INDUSTRY

Why it matters?
4.0

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 Agenda

► Industrial Evolution
► 4th Industrial Revolution
► Building Blocks of Industry 4.0
► Potential Industrial Products Implications
► Potential Consumer Products Implications
► Impact of Industry 4.0

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 What is this?

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 What is this?

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 What is this?

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 What is this?

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 Industrial Evolution

4. Industrial revolution
Based on cyber-physical-
systems

3. Industrial revolution
Through the use of electronics
and IT further progression in
autonomous production
L
2. Industrial revolution
e
Introducing mass production
v
lines powered by electric
e
energy
l
1. Industrial revolution o
Introducing mechanical f
production machines powered c
by water and steam o
Industry 1.0 Industry 2.0 Industry 3.0 Industry 4.0 m
End of the Beginning of the Beginning of the Today p
18th century. 20th century 70th l
Source: DFKI/Bauer e
IAO
x
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t
y

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 Phases of earlier 3 Industrial Revolutions

1. 1760 to 1840 - Ushered in Mechanical production; railways and steam

engine

2. 1870 to 1940 - Mass production; electricity and assembly line

3. 1960 to 2010 - Computers; semi conductors, main frame computing,

personal devices, internet

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 Industry 4.0: Germany
Smart Manufacturing Leadership Coalition: USA
A collective term for technologies and concepts of value chain organization. Based on the
technological concepts of cyber-physical systems, the Internet of Things and the Internet of
Services, it facilitates the vision of the Smart Factory.
Within the modular structured Smart Factories of Industry 4.0, cyber-physical systems
monitor physical processes, create a virtual copy of the physical world and make
decentralized decisions.
Over the Internet of Things, Cyber-physical systems communicate & cooperate with each
other & humans in real time. Via the Internet of Services, both internal & cross-
organizational services are offered & utilized by participants of the value chain.

➢ Builds on the Digital revolution➢ Ubiquitous internet

➢ Smaller & powerful sensors ➢ Artificial Intelligence (AI)

➢ Machine Learning ➢ Labor & Energy Cost

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 Did not exist in 2006

► iPhone ► Android
► iPad ► Oculus
► Kindle ► Instagram
► 4G ► Snapchat
► Uber ► Whatsapp
► Airbnb
► Android

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 Time to reach 100 Million customers

► Telephone 75 Years

► Web 7 Years

► Facebook 4 Years

► Instagram 2 Years

► Pokemon Go 1 Month

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 Cyber Physical Systems

A cyber-physical system (CPS) is a system of collaborating computational elements

controlling physical entities. CPS are physical and engineered systems whose
operations are monitored, coordinated, controlled and integrated by a computing and
communication core. They allow us to add capabilities to physical systems by merging
computing and communication with physical processes.

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 Today’s Factory

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 Tomorrow’s Factory

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 Industry 4.0
Six Design Principles
► Interoperability: the ability of cyber-physical systems (i.e. work piece
carriers, assembly stations and products), humans and Smart Factories to
connect and communicate with each other via the Internet of Things and the
Internet of Services
► Virtualization: a virtual copy of the Smart Factory which is created by
linking sensor data (from monitoring physical processes) with virtual plant
models and simulation models
► Decentralization: the ability of cyber-physical systems within Smart
Factories to make decisions on their own
► Real-Time Capability: the capability to collect and analyze data and
provide the insights immediately
► Service Orientation: offering of services (of cyber-physical systems,
humans and Smart Factories) via the Internet of Services
► Modularity: flexible adaptation of Smart Factories for changing
requirements of individual modules

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 Building blocks of Industry 4.0

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 Impacting all aspect of value chain

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 Digital Enterprise
Entire value chain is digitized and integrated

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 Potential Implications

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 Robots working in Amazon WH

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 Examples
SIEMENS
German manufacturing giant Siemens, an industrial user, is implementing an

Industry 4.0 solution in medical engineering. For years, artificial knee and hip

joints were standardized products, with engineers needing several days to

customize them for patients. Now, new software and steering solutions enable

Siemens to produce an implant within 3 to 4 hours.

Source: Think Act: INDUSTRY 4.0 The new industrial revolution How Europe will succeed

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 Examples
TRUMPF

German toolmaker Trumpf, an Industry 4.0 supplier and worldwide market leader

of laser systems, has put the first "social machines" to work. Each component is

"smart" and knows what work has already been carried out on it. Because the

production facility already knows its capacity utilization and communicates with

other facilities, production options are automatically optimized.

Source: Think Act: INDUSTRY 4.0 The new industrial revolution How Europe will succeed

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 Examples
GE
Predix, the operating system for the Industrial Internet, is powering digital

industrial businesses that drive the global economy. By connecting

industrial equipment, analyzing data, and delivering real-time insights,

Predix-based apps are unleashing new levels of performance of both GE

and non-GE assets.

Source:https://www.ge.com/digital/predix

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 Examples of Product evolution: Connected
and smart products

Harvard Business Review

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 Impact

Economy

Individual
Business
Impact

Society National
& Global

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 Impact
Economy

► Growth

► Ageing

► Productivity

► Employment

► Labour subsititution

► The nature of Work

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 Impact
Business

► Customer expectations

► Data enhanced products

► Collaborative innovation

► New operating models

Combining digital, physical and biological worlds

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 Impact

► National & Global

► Governments

► Countries, regions & cities

► International security
► Society
► Inequality

► Community

► The Individual
► Identity, morality & ethics

► Human connection
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 Top 10 Skills to be relevant in Industry 4.0

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 Thank
Prakash1.singh@in.ey.com
YOU
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