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What is industry 4.0?

What is industry 4.0?

Industry 4.0 technologies revolutionise the automation, monitoring, and
analysis of supply chains through smart technology.

Industry 4.0 overview

Industry 4.0 has reinvented how businesses design, manufacture, and distribute their
products. Technologies such as Industrial Internet of Things (IIoT), cloud connectivity, AI,
and machine learning are now deeply woven into the manufacturing process. This unified
and integrated approach to manufacturing results in products, factories, and assets that
are connected and intelligent.

Today’s Industry 4.0 initiatives also look to develop symbiotic and rewarding
collaborations between people and technology. When the accuracy and speed of 4.0
tools comes together with the creativity, talent, and innovation of your people, you get a
win/win for both your workforce and your bottom line. Your manufacturing operations
become more efficient and productive, and your teams are relieved of a lot of mundane
and repetitive tasks – giving them the opportunity to collaborate with smart technologies
and better equip themselves for the evolving technological landscape and the AI-
powered future of work.

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“ The general definition of Industry 4.0 is the rise of digital industrial technology
… Industry 4.0 transformations allow us to work alongside machines in new,
highly productive ways.
”
– Daniel Burrus

Industry 4.0 definition

Industry 4.0 can be defined as the integration of intelligent digital technologies into
manufacturing and industrial processes. It encompasses a set of technologies that
include industrial IoT networks, AI, Big Data, robotics, and automation. Industry 4.0 allows
for smart manufacturing and the creation of intelligent factories. It aims to enhance
productivity, efficiency, and flexibility while enabling more intelligent decision-making
and customisation in manufacturing and supply chain operations.

And any definition of Industry 4.0 would also have to include its origin from the term
Fourth Industrial Revolution. Since the 1800s, we have experienced three industrial
revolutions. They were called “revolutions” because the innovation that drove them
didn’t just slightly improve productivity and efficiency – it completely revolutionised how
goods were produced and how work was done. We are now in the Fourth Industrial
Revolution, aka Industry 4.0.

First industrial revolution

By the early 1800s, the First Industrial Revolution was underway. The invention of the
steam engine reduced industrial reliance on animal and human labour, ushering in a new
age of manufacturing and precision engineering.

Second industrial revolution

A century later, the growing use of petroleum and electric power meant that machinery
could be leaner and less cumbersome. The Second Industrial Revolution was driven by
the assembly line and mass production processes, many of which are still in use today.

Third industrial revolution

Around the middle of the 20 th century, computers hit the scene. The Third Industrial
Revolution saw the early development of factory automation and robotics. This era also
saw the first use of computerized business systems that were built to manage and
analyse data.

Fourth industrial revolution

Today, manufacturing is increasingly powered by information. Vast amounts of data come
from across the business and around the world, in real time, around the clock. AI is at the
heart of the Fourth Industrial Revolution, allowing manufacturers to not only gather all
that data but use it – to analyse, predict, understand, and report. Industry 4.0 is not
characterized by a single technology. It is defined by the seamless integration of a
number of systems, tools, and innovations.

Industry 4.0 technologies

Industry 4.0 is built on nine technology pillars. These innovations bridge the physical and
digital worlds and make smart and autonomous systems possible. Businesses and
supply chains already use some of these advanced technologies, but the full potential of
Industry 4.0 comes to life when they’re used together.
Industry 4.0 technologies

1. Big Data and AI analytics: In an Industry 4.0 landscape, Big Data is collected from a
wide range of sources. Of course, this includes capturing data from assets, equipment,
and IoT-enabled devices. Data sources also extend outside the factory floor, into
other areas of the business and the world. They can include everything from customer
reviews and market trends that inform R&D and design, to weather and traffic apps
that help ensure smoother logistics. Analytics powered by AI and machine learning
are applied to the data in real time – and insights are leveraged to improve decision-
making and automation in every area of manufacturing and supply chain management
.

