The Industrial

Revolution
A new kind of revolution

The bette r the quest ion. The better the answer.

The bette r the world works.
Introduction

► What was revolutionary about the Industrial Revolution?

► It changed the way people worked!
► The Industrial Revolution is the era when power-driven
machinery was developed.
► What power-driven machines do you use in your everyday life?
► Occurs when countries’ economies shift from being based
mainly on agriculture to manufacturing.

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Introduction

► Industrializing is also accompanied with a dramatic social,

political, and philosophical change.

► There must be certain conditions present in order for

industrialization to occur, a country must have:
► the land/natural resources to accommodate manufacturing
► a labor force
► capital
► supportive government with a stable economy

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 Causes of the Industrial Revolution

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Causes

► The Agrarian Revolution

► A population explosion
► A revolution in energy

Page 5 Presentation title

Britain starts the Industrial Revolution

► Industrialization began in Britain,

and by the 1800s would spread to the
United States, Japan, Germany, and
other countries
► Exploration and colonization
► Political stability
► Growth of private investment

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Effects of the Industrial Revolution

► Urbanization
► During the Industrial
Revolution, people moved
from villages and towns into
cities
► Urbanization: movement of
people to cities

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Effects of the Industrial Revolution
► Poor working
conditions
► Factory conditions were
very harsh. Men, women,
and even children worked 12
to 16 hours a day
► Work was monotonous and
boring, and could also be
dangerous and unhealthy
► Women were hired because
they could be paid less than
men
► Children were hired by
textile mills and mines
because of their size

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Effects of the Industrial Revolution

► New class structure

► Upper class: rich, industrial
business owners
► Upper middle class:
professionals like doctors and
lawyers
► Lower middle class: teachers,
shop owners, office workers
► Working class: factory
workers

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Effects of the Industrial Revolution

► The Industrial Revolution inspired new ideas about

economics and affected society in many ways.
► New ideas about economics
► Laissez-faire Economics (Capitalism)
► Socialism
► Utopian Socialism
► Communism

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New Ideas about Economics

Capitalism and Competition New Roles for Business

Leaders
• Old mercantile system restricted trade • Shift in wealth and
• Adam Smith: Laissez-faire economics “let power
them alone.” (No government intervention • Entrepreneur
in the economy); market economy - • Banking and finance
Capitalism: economy in which most of the
means of production are privately owned • Andrew Carnegie -
and operated for profit. rags to riches
• Robber barons
• Thomas Malthus, poverty unavoidable
• Industrialization succeeded and spread

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 Competing Economic Views

Not everyone agreed that laissez-faire capitalism was good. Two who took a
different stance were Robert Owen and Karl Marx.

Robert Owen Karl Marx

• More hopeful than Malthus • More radical socialism
• Socialism • Predicted collapse of capitalism – conflict
– Society owns property between classes inevitable
– Society controls business • Communist Revolution: the have nots would
• Model industrial town seize power from the haves.
• With no private property, there would be no
• New Harmony
classes. Government would fade and
• Social democracy communism would be created
• Communist Government: owns means of
production and controls economic planning
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In summary

Expansion of world trade

Economi
•
• Factory system
Mass production of goods
c
•
• Industrial capitalism

Changes Increased standard of living

•
• Unemployment

• Decline of landed aristocracy

• Growth and expansion of democracy
Political • Increased government involvement in society
• Increased power of industrialized nations
Changes • Nationalism and imperialism stimulated
• Rise to power of businesspeople

• Development and growth of cities

Social Improved status and earning power of women

•
• Increase in leisure time

Changes Population increases

•
• Problems – economic insecurity, increased deadliness of war, urban slums, etc.
• Science and research stimulated

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Political Changes: Increased Power of
Industrialized Nations

► With wealth came power

► Imperialism expanded

► Imperialistic, industrialized nations built up their

navies to gain and protect assets

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Political Changes: Nationalism and
Imperialism Stimulated

 Increased production meant an increased need for raw

materials
 Industrialized nations expanded their colonial empires and
spheres of influence in their search for more raw materials
 Worldwide scramble for colonies
 Fought the peoples in the lands they controlled
 Fought one another for colonies and spheres of influence
 Governments saw imperialist expansion as the key to
continued industrial growth and wealth

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Political Changes:
Rise to Power of Businesspeople

► Along with the working classes, businesspeople gained

political rights

► “Captains of industry” or “robber barons” – along with

financiers
► Wealth brought political influence

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Social Changes:
Increase in Leisure Time

 Labor-saving devices invented and produced

 Vacuum cleaners
 Washing machines
 Refrigerators
 Entrepreneurs and inventors developed new forms of
entertainment
 Moving pictures
 Amusement parks
 Birth of the weekend
 Traditionally, Western nations had Sunday (the Christian day of
rest) as the only day off from work

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Social Changes: Problems

► Monotony of assembly lines and factory life

► Loss of craftsmanship in manufactured goods
► War became more deadly as weapons became more
technologically advanced and were mass produced
► Economic insecurity – workers relied entirely on their jobs
to survive

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 INDUSTRY
Why it matters?
4.0
The bette r the quest ion. The better the answer.
The bette r the world works.
Agenda

► Industrial Evolution
► 4th Industrial Revolution
► Building Blocks of Industry 4.0
► Potential Industrial Products Implications
► Potential Consumer Products Implications
► Impact of Industry 4.0

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What is this?

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What is this?

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What is this?

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What is this?

