INTRODUCTION – INUDSTRIAL REVOLUTION 4.

0
According to historians, industrial revolution is defined as the process of change from an agrarian and
handicraft economy to one dominated by industries and machines. To put it simply, it is the utilisation
of technology available along with invention of new technology so as to simplify and improve the
methods of production and its impact on society. Before we unravel what Industrial Revolution 4.0 is
all about, it is important we get a brief understanding about the other Industrial Revolutions that have
paved the way to where we are as a society now.
Industrial Revolution 1.0: The first industrial revolution was the movement to a new system of
manufacturing process from 1760 to 1840. During this period, most of the societies depended on
agriculture. But, due to several technological innovations during this time trade and businesses started
to develop and this led to the start of the Industrial revolution. It had started in Britain and spread to
the colonies under British control in other parts of Europe and North America. The starting up of iron
and textile industries along with the invention of the steam engine played a key role during the 1 st
industrial revolution.
Industrial Revolution 2.0: The second industrial revolution took place during the period 1870 to
1914. It is also called as the technological revolution as it was a period where many inventions
brought about that helped the economy grow at a much faster pace. The second industrial revolution
was a period where the pre-existing industries grew and developed and also new industries such as
steel, oil and electricity came about. Inventions like telephone, light bulb and internal combustion
steam engine provided more opportunities for the industries to grow and expand. It was during this
time that new production concepts like mass production and assembly line were introduced.
Industrial Revolution 3.0: Also known as the Digital revolution, the 3 rd Industrial revolution started
around the 1970s and is still ongoing. It was the shift from mechanical technology to digital
technology. Inventions such as the personal computer, internet and mobile phones transformed the
traditional production and business techniques. The changes brought about during the digital
revolution has caused people moving from rural areas to larger cities.
Industrial Revolution 4.0: Industrial Revolution 4.0 has basically grown out of the Digital
revolution. But it is considered as a new era rather than a continuation of the Industry Revolution 3.0
due the rapid pace at which the technology is changing and impacting the society. The term Industry
4.0 was first used by a group of representatives from various fields under an initiative to increase the
German competitiveness in the manufacturing industry. The idea behind industry revolution 4.0 was
for automation of manufacturing processes to a new level by introducing customized and flexible
mass production technologies and strategies. The major ideologies behind achieving this are Internet
of Things, Big data, Machine to Machine learning, Smart factories, 3D printing, robotics and artificial
intelligence. This new age technological changes have caused all industries and even society to
continuously adapt with the rapid changes taking place to stay relevant and survive. Experts believe
that at the current rate in which the technology is changing, it would be really difficult for us to find
out what is real and what is not in the coming years.
We will be covering various aspects of Industrial Revolution 4.0 such as design, effects, challenges,
big data and impact in this presentation.

INDUSTRY 4.0 DESIGN PRINCIPLES

1. Interoperability: Machines should be able to communicate through the Internet of
Things. They should sense the changes in environment around them, example Fire
alarm. These do not have to be directed, they work on the basis of Internet of Things.
These help to automate the process and make the task easier.
2. Decentralization of decision: The increasing demand for products and services make it
difficult to take the decisions centrally. to take decisions on their own. CPS ( Cyber-
Physical System) helps to solve problems easily. CPS is network of physical
components that helps to improve the quality of our life example the pattern lock we
use in smartphones.
3. Real time Capability: For organizational tasks, it is necessary that right data is
collected in right place and analysed at right time in order to make important
decisions. Smart objects must be able to identify the faults and transfer tasks to
other operating machines which saves time and increases the production capacity.
4. Service Orientation: Production must be customer oriented. Smart objects must be
able to connect to customers and able to create goods customers need according to their
specification’s. This is where Internet of Services becomes most important because
customer specifies his needs on the manufacturer’s website.
5. Modularity: In a fluctuating market, smart factories must be able to change the latest
situations quickly, whereas in normal circumstances it takes on an average a month to
analyse the changes in demand and then change the production accordingly else the
peers in the market may move ahead in the competition.

Opportunities
There were so many industrial revolutions happened all over the world and brought changes
to so many economies, which was the driving force of the innovations and technological
developments in various economies which led to the ease in operations and enhanced the
ability to grow fast. But this revolution is not like the stereotypical innovation-based
development in this era of enhancement it is based on how the innovations that were
developed previously can be used for the research and development of new innovative ideas
and products, like now the old established IT system is helping companies to do automation,
to develop robot which is helping the workers side by side, IOT. This is leading to the
improvement in quality as well as quantity.

