Importance Of Fourth Industrial Revolution

1. Fourth Industrial Revolution | Industry 4.0 Industry 4.0, also known as the 4th Industrial Revolution, is changing how businesses operate. This transformation is driving them to compete in new ways and on different levels. The Fourth Industrial Revolution is creating a demand for new skills and new competencies. NICKY VERD. The Fourth Industrial Revolution: Transforming Manufacturing with Smart Factories The industrial revolutions have evolved over time. The first revolution introduced mechanization with water and steam power. And, The second revolution brought mass production and assembly lines powered by electricity. Furthermore, The third revolution incorporated computers and automation. Now, the fourth industrial revolution builds upon these advancements and enhances them further. Furthermore, It utilizes smart and autonomous systems driven by data and machine learning. The fourth industrial revolution is the digital transformation of manufacturing/production and related industries and value- creation processes. Industry 4.0, also known as the 4th Industrial Revolution, is changing how businesses operate. This transformation is driving them to compete in new ways and on different levels. Organizations must decide where & how to invest in these new technologies and recognize which ones might best encounter their needs. Without full knowledge of the changes & opportunities Industry 4.0 brings, companies may be at risk. Industry 4.0 manufacturing brings about a transformative change by enabling data collection and analysis across machines. This facilitates faster, more systematic, as well as more flexible processes for manufacturing high-quality products at reduced costs. The fourth industrial revolution introduces a new era known as Industrial Revolution 4.0. It combines advanced production techniques, operational strategies, and also the smart digital technologies to create a digital venture. The characteristics of this venture include autonomy, interconnectedness, and the capacity to analyze, communicate, and utilize data for intelligent actions in the physical realm. It also involves integrating smart, connected technology into organizations, assets, and individuals, and is marked by the emergence of novel capabilities. In 2011, during the Hannover Messe, the German government introduced an initiative called Industry 4.0, aiming to digitize manufacturing. Less than a decade later, the adoption of Industry 4.0 principles has been remarkable, not only in Germany and Europe but worldwide.

2. Table of Contents: The Fourth Industrial Revolution: Transforming Manufacturing with Smart Factories The Fourth Industrial Revolution Cycle Importance Of Fourth Industrial Revolution Technologies Modifying Fourth Industrial revolution Smart Factory Smart Factory Capabilities according to Learn Transformation: 5G could Stimulate Approval of Smart Factory Solutions Key Elements of Smart Factory Transformations The Familiar Themes: The “Smart Factory–specific” Themes Realizing the Value of Smart Factory Transformation oFrequently Asked Questions oKey Takeaways: • • • • • • • • • • • The Fourth Industrial Revolution Cycle The fourth industrial revolution integrates physical and digital technologies. It includes robotics, analytics, high-performance computing, additive manufacturing, advanced materials, natural language processing, artificial intelligence, cognitive technologies, and augmented reality. So, It consists of 3 steps: Physical to Digital: Gather information from the physical world & develop a digital record from physical data. Digitalto Digital: Share information & uncover meaningful insights using artificial intelligence, advanced analytics & scenario analysis. Digital to Physical: Put in algorithms to interpret digital-world decisions to effective data, to stimulate action & change in the physical world. • • • Also Read: Best Books Importance Of Fourth Industrial Revolution The survey revealed that respondents consider Industry 4.0 manufacturing as a crucial initiative, with 90% expressing the belief that it will have a significant impact in the next five years. Only 9% downplayed its impact. In addition to this, The primary objective of Industry 4.0 is to transform manufacturing and related industries, including logistics, by making them faster, more customer-centric, and highly efficient. Additionally, Industry 4.0 aims to move beyond automation and optimization, exploring new business opportunities and models.

