Name

Id No. / Matrix

No. Telefon

Subject Contemporary Issues in Business

Subject Code RMGT4133

Lecturer Nor Khalidah binti Abu

Mark (%)

Assessment Individual Assignment 1

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 TABLE OF CONTENT

No Title Pg

1 What does it mean by Industry Revolution 4.0 3

Explain TWO (2) challenges and opportunities of Industry

2 3
Revolution 4.0
Discuss FIVE (5) impacts of the Industry Revolution 4.0 on
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business.

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1. What does it mean by Industry Revolution 4.0

The Fourth Industrial Revolution, also known as Industry 4.0, is the next stage in the digitization
of the industrial sector. It is fueled by disruptive developments such as the growth of data and
connectivity, analytics, human-machine interaction, and advancements in robotics. The
contemporary era of connection, cutting-edge analytics, automation, and advanced manufacturing
technology, which has been revolutionizing international business for years, is referred to as
Industry 4.0. The manufacturing industry has experienced a wave of change that started in the
middle of the 2010s and has enormous potential for operations and future production.

2. Explain TWO (2) challenges and opportunities of Industry Revolution 4.0

The advantages of the fourth industrial revolution include challenges that must be tapped,
directed, and overcame, including inequality of income, cybersecurity, and ethical dilemmas. The
world is changing due to advances in science and technology. The following possible challenges
should be kept in mind while making wise investments in the factory of the future:

 Security: Another major worry is the threat of exploiting existing and new industrial
vulnerabilities. Real-time interoperability is made feasible by the physical and digital
systems that make up smart factories, but it entails the risk of an increased attack surface.
In a smart factory, where a large number of machines and devices are linked to one or
more networks, flaws in any one of those devices could leave the system open to
intrusion. Companies must prepare for both enterprise system vulnerabilities and machine
level operational vulnerabilities in order to address this problem. Due to the fact that
many rely on their technology and solution providers to identify vulnerabilities,
businesses are not completely equipped to handle these security threats.

 Technical Skills: The workforce's requirements are always changing. Can your staff keep
up with the pace? Look for candidates who have "digital dexterity" when hiring for open
roles, meaning that they are familiar with both the production processes and the digital
technologies that support those processes. Business models will only be able to maintain
operations and successfully integrate new technology with the suitable people.

In the following ways, the new industrial revolution will assist a firm in becoming smarter and
more effective:

 Increased productivity results from optimization and automation: Businesses can lower
labor expenses and reallocate personnel to more value-adding activities by automating
manual operations. Furthermore, automation's enhanced productivity and efficiency can
reduce operational costs and boost return on investment (ROI).

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  Better environmental sustainability and working circumstances: A sustainable
workplace aims to utilize resources without harming the environment or the wellbeing of
its workers. Promoting a sustainable workplace has several advantages, such as lessening
the impact on the environment, reducing waste, recycling, enhancing employee health,
and fostering a more welcoming and effective workplace.

3. Discuss FIVE (5) impacts of the Industry Revolution 4.0 on business.

The main advantage of Industry 4.0 is that it provides you with the data you need to run your
organization effectively. It can increase efficiency, forecast cash flow, alert you to the demand for
goods, and even direct you to the location of your next marketing email.

 Increase Productivity: Nearly 1,000 entrepreneurs participated in the BDC poll, and it
was discovered that 60% of adopters said digital technologies increased their
productivity.
The ability to forecast and prevent downtime, as well as to maximize equipment
effectiveness and maintenance, is the primary factor driving productivity development in
a smart factory.
Employee efficiency can also be increased with the use of digital technologies. The
sensors provide you information about how many products you've produced, how many
of them are flawed, and how long it took to make them. You may be really particular
about who needs training and what they need training on based on that.

 Innovative: According to 13% of Industry 4.0 users, the new technology has increased
their potential for innovation.
Although this is a low score, more innovation is frequently the key to maximizing the
value for your company. Only recently have innovative business models begun to be
made possible by smart items and cutting-edge technology like 3-D printing. Over the
following five to ten years, they pledge to unleash a massive wave of innovation.

 Lower Operating Costs: 50% of people who use digital technology report operating
expense reductions. The study stated that the following procedures could result in
savings:
 Quality control and real-time production monitoring to cut down on waste and
rework
 Predictive upkeep to avoid expensive repairs and unscheduled downtime
 Increasing automation will reduce labor expenses and increase throughput.
 the use of 3-D printers to speed up prototyping, lower engineering costs, and shorten
time to market

 Improve Product Quality: A further benefit of digital technologies is better product

quality. 42% of adopters claimed that overall quality had increased.

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 As an illustration, real-time quality control enables you to collect data at every stage of
manufacturing. This will enable you to assess how shifting environmental factors impact
the quality of your items. For instance, how varying temperatures affect quality or how
various workers effect output. With time, using this information, you may be able to
minimize or even stop consumer returns for nonconforming goods.

 Transform your Business: Integrating digital technology into your business can take
time and effort, but the payoffs can be very interesting for businesses that use the data to
make strategic decisions.
Entrepreneurs are often overwhelmed by the amount of data at first and don’t know
where to start.
Business owners can start by defining what data they need to capture and at which
frequency it needs to be reviewed.
Information by itself is useless, but if you’re able to analyze it properly then you’re able
to use it to make the right decision.
If you don’t have that information, you are making decisions based on your gut feeling,
and that’s not always optimal.

Reference
1. https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-are-industry-4-0-the-fourth-
industrial-revolution-and-4ir

2. https://stefanini.com/en/insights/news/the-fourth-industrial-revolution-industry-4-0-challenges-and-opp

3. https://www.bdc.ca/en/articles-tools/technology/invest-technology/how-can-industry-benefit-my-
business