Fourth Industrial Revolution - Wikipedia https://en.wikipedia.

org/wiki/Fourth_Industrial_Revolution

Fourth Industrial Revolution

Fourth Industrial Revolution. Top-left: an image of warehouse robots operating goods logistics in an Ocado
warehouse, managed and operated through artificial intelligence systems created by Ocado Technology. Top-
right: augmented tablet information of a painting in Museu de Mataró, linking to Wikipedia's Catalan article on
Jordi Arenas i Clavell. Bottom-left: illustrated understanding of the Internet of Things in a battlefield setting.
Bottom-right: customers using Amazon Go, an example of "just walk out shopping" where integrated
technology creates a seamless consumer journey through including computer vision, deep learning algorithms,
and sensor fusion.

The Fourth Industrial Revolution, 4IR, or Industry 4.0,[1] conceptualizes rapid change to
technology, industries, and societal patterns and processes in the 21st century due to increasing
interconnectivity and smart automation. The term has been used widely in scientific literature,[2]
and in 2015 was popularized by Klaus Schwab, the World Economic Forum Founder and Executive
Chairman. Schwab asserts that the changes seen are more than just improvements to efficiency,
but express a significant shift in industrial capitalism.[3]

A part of this phase of industrial change is the joining of technologies like artificial intelligence,
gene editing, to advanced robotics that blur the lines between the physical, digital, and biological
worlds.[3][4]

Throughout this, fundamental shifts are taking place in how the global production and supply
network operates through ongoing automation of traditional manufacturing and industrial
practices, using modern smart technology, large-scale machine-to-machine communication
(M2M), and the internet of things (IoT). This integration results in increasing automation,
improving communication and self-monitoring, and the use of smart machines that can analyze
and diagnose issues without the need for human intervention.[5]

It also represents a social, political, and economic shift from the digital age of the late 1990s and
early 2000s to an era of embedded connectivity distinguished by the omni-use and commonness of
technological use throughout society (e.g. a metaverse) that changes the ways humans experience
and know the world around them.[6] It posits that we have created and are entering an augmented

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social reality compared to just the natural senses and industrial ability of humans alone.[3]

Contents
History
First Industrial Revolution
Second Industrial Revolution
Third Industrial Revolution
Fourth Industrial Revolution
Key themes
Distinctiveness
Components
Primary drivers
Digitization and integration of vertical and horizontal value chains
Digitization of product and services
Digital business models and customer access
Trends
Smart factory
Predictive maintenance
3D printing
Smart sensors
Agriculture and food industries
Accelerated transition to the knowledge economy
Challenges
Economic
Social
Political
Organizational
Country applications
Australia
Germany
Indonesia
South Africa
South Korea
Uganda
United Kingdom
Industry applications
Criticism
See also
References

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Sources

History
The phrase Fourth Industrial Revolution was first introduced by a team of scientists developing a
high-tech strategy for the German government.[7] Klaus Schwab, executive chairman of the World
Economic Forum (WEF), introduced the phrase to a wider audience in a 2015 article published by
Foreign Affairs.[8] "Mastering the Fourth Industrial Revolution" was the 2016 theme of the World
Economic Forum Annual Meeting, in Davos-Klosters, Switzerland.[9]

On the 10 October 2016, the Forum announced the opening of its Centre for the Fourth Industrial
Revolution in San Francisco.[10] This was also subject and title of Schwab's 2016 book.[11] Schwab
includes in this fourth era technologies that combine hardware, software, and biology (cyber-
physical systems),[12] and emphasizes advances in communication and connectivity. Schwab
expects this era to be marked by breakthroughs in emerging technologies in fields such as robotics,
artificial intelligence, nanotechnology, quantum computing, biotechnology, the internet of things,
the industrial internet of things, decentralized consensus, fifth-generation wireless technologies,
3D printing, and fully autonomous vehicles.[13]

In The Great Reset proposal by the WEF, The Fourth Industrial Revolution is included as a
Strategic Intelligence in the solution to rebuild the economy sustainably following the COVID-19
pandemic.[14]

