The Fourth Industrial
Revolution
Course Information
Learning Resources
❖ Lecture notes, Tutorials, Videos, Class discussions,
Student activities, Case studies, Self-reading.
❖ Reference book: Klaus Schwab with Nicholas Davis
(2017). The Fourth Industrial Revolution.
• Publisher: Currency (2017)
• ISBN-10: 9781524758868; ISBN-13: 9781524758868; ASIN: 1524758868
❖ Audio: https://soundcloud.com/penguinaudio/the-fourth-industrial
2
Course Topics
❖
❖
Introduction to Industry 4.0
Technologies Enabling Industry 4.0:
❑ Internet of Things (IoT)
❑ Artificial Intelligence
❑ Robotics
❑ Augmented & Virtual Reality
❑ Big Data
❑ Blockchain
❑ Biotechnology & Nanotechnology
❑ 3D Printing
3
Introduction to Industry 4.0
Introduction
❑ Fusing Technologies
❑ The Evolution, history, and impact on industry
❑ Industry 4.0 and previous industrial revolutions
❑ Definition and aspects of Industry 4.0
❑ Cyber Physical Systems (CPS)
❑ Industry 4.0 Drivers
❑ Industry 4.0 Building Blocks
❑ Industry 4.0 Benefits
❑ Industry 4.0 Design Principles
❑ Industry 4.0 Challenges
❑ Industry 4.0 Final Thoughts
❑
4
Introduction
➢ What
happened in recent years?
5
Introduction
➢ What
happened in recent years?
6
Introduction
➢
The Fourth Industrial Revolution represents a
fundamental change in the way we live, work, and
relate to one another.
•
It is a new chapter in human development, enabled
by technology advances that are compatible with
those of the first, second and third industrial
revolutions.
•
And which are merging the physical, digital, and
biological worlds in ways that create both promise
and peril.
7
Introduction
➢
The speed, breadth and depth of this revolution are
forcing us to:
•
Rethink how countries should develop.
•
How organizations create value, and even what it
means to be human.
•
It is an opportunity to help everyone, including
leaders, policy-makers, and people from all income
groups and nations, to harness technologies in order
to create an inclusive, human-centered future.
8
Introduction to Industry 4.0
Introduction
❑ Fusing Technologies
❑ The Evolution, history, and impact on industry
❑ Industry 4.0 and previous industrial revolutions
❑ Definition and aspects of Industry 4.0
❑ Cyber Physical Systems (CPS)
❑ Industry 4.0 Drivers
❑ Industry 4.0 Building Blocks
❑ Industry 4.0 Benefits
❑ Industry 4.0 Design Principles
❑ Industry 4.0 Challenges
❑ Industry 4.0 Final Thoughts
❑
9
Fusing Technologies
➢
Industry 4.0 Main Characteristic:
•
Fourth Industrial Revolution is different from prior
industrial revolutions.
o
It builds from a fusion of technologies, and from a
growing harmonization and integration of research
disciplines.
o
Collaboration between disciplines is opening new
frontiers.
o
Nearly every new development in any field now
leverages digital capability.
10
Fusing Technologies
➢
Example 1: Precision genome
editing:
•
The field of precision gene
editing is empowering
researchers to understand and
directly modify DNA.
o
➢
DNA, abbreviation
of Deoxyribonucleic Acid.
Could not have happened without
strong improvement in computing
power and data analytics.
https://www.hhmi.org/news/precision-genome-editingenters-the-modern-era
11
Fusing Technologies
➢
Example 2: Advanced robots:
•
➢
Would not exist without new approaches
made to Artificial Intelligence dependent on
digital systems and processing power.
The digital and physical worlds also collide in
fields such as autonomous vehicles and 3D
printing.
https://tenor.com/searc
h/robot-gifs
12
https://techcrunch.com
https://giphy.com/explore/3d-filament
The cloud is a huge,
interconnected
network of powerful
servers that performs
services for businesses
and for people.
