Unleashing the Power of Industry 4.0

Contents

• Why 4IR?

• The four Pillars of Industry 4.0 (Pyramid of 4IR)

• What technologies are driving the 4IR?

• How AI can help industries especially the oil & gas, agriculture, and chemicals sector?

• Social Implications

Why 4IR?

Industry 4.0 is defined as the use of advanced computational technologies like AI, Machine learning, Cloud computing and Big Data. The answer to the question lies in the question itself.

• The world is moving at a fast pace, and to catch up the production, we need to maintain high standards of goods and services. Also, to be economically stable we need to be more efficient in manufacturing.

• Through the use of these technologies, we can break the S curve (saturation point), which is achieved in the manufacturing sector. We can design and produce more efficiently and innovate new technologies.

The four Pillars of Industry 4.0 (Pyramid of 4IR)

Industry 4.0 aims to create smart factories that are more efficient, flexible, and responsive to customer needs and market changes. To achieve this vision, industry 4.0 relies on four main pillars that enable the digital transformation of manufacturing:

• Interconnectivity: This refers to the ability of machines, devices, sensors, and people to communicate and exchange data with each other through the internet or other networks. Interconnectivity allows for real-time monitoring, control, and optimization of the production processes and products, as well as enhanced collaboration and coordination among different stakeholders.

• Data analytics: The use of advanced algorithms and tools to collect, process, and analyze large amounts of data generated by the interconnected systems and devices is very important in today’s world. It enables the extraction of valuable insights and patterns that can improve decision making, quality, performance, and innovation.

• Automation: The use of robotics, software, and artificial intelligence to perform tasks that were previously done by humans or required human intervention has greatly increased the efficiency of manufacturing. Automation increases productivity, accuracy, safety, and reliability, while reducing costs, errors, and waste.
  

• Cybersecurity: This refers to the protection of the digital systems and data from unauthorized access, manipulation, or damage by malicious actors. Cybersecurity is essential for ensuring the integrity, confidentiality, and availability of the information and processes that support industry 4.0.

What technologies are driving the 4IR?

• Artificial intelligence (AI): AI is basically the ability of machines to perform tasks that normally require human intelligence, such as reasoning, learning, decision making, and perception. AI can help optimize production processes, improve quality control, enhance product design, and provide personalized customer service.
  

• Cloud computing: It is the delivery of computing services, such as servers, storage, databases, software, and analytics, over the internet. We can help reduce costs, increase scalability, improve flexibility, and enable data sharing and collaboration through cloud computing.

• Big data: Big data refers to the large and complex datasets that are generated by various sources, such as sensors, machines, social media, and mobile devices. Big data can help provide insights into customer behavior, market trends, operational efficiency, and product performance.

• Internet of things (IoT): IoT is the network of physical objects that are embedded with sensors, software, and other technologies that enable them to communicate and exchange data with other devices and systems. IoT can help monitor and control production processes, track and optimize asset utilization, enhance product functionality, and create new service offerings.

Social Implications

Industry 4.0 promises to bring many benefits, such as increased efficiency, productivity, quality, customization, and sustainability. However, it also poses many challenges and risks, such as the impact on employment, skills, education, inequality, security, privacy, ethics, and the environment.

• One of the most debated and controversial aspects of Industry 4.0 is its impact on employment and skills. Some studies have predicted that Industry 4.0 will lead to massive job losses due to automation and artificial intelligence, especially for low-skilled and routine tasks. For example, a widely cited study by Frey and Osborne (2013) estimated that 47% of US jobs are at risk of being automated in the next two decades. Other studies have been more optimistic, arguing that Industry 4.0 will create new jobs and opportunities for workers, especially for high-skilled and creative tasks. For example, a report by the World Economic Forum (2018) estimated that by 2022, 75 million jobs may be displaced by Industry 4.0 technologies, but 133 million new jobs may emerge.
  

• Industry 4.0 will not only replace some jobs but also transform many others, requiring workers to adapt to new tasks, tools, and environments. This means that workers will need to acquire new skills and competencies to remain employable and competitive in the changing labor market.

• According to the OECD (2019), some of the most in-demand skills for Industry 4.0 include digital literacy, problem-solving, critical thinking, creativity, communication, collaboration, and lifelong learning. These skills are not only relevant for technical occupations but also for social and interpersonal ones, such as health care, education, and entertainment.

Therefore, one of the key challenges for society is to ensure that workers have access to quality education and training opportunities to develop these skills and keep pace with technological change. This requires a comprehensive and coordinated effort from governments, employers, educators, unions, and civil society to design and implement effective policies and programs that support workers' reskilling and upskilling throughout their careers. Some examples of such policies and programs include:

• Providing incentives and subsidies for workers to participate in formal or informal learning activities.

• Developing national or sectoral skills frameworks and standards that reflect the current and future skill needs.

• Promoting apprenticeships, internships, mentoring, coaching, and other forms of work-based learning.

• Enhancing online and blended learning platforms and resources that are accessible, affordable, and flexible.

• Encouraging lifelong learning cultures and practices in workplaces and communities.

If you like this blogpost, then you can check out our other blogs with in-depth analysis.