What is Industry 4.0, and How Did We Get Here?

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April 3, 2016

Industry 4.0. Internet of Things. Industrial Internet of Things.

These are some of the hottest buzzwords in the world of industrial technology today, but
how can you make sense of this word soup, and how did we get to 4.0 anyway? Keep
reading for answers to common questions about Industry 4.0, IoT, IIoT, and more.

What is Industry 4.0?

Industry 4.0 refers to the 4th phase in the evolution of industrial history. Some have called it
the “fourth industrial revolution.” Industry 4.0 does not refer to a past time, but rather
describes the advancements in technology that are occurring right now.

When I hear about Industry 4.0, I often hear other terms used almost
interchangeably: Internet of Things (IoT), Industrial Internet of Things (IIoT), Smart
Factories, etc. What is the difference?

Industry 4.0 is a term developed by the German government to describe the current wave
of advancements in technology. (See the answer to the next question to find out what
Industry 1.0, 2.0, and 3.0 have been.)

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Internet of Things (IoT) refers to anything
that can be connected to the internet, and
this is what has enabled this fourth stage of
technological innovation. IoT is a general
term that includes everything from internet-
connected industrial technology to
consumer products such as smart
appliances and home automation systems
(for example, networked smoke detectors
with real-time status updates viewable on a
smart phone app).

The Industrial Internet of Things (IIoT) is a subset of IoT that specifically refers to internet-
connected industrial automation technologies—from the system level down to the sensor
level—in both factory and logistics applications.

“Smart Factories” is just another way of describing IIoT capabilities in industrial

manufacturing facilities. Just like consumer IoT products, internet-connected industrial
technologies also often include the ability to remotely monitor, diagnose, and respond
immediately to status changes (i.e. a dirty lens on a sensor) from a smart phone or other
mobile device.

How did we get here?

As first defined by Siegfried Russwurm at Hannover in 2013, Industry 1.0—or the first
industrial revolution—refers to the period of time during which water and steam first
powered production. The second industrial revolution introduced electric power,
hallmarked by the advent of electricity-powered factories which enabled mass production
for the first time.

The third industrial revolution (also known as the digital revolution) included, as the name
suggests, computing and digital technologies in the production process. Now, Industry 4.0
promises to connect physical systems to the internet for even greater transparency,
flexibility, and connectedness in industrial automation—and it’s already happening!

What are the benefits of Industry 4.0?

There are numerous benefits to the current wave of innovation. For one, machines are
becoming more intelligent. Connected industrial technology makes it easier to not only
gain more data (and greater visibility into that data), but also use that data in more
meaningful ways. Predictive analysis, for example, allows you to take preemptive action on
scenarios before they occur, leading to more informed decision-making and less downtime.

Furthermore, connected industrial technology allows for more flexibility thanks to remote
monitoring and diagnostic capabilities. For example, connected intelligent sensors can give
condition information of adjacent components, such as variations in fluid flow rates and
process temperature, lubrication state, and other metrics that, if recognized too late, could
lead to costly, unexpected system shutdowns.

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Similarly, users can communicate directly with encoders for status information (e.g.,
temperature range), diagnostics (error codes), and live data on a mobile device without
needing to be on-site or access PLC programming.

John Ashodian
John has over 25 years experience in the logistics automation industry with a focus on
automatic identification and retail supply chain logistics. Most recent positions include
strategic marketing and business development. Early career roles included product
management and marketing communications. Outside work John coaches youth hockey
and enjoys traveling with his family.

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