➢ Advances
incloud
sensors are
• The largest
providersrobots
are Amazon,
enabling
and autonomous
Google, and
systems
to understand and
Microsoft, who have
respond
better
to their
huge farms
of servers
that they rent to and to engage in
environments,
businesses as part of
a broader
their cloudvariety
services. of tasks
•
Fusing Technologies
beyond the factory floors where
they have been most prevalent
historically.
➢
These systems can now access
information remotely via the
cloud and connect with one
another to exchange
information and learn
collectively.
Devices that detect and respond
to some type of input from the
physical environment.
Produces an output signal for the
https://www.electronicshub.org/different-typespurpose
of sensing of a physical
sensors/
phenomenon.
13
https://leverageedu.com/blog/cloud-computing-courses/
Fusing Technologies
➢
As the next generation of robots
emerges as an element of the Internet
of Things (IoT), there will be an
increasing emphasis on humanmachine collaboration.
➢
The physical and biological worlds are
also merging thanks to the creation of
new materials that are designed to
emulate the biological world.
•
The discovery of new classes of
recyclable, thermosetting polymers
called polyhexahydrotriazines is a
major step towards a more
sustainable economy.
https://www.linkedin.com/pulse/huma
nmachine-collaboration-part-1stephen-deangelis/
http://medicarealliance.com/en/products/custom-made14 prosthetics/
Fusing Technologies
➢
The biological and digital worlds overlap most
controversially in the world of genetic engineering:
•
New materials are now routinely being
used in medical implants, for tissue
engineering, and for the creation of
artificial organs, and 3D printing is
increasingly being used to create
customized structures.
https://www.linkedin.com/pulse/3dprinting-future-medical-devices-omergozen-phd-mba/
15
http://medicarealliance.com/en/products/custom-madeprosthetics/
Fusing Technologies
➢
The biological and digital worlds overlap most
controversially in the world of genetic engineering:
•
Widely-accessible and affordable gene sequencing
and editing software systems, such as CRISPR/Cas9,
make it possible to reliably and precisely remove or
replace sequences in the genome of plants and
animals.
https://www.quora.com/Whatis-golden-rice
https://www.the-scientist.com/newsopinion/crispr-gene-editing-promptschaos-in-dna-of-human-embryos-67668
16
https://prezi.com/yxugdrh5p
m0y/gmo-tomatoes/
Fusing Technologies
➢
The biological and digital worlds are also overlapping
in the form of sensors used to monitor personal health
and behavior, and to understand and influence brain
activity.
https://towardsdatascience.com/from-brain-waves-to-armmovements-with-deep-learning-an-introduction-3c2a8b535ece
17
Fusing Technologies
➢
In Business: Advances that might have once been
confined to digital systems.
•
Example: Blockchain:
o
It is a decentralized network used in transactions.
o
Best known as the framework for virtual currency
(cryptocurrency).
o
Provide new ways to manage land records and
track deforestation.
o
The application of cryptography of Blockchain
technology to create programmable, secure, and
distributed records, are now having widespread
impact in the real world.
18
Fusing Technologies
➢
Advanced Manufacturing and Production:
•
Breakthroughs in Computing, Sensors, Mobile
connectivity, Artificial Intelligence, Robotics, 3D
printing, and advanced material, are transforming
manufacturing and production systems.
•
New business models, based on platforms and
developing abilities to offer new services rather
than simply delivering products, will change the ways
that manufacturing companies operate.
•
Policy-makers and business leaders will need to
develop new related approaches and work together,
in order to build innovative production systems
19
that truly benefit everyone.
Introduction to Industry 4.0
Introduction
❑ Fusing Technologies
❑ The Evolution, history, and impact on industry
❑ Industry 4.0 and previous industrial revolutions
❑ Definition and aspects of Industry 4.0
❑ Cyber Physical Systems (CPS)
❑ Industry 4.0 Drivers
❑ Industry 4.0 Building Blocks
❑ Industry 4.0 Benefits
❑ Industry 4.0 Design Principles
❑ Industry 4.0 Challenges
❑ Industry 4.0 Final Thoughts
❑
20
Industrial Evolution
➢
Major Trends:
History of Industrial Revolutions
➢
➢
➢
➢
1st Industrial Revolution ≈ 1760 to 1840:
• Railroads and invention of the Steam Engine →
Mechanical Production.