First Industrial Revolution

The First Industrial Revolution was marked by a transition from hand production methods to
machines through the use of steam power and water power. The implementation of new
technologies took a long time, so the period which this refers to was between 1760 and 1820, or
1840 in Europe and the United States. Its effects had consequences on textile manufacturing,
which was first to adopt such changes, as well as iron industry, agriculture, and mining although it
also had societal effects with an ever stronger middle class. It also had an effect on British industry
at the time.[15]

Second Industrial Revolution

The Second Industrial Revolution, also known as the Technological Revolution, is the period
between 1871 and 1914 that resulted from installations of extensive railroad and telegraph
networks, which allowed for faster transfer of people and ideas, as well as electricity. Increasing
electrification allowed for factories to develop the modern production line. It was a period of great
economic growth, with an increase in productivity, which also caused a surge in unemployment
since many factory workers were replaced by machines.[16]

Third Industrial Revolution

The Third Industrial Revolution, also known as the Digital Revolution, occurred in the late 20th

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century, after the end of the two world wars, resulting from a slowdown of industrialization and
technological advancement compared to previous periods. The production of the Z1 computer,
which used binary floating-point numbers and Boolean logic, a decade later, was the beginning of
more advanced digital developments. The next significant development in communication
technologies was the supercomputer, with extensive use of computer and communication
technologies in the production process; machinery began to abrogate the need for human
power.[17]

Fourth Industrial Revolution

In essence, the Fourth Industrial Revolution is the trend towards automation and data exchange in
manufacturing technologies and processes which include cyber-physical systems (CPS), IoT,
industrial internet of things,[18] cloud computing,[19][20][21][22] cognitive computing, and artificial
intelligence.[22][23]

The Fourth Industrial Revolution marks the beginning of the Imagination Age.[24]

Key themes

Industry 4.0 increases operational efficiency. Four themes are presented that summarize
an Industry 4.0:[19]

Interconnection — the ability of machines, devices, sensors, and people to connect and
communicate with each other via the Internet of things, or the internet of people (IoP)[25]
Information transparency — the transparency afforded by Industry 4.0 technology provides
operators with comprehensive information to make decisions. Inter-connectivity allows
operators to collect immense amounts of data and information from all points in the
manufacturing process, identify key areas that can benefit from improvement to increase
functionality[25]
Technical assistance — the technological facility of systems to assist humans in decision-
making and problem-solving, and the ability to help humans with difficult or unsafe tasks[26]
Decentralized decisions — the ability of cyber physical systems to make decisions on their own
and to perform their tasks as autonomously as possible. Only in the case of exceptions,
interference, or conflicting goals, are tasks delegated to a higher level[27]

Distinctiveness

Proponents of the Fourth Industrial Revolution suggest it is a distinct revolution rather than
simply a prolongation of the Third Industrial Revolution.[8] This is due to the following
characteristics:

Velocity — exponential speed at which incumbent industries are affected and displaced[8]
Scope and systems impact - the large amount of sectors and firms that are affected[8]
Paradigm shift in technology policy — new policies designed for this new way of doing are
present. An example is Singapore's formal recognition of Industry 4.0 in its innovation policies.

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Critics of the concept dismiss Industry 4.0 as a marketing strategy. They suggest that although
revolutionary changes are identifiable in distinct sectors, there is no systemic change so far. In
addition, the pace of recognition of Industry 4.0 and policy transition varies across countries; the
definition of Industry 4.0 is not harmonized.

Components

The application of the Fourth Industrial Revolution operates

through:[28]

Mobile devices
Internet of things (IoT) platforms
Location detection technologies (electronic identification)
Self-driving car
Advanced human-machine interfaces
Authentication and fraud detection
Smart sensors
Big analytics and advanced processes
Multilevel customer interaction and customer profiling
Augmented reality/ wearables
On-demand availability of computer system resources
Data visualization and triggered "live" training[28]

Mainly these technologies can be summarized into four major

components, defining the term “Industry 4.0” or “smart
factory”:[28]

Cyber-physical systems
Internet of Things (IoT)
Internet of things (IoT)
On-demand availability of computer system resources (e.g.
cloud computing)
Cognitive computing[28]