Industry 4.0 is not yet discovered. it has been a sector which is still unknown to the
corporates and there are many opportunities to seek, develop and get the edge over other
competitors, now it's not only about what uniqueness, it's about how fast, unique and with
minimum cost. Some of the opportunities that can be gauged are:-

1. Cybersecurity- Now when we talk about what is cybersecurity it is the system that
provides security to the hardware, software and electronics from theft and damage, it is really
needed nowadays because as the industrial economy has been shifted towards the computer
and software-based economy, it is really needed to protect big data which is widely used in
corporate companies. So to save companies from this malice industry 4.0 comes into the
picture. Like it helps to maintain the reliability and stability of cyber-physical
communication.

2. Maintaining integrity of the production process:- Automation really helps in the

production process and in a very dangerous environment the health and safety of the
employees could be improved dramatically, it also impacts the supply chain management
which helps in ease of delivery and manufacturing process. This can lead to good profits and
safety of employees and will increase the output of the firm with least price. But there are still
many industries which are hesitant to use new technology and for them, it is lot more
expensive for some firms so we should aim at making it economical for small and medium
firms. 

3. Impact of IOT:- IOT means internet of things is defined as the internet which is used for
the physical world which means that the connection between the things and the internet
which leads to the automatic functioning of things and self-improvement mechanism like the
HDFC chat bot known as "On chat" which is a medium to connect your bank account to
various things like it helps to book uber and ola, helps you to pay any postpaid or prepaid
bills etc. Like this many companies can opt for IOT and can develop innovative products that
can help the customer base and can give them an edge over their competitors. 

4. Cloud Computing:- When we store computer data in a hard drive or any cd or  any other
possible device it is known as local storage, it is not cloud computing, and when you store
your data on the pc or any other device at work or at home it is also not known as cloud
computing, the actual cloud computing is to store the data on the internet which is very
feasible to excess and can lead to cost saving and time, it provides a platform that can be used
by many people at the same time and can access at the same time this helps in reducing
compliance and time which is wasted with manual devices. Industry 4.0 is using this
technology to connect and to share information, but it is still in its early age because it can
lead to leak in some crucial information so it is not that safe to use it at this point IT
companies have to play a big role here to protect this data and make it useful for other
companies. 

Challenges faced by IR4.0

1. Cybersecurity risk- With the dynamic changing technology and increasing
usage of internet, the task of protecting the user's data has become very tedious.
As happened in the case of "Cambridge Analytica" where the data of
Facebook users were theft and misused to manipulate the 2014
Loksabha elections.  

2. Hacking- As there are so many nodes in these kinds of system. So the data is
completely decentralized and the chances of hacking the data by somebody who
is inside the organization is very easy.  And, such kind of practices can further
lead to damage company's reputation.

3.  Leads to unemployment- As the efficiency of machines is much better than

humans. They have the capabilities to work without holidays, with no suffering
and no personal family issues, which eventually leads to the disintermediation
of work.

4.  Digital infrastructure- With high responsibility in the system, the latency of
the component should always be taken care of. The good digital infrastructure
which can provide high internet speed and strong database management system
is, therefore, a must.

5. Share holders- The increase in the amount of Automation in a company will

require the skilled and certified workers who can learn the whole automation
process in a short duration of time. This may further decrease the profitability of
the company, which may further reduce the interest of the shareholder.

Big Data Analysis

The Business Intelligence tools as of now were never designed in a way so that they could
analyse terabytes and petabytes of data and devise strategies based on that. Furthermore, the
dynamic nature of the businesses today, be it marketing or industry or operations has made it
absolutely necessary that the data collected is analysed in real-time because if you can’t use
the data that you can get so conveniently from the internet, social media websites, server
farms, mobile devices and the Internet of Things, well, you are missing on the precious
revenue that could have been yours.
Industrial Revolution 4.0 would be focussing on the aspect of not just physical or
materialistic growth but also the necessary growth in the digital aspect of business or
industry. After all, there is a huge growth in the number of industries and companies
becoming fully digital or at least semi digital for now.
The advantages that are associated with the use of Big Data is that it not only offers
tremendous speed but also ensures great accuracy. This ability to work faster and more
efficiently will help the businesses organizations to have a competitive lead and edge that
they couldn’t have before. Also, the big data analysis techniques are constantly getting
evolved and the scope of big data analysis is magnanimous; its utility ranges from Travel and
Hospitality, Healthcare to Government as well as Retail, basically everything that you could
think of.
The significance of the upcoming Industrial Revolution is clearly evident from the increased
interest in its usage in all the companies that can incorporate it into its usual operations.
Obviously, this great tool comes with a high danger of being misused. And this has been
quite evident from the latest misuse of users’ data by an analysis firm “Cambridge
Analytica” which conveniently utilized the users’ personal information and data to create
specific models to psychoanalyse people and generate statistics and then sold it to the highest
bidder who used it to influence people with enticing adverts.
That being said, no way does it undermines the importance of Big Data in the industrial
scenario as of now as well as the industrial revolution that we would be going into. It
amplifies its significance and also intensifies the need to use it precariously and judicially and
not recklessly.
From a managerial point of view, it is going to be an important arsenal in the Industrial
Revolution 4.0 as speedy decision-making is being a requirement and higher accuracy in it is
expected. So, Big Data will help in making quick but informed decisions and at the same time
will also analyse the trends and the markets to predict how and what would be the necessary
actions that would need to be taken in due course of time
So, all said and done, it is quite clear that Big Data analysis is going to play a vital role in the
Industrial Revolution 4.0 in not just driving it but also backing it because of it broad scope
and unlimited fields of utility.