2nd Industrial Revolution ≈ 1860 to 1960:
• Electricity and the Assembly Line → Mass Production
3rd Industrial Revolution ≈ 1960 to early 2000s:
• Also known as “Computer Revolution” and “Digital
Revolution”
• Development of Semiconductors → Mainframe
Computing (1960s) → Personal Computing (1970s and
80s) → Internet (1990s)
4th Industrial Revolution ≈ 2011 to present:
22
• Fusion of the revolutions across physical, digital
and
biological domains.
History of Industrial Revolutions
https://www.weforum.org/videos/the-fourth-industrial-revolution
23
Industrial Evolution
➢
Impact of Information & Communication Technology:
Web
Hypermedia: Interlinked Documents
World Wide Web
Web
1.0
First stage of world wide web.
Web pages were containing only static
Java, UML, XML
pages.
Web Social media (1): Interlinked Websites
People now can use online digital
2.0
photography on which users could store,
Web Services
share, view, and print digital pictures
Web
Social media (2): Interlinked
Enterprises
Permits
users to retrieve and classify the
3.0
information
App Technologies
24
Web
A.B
Multimedia: Interlinked Media
Semantic web, refers to the communication
Cyber-Physical Media: Interlinked
Systems
between
humans and computerized
IoT, IoS, IoP
Meysam Maleki, Senior Credit Modeler at QBE
applications
Introduction to Industry 4.0
Introduction
❑ Fusing Technologies
❑ The Evolution, history, and impact on industry
❑ Industry 4.0 and previous industrial revolutions
❑ Definition and aspects of Industry 4.0
❑ Cyber Physical Systems (CPS)
❑ Industry 4.0 Drivers
❑ Industry 4.0 Building Blocks
❑ Industry 4.0 Benefits
❑ Industry 4.0 Design Principles
❑ Industry 4.0 Challenges
❑ Industry 4.0 Final Thoughts
❑
25
Industrial Evolution
•
•
Industry 4.0:
o Marked by the integration of different technologies and/or
disciplines.
o Acts as disruptor (fast making change by innovation).
Examples of disruptor companies:
o Airbnb (an online marketplace (American Company) that
connects people who want to rent out their homes with
people who are looking for accommodations in specific
locales).
26
https://mashable.com/article/airbnbukraine-refugees
Industrial Evolution
•
•
Industry 4.0:
o Marked by the integration of different technologies and/or
disciplines.
o Acts as disruptor (fast making change by innovation).
Examples of disruptor companies:
o Airbnb (an online marketplace (American Company) that
connects people who want to rent out their homes with
people who are looking for accommodations in specific
locales).
o Uber (Taxi rental)
27
https://timesofindia.indiatimes.com/city/pune/patrons-takedig-at-move-to-let-uber-drivers-see-dropdetails/articleshow/91675168.cms
Industrial Evolution
•
•
Industry 4.0:
o Marked by the integration of different technologies and/or
disciplines.
o Acts as disruptor (fast making change by innovation).
Examples of disruptor companies:
o Airbnb (an online marketplace (American Company) that
connects people who want to rent out their homes with
people who are looking for accommodations in specific
locales).
o Uber (Taxi rental)
o Alibaba (the world's, biggest online commerce company)
https://blog.logomyway.com/alibaba-logo/
28
Introduction to Industry 4.0
Introduction
❑ Fusing Technologies
❑ The Evolution, history, and impact on industry
❑ Industry 4.0 and previous industrial revolutions
❑ Definition and aspects of Industry 4.0
❑ Cyber Physical Systems (CPS)
❑ Industry 4.0 Drivers
❑ Industry 4.0 Building Blocks
❑ Industry 4.0 Benefits
❑ Industry 4.0 Design Principles
❑ Industry 4.0 Challenges
❑ Industry 4.0 Final Thoughts
❑
29
Industry 4.0, What is it?
