What Industry 4.0 means and why start adopting it

The German Academy of Science and Technology coined the term “Industry 4.0”. It propagated that modern emerging technologies (e.g. IoT, IIoT, Big Data, 3D printing, Analytics, Machine Learning, Robotics etc.) will have a similar consequence on our society as steam engines /electricity/PLC technology had in past. In other words, most supporters of Industry 4.0 says that these tools will renovate present manufacturing industry in the similar manner as the steam engine, the assembly line, and early electronics and computers transformed manufacturing. (For more interesting historical analysis read my previous article Need for Industry 4.0)

What industry 4.0 means

Industry 4.0 is a central idea that brings together solutions such as (IoT, IIoT, Big Data, 3D printing, Analytics, Machine Learning, Robotics etc.) that connect factories (or smart factory) and their components through intelligent use of data. This can be seen as central framework for Industry 4.0. It can be seen as the marriage of physical and digital worlds. In my opinion, the standalone definition or understanding of the industry 4.0 concept is injustice to the gravity of the philosophy, hence, I view it as an eco-system. The ecosystem will be encompassing the techo-managerial-human dimension to give a sense of sustainable solution and change agent. But such change be a revolution? Lets analyses from following dimensions-

Is it new!!

Yes, It is. One can easy find an example in 3D printing technologies which can allows production of spare parts locally as per need. No wonder, such disruptive technology can make many old-style production and logistic practices superseded.

Some of the key observation to advocate its adoption are-

1.     It eliminates many challenges for present manufacturers

Management of shorter product life cycles, production complexity, supply chains.  It can be the answer to responsive V/S efficient business. The digitalization of the whole product lifecycle will allow companies to use data from production to service to social media to satisfy the customer in best possible manner. Manage demand, risk, and sustainability.

 2.     It is answer to the rapid innovation requirement

Spent less time in execution and more on innovation. The industry 4.0 will not only improve efficiency but also speed up innovations coupled with new business models coming in future. For example, the trust deficit can be managed in collaboration process, hence, by sharing equipment or selling capacity efficiency can be achieved. Use of lot of variety of sensors and fast connectivity, the products will be more enjoyed by customers as service. An washing machine manufacturer might not sell it to anymore in the future but provide them as a service to customers

 3.     It is consumer centric

Able to focus on smart products. The technology enable firms to have more customized products without extra cost. The digitalization will help in faster design process to production. Thinking in the dimension of product as service

4.     It is humans centric

When machines will be smarter, the working in production lines will be enriched and humanized. Less amount of manual task. Automatic to automatic. Yes, the human intervention will be less, but employment will be more. This point seems difficult to digest but yes, we have example of use computer in industry in 19th century, which ultimately push new business models, use and hence contributed in employment generation as well as superior customer experience. It can be answer to lot of contemporary problems such as pollution, accidents, environmental loss, unsustainable development etc. What can be achieved is reduce energy consumption, new technologies, business models, trust, innovation, decentralization, transparency etc.  

There will be lot of challenges to adopt such a disruption methods, I hope the benefits will be much more rewarding.

What is your take on it?

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