The fourth Industrial Revolution is the most complex, inclusive, and automated revolution that the world has seen. We have reached a point where physical technology (machines, devices, sensors, and ubiquitous connectivity) and digital technology (artificial intelligence, cloud, and analytics) will converge to create a truly intelligently connected factory.
In their bestselling book, “Why Nations Fail: The Origins of Power, Prosperity, and Poverty,” American economists Daron Acemoglu and James Robinson argue, “World inequality today exists because during the 19th and 20th centuries some nations were able to take advantage of the Industrial Revolution and the technologies and methods of organization that it brought while others were unable to do so.”
Today, businesses are undertaking a new, dramatic digital transformation — rethinking their entire operations and creating models that take advantage of what’s new for competitive differentiation. The challenge these companies now face is how fast and far to go on digital transformation.
The changes we see today, of course, are much faster than during the first Industrial Revolution. While there were atmospheric steam engines in the second half of the 18th century, steam power was exceptional and remained so for most industrial purposes until well into the 19th century.
Henrik von Scheel, one of the German Digital Revolution masterminds and originator of Industry 4.0, argues, “In essence, the centerpiece of Industry 4.0 is the people — not technology. Ever since the first caveman shaped a flint, humanity has defined itself by the ability to equip itself with tools to manage its environment. The Industry 4.0 era will be no different. Compared with previous industrial revolutions, the third and fourth revolutions have evolved at an exponential rate rather than a linear pace,” and “the fourth Industrial Revolution brings the fusion of the digital, the physical and the virtual worlds, and is the most significant structural change of the past 250 years. The transformation will be unlike anything humankind has ever experienced in its scale, scope, and complexity. It is disrupting every industry and economy in every country.”
While the foundations of the current technology necessary for Industry 4.0 started in the last 30 years of the prior century, the exponential growth of connectivity, data collection and processing, and computing power only happened over the previous 20 years.
The birth of the Internet of Things (IoT), replacing the previous limited M2M connections, and the arrival of fast wireless connectivity with 4G and now 5G networks enable the possibility of deploying millions of sensors. Also, new manufacturing technologies such as 3D printing are forging new ways to quickly produce new parts, introduce new materials, and reduce production and logistics costs.
Today’s smart factory uses a mix of wired and wireless technologies, working together by Time-Sensitive Networking (TSN), a set of standards to enable Ethernet networks to give QoS guarantees for time-sensitive and mission-critical traffic and applications.
Traditional industries, such as manufacturing and transportation, must catch up to new digital tools. In many cities, we ride the same underground trains built 30 or more years ago, and factories operate machinery purchased decades ago.
The Pandemic Accelerated the Digital Transformation of Many Traditional Industries
Since its birth 10 years ago, Industry 4.0 has been focusing on technology-driven methods for increasing the efficiency and productivity of different industries, taking less into consideration the principles of social fairness and sustainability.
All these technologies and innovations have been fundamental during the current pandemic, where production has been maintained and, in some cases, resumed using the advanced technologies we have today.
Last year, global consulting firm EY released its “Reimagining Industry Futures Study 2021.” The research shows that “almost three-quarters of enterprises (71 percent) believe that the COVID-19 pandemic has accelerated existing digital transformation plans, with 52 percent signaling greater interest in 5G and the IoT.”
Robotics, Microcontrollers, and Industry 4.0
Fueled by AI, new generations of robots are arriving at the workplace. The new systems, from factory automation to autonomous vehicles and drones, are entirely mobile, running on powerful wireless networks. Cloud providers AWS, Google Cloud, and Microsoft Azure have been collaborating with robotics developers on this. This space is now defined as Robotics-as-a-Service teamed with Software-as-a-Service.
Also, the COVID-19 pandemic has accelerated the demand for robots to handle more industrial tasks. Technologies such as augmented reality, paired with 5G networks, allow engineers to service machines remotely, and many previously human-performed tasks are now done autonomously or remotely controlled.
Robots are also moving out of the warehouse and factory and into the larger world, helped by AI and the arrival of 5G networks. Companies will face challenges around talent, questions of human-computer interaction, and the world as a testbed.
Until a few years ago, most microcontrollers embedded in many devices and machinery were designed to provide specific functions within the unit, with no external connectivity. Other types of controllers were to connect locally within a facility, such as factory machines, but were never designed to send or receive any external information or commands.
The new generation of connected microcontrollers dramatically changes the game. Their ability to connect as part of IoT makes them more valuable as manufacturers can add more functions to the machine, receive useful information, monitor performance, provide preventive maintenance, and engage more deeply with customers.
However, as billions of new microcontrollers — a class of devices particularly ill-prepared for the security challenges of Internet connectivity — are now being installed in devices that were never designed to be connected to the Internet, the potential for disaster is growing exponentially.
Automation Should Protect People, not Replace It
Two years ago, the European Commission published the EU Digital Strategy, calling for developing, deploying, and using technologies making a difference in people’s lives.
“Along with the opportunities that AI, IoT, and robotics can bring to the economy and our societies, they can also create a risk of harm to legally protected interests, both material and immaterial ones. The risk of such harm will increase as the field of applications widens. In this context, it is essential to analyze whether and to what extent the current legal framework on safety and liability is still fit to protect users,” says the document.
During the announcement, European Commission President Ursula von der Leyen said that Europe needs to step up its efforts to create a truly digital economy and make better use of the massive amount of data collected.
Sustainability Needs to be a Top Priority
Companies embracing a roadmap for sustainability and achieving their targets will be the ones rewarded with better performance and profit.
Last year, Siemens CIO Hanna Hennig, during Lisbon’s Web Summit, argued that tackling climate change will be achieved by “a combination of different technologies such as electrification and renewable energy. The other technologies are going to be energy management in factories and buildings.”
“When you talk to the companies, the famous ones, they always tell you that sustainability and reducing CO2 emissions is what they want to achieve in the coming years,” but, Hennig warned, “I think there are not so many companies that are really committing themselves to truly measurable targets.”