3. Below, we survey some key insights that can enable business leaders to imagine how the 4th Industrial Revolution could affect their worlds. Leader’s Tip: Encourage a culture of creativity, ongoing learning, and technological acculturation in order to fully realise the potential of Industry 4.0 and smart factories. 1. Fourth Industrial Revolution Affects Each & Everything in Our Daily Lives- The Industrial Revolution 4.0 just doesn’t touch “manufacturers” but it can affect all of us. Industry 4.0 originates from the supply chain and manufacturing sectors, which are fundamental to our world. The product life cycle includes product composition, manufacturing locations, production processes, logistics for delivery, and subsequent repair destinations also. Hence, All these aspects are integral parts of understanding the journey a product undertakes throughout its lifecycle. Industry 4.0 principles will not only modify the manufacturing process but also have the potential to impact the movement of goods through distribution and autonomous logistics. Furthermore, these principles can also influence the way consumers interact with the products. Industry 4.0 goes beyond production by integrating smart technologies and digitalization. It brings significant advancements that revolutionize supply chain management, and delivery systems, and enhance the overall consumer experience. 2. Fourth Industrial Revolution Improves Productivity Through Optimization & Automation- The goals of fourth industrial revolution projects encompass several objectives: increasing profitability, cost savings, error and delay prevention through automation, waste reduction, real-time production acceleration, digitizing paper-based processes, and rapid intervention

4. in case of production issues. Industry 4.0 offers a range of solutions to optimize various aspects, including asset utilization, production processes, logistics, and inventory management, during lean transformation. 3. Real-time Data for a Real-time Supply Chain in a Real-time Economy- Fourth industrial revolution is about the complete life cycle of products & manufacturing doesn’t stand on its own. The complete value chain and ecosystem of manufacturing operations involve numerous stakeholders. These are all customers. And customers also want to improve productivity, regardless of where they fit in the supply chain. The heightened expectations of end customers, which encompass factors like product quality, timely delivery, and exceptional customer experience, profoundly influence the entire supply chain transformation. Certainly, This influence extends throughout the value chain, encompassing manufacturing and extending beyond it. 4. Better Quality Products: IoT-enabled Quality Improvement, Real- time Monitoring, and Cobots- In the interconnected environment where software, sensors, IoT technologies, systems of insight, and customer interactions are pivotal, there is a substantial opportunity to enhance product quality. Further, Automation, along with cyber-physical systems and the Internet of Things, enables real-time monitoring of quality aspects and reduces errors through the utilization of robots. Hence, This integration of technology and data enables enhanced quality control throughout the manufacturing and production processes. Enough companies have increased the usage of robots and at the same time hired more. The reason we mention it in the context of quality is that this is certainly one area where you see cobots popping up (cobots is a term for advanced collaborative robots or say more simply: robots that fit cooperation between man and machine). 5. Higher Business Continuity through Advanced Maintenance & Monitoring Possibilities- When a central industrial asset, such as an industrial robot in a car manufacturing plant, breaks down, it’s not just the robot that is affected. So, The impact extends to the production process, resulting in financial costs and dissatisfied customers. In some cases, the breakdown can lead to a complete disruption of production. It’sanyone’s worst dream as business continuity is an especially high concern. In addition to fixing work, resources, and costs, a damaged reputation and canceled orders can result. Connecting industrial assets and monitoring them through the Internet of Things (IoT), and addressing potential issues beforehand, offer significant benefits in VUCA environments. Alerts can be set up, assets can be proactively maintained, real-time monitoring & diagnosis becomes possible, engineers can fix issues and the list goes on. A world of new maintenance services opens up as we’ll see. No wonder asset management & maintenance are the second largest area of IoT investments in manufacturing.

5. 6. Better Working Conditions and Sustainability- Improving working conditions based on humidity, real-time temperature & other data in the plant, Fast detection & improved protection in case of incidents, detection of the presence of radiation, gasses & so on, better communication & collaboration possibilities, a focus on ergonomics, clean air & clean factory initiatives the list goes on. Hand-picked for you- Big Data/Analytics in Digital Supply Chain Transformation Technologies Modifying Fourth Industrial revolution Digital transformation technology is so far used in manufacturing, but with fourth industrial revolution, now it will modify production. Additionally, It will drive to prominent efficiencies & change traditional production relationships among producers, suppliers, and customers—as well as between humans and machines. Learn Transformation Experts tells some technology trends which shape the fourth industrial revolution manufacturing. 1. Big Data Analytics- In an advanced manufacturing fourth industrial revolution context, the collection & broad assessment of data from many different sources—production equipment & systems and consumer-management systems—will be a format to hold up real-time decision making. 2. AutonomousRobot- Robots will interact with one another & work safely alongside humans & learn from them. These robots will have a wide range of capabilities & also will cost less than those used in manufacturing today. 3. Industrial IoT- Industry 4.0 means that more devices sometimes including unfinished products—will be enhanced with fixing computing. It will allow field devices to communicate & interact both with one another & also with more centralized controllers, as necessary. It will also distribute analytics & decision making, enabling real-time responses. 4. Additive Manufacturing- Companies have started to embrace additive manufacturing, such as 3-D printing, which they use mostly to prototype & generate individual components. Industry 4.0 principles promote the extensive utilization of additive manufacturing methods to produce customized products in small quantities. Moreover, These methods offer construction advantages, including the ability to create compound and lightweight designs. 5. The Cloud- More production-related agreements will need increased data sharing across sites & company boundaries. Further, The performance of cloud technologies will improve, obtaining response times of some milliseconds. Consequently, machine data and functionality will gradually transition to the cloud, enabling the development of data-driven services for production systems. Smart Factory

