Industry 4.0 Explained

Explore interesting facts about the fourth industrial revolution

Posted September 9,2019 in Science and Technology.

stacey roberts
170 Followers 6 Views

What Is Industry 4.0?

Before discussing the term just have a view on this below explainer video

Industry 4.0

The termIndustrie 4.0was firstly announced atHannover fairIn2011, by a group of representatives from different fields to accomplish theGerman Federal Governmentmove towardsHigh Tech Strategy of 2020.

Industry 4.0is a term that defines the concept of the "smart factory" along with the growth of Industrial technologies (i.e)Industrial internet of things(IIoT)viaautomation, interconnectivity, Machine Learning, real-time data processing, and digitization. It defines how our society and industries can grow up with the new kind of technologies to enableefficient data exchange, faster, flexible, efficient, smart manufacturing methodology to meet the mass production of high-quality goods with reduced Costs.

If I4.0 becomes true, It would create a better-interconnected ecosystem where everything about an industrial process will become transparent, which will help us to make pre-informed decision making on segments which the processing methodology has to be optimized.

In another way, we could defineindustry 4.0 is the concept of factories where machines and human ideas can be connected into a system via wireless system and sensors where we can monitor the entire production process and can make a better decision on it.It allows changing the way industry responding to the needs of a common man or a society.

By all these definitions you could understand that the essence of thefourth industrial revolution is mainly gonna favor the manufacturing and supply chain industryvia automation, efficient data exchange through cyber physical systems, IoT, Big Data, Cloud computing, IIOT, and Artificial Intelligence.


Now let us Have a look at the previous industrial revolutions, then we could get an idea of why Industry 4.0 becomes the hot talk on the internet?.

History of Industrial Revolutions

Industry 1.0 - The First Industrial Revolution

Time period: 18th Century ( Approximately 1760 - 1840)

During this period Manufacturing has been evolved from hand production methods and labor work is done with animals to the better-optimized labor work done with machines powered by water and steam. This is the era when machines started to replicate the work done with humans and animals. During this period, many labors lost their jobs as machines started to replace their work. In this period, the term "Factory" become more popular, and the most notable industries that benefited a lot are,Textile industry, agriculture, iron production, and mining industry.

Industry 2.0 - The Second Industrial Revolution

Time Period - 19th Century (1870-1914)

The Period of modern production powered with factoryelectrification. During this period water and steam energy have been started to replace by electrical power. Also, this period is better known for the introduction ofrailroads, and telegraphs.

Industry 3.0 - The Third Industrial Revolution

Time Period - 20 th Century ( approximately between 1930 - 1970)

This Period is known as theScientific and technical revolution, This started to begin after the two world wars. During this periodsupercomputerhas been invented, after that the use and mass adoption of computers started to grow inside the industries. This is the time where machines started to evolve from analog into the digital one.

Industry 4.0 - The Fourth Industrial Revolution

Time Period - (1975- Present )

We are currently in the early period ofFourth industrial revolution, that is called thedigital revolution. We are living in the era of Machines started to communicate with each other via a network known asIoT(Internet Of things) and with People Known asInternet Of People (IoP)

Industry 4.0 initiated to foster the idea "smart factory". The component of modular structured smart factories and cyber-physical systems would help us to make a virtual copy of the real world and can make decentralized decisions on it.

Principles and Goals Of Industry 4.0

  • Interconnectivity
  • Information or Data Transparency
  • Immediate Technical Assistance
  • To Make Decentralized Decisions


The connectivity between peoples, machines, sensors, and other devices to communicate with each other via the use of IoT.

Information Transparency

The goals of Industry 4.0 is to bring up the idea of mass production to live on the market. So when there is an execution of mass production, the communication and data transmission should be proper, as well as transparent to each other inside the network. Because if there is any inefficiency happens, the transparency of information would help the authorized people to make the right decisions and take actions on it.

Technical assistance

To empower the idea of smart factory, smart informed decisions have to be made on time, with just short instant notice. Technical assistance systems support humans in this to make such decisions by aggregating and visualizing the useful information comprehensively on time.

Decentralized Decisions

To automate and faster the decision-making process theCPS systemshas to make decisions on their own and must complete some tasks autonomously. So, this kind of decentralized decision-making process will be automated with the use of IIoT and CPS systems.

Which Will Drive Industry 4.0 in the right Path?

1. Digitization of Vertical and Horizontal Value Chains

Vertical Value Chain- Internal operations inside an organization to deliver a good to the customer, like product development, manufacturing,

Horizontal value chain- Internal operations between the suppliers and customers.

2. Digitization of products and services offering methodology

3. Digitization of customer interaction and customer profiling

Now let us have a look on which components could power industry 4.0

Components of Industry 4.0


Without the below components and technology implementation, the journey of Industry 4.0 will drive us nowhere. Some of the components are real-world entities too.

1. Mobile Devices ( Smartphones)
2. IoT ( Internet Of Things)
3. Industrial Internet Of Things (IIoT)
4. Big Data
5. Artificial Intelligence
6. Location detection Technologies ( Advanced GPRS methodology)
7. Smart sensors
8. Augmented Reality
9. Machine Learning
10. Fog, Edge and Cloud Computing
11. 3D printing
12. Fraud Detection technologies

We can cover up all the above into 5 major categories as below

1. IoT
2. Cyber-Physical Systems
3. Cloud Computing
4. Cognitive Computing
5. Real-Time Data processing

What is IoT?

It is a network of connected devices, to transmit digital data, without requiring any effort from the outside entities including human-human interactions or human-machine interactions.

What are Cyber-Physical Systems(CPS)?

Cyber-physical systems, communicate internally with each other, humans, organizational services and other participants of the value chain.

Value chain- it is a set of activitiy of a firm or an organization in a specific industry to deliver a product or service on time to the market.

CPS is also can be defined as the system of cyber manufacturing, that offers real-time data processing, data analysis and also transparency across a fully connected network of the manufacturing operations.

What is Cognitive Computing?

It is a set of technology platforms, which are based on some of the scientific technologies like artificial intelligence and also signal to process. Cognitive Computing encompasses machine learning, reasoning, NLP (Natural Language Processing ), Speech and Object Recognition.

What is Real-Time data processing

It is an act or an ability of computers to continuously process the data and provides real-time insights ontime through the automated data analysis.

What is Cloud Computing?

It refers to the process of analyzing computerized data inside an external source mostly on a permanent virtual storage so-called cloud storage.

What is the Smart factory?

By definition smart factory, is the connected network of IIOT(Industrial Internet of Things) whereas the CPS can be communicated with the IoT and IoP(Internet of People) to aid them in the process of executing the production or manufacturing tasks.

What are Industrial Internet of Things ( IIoT ) ?

IIoTrefers to the usage of smart sensors and actuators to empower the manufacturing process of an organization belongs to a specific industry. This power-up the idea of the smart factory that leads the goals of Industry 4.0 This IIoT connects with CPS to enhance the transparency, connectivity and data exchange to execute the expected output during a factory production process.

Why Businesses Should Evolve with Industry 4.0?

From all the above statements and discussions, the world is evolving into next-generation technology. People have enough capability to accept those technology changes and are willing to implement them for their real-life usage. So, to travel with people and technology growth business have to grow with the flow and should adopt or implement those technology changes towards their business operation.

The reason why businesses have to adopt industry 4.0 is, This new modern industrial revolution is a pack of automation, enhanced interconnectivity, and decentralization. If businesses refuse to adopt any of these above components they would left alone in the crowd of competitors and may fail to fulfill their customer needs on time.

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