Industry 4.0 networks a wide range of new technologies to create value. Using cyber-physical
systems that monitor physical processes, a virtual copy of the physical world can be designed.
Characteristics of cyber-physical systems include the ability to make decentralized decisions
independently, reaching a high degree of autonomy.[28]

The value created in Industry 4.0, can be relied upon electronic identification, in which the smart
manufacturing require set technologies to be incorporated in the manufacturing process to thus be
classified as in the development path of Industry 4.0 and no longer digitisation.[29]

Primary drivers

Digitization and integration of vertical and horizontal value chains

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Industry 4.0 integrates processes vertically, across the entire organization, including processes in
product development, manufacturing, structuring, and service; horizontally, Industry 4.0 includes
internal operations from suppliers to customers as well as all key value chain partners.[30]

Digitization of product and services

Integrating new methods of data collection and analysis–such as through the expansion of existing
products or creation of new digitized products–helps companies to generate data on product use in
order to refine products[30]

Digital business models and customer access

Customer satisfaction is a perpetual, multi-stage process that requires modification in real-time to

adapt to the changing needs of consumers[30]

Trends

Smart factory

Smart Factory is the vision of a production environment in which production facilities and logistics
systems are organized without human intervention.

The Smart Factory is no longer a vision. While different model factories represent the feasible,
many enterprises already clarify with examples practically, how the Smart Factory functions.

The technical foundations on which the Smart Factory - the intelligent factory - is based are cyber-
physical systems that communicate with each other using the Internet of Things and Services. An
important part of this process is the exchange of data between the product and the production line.
This enables a much more efficient connection of the Supply Chain and better organisation within
any production environment.

The Fourth Industrial Revolution fosters what has been called a "smart factory". Within modular
structured smart factories, cyber-physical systems monitor physical processes, create a virtual copy
of the physical world and make decentralized decisions.[31] Over the internet of things, cyber-
physical systems communicate and cooperate with each other and with humans in synchronic time
both internally and across organizational services offered and used by participants of the value
chain.[19][32]

Predictive maintenance

Industry 4.0 can also provide predictive maintenance, due to the use of technology and the IoT
sensors. Predictive maintenance – which can identify maintenance issues in live – allows machine
owners to perform cost-effective maintenance and determine it ahead of time before the machinery
fails or gets damaged. For example, a company in Los Angeles could understand if a piece of
equipment in Singapore is running at an abnormal speed or temperature. They could then decide
whether or not it needs to be repaired.[33]

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3D printing

The Fourth Industrial Revolution is said to have extensive dependency on 3D printing technology.
Some advantages of 3D printing for industry are that 3D printing can print many geometric
structures, as well as simplify the product design process. It is also relatively environmentally
friendly. In low-volume production, it can also decrease lead times and total production costs.
Moreover, it can increase flexibility, reduce warehousing costs and help the company towards the
adoption of a mass customization business strategy. In addition, 3D printing can be very useful for
printing spare parts and installing it locally, therefore reducing supplier dependence and reducing
the supply lead time.[34]

The determining factor is the pace of change. The correlation of the speed of technological
development and, as a result, socio-economic and infrastructural transformations with human life
allows one to state a qualitative leap in the speed of development, which marks a transition to a
new time era.[35]

Smart sensors

Sensors and instrumentation drive the central forces of innovation, not only for Industry 4.0 but
also for other “smart” megatrends, such as smart production, smart mobility, smart homes, smart
cities, and smart factories.[36]

Smart sensors are devices, which generate the data and allow further functionality from self-
monitoring and self-configuration to condition monitoring of complex processes. With the
capability of wireless communication, they reduce installation effort to a great extent and help
realize a dense array of sensors.[37]

The importance of sensors, measurement science, and smart evaluation for Industry 4.0 has been
recognized and acknowledged by various experts and has already led to the statement "Industry
4.0: nothing goes without sensor systems."[38]

However, there are few issues, such as time synchronization error, data loss, and dealing with large
amounts of harvested data, which all limit the implementation of full-fledged systems. Moreover,
additional limits on these functionalities represents the battery power. One example of the
integration of smart sensors in the electronic devices, is the case of smart watches, where sensors
receive the data from the movement of the user, process the data and as a result, provide the user
with the information about how many steps they have walked in a day and also converts the data
into calories burned.