6. The smart factory is a supple system that can self-optimize performance across a wider network, self-adjust to & learn from new conditions in real or near-real time, and freely run complete production processes. The smart factory, a quintessential term from Industry 4.0 & smart factory, use an amalgam of connected devices, data & artificial intelligence to make manufacturing more flexible and responsive, actually revolving around big data analytics, Industrial IoT, connected physical equipment, production techniques, & what can be done with it in a cyber-physical scope. The strategic importance of smart factories is unquestionable, as early acceptors have reported operating more efficiently & driving more to the conclusion. In the US alone, 86 % of manufacturers believe that smart factories will be the main driver of competition by 2025. Moreover, 83 % believe that smart factories will modify the way products are made. Research on smart Factory: Research constantly discloses improvement in quality, cost, safety, throughput, and revenue growth through the implementation of smart factory technologies that integrate capabilities in the industrial internet of things (IIoT), robotic process automation (RPA), cloud and edge computing, machine learning, artificial intelligence (AI) and augmented and virtual reality systems, among others. Leaders have a wide range of choices & opportunities concerning smart factory transformations, both in terms of which technologies to use, and how to deploy them during the process of business transformation. What manufacturers genuinely need is a partner skilled in all 3 features, who has sound knowledge of machines & the manufacturing process, who can find how and where digitalization can help, and who can install as well as service the tools needed to get there. The productivity gains achieved through smart factory initiatives will help the manufacturing industry to add $2.2 trillion of value to the global economy by 2023. So far, even if the expected average added value from smart factories is high at $1.9 trillion & expectations concerning smart factory benefits are on the hike. Smart Factory Capabilities according to Learn Transformation: Eases end-to-end integration with suppliers & customers. Provide real-time, on-demand performance progress reports noticeable across the production supply chain transformation. Filter processes as well as master production through advanced analytics. Give the information & technologies to enhance physical process control. Enables supple, adaptive & energetic production. • • • • • 5G could Stimulate Approval of Smart Factory Solutions 5G could be the prime factor leading the growth of smart factory solutions. Analysts predict that 5G will be a prime answer to smart factory adoption since it provides higher bandwidth & speed as well as low latency. Moreover, It can enable more organizations to adopt smart factory solutions like autonomous guided vehicles, warehouse automation, automated assembly lines & condition-based monitoring,