2. Horizontal and vertical integration: An essential framework of Industry 4.0 is

horizontal and vertical integration. With horizontal integration, processes are tightly
integrated at the “field level” – on the production floor, across multiple production
facilities, and across the entire supply chain. With vertical integration, all the layers of
an organisation are tied together – and data flows freely from the shop floor to the
top floor and back down again. In other words, production is tightly integrated with
business processes like R&D, quality assurance, sales and marketing, and other
departments –reducing data and knowledge silos and streamlining operations.

3. Cloud computing: Cloud computing is the “great enabler” of Industry 4.0 and
digital transformation. Today’s cloud technology provides the foundation for most
advanced technologies – from AI and machine learning to IoT integration – and gives
businesses the means to innovate. The data that fuels Industry 4.0 technologies
resides in the cloud, and the cyber-physical systems at the core of Industry 4.0 use
the cloud to communicate and coordinate in real time.
4. Augmented reality (AR): Augmented reality typically overlays digital content on to a
real environment. With an AR system, employees use smart glasses or mobile devices
to visualise real-time IoT data, digitalised parts, repair or assembly instructions,
training content, and more – all while looking at a physical thing like a piece of
equipment or a product. AR is still emerging but has major implications for
maintenance, service, and quality assurance, as well as technician training and safety.

5. Industrial Internet of Things (IIoT): The Internet of Things (IoT) – more specifically,
the Industrial Internet of Things – is so central to Industry 4.0 that the two terms are
often used interchangeably. Most physical things in Industry 4.0 – devices, robots,
machinery, equipment, products – use sensors and RFID tags to provide real-time
data about their condition, performance, or location. This technology lets companies
run smoother supply chains, rapidly design and modify products, prevent equipment
downtime, stay on top of consumer preferences, track products and inventory, and
much more.

6. Additive manufacturing/3D printing: Additive manufacturing, or 3D printing was

initially used as a rapid prototyping tool but now offers a broader range of
applications, from mass customisation to distributed manufacturing. With 3D printing,
parts and products can be stored as design files in virtual inventories and printed on
demand at the point of need – reducing both costs and the need for off-site/off-shore
manufacturing. Every year, the extent of 3D printing grows more varied, increasingly
including base filaments such as metals, high-performance polymers, ceramics, and
even biomaterials.

7. Autonomous robots: With Industry 4.0, a new generation of autonomous robots is

emerging. Programmed to perform tasks with minimal human intervention,
autonomous robots vary greatly in size and function, from inventory scanning drones
to autonomous mobile robots for pick and place operations. Equipped with cutting-
edge software, AI, sensors, and machine vision, these robots are capable of
performing difficult and delicate tasks – and can recognise, analyse, and act on
information they receive from their surroundings.

8. Simulation/digital twins: A digital twin is a virtual simulation of a real-world

machine, product, process, or system based on IoT sensor data. This core component
of Industry 4.0 allows businesses to better understand, analyse, and improve the
performance and maintenance of industrial systems and products. An asset operator,
for example, can use a digital twin to identify a specific malfunctioning part, predict
potential issues, and improve uptime.

9. Cybersecurity: With the increased connectivity and use of Big Data in Industry 4.0,
effective cybersecurity is paramount. By implementing a Zero Trust architecture and
technologies like machine learning and blockchain, companies can automate threat
detection, prevention, and response – and minimise the risk of data breaches and
production delays across their networks.
Manufacturing 4.0 solutions in
action
The digital transformation associated with Industry 4.0 brings about both cultural and
operational evolution. By unifying and connecting people, data, and assets, you create
an almost limitless range of potential optimisations. Below are a few examples of how
Industry 4.0 solutions are improving efficiency, visibility, and sustainability in
manufacturing and supply chains.


Collaborative Design Platforms: Industry 4.0 supports the creation of collaborative
design platforms where R&D teams, product designers, and stakeholders from across
your organisation can access and contribute to design data and insights. This open
approach fosters cross-functional collaboration, idea sharing and knowledge
exchange, leading to more informed design decisions and the faster development of
innovative, customer-centric products.

