Industry 4.0 - The Fourth Industrial Revolution

The term "Industry 4.0" was coined in 2011 by a group of representatives from different fields in Germany, under an initiative to enhance the German competitiveness in the manufacturing industry.

Following that, a German government memo released way back in 2013 was one of the first times that 'Industrie 4.0' was formally introduced. The high-tech strategy document outlined a plan to almost entirely computerize the manufacturing industry without the need for human involvement.

Angela Merkel, the German chancellor, spoke glowingly of the concept in January 2015 at the World Economic Forum in Davos, calling 'Industrie 4.0' the way that we "deal quickly with the fusion of the online world and the world of industrial production." The German government started with investing some 200 million euros to encourage research across academia, business, and government. Parallel to that, big german corporates and SMEs are investing some 650 million euros to speed up the development of ICT & "Industry 4.0" related technologies. The German Companies plan to invest around 10.9 billion euros in the evolution of "Industry 4.0" in the upcoming ten years- analysts suggest. 

Since the german announcement back in 2011, many other countries immediately realized the value of "Industry 4.0" concept and technologies and embarked efforts to develop it and participate in shaping it. Following to german government initiative, and in 2012, the US started the Smart Manufacturing Leadership Coalition (SMLC). SMLC is NGO combining manufacturers, suppliers, technology firms, government agencies, universities, and laboratories that all have the common goal of advancing the way of thinking behind "Industry 4.0"

THE FORTH INDUSTRIAL REVOLUTION: DEFINITION AND HISTORICAL PERSPECTIVE 

The term "industry 4.0" refers to a further developmental stage in the organization and management of the entire value chain process involved in the manufacturing industry. Another term for this process is the' fourth industrial revolution'. 

According to a recent report by Deloitte, The concept of "industry 4.0" is widely used across Europe, particularly in Germany's manufacturing sector. Some analysts also refer to it as the internet of things, "internet of everything" and on some other occasions, it is interchangeable with the term industrial internet of things "IIOT". What hat all these terms and concepts have in common is the recognition that traditional manufacturing and production methods are in the throes of a digital transformation.For some time now, industrial processes have increasingly embraced modern information technology (IT), but the most recent trends go beyond simply the automation of production that has, since the early 1970s, been driven by developments in electronics and IT. Please see the chart below*

The widespread adoption of information and communication technology (ICT) by the manufacturing industry is increasingly blurring the boundaries between the real world and the virtual world. This is what are known as " Cyber-Physical Production Systems" or (CPPSs). In a more simplier way, this is also viewed as the merger between the Operation Technology world "OT" with the Information Technology world "IT". 

CPPSs are online networks of social machines that are organized in a similar way to social networks. They link IT with mechanical and electronic components that then communicate with each other via a network. 

The question wether it is evolution or revolution will remain debatable, however, the fact is that the following are its historical perspectives:

INDUSTRY 1.0 - The First Industrial Revolution 

The industrial revolution in Britain came in to introduce machines into production by the end of the 18th century (1760-1840). That included going from manual production to the use of steam-powered engines and water as a source of power.

INDUSTRY 2.0 - The Second Industrial Revolution

The second one dates between 1870 and 1914 and systems such as telegraphs and railroads into industries. The defining characteristic of that period was the introduction of mass production. The electrification of factories contributed hugely to production rates. The mass production of steel helped introduce railways into the system, which consequently contributed to mass production. Innovations in chemistry, such as the invention of the synthetic dye, also mark such period as chemistry was in a rather primitive state then.

The third industrial revolution approach to industry were put to an end with the start of World War I., while mass production continued.

INDUSTRY 3.0 - The Third Industrial Revolution

The third industrial revolution can be more familiar to us, as we most of the reader of this article saw, and still seeing, it's effect as it started back between 1950 and 1970 and is still continuing. It is often referred to as the "Digital Revolution" and came about the change from analog and mechanical systems to digital ones, and the introduction of "Programmable Logic Controllers" in manufacturing. Others call it the Information Age too. The third revolution was, and still is, a direct result of the massive development in computers and information and communication technology.

INDUSTRY 4.0 - The Fourth Industrial Revolution 

In the past few decades, a fourth revolution started to emerg slowly, until the term "Industry 4.0" it has been publicly coined in 2011 in germany as explained above.

 Industry 4.0 takes the emphasis on digital technology from recent decades to a whole new level with the help of interconnectivity through the Internet of Things (IoT), access to real-time data, and the introduction of cyber-physical systems. 

"Industry 4.0" offers a more comprehensive, interlinked, and holistic approach to manufacturing. It connects physical with digital and allows for better collaboration and access across departments, partners, vendors, product, and people. "Industry 4.0" empowers businesses to better understand and control better all aspect of their business operation and allows them to leverage instant data to boost productivity, improve processes, improve customer interaction & experience, and drive innovation and growth.

Till we continue our discussion about Industry 4.0, IIOT, and the digitalisation of manufacturing processes and industries, the following brief video can help articulate this article more.

*Jochen Schlick, Peter Stephan and Detlef Zühlke: Produktion 2020. Auf dem Weg zur 4. industriellen Revolution. IM – Fachzeitschrift für Information Management und Consulting. August 2012.

Keywords: Industry 4.0, The Fourth Industrial Revolution, IIOT

#Industry40 #thefourthindustrialrevolution #iiot