7. Many companies have started developing 5G enabled smart factory technologies. Mitsubishi Electric has been experimenting with 5G networks to strengthen human- machine interfaces for manufacturing. At its 5g connected plant in Texas, Ericsson has also been working on 5G infrastructure equipment. The first millimeter-wave Street Macros base stations were gathered at the factory initially this year. In South Korea, many big telecommunications operators including KT Corp, SK Telecom & LG Uplus Corp have evolved 5G enabled smart factory solutions to help SMEs in magnifying their manufacturing output & reducing costs. Key Elements of Smart Factory Transformations “How will you make certain that you can modify your processes & people when they have been working for so many years, and give them tools involve them?” In this section, we take envision from some interviews to expose the key elements of smart factory transformations. The Familiar Themes: Change Management in Smart Factory Transformations- 1. Human-centered Design Based on Real User Needs- Successful smart factory transformation leaders know that it is a need to consider user- oriented perspectives to achieve business objectives when designing smart factories. So, Take some time to understand how individual roles to work & what tools they need, involving a “human-centered approach to understand what [the user’s] trouble points are & making sure we understand how they need to use information, why they need to inspect it, what they need to look for & how they need to take action on it“. By prioritizing the user’s needs, one can identify and address issues and behaviors that require change. Subsequently, the focus shifts to leveraging technology to support these efforts. The key is to consider not just how to make the technology engaging but also how to make the application relevant and valuable to the user. The human element is a crucial factor that must be properly understood and incorporated; failure to do so can result in investment failure for projects. 2. The Top-down, Bottom-up Approach led by Change Champions- Change champions play a vital role in leadership transformation by providing support both at the strategic level and on the ground. Further, They help eliminate barriers, secure organizational buy-in, and articulate the business case for implementing smart factories. Leaders understand the significance of executive-level sponsorship as these initiatives often require significant investments of resources, such as time, personnel, finances, and assets. By having strong support from leadership, organizations can effectively drive the adoption of transformative initiatives. They also speak regularly about the need for a project sponsor to lead projects forward. More than that, support from every side is important when the rubber meets the road. Senior leaders across operations, strategy, supply chain, and other functions can strategically leverage the smart factory transformation to generate value at a network level. Those on the ground— manufacturing operators, plant managers, technicians, plant engineers & others—can drive change & results on the shop floor. As one individual noticed, “If any factory wants to introduce Industry 4.0 or a smart factory. It has to be a top-down,

8. bottom-up approach. Thus, It must be both sides. That would be the greatest key to success.” 3. Diverse Teams with a Broad Variety Of Skill Sets- Diversity reproduces vision. So, The required skill sets for the smart factory transformation include IT, engineering, production, supply chain, user interface designs, master data management, analytics, finance, digital marketing, and human resources, among others. Cross-functional teams play a crucial role in minimizing the likelihood of overlooking important controls, processes, and cultural elements during the transformation process. By involving representatives from different functions, these teams help ensure a comprehensive approach to the smart factory implementation, enabling the delivery of value across the organization. Research shows that cross-functional teaming has resulted in greater organizational innovation & growth. Hence, This means transformation leaders should take pains to make sure that the right skills are implemented at the right time, and that a diverse mindset can inform the complete approach. 4. Ongoing Support & Learning- In order to successfully implement the smart factory, organizations must consider how to acquire new skills and develop existing skills within the company. Skill acquisition and development pose significant challenges for organizations, as highlighted by a recent global survey where only 14% of C-level manufacturing leaders strongly agreed that their organizations currently possess the skills needed for future requirements in lean transformation. Addressing this skills gap becomes crucial for organizations to effectively embrace the smart factory concept. Smart factories require new and different skills due to advanced technologies, posing challenges for upskilling. Organizations can sustain smart factory systems through collaborations with universities, alternative talent models, and leveraging ecosystem partners for skills. The “Smart Factory–specific” Themes 1. Connectivity is Critical- It all starts with connectivity. It would be fair enough to say the smart factory and its resulting value normally hook on the ability to connect assets, people, processes & devices. This is not a small task. According to the Deloitte-MAPI survey, 33% of smart factory leaders identified a lack of required IT infrastructure as a major obstacle to smart factory initiatives. The connectivity of applications and processes to the network is crucial for sharing and accessing information. Without proper network connectivity, even well- designed applications or processes are bound to fail. Yet that connectivity provides multiple opportunities to reform how value is captured within the smart factory, and beyond it. Leaders should consider not only the connectivity and data collection within the factory premises but also the scalability of connectivity and data sharing across networks and ecosystems. This holistic approach enables effective leadership transformation and facilitates the seamless flow of data for informed decision- making and collaborative efforts.