➢
➢
The concept of “Industry 4.0” comes from Germany.
It defines a new way of organizing factories, also called
smart factories, aiming to better serve customers
through greater flexibility of production and resource
optimization.
30
https://www.3ds.com/manufacturing/connected-industry/industry4-0-data-mass-customization-actionable-insights
Industry 4.0, What is it?
➢
Key Principles of Smart Factories (Factory 4.0):
1)
•
•
The factory becomes
digital and flexible.
Characterized by
continuous and
instantaneous
communication between
the various workstations
and tools.
Integrated into the supply
and production lines.
https://uk.rs-online.com/web/generalDisplay.html?id=didyou-know/industry-4.0
31
Industry 4.0, What is it?
➢
Key Principles of Smart Factories (Factory 4.0):
2)
•
•
Simulation tools and
powerful data
processing.
The collection and analysis
of data produced
throughout the assembly
line can be used for
modeling and testing.
This is of great value for
workers who wish to get
familiarized with industrial
tools and processes.
https://uk.rs-online.com/web/generalDisplay.html?id=didyou-know/industry-4.0
32
Industry 4.0, What is it?
➢
Key Principles of Smart Factories (Factory 4.0):
3)
•
An efficient factory
regarding energy and
resources.
Industry 4.0 is energy efficient
by using communication
networks to exchange
information instantly and
continuously to coordinate
needs and availability.
https://uk.rs-online.com/web/generalDisplay.html?id=didyou-know/industry-4.0
33
Introduction to Industry 4.0
Introduction
❑ Fusing Technologies
❑ The Evolution, history, and impact on industry
❑ Industry 4.0 and previous industrial revolutions
❑ Definition and aspects of Industry 4.0
❑ Cyber-Physical Systems (CPS)
❑ Industry 4.0 Drivers
❑ Industry 4.0 Building Blocks
❑ Industry 4.0 Benefits
❑ Industry 4.0 Design Principles
❑ Industry 4.0 Challenges
❑ Industry 4.0 Final Thoughts
❑
34
Cyber-Physical Systems
•
•
•
CPS, it is the core of
Industry 4.0
It aims at the integration
of computation and
physical processes.
This means that,
computers and networks
can monitor the physical
process of
manufacturing at a
certain process.
https://www.analog.com/en/applications/markets/in
35
dustrial-automation-technology-pavilionhome/industry-4-pt-0.html
Cyber-Physical Systems
•
•
It is a system of
collaborating
computational elements
controlling physical
entities.
CPS are physical and
engineered systems
whose operations are
monitored, coordinated,
controlled and
integrated by a
computing and
communication core.
https://www.analog.com/en/applications/markets/in
36
dustrial-automation-technology-pavilionhome/industry-4-pt-0.html
Cyber-Physical Systems
•
1)
2)
3)
Three main components:
Computations.
Communication.
Control.
https://www.analog.com/en/applications/markets/in
37
dustrial-automation-technology-pavilionhome/industry-4-pt-0.html
Cyber-Physical Systems
•
The development of such systems consists of
three phases:
https://www.engineering.org.cn/en/10.1016/j.eng.2019.01.014
38
Cyber-Physical Systems
1)
Identification:
•
Unique identification is essential in manufacturing.
•
To identify the smallest unit participating in manufacturing
activities, such as a single piece of equipment (e.g., a machine
tool or robot arm). It is the physical part of the system.
•
Done by using a very basic language by which a machine can
communicate.
o RFID (Radio-frequency identification) is a great example of
that.
o RFID uses an electromagnetic field to identify a certain tag that
is often attached to an object.
o Although such technology has been around since 1999, it still
serves as a great example of how Industry 4.0 operated
initially.