Predictive maintenance: By integrating IoT sensors and data analytics,
manufacturing businesses can monitor equipment health in real-time. Predictive
maintenance algorithms identify potential failures before they occur, allowing you to
implement proactive processes which can reduce downtime by up to 50%, and
extend asset lifespan as much as 40%.

Supply chain optimisation: Industry 4.0 supports end-to-end visibility across your
global supply chain. With real-time data from suppliers, inventory levels, production
schedules, customer demand, internal teams, and much more, you can optimise
logistics, balance supply and demand, improve order fulfilment, and enhance your
overall supply chain and manufacturing efficiency.

Agile manufacturing: AI and advanced analytics allow you to gather and analyse
real-time customer insights and feedback from sources like social media, online
reviews, and customer support interactions. Your R&D teams and product designers
can leverage this data to identify consumer preferences, pain points, and emerging
trends. By incorporating this feedback into the design process, your teams can quickly
develop products that better align with market demands, improving satisfaction and
loyalty, and driving innovation.

Quality Control and Defect Detection: Leveraging IoT devices and machine
learning algorithms, you’ll be able to collect real-time data from all your production
lines. By continuously monitoring the manufacturing and production process, you can
detect anomalies, identify quality issues, and take corrective actions quickly, making
sure you’re always on top of product quality.

Circular Economy Practices: Industry 4.0 supports the implementation of circular
economies, focusing on reducing waste and maximising the reuse, refurbishment, and
 recycling of materials. By utilising Big Data analytics and IoT networks, you can track
product lifecycles, implement reverse logistics for product returns, and optimise the
recovery of valuable resources. What’s more, AI-powered advanced analytics can also
help your product designers to develop products – right from the drawing board –
that are built to be more sustainable, waste fewer resources, and be more easily
recycled or repurposed.

Carbon Footprint Monitoring and Optimisation: Industry 4.0 technologies
facilitate the collection and analysis of real-time data on energy consumption,
transportation emissions, and other factors contributing to a company's carbon
footprint. By accurately measuring and monitoring emissions, you can identify areas
for improvement, implement energy-efficient measures, and develop strategies to
reduce your overall carbon footprint, helping you to meet your increasingly ambitious
sustainability goals.

Industry 4.0 benefits summarized

Industry 4.0 represents more than simply a technology upgrade. By knocking down silos
and connecting teams and operations across your manufacturing landscape, you begin
to establish a more transparent and holistic way of doing business – that can eventually
extend across all areas of your organisation.

Operational efficiency is enhanced with improved resource allocation, reduced

downtime, and better productivity. This efficiency extends to sustainability initiatives
where analytics and smart automations can help you further optimise and streamline
energy use, reduce waste, and even design and innovate products that are more
sustainable throughout their lifecycle.

The fact that industry 4.0 solutions and tools let you collect, analyse, and interpret vast
amounts of data in real-time – means that you can get actionable insights really quickly,
giving you the power to make decisions with confidence and accuracy. This applies to
customers as well, because their demands and expectations are also changing at
lightning speed. So, real-time data analytics can help you adapt quickly to personalise
products, and provide tailored solutions on demand.

We live in competitive and volatile times. Industry 4.0 tools and strategies help improve
not only efficiency and productivity, but the ability to see around corners and gain a
meaningful competitive advantage.
Frequently asked questions about
Industry 4.0
What are the first steps we should take to get our business ready
for Industry 4.0?

Is there a way to connect much older machinery to a digital

network?

Do these new technologies integrate with our existing ERP?

Are our existing business systems and databases equal to running

Industry 4.0 technologies?

How do I know which Industry 4.0 technologies are best for our
business?

How long will it take to achieve our Industry 4.0 transformation

goals?

Will Industry 4.0 require a lot of retraining for our staff?

How can we be sure the Industry 4.0 solutions we implement will

be adaptable for the future?

What if we invest in Industry 4.0 solutions and then our business

model changes?

How do we respond to concerns that Industry 4.0 automation will

take away jobs?

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chain transformation.

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