9. Implementing smart factory technologies across the network requires a carefully planned strategy with certified advisors. It involves developing a flexible digital infrastructure to meet the specific demands of each environment. 2. Managing the Reality Of Diverse Devices- The diversity of sensors, machinery& other devices that exist on the shop floor is important to consider. You must be able to connect it & make it all work together. Smart factory practitioners interviewed as part of the research: Diversity in Purpose: New real-world applications of devices allow teams to innovate, explore data collection methods, and discover value opportunities. Diversity in Age: Smart factory deployments encompass both cutting-edge manufacturing technologies and longstanding ones. As one leader noted, “Connecting these old machines, from the 1950s & 1960s, was a challenge.” Combining these age groups can be challenging, yet it can also unlock significant value by providing leaders with access to data on functions and processes that were previously inaccessible. Diversity In Data Structure And Format: Data comes from different sensors & devices and takes many formats. Integration and interoperability are crucial in a smart factory to ensure seamless data flow and compatibility between systems and devices. Cleansing & mapping efforts are often critical to developing visibility into smart factory processes. • • • 3. Bridging the IT/OT Divide- Developing a seamless integration between information technology (IT) and operational technology (OT) is a major challenge for 27% of respondents in the Deloitte-MAPI survey, impeding the advancement of smart factory initiatives. Some OT leaders & teams may also experience discomfort with agile sprint methods, which are meant to enable change swiftly. IT organizations have historically made large investments in qualifying & securing technology assets. Obtaining balance among competing priorities, and understanding across different professional cultures can make all the difference. Realizing the Value of Smart Factory Transformation How can companies shift from lessons learned from smart factory transformations toward outcomes, and the methods smart factory capabilities make processes & organizations better? We explore some of these opportunities. 1. Illuminating the Hidden Factory- The important thing is connectivity & the need to connect assets and data across a wide range of platforms, systems & data structures. Once its assets are connected, they free a flood of information to be unraveled, translated & acted upon. The addition of new data enables organizations to see things that were always present, but previously impossible to observe. 2. Grip Current Systems in New Processes to Achieve Operational Excellence- Companies can digitally combine systems and leverage data to enhance lean manufacturing, workforce management, and optimize operations, leading to higher productivity and talent leverage in organizational transformation.

10. 3. Authorize Digital Lean- Approaches such as lean have been used for decades to optimize processes &workflows, maximize value, identify & reduce waste. Companies can digitally combine systems and leverage data to enhance lean manufacturing, workforce management, and optimize operations, leading to higher productivity and talent leverage in organizational transformation. 4. UtilizeAI & Other Advanced Tools to get to the Next Level- It is an amalgam of humans & technology, including IT and OT, that makes a smart factory smart. Physical technologies like robotics have transformed smart facilities. IoT, cloud, and edge computing have facilitated data integration. AI enables various applications, such as robots with navigation and human-like vision and hearing for quality sensing and asset health prediction. It can lead to predictive maintenance; dynamically route inputs and analyze, sense, and energetically respond to circumstances. AI can optimize product and process performance through digital twins and digital threads, enabling observation and improvement. Digital twins allow companies to capture value by detecting potential issues sooner. Likewise, AI can be installed in the digital thread, creating a digital record of the life cycle of products themselves. Some leaders reported double-digit % improvements in machine utilization, production processes, and throughput by installing AI-driven capabilities. 5. Scale throughout Networks & Ecosystems- Scaling smart factory capabilities and processes throughout the enterprise network maximizes the recognition of value on a broader scale. For example, a consumer products manufacturer obtained substantial ROI by leveraging advanced analytics and AI to optimize input purchasing decisions across its manufacturing network. In another, a biopharma company predicted a net value of US$50–75 million year over year in expense reduction. Data and information influx can drive improved operations across the network and even have a positive impact on the broader economy. Leader’s Tip: By making upskilling investments, encouraging human-machine collaboration, and cultivating a digital mentality, you can lead the workforce change. Final Word Technology-driven change in almost any organization appears inevitable. Industry 4.0 technologies permit us to connect all the stakeholders, including the product, into a resource for feasibility and future development in the penetrating society. Key Takeaways: •Digital transformation is fueled by Industry 4.0 and smart factories, which also optimise operations, enable predictive maintenance, and improve product customization.

11. •Successful implementation, strategy alignment, fostering data-driven decision-making, and resolving workforce difficulties all depend on effective leadership. •Organisations may stay competitive, achieve operational excellence, and satisfy changing customer demands in the digital age by embracing Industry 4.0 and smart factories. This blog is originally taken from : https://learntransformation.com/fourth-industrial-revolution- smart-factory/