39
An actuator is a device that is responsible for
moving and controlling a mechanism of a
system.
It is a "mover". An actuator requires a control
signal and a source of energy.
Cyber-Physical Systems
2)
The Integration of Sensors and Actuators:
•
•
•
This is essential for a machine to operate.
It means that a certain machine’s movement can be
controlled and that it can sense changes in the environment.
However, even with the integration of sensors and actuators,
their use was limited and does not allow them to
communicate with each other.
40
Cyber-Physical Systems
The Development of Sensors and Actuators:
3)
•
•
Such development allow machines to store and analyze
data.
A cyber-physical system now is equipped with multiple
sensors and actuators that can be networked for the
exchange of information.
41
Introduction to Industry 4.0
Introduction
❑ Fusing Technologies
❑ The Evolution, history, and impact on industry
❑ Industry 4.0 and previous industrial revolutions
❑ Definition and aspects of Industry 4.0
❑ Cyber-Physical Systems (CPS)
❑ Industry 4.0 Drivers
❑ Industry 4.0 Building Blocks
❑ Industry 4.0 Benefits
❑ Industry 4.0 Design Principles
❑ Industry 4.0 Challenges
❑ Industry 4.0 Final Thoughts
❑
42
Industry 4.0 Drivers
Connected Sensors:
1)
•
A group of sensors for monitoring
the physical conditions of the
environment like, temperature,
sound, humidity, wind, and then
transmit data about the
phenomenon wirelessly to process
data from it without the need for
the presence of a human in the
place of a physical phenomenon.
https://library.automationdirect.
com/temperature-sensingmonitoring/
https://www.cs2n.org/
u/mp/badge_pages/465
43
https://www.iotworldtoday.com/2016/04/02/engineershows-how-data-can-trump-conventional-wisdom/
Industry 4.0 Drivers
Big Data:
2)
•
A data with so huge size and
complexity that none of
traditional data management tools
can store it or process it efficiently.
Predictive Analytics:
3)
•
https://makeagif.com/gif/orange-bigdataecwy2r
A statistical techniques that analyze
current and historical data to make
predictions about future events.
44
https://www.engineering.org.cn/en/10.1
016/j.eng.2019.01.014
Introduction to Industry 4.0
Introduction
❑ Fusing Technologies
❑ The Evolution, history, and impact on industry
❑ Industry 4.0 and previous industrial revolutions
❑ Definition and aspects of Industry 4.0
❑ Cyber-Physical Systems (CPS)
❑ Industry 4.0 Drivers
❑ Industry 4.0 Building Blocks
❑ Industry 4.0 Benefits
❑ Industry 4.0 Design Principles
❑ Industry 4.0 Challenges
❑ Industry 4.0 Final Thoughts
❑
45
Industry 4.0 Building Blocks
➢
Building Blocks of Industry 4.0:
•
Are the technologies enabling the industrial production.
46
https://www.researchgate.net/figure/Enabling-technologies-of-Industry40_fig1_341309330
Industry 4.0 Building Blocks
➢
Building Blocks of Industry 4.0:
•
Factory 4.0 needs:
o Robots, Autonomous Vehicles (unmanned vehicles).
o 3D Printing/Additive Manufacturing.
47
https://www.researchgate.net/figure/Enabling-technologies-of-Industry40_fig1_341309330
Industry 4.0 Building Blocks
➢
Defined as a system of
interrelated computing devices,
Building Blocks of Industry 4.0:mechanical and digital machines,
• Factory 4.0 needs:
objects (Things) that are able to
transfer data over a network
o Internet of Things (IoT).
(Internet)
o
Cloud Computing.
Cyber Security (Information Security)
The cloud is a huge, interconnected
network of powerful servers that
performs services for businesses
and for people.
The largest cloud providers are
Amazon, Google, and Microsoft,
who have huge farms of servers
that they rent to businesses as part
of their cloud services.
