.

▪ AI gives machines the ability to carry out a wide range of human-loke processes such as
seeing (facial recognition), writing (chatbots), and speaking (Alexa)
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Top 10 industry 4.0 Trends in 2024
▪ 1- Cyber Security, Transparency & Privacy

▪ 2- Edge, Fog & Cloud Computing

▪ 3- Artificial Intelligence

▪ 4- Human Augmentation & Extended Reality (XR)

▪ 5- Network & Connectivity

▪ 6- Advanced Robotics

▪ 7-Internet of Everything

▪ 8-DigitalTwin

▪ 9-Additive Manufacturing

▪ 10- Big Data & Analytics

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1- Cyber Security, Transparency & Privacy

▪ The transmission and processing of sensitive industrial data must be done securely to
avoid cyber attacks on critical industrial facilities.

▪ Digital ethics & ethics and privacy-enhancing technologies, self-adaptive security, end-
to-end communication security, and blockchain are some of the new developments in
this front
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2-Edge, Fog & Cloud Computing

▪ The industrial Internet of Things (IIoT) generates a vast amount of data, propelling the
adoption of edge, fog, and cloud computing in Industry 4.0. Custom hardware and
software solutions such as connected clouds, distributed clouds, distributed computer

▪ This layered approach ensures efficient data handling, from immediate processing at
the edge to in-depth analysis in the cloud. ng and storage, and hybrid computing are
shaping this trend.
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3-Artificial Intelligence

▪ The development of AI-specific hardware and novel algorithms enhances existing

systems and addresses manufacturing challenges. These technologies are steering
manufacturing facilities towards fully automated, lights-out manufacturing.
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4-Human Augmentation & Extended Reality
(XR)

▪ Technologies such as wearables and exoskeletons are enhancing human capabilities,

both physically and cognitively.

▪ XR technologies like mixed reality (MR), augmented reality (AR), and virtual reality
(VR) are transforming industrial manufacturing systems.

▪ They are shifting the nature of human-machine interaction towards machine-enabled

workers.
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5-Network & Connectivity

▪ Technological advancements such as edge-to-cloud, gigabit ethernet time-sensitive

networks, low-power wide-area network (LPWAN), 5G, and machine-to-machine
communication (M2M) are pushing factories to adopt IIoT, transforming them into
Industry 4.0 facilities.

▪ These technologies are continually enhancing communication between machines and

humans, as well as data transmission.

▪ Innovations in this area are increasing speed, bolstering security and efficiency, and
reducing network connectivity costs.
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6-Advanced Robotics

▪ Advancements in robotics make the processes in Industry 4.0 faster, more efficient,
and safer. Autonomous robots, collaborative robots (cobots), humanoid robots, mobile
robots, cloud robotics, APIs, pick-and-place robots, and robot swarms are among the
key robotic technologies impacting manufacturing.

▪ The use of robots enhances precision and agility, while also boosting the ability to
swiftly develop customizable robots.
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7-Internet of Everything

▪ In manufacturing, real-time connectedness forms the backbone of the Internet of

Everything (IoE). This connectedness spans machine-machine, human-machine, and
human-human interactions.

▪ It encompasses the Internet of Industrial Things ( IIoT), Internet of Skills, Internet of

Services, Internet of Systems, and Shop Floor IoT.

▪ IoE enables real-time monitoring and control of all connected assets. This leads to
optimized resource utilization, further enhancing the efficiency of manufacturing
processes.
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8-Digital Twin

▪ Virtual models of industrial assets are created using digital twin technology, which
combines dynamic real-time sensing and visualization data. This technology has
promising use cases, including model-driven design, virtual prototyping, virtual system
validation, throughput optimization, and evolutionary design.

▪ The adoption of digital twins is driving Industry 4.0 manufacturing towards hyper-
automation.
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9-Additive Manufacturing

▪ Additive manufacturing is paving the way for highly customizable and sustainable
cloud-based production. Furthermore, the integration of additive manufacturing with
digital designs and simulations enhances precision and reduces time-to-market.
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10-Big Data & Analytics

▪ Big data analytics refers to the methods, tools, and applications used to collect, process, and
derive insights from varied, high-volume, high-velocity data sets. These data sets may come
from a variety of sources, such as web, mobile, email, social media, and networked smart
devices.

▪ These technologies meticulously process and analyze data from a variety of sources,
including sensors, machines, and systems, offering a holistic view of operations and
enhancing decision-making and operational efficiency.
- Realignment in Political, Social Cultural, Economic
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▪ Realignment refers to a significant shift in the political, social, cultural, or economic

landscape of a society. Such realignments often occur due to changes in
demographics, cultural values, technological advancements, or economic conditions.

▪ some examples of realignment in different areas:

▪ Political Realignment: Political realignment refers to a shift in the political landscape of

a country. It may occur due to changes in political ideology, demographic shifts, or
changes in the political system.