Agriculture and food industries

Smart sensors in these two fields are still in the testing stage.[39] These innovative connected
sensors collect, interpret and communicate the information available in the plots (leaf area,
vegetation index, chlorophyll, hygrometry, temperature, water potential, radiation). Based on this
scientific data, the objective is to enable real-time monitoring via a smartphone with a range of
advice that optimizes plot management in terms of results, time and costs. On the farm, these
sensors can be used to detect crop stages and recommend inputs and treatments at the right time.
As well as controlling the level of irrigation.[40]

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The food industry requires more and more security and

transparency and full documentation is required. This new
technology is used as a tracking system as well as the collection
of human data and product data.[41]

Accelerated transition to the knowledge economy

Knowledge economy is an economic system in which

Hydroponic Vertical farming
production and services are largely based on knowledge-
intensive activities that contribute to an accelerated pace of
technical and scientific advance, as well as rapid obsolescence.[42][43] Industry 4.0 aids transitions
into knowledge economy by increasing reliance on intellectual capabilities than on physical inputs
or natural resources.

Challenges
Challenges in implementation of Industry 4.0:[44][45]

Economic
High economic costs
Business model adaptation
Unclear economic benefits/excessive investment[44][45]

Social
Privacy concerns
Surveillance and distrust
General reluctance to change by stakeholders
Threat of redundancy of the corporate IT department
Loss of many jobs to automatic processes and IT-controlled processes, especially for blue
collar workers[44][45][46]
Increased risk of gender inequalities in professions with job roles most susceptible to
replacement with AI[47][48]

Political
Lack of regulation, standards and forms of certifications
Unclear legal issues and data security [44][45]

Organizational
IT security issues, which are greatly aggravated by the inherent need to open up previously

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closed production shops

Reliability and stability needed for critical machine-to-machine communication (M2M), including
very short and stable latency times
Need to maintain the integrity of production processes
Need to avoid any IT snags, as those would cause expensive production outages
Need to protect industrial know-how (contained also in the control files for the industrial
automation gear)
Lack of adequate skill-sets to expedite the transition towards a fourth industrial revolution
Low top management commitment
Insufficient qualification of employees [44][45]

Country applications
Many countries have set up institutional mechanisms to foster the adoption of Industry 4.0
technologies. For example,

Australia

Australia has a Digital Transformation Agency (est. 2015) and the Prime Minister’s Industry 4.0
Taskforce (est. 2016), which promotes collaboration with industry groups in Germany and the
USA.[49]

Germany

The term "Industrie 4.0", shortened to I4.0 or simply I4, originated in 2011 from a project in the
high-tech strategy of the German government and specifically relates to that project policy, rather
than a wider notion of a Fourth Industrial Revolution of 4IR.[3] which promotes the
computerization of manufacturing.[50] The term "Industrie 4.0" was publicly introduced in the
same year at the Hannover Fair.[51] Renowned German professor Wolfgang Wahlster is sometimes
called the inventor of the "Industry 4.0" term.[52] In October 2012, the Working Group on Industry
4.0 presented a set of Industry 4.0 implementation recommendations to the German federal
government. The workgroup members and partners are recognized as the founding fathers and
driving force behind Industry 4.0. On 8 April 2013 at the Hannover Fair, the final report of the
Working Group Industry 4.0 was presented. This working group was headed by Siegfried Dais, of
Robert Bosch GmbH, and Henning Kagermann, of the German Academy of Science and
Engineering.[53]

As Industry 4.0 principles have been applied by companies, they have sometimes been rebranded.
For example, the aerospace parts manufacturer Meggitt PLC has branded its own Industry 4.0
research project M4.[54]

The discussion of how the shift to Industry 4.0, especially digitization, will affect the labour market
is being discussed in Germany under the topic of Work 4.0.[55]

The federal government in Germany through its ministries of the BMBF and BMWi, is a leader in
the development of I4.0 policy. Through the publishing of set objectives and goals for enterprises