➢
•
•
48
https://www.researchgate.net/figure/Enabling-technologies-of-Industry40_fig1_341309330
Industry 4.0 Building Blocks
➢
Building Blocks of Industry 4.0:
•
Factory 4.0 needs:
o Software for data processing (Big Data Analytics).
o Production line simulation & Augmented reality.
49
https://www.researchgate.net/figure/Enabling-technologies-of-Industry40_fig1_341309330
Industry 4.0 Building Blocks
➢
Building Blocks of Industry
4.0:
Horizontal integration means networking
•
Factory 4.0 needs: between individual machines, items and
production
units.
It ensures that machinery, IoT
o Horizontal and Vertical
system
integration.
devices and engineering processes work
together seamlessly.
Vertical integration allows
production data to be used for
making business, staffing and
other decisions by allowing
communication between the
horizontally integrated networks
and other systems such as the
factory floor, marketing, sales,
customer service, purchasing,
50
accounting, HR, quality control,
and more…. https://www.researchgate.net/figure/Enabling-technologies-of-Industry40_fig1_341309330
Introduction to Industry 4.0
Introduction
❑ Fusing Technologies
❑ The Evolution, history, and impact on industry
❑ Industry 4.0 and previous industrial revolutions
❑ Definition and aspects of Industry 4.0
❑ Cyber-Physical Systems (CPS)
❑ Industry 4.0 Drivers
❑ Industry 4.0 Building Blocks
❑ Industry 4.0 Benefits
❑ Industry 4.0 Design Principles
❑ Industry 4.0 Challenges
❑ Industry 4.0 Final Thoughts
❑
51
Industry 4.0 Benefits
52
Industry 4.0 Benefits
➢
➢
Digitized products and services generate approximately
€110 billion of additional revenues per year for the
European industry.
Factories of the future combine mass production efficiency
with custom.
53
Industry 4.0 Benefits
➢
Manufacturing (on demand) and optimize the
supply chain in real time:
54
Industry 4.0 Benefits
Optimization:
• Optimizing production is a key advantage to Industry
4.0.
• A Smart Factory containing hundreds or even thousands
of Smart Devices that are able to self-optimize
production will lead to an almost zero down time in
production.
1)
Customization:
• Creating a flexible market that is customer-oriented
will help meet the population’s needs fast and
smoothly.
• It will also destroy the gap between the manufacturer
and the customer. Communication will take place
55
between both directly.
2)
Industry 4.0 Benefits
3)
•
•
Pushing Research:
The adoption of Industry 4.0 technologies will push
research in various fields such as IT security and will
have its effect on the education in particular.
Research & Development (R&D).
56
Introduction to Industry 4.0
Introduction
❑ Fusing Technologies
❑ The Evolution, history, and impact on industry
❑ Industry 4.0 and previous industrial revolutions
❑ Definition and aspects of Industry 4.0
❑ Cyber-Physical Systems (CPS)
❑ Industry 4.0 Drivers
❑ Industry 4.0 Building Blocks
❑ Industry 4.0 Benefits
❑ Industry 4.0 Design Principles
❑ Industry 4.0 Challenges
❑ Industry 4.0 Final Thoughts
❑
57
Industry 4.0 Design Principles
➢
➢
The design principles allow manufacturers to investigate
a potential transformation to Industry 4.0 technologies.
Industry 4.0 is based on six design principles:
58
Industry 4.0 Design Principles
1)
2)
3)
4)
Interoperability: Objects, machines and people need to
be able to communicate through the Internet of Things
(IoT) and the Internet of People (IoP).
Virtualization:
• CPSs must be able to simulate and create a virtual copy
of the real world.
The
digitalization
• CPSs must also be able to monitor
objects
existingofinrelationships
between people and the
the surrounding environment.
collection, processing and
Decentralization:
application of personal data.
• The ability of CPSs to work independently.
Helpful in healthcare for example
Real-Time Capability:
• A smart factory needs to be able to collect real time
59
data, store or analyze it, and make decisions
according to new findings.