▪ For example, the civil rights movement in the United States led to a realignment in the
political landscape, as African Americans began to support the Democratic Party,
which advocated for their rights
 - Realignment in Political, Social Cultural,
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Economic

▪ Social Realignment:
Social realignment refers to a shift in social norms and values. It may occur due to
changes in demographics, cultural movements, or technological advancements. For
example, the rise of social media has led to a realignment in social norms, as people
increasingly use digital platforms to connect and share information.

▪ Cultural Realignment:
Cultural realignment refers to a shift in the cultural landscape of a society. It may occur
due to changes in popular culture, globalization, or demographic shifts. For example, the
increasing diversity of Western societies has led to a realignment in cultural norms, as
different groups bring their values and traditions to the mainstream.
 Realignment in Political, Social Cultural, Economic
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▪ Economic Realignment:

Economic realignment refers to a shift in the economic landscape of a society. It may

occur due to changes in the global economy, technological advancements, or consumer
behavior. For example, e-commerce has led to a realignment in the retail sector, as
consumers increasingly shop online rather than in traditional brick-and-mortar stores.
Realignment in these areas can have far-reaching effects on society, leading to changes in
political power, social norms, cultural practices, and economic opportunities. It is
important to understand and anticipate these realignments to adapt and thrive in a rapidly
changing world.
 Technology Factors that are driving the change in
z International Business Management

▪ The rapid pace of technological advancements has significantly impacted how

international businesses operate. Here are some of the key technology factors that are
driving the change in international business management:

▪ Digitalization:

The widespread use of digital technology has enabled businesses to operate more
efficiently and cost-effectively. Digitalization has led to the automation of various business
processes, such as supply chain management, inventory control, and customer relationship
management.
 Realignment in Political, Social Cultural, Economic
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▪ Cloud Computing:

Cloud computing has enabled businesses to store and access data and applications
remotely, reducing the need for physical infrastructure and enabling greater flexibility in
operations. This has also led to the rise of software as a service (SaaS) and other cloud-
based solutions that enable businesses to access the latest technology without investing in
expensive hardware and software.

▪ Big Data Analytics:

Big data analytics is increasingly used by businesses to extract valuable insights from large
amounts of data. This has enabled businesses to make data-driven decisions, improve
operational efficiency, and enhance customer engagement
 Realignment in Political, Social Cultural,
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Economic

Artificial Intelligence (AI) and Machine Learning (ML):

AI and ML technologies are being used to automate various business processes, such as data analysis, customer service,
and supply chain management. These technologies are also enabling businesses to personalize their offerings, improve
forecasting accuracy, and optimize pricing strategies.

▪ Internet of Things (IoT):

The IoT refers to the interconnected network of devices, sensors, and machines that collect and transmit
data. This technology is being increasingly used in manufacturing, logistics, and supply chain management
to improve efficiency and reduce costs

These technology factors are driving significant changes in international business management, enabling
businesses to operate more efficiently, make data-driven decisions, and engage with customers in new and
innovative ways. Businesses need to stay abreast of these technological advancements and integrate them
into their operations to remain competitive in the global marketplace.

▪
 Changing Nature of Globalization
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▪ Globalization refers to the increasing interconnectedness and interdependence of people,
businesses, and nations across the world. It has been a defining feature of the global economy
since the end of World War II, but the nature of globalization has been changing in recent years.
Here are some of the key changes in the nature of globalization:

▪ Shifting Economic Power:

The global economy is becoming more multipolar, with emerging economies such as China, India,
and Brazil rising in economic importance. This is leading to a shift away from the dominance of
Western economies and a greater emphasis on regional economic integration.

▪ Protectionism:

Protectionist policies, such as tariffs and trade barriers, are on the rise, particularly in the United
States. This is challenging the traditional model of globalization, which emphasizes free trade and
liberalization.
 Changing Nature of Globalization
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▪ Technological Advancements:

Rapid technological advancements, particularly in information and communication

technologies, are enabling businesses to operate more efficiently and connect with
customers and suppliers around the world. This is driving increased cross-border trade and
investment and is changing the way international businesses operate.

▪ Environmental Concerns:

Growing concern over environmental issues, such as climate change, is leading to

increased scrutiny of global supply chains and a greater emphasis on sustainability. This is
changing the way businesses operate, with a greater focus on reducing carbon emissions
and improving environmental performance.
 Changing Nature of Globalization
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▪ Social and Political Tensions:

Increasing social and political tensions, such as the rise of populist movements and
political polarization, challenge the idea of a unified global community. This makes it more
difficult to achieve consensus on global issues and leads to a more fragmented and
uncertain global environment.