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Industrial Evolution

4. Industrial revolution
Based on cyber-physical-
systems

3. Industrial revolution
Through the use of electronics
and IT further progression in
autonomous production

2. Industrial revolution
Introducing mass production

Level of complexity
lines powered by electric
energy

1. Industrial revolution
Introducing mechanical
production machines powered
by water and steam
Industry 1.0 Industry 2.0 Industry 3.0 Industry 4.0
End of the Beginning of the Beginning of the Today
18th century. 20th century 70th
Source: DFKI/Bauer IAO

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Phases of earlier 3 Industrial Revolutions

1. 1760 to 1840 - Ushered in Mechanical production; railways and

steam engine

2. 1870 to 1940 - Mass production; electricity and assembly line

3. 1960 to 2010 - Computers; semi conductors, main frame computing,

personal devices, internet

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Industry 4.0: Germany
Smart Manufacturing Leadership Coalition: USA
A collective term for technologies and concepts of value chain organization. Based
on the technological concepts of cyber-physical systems, the Internet of Things and
the Internet of Services, it facilitates the vision of the Smart Factory.
Within the modular structured Smart Factories of Industry 4.0, cyber-physical
systems monitor physical processes, create a virtual copy of the physical world and
make decentralized decisions.
Over the Internet of Things, Cyber-physical systems communicate & cooperate with
each other & humans in real time. Via the Internet of Services, both internal & cross-
organizational services are offered & utilized by participants of the value chain.

 Builds on the Digital revolution  Ubiquitous internet

 Smaller & powerful sensors  Artificial Intelligence (AI)
 Machine Learning  Labor & Energy Cost
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Did not exist in 2006

► iPhone ► Android
► iPad ► Oculus
► Kindle ► Instagram
► 4G ► Snapchat
► Uber ► Whatsapp
► Airbnb
► Android

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Time to reach 100 Million customers

► Telephone 75 Years

► Web 7 Years

► Facebook 4 Years

► Instagram 2 Years

► Pokemon Go 1 Month

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Cyber Physical Systems

A cyber-physical system (CPS) is a system of collaborating computational

elements controlling physical entities. CPS are physical and engineered
systems whose operations are monitored, coordinated, controlled and
integrated by a computing and communication core. They allow us to add
capabilities to physical systems by merging computing and communication with
physical processes.

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Today’s Factory

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Tomorrow’s Factory

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Industry 4.0
Six Design Principles
► Interoperability: the ability of cyber-physical systems (i.e. work
piece carriers, assembly stations and products), humans and Smart
Factories to connect and communicate with each other via the
Internet of Things and the Internet of Services
► Virtualization: a virtual copy of the Smart Factory which is created by
linking sensor data (from monitoring physical processes) with virtual
plant models and simulation models
► Decentralization: the ability of cyber-physical systems within Smart
Factories to make decisions on their own
► Real-Time Capability: the capability to collect and analyze data and
provide the insights immediately
► Service Orientation: offering of services (of cyber-physical
systems, humans and Smart Factories) via the Internet of Services
► Modularity: flexible adaptation of Smart Factories for changing
requirements of individual modules
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Building blocks of Industry 4.0

Autonomous
Robots

Big data
Simulation
analytics

Horizontal
Augmented and vertical
reality Industry 4.0 system
integration

Industrial
Additive Mfg Internet of
Things
Cyber
Security

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Impacting all aspect of value chain

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Digital Enterprise
Entire value chain is digitized and integrated

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Potential Implications

Robot Assisted production

Predictive Maintenance

Additive manufacturing of complex parts

Machines as a service

Big data drive quality control

Production line simulation

Smart supply network

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Robots working in Amazon WH

45000
40000
35000
30000
25000
20000
15000
10000
5000
0
2013 2014 2015 2016

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Examples
SIEMENS

German manufacturing giant Siemens, an industrial user, is

implementing an Industry 4.0 solution in medical engineering. For years,

artificial knee and hip joints were standardized products, with engineers

needing several days to customize them for patients. Now, new software

and steering solutions enable Siemens to produce an implant within 3 to

4 hours.

Source: Think Act: INDUSTRY 4.0 The new industrial revolution How Europe will succeed

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Examples
TRUMPF

German toolmaker Trumpf, an Industry 4.0 supplier and worldwide market

leader of laser systems, has put the first "social machines" to work. Each

component is "smart" and knows what work has already been carried out

on it. Because the production facility already knows its capacity utilization

and communicates with other facilities, production options are

automatically optimized.

Source: Think Act: INDUSTRY 4.0 The new industrial revolution How Europe will succeed

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Examples
GE

Predix, the operating system for the Industrial Internet, is powering

digital industrial businesses that drive the global economy. By

connecting industrial equipment, analyzing data, and delivering

real-time insights, Predix-based apps are unleashing new levels of

performance of both GE and non-GE assets.

Source:https://www.ge.com/digital/predix

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Examples of Product evolution: Connected
and smart products

Harvard Business Review

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Impact

Economy

Individual
Business
Impact

Society National
& Global

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Impact
Economy

► Growth
► Ageing
► Productivity
► Employment
► Labour subsititution
► The nature of Work

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Impact
Business

► Customer expectations

► Data enhanced products

► Collaborative innovation

► New operating models

Combining digital, physical and biological worlds

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Impact

► National & Global

► Governments
► Countries, regions & cities
► International security
► Society
► Inequality

► Community
► The Individual
► Identity, morality & ethics

► Human connection
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Top 10 Skills to be relevant in Industry 4.0

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Thank YOU