Industry 4.0 Design Principles
5)
6)
Service-Orientation:
• Production must be customer-oriented.
• People and smart objects/devices must be able to
connect efficiently through the Internet of Services
(IoS) to create products based on the customer’s
specifications.
Everything that is needed to
Modularity:
use software applications is
• In a dynamic market, a Smart Factory’s
ability
to
available
as a service
on
the Internet, including
adapt to a new market is essential.
the software itself, the tools to
• Smart factories must be able to adapt fast and
develop the software.
smoothly to seasonal changes and market trends.
60
Industry 4.0 Design Principles
➢
Today’s Factory:
61
Industry 4.0 Design Principles
➢
Tomorrow’s Factory:
Decoupling inventory is a safety
stock that set a side for all or
some stages in a production line,
so that a low-stock situation or
breakdown at one stage doesn't
slow or stop operations
Product manufacturers set
aside extra raw materials or
work in progress items for
all or some stages in a
production62line.
Industry 4.0 Design Principles
➢
Smart Factory:
63
Introduction to Industry 4.0
Introduction
❑ Fusing Technologies
❑ The Evolution, history, and impact on industry
❑ Industry 4.0 and previous industrial revolutions
❑ Definition and aspects of Industry 4.0
❑ Cyber-Physical Systems (CPS)
❑ Industry 4.0 Drivers
❑ Industry 4.0 Building Blocks
❑ Industry 4.0 Benefits
❑ Industry 4.0 Design Principles
❑ Industry 4.0 Challenges
❑ Industry 4.0 Final Thoughts
❑
64
Industry 4.0 Challenges
1)
2)
Security:
• Perhaps the most challenging aspect of implementing
Industry 4.0 techniques is the IT security risk.
• Cyber theft must also be put into consideration. In
this case, the problem will cost producers money
and might even hurt their reputation. Therefore,
research in security is crucial.
Capital:
• Such transformation will require a huge
investment in a new technology that doesn’t sound
cheap.
• The risks must be calculated and taken seriously.
65
Industry 4.0 Challenges
3)
Employment:
• Workers will need to gain different or an all-new set
of skills.
• This may help employment rates go up but it will also
reject a big sector of workers.
• Different forms of education must be introduced,
but it still doesn’t solve the problem for the elder
portion of workers.
66
47% of Americans have a high
risk of further digitalization
and automation of their
workplace.
Industry 4.0 Challenges
3)
Employment:
• Workers will need to gain different or an all-new set
of skills.
• This may help employment rates go up but it will also
reject a big sector of workers.
• Different forms of education must be introduced,
but it still doesn’t solve the problem for the elder
portion of workers.
67
The impact on employees is not yet quantifiable. Some see the digitalization as
part of the future job market, others fear the loss of jobs.
Industry 4.0 Challenges
4)
Privacy:
• This not only the customer’s concern, but also the
producers.
• In such an interconnected industry, producers need to
collect and analyze data.
• To the customer, this might look like a threat to his
privacy.
