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What Everyone Must Know About Industry 4

Industry 4.0 refers to the current trend of automation and data exchange in manufacturing technologies. It involves cyber-physical systems that use sensors to monitor physical processes, machines that can communicate with each other and humans, and systems that make decentralized decisions with little human input. For a system to be considered Industry 4.0, it must have interoperability, information transparency, technical assistance, and decentralized decision making. While this shift faces challenges regarding data security, reliability, production integrity, and job loss, the benefits of improved safety, supply chain control, and productivity outweigh the concerns for many companies. Early adopters of Industry 4.0 practices are likely to be rewarded with increased revenues and competitive advantages.

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Shubham Lohiya
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0% found this document useful (0 votes)
45 views1 page

What Everyone Must Know About Industry 4

Industry 4.0 refers to the current trend of automation and data exchange in manufacturing technologies. It involves cyber-physical systems that use sensors to monitor physical processes, machines that can communicate with each other and humans, and systems that make decentralized decisions with little human input. For a system to be considered Industry 4.0, it must have interoperability, information transparency, technical assistance, and decentralized decision making. While this shift faces challenges regarding data security, reliability, production integrity, and job loss, the benefits of improved safety, supply chain control, and productivity outweigh the concerns for many companies. Early adopters of Industry 4.0 practices are likely to be rewarded with increased revenues and competitive advantages.

Uploaded by

Shubham Lohiya
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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What Everyone Must Know About Industry 4.

0
Bernard Marr
Jun 20, 2016,

 Bernard Marr is a best-selling author & keynote speaker on business, technology and big data. His new book is
Data Strategy.

First came steam and the first machines that mechanized some of the work our ancestors did. Next was electricity, the
assembly line and the birth of mass production. The third era of industry came about with the advent of computers and the
beginnings of automation, when robots and machines began to replace human workers on those assembly lines.

And now we enter Industry 4.0, in which computers and automation will come together in an entirely new way, with robotics
connected remotely to computer systems equipped with machine learning algorithms that can learn and control the robotics
with very little input from human operators.

Industry 4.0 introduces what has been called the “smart factory,” in which cyber-physical systems monitor the physical
processes of the factory and make decentralized decisions. The physical systems become Internet of Things, communicating
and cooperating both with each other and with humans in real time via the wireless web.

For a factory or system to be considered Industry 4.0, it must include:

 Interoperability — machines, devices, sensors and people that connect and communicate with one another.
 Information transparency — the systems create a virtual copy of the physical world through sensor data in order to
contextualize information.
 Technical assistance — both the ability of the systems to support humans in making decisions and solving
problems and the ability to assist humans with tasks that are too difficult or unsafe for humans.
 Decentralized decision-making — the ability of cyber-physical systems to make simple decisions on their own and
become as autonomous as possible.

But as with any major shift, there are challenges inherent in adopting an Industry 4.0 model:

 Data security issues are greatly increased by integrating new systems and more access to those systems.
Additionally, proprietary production knowledge becomes an IT security problem as well.
 A high degree of reliability and stability are needed for successful cyber-physical communication that can be
difficult to achieve and maintain.
 Maintaining the integrity of the production process with less human oversight could become a barrier.
 Loss of high-paying human jobs is always a concern when new automations are introduced.
 And avoiding technical problems that could cause expensive production outages is always a concern.
 Additionally, there is a systemic lack of experience and manpower to create and implement these systems — not to
mention a general reluctance from stakeholders and investors to invest heavily in new technologies.

But the benefits of an Industry 4.0 model could outweigh the concerns for many production facilities. In very dangerous
working environments, the health and safety of human workers could be improved dramatically. Supply chains could be
more readily controlled when there is data at every level of the manufacturing and delivery process. Computer control could
produce much more reliable and consistent productivity and output. And the results for many businesses could be increased
revenues, market share, and profits.

Reports have even suggested that emerging markets like India could benefit tremendously from Industry 4.0 practices, and
the city of Cincinnati, Ohio has declared itself an “Industry 4.0 demonstration city” to encourage investment and innovation
in the manufacturing sector there.

The question, then, is not if Industry 4.0 is coming, but how quickly. As with big data and other business trends, I suspect
that the early adopters will be rewarded for their courage jumping into this new technology, and those who avoid change risk
becoming irrelevant and left behind.

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