Technology

Technology plays a major role in industrial revolution and in the fourth era of revolution
came a lot of emerging technologies in an number of fields, which majorly includes Artificial
Intelligence and Internet of things. This ultimately has aimed at constructing a smarter
operating platform for industries.

Artificial Intelligence:
Artificial Intelligence is the technology which is used in machines in such a manner that it
replaces humans i.e. the machines think and act like humans. Artificial Intelligence has
reduced the human efforts and also have brought in the idea of error free world. This
technology is still growing and will be touching all the sectors in order to reduce the human
efforts and increase the productivity.
Some of the sectors that Artificial Intelligence has already touched and is helping a lot are:
a. Banking and financial systems: Artificial Intelligence has been of a great help in
banking and financial sector such as investing money, financial operations and
managing different properties. Using this technology have helped banks to have a first
mover advantage over the other banks and also have helped banks to give customers a
quick solution to their problems.
b. Medical science: Artificial Intelligence has changed the face of medical science to a
great extent. This technology has been used in medical science for analytics and
research which has been quite successful and has helped in assisting personal
healthcare virtually. For example giving customer support and scheduling
appointments.
c. Heavy industries: Artificial Intelligence is used basically in all of the heavy industries
in today’s world. Artificial Intelligence is used to displace assembling of products,
displacing objects from one place to another and many more. Ultimately it helps in
completing the task effectively and efficiently.

There are many more sectors in which Artificial Intelligence is used and it has become a part
of everyone’s life.

Internet of things:

Internet of things is basically the internet of all the smart devices present around you.
Basically it involves all the objects connected to the internet and that particular object could
represent itself digitally. IOT not only includes terms such as computer, smartphones and
tablets but includes each and every thing present around connected and communicating in an
intelligent fashion. There are different IOT devices present around which are differently
classified for consumers, enterprise and infrastructure spaces. IOT basically helps in saving
time, cost reduction, better efficiency, and increased productivity.

IMPACT OF INDUSTRIAL REVOLUTION 4.0

The impacts of Industrial Revolution 4.0 are far reaching in the fields of Science and
technology, Automation, economic growth and relationship among countries.
But on a larger scale, these impacts can be understood the best when we take business and
society into consideration.
Impact on Society and Individuals:-
Industrial revolution 4.0 has altered almost every aspects of our lives. It has reshaped the
Government, Education, Economics and commerce and the standard of living.
Education and access to information has improved the lives of billions of people. Powerful
computing devices, digital networks, cloud computing, mobile services etc, has made it
possible to access any information that is available on the internet which has improved
education techniques drastically. Smart classes are very efficient and interactive which has
enhanced the learning process.
Social Media has turned out to be a part of our lives. Facebook, twitter and many other social
networking sites have brought people together and has made communication much easier.
Advances in medical science has lead to more healthy lifestyle and there is much more
awareness about different diseases and their cure which has in turn increased the life span of
an average individual. However, we have become too much dependent on technology and
networking that somewhere it has a negative effect on us.
Impact on Business:-
Industrial revolution 4.0 has made manufacturing more efficient and productive.
Optimization of factories has positively increased the yield and has changed the business
model to Outcome-Based Approach. Automation plays an important role along with
connectivity which has increased the operations upto many times with ease of doing things.
Manufacturers can remotely monitor the condition of equipment and look for signs of
glitches and failiures – for example, vibration, temperature, or pressure outside normal limits.
This means that the manufacturer can make fewer visits, reduce costs and keep less labour
force. This has led to less number of people and more machines with demand of skilled
labour force to operate.
The boom of E-commerce has changed the consumption patterns completely and the way of
communication between buyers and sellers. The ability to understand the needs and demands
are more accurate now which leads to satisfaction of demands as well as optimum utilization
of resources. This has led to ease of doing business with exact knowledge of customer needs.
Impact on Globalization:-
Since the advent of industrial revolution, Industrialization has impacted international
business. Advancement of transport and telecommunication have a huge impact on trade
practices which has led to much easier imports and exports.
The design process has changed a lot and includes globalization as one of top priorities.
However, globalization is not just improving the design process. Businesses can take the
advantage of international supplier network using their connectivity and networking in the
digital field. In many international companies, suppliers and staff work in small groups to
create synergy and getting ideas which can be spread more widely using the cloud.  Cheap
data storage and transfer has increased the flexibility for businesses.