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Industry 4.0 Challenges
➢
Management Challenges:
Global Change and Diversity:
• Networking of markets and companies
• Diversity management
Demographic Development and Skill Shortage:
• Demographical scissor: young-old
• Lack of young talent and skilled professionals
Dynamics and Complexity:
• Flow of information - Networked thinking and action
• Number of employees / activities/ structure and processes
Strategic Repositioning and Continuous Improvement:
• Structural change of businesses - new(subsidiary) companies/ mergers
• Activities/ structures and processes
Technological change and half-life of knowledge:
• Up-to-dateness of knowledge
• Innovations/improved general conditions
Industry 4.0 Challenges
➢
Consequences on Organizations:
Traditional Organization
Digital Organization
IT-Systems
Inflexible IT-Systems
Rely on standalone systems
which function in siloes with
little or no data-sharing
Scalable IT-Systems
Rely on cloud, mobile,
Big Data and
collaboration
Business and
administrative
processes
With media disruption
End-to-End processes,
based on collaboration
and real-time KPIs
Hierarchy
Internal and external
communications
Social interactions
between employees,
customers and partners
Feedback
Limited information
360° information
Industry 4.0 Challenges
➢
A process that takes a system or service from
beginning
to end and delivers a complete
Consequences
on Organizations:
functional solution, usually without needing to
obtain
anything
from a third party. Digital Organization
Traditional
Organization
IT-Systems
Inflexible IT-Systems
Rely on standalone systems
which function in siloes with
little or no data-sharing
Scalable IT-Systems
Rely on cloud, mobile,
Big Data and
collaboration
Business and
administrative
processes
With media disruption
End-to-End processes,
based on collaboration
and real-time KPIs
Hierarchy
Internal
KPI, or aand
key external
performance indicator,Social interactions
communications
between
are measurable values used to evaluate
howemployees,
customers
and partners
successful a person or organization
is at reaching
Feedback
a target.information
Limited
360° information
Industry 4.0 Challenges
➢
Consequences on Organizations:
Traditional Organization
Digital Organization
IT-Systems
Inflexible IT-Systems
Rely on standalone systems
which function in siloes with
little or no data-sharing
Scalable IT-Systems
Rely on cloud, mobile,
Big Data and
collaboration
Business and
administrative
processes
With media disruption
End-to-End processes,
based on collaboration
and real-time KPIs
Hierarchy
Internal and external
communications
Social interactions
between employees,
customers and partners
Feedback
Limited information
360° information
Industry 4.0 Challenges
➢
Consequences on Organizations:
Traditional Organization
Digital Organization
IT-Systems
Inflexible IT-Systems
Rely on standalone systems
which function in siloes with
little or no data-sharing
Scalable IT-Systems
Rely on cloud, mobile,
Big Data and
collaboration
Business and
administrative
processes
With media disruption
Hierarchy
Hierarchical Internal and
external communications
Social interactions
between employees,
customers and partners
Feedback
Limited information
360° information
End-to-End processes,
based on collaboration
The idea that companies can get a complete view
and real-time KPIs
of customers by aggregating data from the various
touch points.
Introduction to Industry 4.0
❑
❑
❑
❑
❑
❑
❑
❑
❑
❑
❑
❑
Introduction
Industrial Evolution
History of Industrial Revolutions
Industry 4.0, What is it?
Industry 4.0 Components
Industry 4.0 Drivers
Industry 4.0 Benefits
Industry 4.0 Design Principles
Industry 4.0 Challenges
Industry 4.0 Value Chain
Statistics About Industry 4.0
Industry 4.0 Final Thoughts
74
Industry 4.0 Final Thoughts
➢
➢
Industry 4.0 is definitely a revolutionary approach to
manufacturing techniques.
• The concept will push global manufacturers to a new
level of optimization and productivity.
• Customers will also enjoy a new level of personally
customized products that may have never been
available before. The economic rewards are
immense.
However, there are still many challenges that need to be
tackled systematically to ensure a smooth transition.
• This needs to be the focus of large corporations and
governments.
• Pushing research and experimentation in such fields
75
are essential.
Industry 4.0 Final Thoughts
➢
While speculations regarding privacy, security, and
employment need more study, the overall picture is
promising. Such approach to manufacturing industries is
truly revolutionary.
76
LEARNING RESOURCES
The Fourth Industrial Revolution course materials: Lecture notes, videos, class
discussions, student activities, case studies and project guidelines were prepared and
edited by:
Dr. Khaled Hamdan: Khamdan@uaeu.ac.ae
Dr. Nabeel Al-Qirim : nalqirim@uaeu.ac.ae
Klaus Schwab (2017). The Fourth Industrial Revolution. Publisher: Currency (January 3,
2017), ISBN-10: 9781524758868; ISBN-13: 978-1524758868; ASIN: 1524758868
Mitchell, L., & Groenewald, G. (2010). The pre-industrial cape in the twenty-first
century. South African Historical Journal, 62(3), 435–443.