FOURTH INDUSTRIAL

REVOLUTION IN DEVELOPING
COUNTRIES : A CASE ON
PAKISTAN
LITERATURE REVIEW

Qaisar Shahzad

FA-2020-MSEM-023

Abdullah Tahir

FA-2020-MSEM-027

MS ENGINEERING MANAGEMENT
SS CASE IT ISLAMABAD
LITERATURE REVIEW

Industry 4.0
The word "Industries 4.0" was first publicly adopted in 2011 by a group of
representatives from different fields, such as finance, politics, and academia, as part of
an effort to increase Germany's manufacturing industry's competitiveness. The German
federal government has embraced the concept of a "High-Tech Strategy" for 2020.
Following that, an expert working group was established to provide additional guidance
on the application, process, and implementation of Industry 4.0. After mechanization
(Industry 1.0), mass manufacturing (Industry 2.0), and automation, Industry 4.0 is
known as the fourth industrial revolution, which is focused on the "Internet of things and
services" (Industry 3.0).

In developed countries, the Internet of Things and Services is already an inextricable

part of manufacturing, especially in sophisticated manufacturing and service industries
like car production, aircraft production, insurance, logistics, and the communications
industry (Haller et al., 2008; Bandyopadhyay & Sen, 2011; Rüßmann et al., 2015;
Trappey et al., 2017; Hofmann & Rüsch, 2017; Witkowski, 2017). Experts predict that
using Industry 4.0, companies will be able to increase their efficiency by around 30%.
(BDI, 2016).

In this regard, Industry 4.0 incorporation aids in making quick management decisions,
allowing all sorts of opportunities to be quickly exploited (Lee et al., 2014). Pakistan, as
a developing country, needs the adoption of Industry 4.0 not only to speed up
development but also to boost economic growth. It could also be a crucial step in the
development of women in the Pakistani business field, where they are undervalued in
every position and are not permitted to hold senior positions. Since the physical
combination would be reduced as a result of technological integration, Industry 4.0 can
be useful for the improvement of organizational efficiency and the development of
female employees.

Essential Constituents of Industry 4.0

Some aspects of Industry 4.0 are present. These are critical for a country's effective
implementation of Industry 4.0.

In this regard, self-governing or autonomous robots have been described as a critical

component of Industry 4.0. Robots, which have long been used to handle difficult tasks,
now provide a broader range of administration and are becoming more self-sufficient,
adaptable, and agreeable (Bahrin et al., 2016; Iyer, 2018). They can communicate with
one another and operate safely with humans (the term "cobotics" refers to robots that
assist administrators in completing tasks) (Gilchrist, 2016; Iyer, 2018). They will
eventually be able to acquire insight and learn from others (Gilchrist, 2016).

Simulation, on the other hand, is a component of the fourth industrial revolution.

However, 3D simulations of product development, material improvement, and product
manufacturing procedures will be widely available (AbouRizk, 2010; Gilchrist, 2016;
Jaghbeer et al., 2017). It will use continuous data to create a virtual model of the real
world that will include computers, products or things, and people (Gilchrist, 2016).
Administrators and operators will, for example, be able to test and streamline the item's
system settings before it is created, reducing the time-consuming machine setup
process and improving efficiency (Jaghbeer et al., 2017).

Data frameworks and information systems in organizations around the globe are
currently uncoordinated (Avgerou & Walsham, 2017). Suppliers and clients are seldom
linked to companies. Within an enterprise, engineering design departments are seldom
connected directly to production (Avgerou & Walsham, 2017). However, with Industry
4.0, the whole enterprise would be integrated, and businesses will be linked to one
another (Gilchrist, 2016). As a result, in order to reap the advantages of Industry 4.0,
organizations must combine vertical and horizontal systems (Avgerou & Walsham,
2017).

Currently, only a small percentage of machines are equipped with sensors and are not
associated. Through the Internet of Things, an ever-increasing number of objects will be
linked, and better information will be available to enhance standard practices. (2016,
Gilchrist). This would decentralize examination and basic leadership, allowing for more
flexible responses (Gilchrist, 2016).

On the other hand, the time of unconnected and closed operational management
systems has come to an end in order to ensure excellent cyber security (Gilchrist, 2016;
Berawi, 2018). Conventions for networking and communication are becoming the
standard. Protecting data systems and assembly lines from cybercrime threats is
becoming a serious problem. With the use of Industry 4.0, sophisticated identity and
machine access management systems will be used to provide safe, efficient
communications (Drath & Horch, 2014). Industry 4.0's working procedures necessitate
more information sharing among destinations and organizations.

The implementation of cloud advancements would improve response times by several

milliseconds (Liu & Xu, 2017). In light of cloud-put-away machine data, this will foster
the development of an ever-increasing number of Manufacturing Execution Systems
(MESs) (Coronado et al., 2018). On the other hand, in the industrial world, there are still
vast amounts of untapped data. Big data analytics is essential for the fourth industrial
revolution in this regard because it analyses vast amounts of data to reveal hidden
patterns, business dynamics, unknown correlations, consumer desires, and other useful
details (Martinet and Stedman, 2018). Their research would help to increase production
efficiency, save resources, and provide better services (Witkowski, 2017; Martinet and
Stedman, 2018; Lotti et al., 2018).