The Concept of Industry 4.

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§ Key components are:
1. Embedded systems and (partly) autonomous machines that act in their environments
without human intervention
2. Connected technologies and devices that are equipped with microchips result in highly
complex structures and cyber-physical systems (CPS) like the Internet of ThingS

§ Main fields of application are:

• Mobility (smart factory, driverless cars)
• Health (electronic medical record, health service robots)
• Climate and energy (smart grid)

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1.2. Digitalization and the Networked
Economy
• How binary is our Future?
- The Transformation of Man and Machine is loading…

• Converged Networks will change our way to:

o Learn
o Communicate
o Play
o Work/Collaborate

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• The networked economy is an economic system made up of millions of
different types of networks.
• A “Network” per se can be anything; it might be users, a forum, subscribers,
mailing list, businesses, computers, trucks, even fax machines…
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Networks in Our Past and Daily Lives

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Digitization and Digitalization
o “Customers want a quick and seamless digital experience, and they want it now ”
o “Customers have been spoiled. Thanks to companies such as Amazon and Apple…”
“Digitization is the automation of existing manual and paper-based processes, enabled by
the digitization of information; from an analogue to a digital format.”

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Digitization and Digitalization
What is Digitization?
Digitization defined in the context of processes

In the context of ‘physical information carriers’, such as paper documents or

analogue, printed images, we mainly digitize by using document scanners in
business (or simply scan or take a picture with your mobile).

àDigitization is the transformation from analogue to digital or digital representation

of a physical item with the goal to digitize and automate processes or workflows.

What is Digitalization?
Digitalization means the use of digital technologies and of data (digitized and natively
digital) in order to create revenue, improve business, replace/transform business
processes (not simply digitizing them) and create an environment for digital business,
whereby digital information is at the core.

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Digitization and Digitalization
Digitalization leads to digital business, digital transformation requires digital
business and digitization
§ Reinvent entire business processes
§ Reducing documents
§ Automated decision making
§ Redesign of roles and structures
§ Data Models
§ Performance tracking
§ Training
Benefits
Ø Cutting the costs
Ø Saving time
Ø Automatic collect data
Ø Process performance
Ø Real time reports
Ø Supply-chain-quality
Ø Monitoring customer behaviour and feedback
Ø Building in-house capabilities
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