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to achieve, the German federal government attempts to set the direction of the digital
transformation. However, there is a gap between German enterprise's collaboration and knowledge
of these set policies.[56] The biggest challenges which SMEs in Germany are currently facing
regarding digital transformation of their manufacturing processes is ensuring that there is a
concrete IT and application landscape to support further digital transformation efforts.[56]

The characteristics of the German government's Industry 4.0 strategy involve the strong
customization of products under the conditions of highly flexible (mass-) production.[57] The
required automation technology is improved by the introduction of methods of self-optimization,
self-configuration,[58] self-diagnosis, cognition and intelligent support of workers in their
increasingly complex work.[59] The largest project in Industry 4.0 as of July 2013 is the German
Federal Ministry of Education and Research (BMBF) leading-edge cluster "Intelligent Technical
Systems Ostwestfalen-Lippe (its OWL)". Another major project is the BMBF project RES-COM,[60]
as well as the Cluster of Excellence "Integrative Production Technology for High-Wage
Countries".[61] In 2015, the European Commission started the international Horizon 2020 research
project CREMA (Providing Cloud-based Rapid Elastic Manufacturing based on the XaaS and Cloud
model) as a major initiative to foster the Industry 4.0 topic.[62]

Indonesia

Another example is Making Indonesia 4.0, with a focus on improving industrial performance.[49]

South Africa

South Africa appointed a Presidential Commission on the Fourth Industrial Revolution in 2019,
consisting of about 30 stakeholders with a background in academia, industry and government.
[63][64] South Africa has also established an Interministerial Committee on Industry 4.0.

South Korea

The Republic of Korea has had a Presidential Committee on the Fourth Industrial Revolution since
2017. The Republic of Korea’s I-Korea strategy (2017) is focusing on new growth engines that
include AI, drones and autonomous cars, in line with the government’s innovation-driven
economic policy.[63]

Uganda

Uganda adopted its own National 4IR Strategy in October 2020 with emphasis on e-governance,
urban management (smart cities), health care, education, agriculture and the digital economy; to
support local businesses, the government was contemplating introducing a local start-ups bill in
2020 which would require all accounting officers to exhaust the local market prior to procuring
digital solutions from abroad.[63]

United Kingdom

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In a policy paper published in 2019, the UK's Department for Business, Energy & Industrial
Strategy, titled "Regulation for the Fourth Industrial Revolution", outlined the need to evolve
current regulatory models to remain competitive in evolving technological and social settings.[4]

Industry applications
The aerospace industry has sometimes been characterized as "too low volume for extensive
automation"; however, Industry 4.0 principles have been investigated by several aerospace
companies, and technologies have been developed to improve productivity where the upfront cost
of automation cannot be justified. One example of this is the aerospace parts manufacturer Meggitt
PLC's M4 project.[54]

The increasing use of the industrial internet of things is referred to as Industry 4.0 at Bosch, and
generally in Germany. Applications include machines that can predict failures and trigger
maintenance processes autonomously or self-organized coordination that react to unexpected
changes in production.[65]

Industry 4.0 inspired Innovation 4.0, a move toward digitization for academia and research and
development.[66] In 2017, the £81M Materials Innovation Factory (MIF) at the University of
Liverpool opened as a center for computer aided materials science,[67] where robotic
formulation,[68] data capture and modeling are being integrated into development practices.[66]

Criticism
With the consistent development on automation of everyday tasks, some saw the benefit in the
exact opposite of automation where self-made products are valued more than those that involved
automation.[69] This valuation is named the 'IKEA effect', a term coined by Michael I. Norton of
Harvard Business School, Daniel Mochon of Yale, and Dan Ariely of Duke.

See also
Advanced manufacturing
Computer-integrated manufacturing
Digital modeling and fabrication
Industrial control system
Intelligent maintenance systems
Lights-out manufacturing
Machine to machine
Cyber manufacturing
Work 4.0
World Economic Forum 2016
Simulation software
The War on Normal People
List of emerging technologies
Technological unemployment

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Technological singularity

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taken from UNESCO Science Report: the Race Against Time for Smarter Development. (http
s://unesdoc.unesco.org/ark:/48223/pf0000377433/PDF/377433eng.pdf.multi), Schneegans, S.,
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