These changes impact the way globalization operates, with a greater emphasis on regional
economic integration, sustainability, and technological advancements. As the nature of
globalization continues to evolve, businesses need to stay attuned to these changes and
adapt their strategies accordingly to remain competitive in the global marketplace.
The Changing Nature of the Regulatory Environment
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The regulatory environment is constantly evolving, driven by a range of factors such as

changing societal norms, technological advancements, and geopolitical developments. Here are
some of the key changes in the regulatory environment in recent years:

▪ Greater Emphasis on Compliance: There is a greater emphasis on regulatory compliance,

particularly in industries such as finance, healthcare, and technology. This has led to
increased scrutiny of businesses’ practices, with greater fines and penalties for non-
compliance.

▪ Globalization of Regulations: As businesses become increasingly global, regulatory

bodies are seeking to harmonize regulations across jurisdictions. This is creating a more
complex regulatory landscape, with businesses having to comply with multiple sets of
regulations and standards.
 The Changing Nature of the Regulatory
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▪ Rise of Digital Regulations:

With the rapid advancement of technology, there is a growing need for regulations that
govern digital technologies, such as data protection and privacy laws. This is creating new
challenges for businesses, particularly those that operate in multiple jurisdictions.

▪ Shift towards Risk-Based Approaches:

Regulators are increasingly adopting risk-based approaches, which prioritize areas of

greatest risk and allocate resources accordingly. This is leading to more targeted
regulation and a greater focus on areas such as cybersecurity, anti-money laundering, and
financial stability.
 The Changing Nature of the Regulatory
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▪ Greater Engagement with Stakeholders: Regulators are engaging more with

stakeholders, including businesses, consumers, and civil society groups, to ensure that
regulations are effective, relevant, and responsive to emerging risks

These changes in the regulatory environment are having a significant impact on businesses,
as they must adapt to new regulations and comply with increasingly complex and stringent
requirements. To stay ahead of the regulatory curve, businesses must invest in compliance
programs, engage proactively with regulators, and stay abreast of the latest regulatory
developments. By doing so, they can mitigate regulatory risk, build trust with stakeholders,
and create long-term value for their shareholders.

▪
 Natural Environment, New Age Ethics
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▪ Natural Environment: There is growing concern over the impact of businesses on the
natural environment, particularly in areas such as climate change, resource depletion,
and pollution. This has led to increased pressure on businesses to adopt sustainable
practices, reduce their carbon footprint, and conserve natural resources.

▪ Sustainable Development: Sustainable development is becoming a core focus for

many businesses, as they recognize the need to balance economic growth with social
and environmental responsibility. This includes initiatives such as reducing waste,
promoting renewable energy, and investing in eco-friendly products and services.
 Natural Environment, new age Ethics
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▪ New Age Ethics: There is a growing emphasis on new age ethics, such as transparency,
diversity, and social responsibility. Businesses are increasingly expected to act in a
socially responsible manner, taking into account the interests of stakeholders beyond
just their shareholders. This includes promoting diversity and inclusion, giving back to
communities, and supporting social causes.

▪ Reputation Risk: With the rise of social media and greater transparency, businesses are
increasingly vulnerable to reputation risk if they are seen to act unethically or harm the
natural environment. This has led to a greater emphasis on reputation management,
with businesses investing in brand building and crisis management.

▪ Stakeholder Engagement: Businesses are engaging more with stakeholders, including

employees, customers, investors, and civil society groups, to understand their
expectations and concerns around sustainability and ethical considerations. This is
leading to more collaborative approaches to problem-solving and a greater focus on
long-term value creation.
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Overview of Digital transformation

▪ Digital transformation is all about becoming a digital enterprise. An organization that

uses technology to continuously evolve all aspects of its business models.

▪ Digital transformation is about evolving your business by experimenting with new tech
and rethinking your current approach to common issues.
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Benefits of digital transformation

▪ Increase Productivity while reducing labor cost

▪ Improves the customer experience

▪ Drives innovation, keeping you ahead of your coemption

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Increases productivity while reducing labor cost

▪ Using technology to work more efficiently is one of the most impactful ways to transform
your business.

▪ Example : For enterprises, the time and money they spend training new employees
and updating digital resources can quickly get-out of hand
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Improves the customer experience

▪ Tech-savvy customers want a great experience through multiple touchpoint- Mobile

apps, social media, email, live chat etc. Digital transformations are the driving force
behind improved customer experiences.
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Drives Innovation, keeping you ahead of your
competition

▪ Your competitors are looking into digital transformation regardless of whether or not you
are. Choosing not to embrace digital transformation is essentially deciding that you
don’t mind being left behind. Investing in your organization’s future allows .
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Examples of digital transformation
Industry Digital transformation Real- world example
Health care Virtual visit, telemedicine, & patient portal Brigham health uses virtual visit allowing
patients to schedule appointments online
and conduct a screening via web video

Hospitality Online check-in, amenity booking tools Harrah’s uses online check-in for guests to
skip the in person process

Insurance Virtual quotes and online claims process Lemonade uses an online portal for
prospective customers to get instant
quotes

Retail Loyalty cards, e- commerce stores Target encourages its uses to download
the target app where it can reach
customers through in- app and push
notifications instantly