Industry 4.

0
By: M.Dimuthu Suranjana
 Eras of revolution
• the first industrial revolution
• the second industrial revolution
• the third industrial revolution
• Industry 4.0
 The first industrial revolution-1765
• Focused on steam power and mechanical production
• Where water and steam machines were developed to facilitate the
workers efficiency from about 1760 to around 1840. It transited from
muscle power to mechanical power
The second industrial revolution — 1870
• which mainly focused on the use of electricity and mass production
from the late 1800s to the early 1900s
• Which started in the late 19th century and into the early 20th
century, the emergence of a new source of energy: electricity, gas,
and oil. This era used electric power to create mass production. It
brought out mass advancements in agriculture, manufacturing, and
transportation that started in Britain, made its way to Europe and
North America, and then quickly to the rest of the world
The second industrial revolution……
 The third industrial revolution
• Which focused on the automation of the manufacturing process and
the use of information technology from 1950 onwards.
• It was introduced in around 1950, usually called the computer or
digital revolution involved the development of computers and IT as
the key driver. Automation is the key concept of this revolution, still, it
required human intervention
 Industry 4.0
• Focuses on the end-to-end digitization of all physical assets and the
integration into digital ecosystems with value chain partners.
• This change includes the entire value chain from raw materials to end
use to recovery, and it also has an impact on business and support
functions.
New technologies that have emerged with
Industry 4.0
• Mobile devices
• Cloud computing
• IoT Flatforms
• Location detection Technologies
• Advanced human machine interfaces
• Authentication & fraud detection
• 3D printing
• Smart Senses
• Big data Analytics and advanced algorithms
• Multilevel customer Interaction & Customer Profiling
• Augmented Reality/Wearables
New technologies that have emerged with
Industry 4.0
 Mobile devices
• 5G and the Industrial Internet of Things (IIoT) are two megatrands
taking shape in the mobile industry but they do not have a
dependent relationship.
• The former is a new generation of mobile networks while the
latter is a completely new way of doing business that can
transform entire industries.
• At its core, Industry 4.0 is powered by mobile. Without mobile
tech, Industry 4.0 would be impossible.
• E.g.: “Forward-thinking manufacturing companies are using
mobile devices as the platforms through which plant
management and workers can easily connect and communicate
with these cloud technologies — and at scale — to create an agile,
responsive and truly collaborative environment
 Cloud Computing
• Cloud computing is a general term for anything that involves
delivering hosted services over the Internet. It involves both storing
data and processing data.
• A cloud service has three distinct characteristics that differentiate it
from traditional web hosting:
1. It is sold on demand, typically by the minute or the hour;
2. It is elastic — a user can have as much or as little of a service as they
want at any given time; and
3. The service is fully managed by the provider (the consumer needs
nothing but a personal computer and Internet access).
 Cloud computing deployment models
• Private cloud services are delivered from a business's data Centre to
internal users.
• public cloud model- a third-party cloud service provider delivers the
cloud service over the internet. Public cloud services are sold on
demand, typically by the minute or hour, though long-term
commitments are available for many services
• A hybrid cloud- is a combination of public cloud services and an on-
premises private cloud, with orchestration and automation between
the two. Companies can run mission-critical workloads or sensitive
applications on the private cloud and use the public cloud to handle
workload bursts or spikes in demand.
Cloud computing deployment models…..
 Cloud service categories
• Infrastructure as a Service (IaaS)-IaaS providers supply a virtual server
instance and storage, as well as application program interfaces that
enable users to migrate workloads to a virtual machine. (A virtual
machine is a self-contained operating environment that behaves as if it
is a separate computer.)
• Platform as a service (PaaS)- )- cloud providers host development
tools on their infrastructures and users access these tools over the
internet. PaaS is used for general software development, and many
PaaS providers host the software after it's developed.
• Software as a service (SaaS)- SaaS is a distribution model that delivers
software applications over the internet; these applications are often
called web services.
9.2: Cloud service categories…
 IoT Flatforms

• An IoT platform is a multi-layer technology that enables

straightforward provisioning, management, and automation of
connected devices within the Internet of Things universe.
• It basically connects your hardware, however diverse, to the cloud by
using flexible connectivity options, enterprise-grade security
mechanisms, and broad data processing powers.
• For developers, an IoT platform provides a set of ready-to-use
features that greatly speed up development of applications for
connected devices as well as take care of scalability and cross-device
compatibility
 Location detection Technologies
• Location tracking refers to advanced computing technologies that
locate, track, and record the movement of people and objects.
• In Industry 4.0, location tracking technology such as GPS is used
to keep track of industrial assets such as mining or construction
equipment in architecture, engineering, and construction.
Location tracking creates manufacturing efficiencies and
promotes worker safety.
• Location tracking is used as part of the larger Industry 4.0
ecosystem to keep tabs on important industrial assets. Indoor
positioning technology allows location information to be fed into
asset tracking workflows to monitor equipment and personnel
that are either outdoors, at construction sites, or inside a smart
factory. Location tracking allows decision makers to improve
workflow, keep track of inventory, and standardize production
and manufacturing processes.
 Advanced human machine interfaces
• AHMI is considered an interface that allows humans to interact
with the machine. Examples of HMI physical aspects could be a
machine with touch display, a push button, a mobile device, or a
computer with a keypad.
• From an industrial perspective, the most valuable aspect of HMI
technology is the ability to closely monitor production and
respond to changing production demands, which improves
efficiency and decreases downtime. These benefits are a result of
improved diagnostics and monitoring.
 Authentication & fraud detection

• so we move towards industry 4.0, more transactions are

conducted digitally, and this will require a digital
representation of an individual’s identity.
• This proof of identity is a fundamental prerequisite for humans
to access critical services and be a part of modern economic,
social and political systems. Their digital identity is critical for
devices in conducting transactions, particularly as the devices
will be capable of transacting on their own way in the coming
years. To control them, machines and components require
digital identity and verification similar to individuals so they can
trust each other while communicating and working together.
 Authentication & fraud detection…..
• Regulations such as KYC and PSD2 is driving the adoption of
biometric authentication in financial services, with many
organisations using PSD2's Strong Customer Authentication
requirements to completely overhaul their approach to user
verification. Biometrics as an authentication steps fulfils the
'inherence' factor alongside the knowledge (like a password) and
possession (like a device).
• Fraud detection software is used to detect illegitimate and high-risk
transactions made online. These tools continuously monitor user
behaviors and calculate risk figures to identify potentially fraudulent
purchases, transactions, or access. These tools are used by e-commerce
businesses and digital banking companies IT and compliance
departments to constantly monitor for potential fraudulent actions made
by their users. Workers in the IT and Companies choose to adopt these
tools to ensure transactions are legitimate while protecting sensitive
information for both business and customer
 3D printing
• Also called additive manufacturing, 3D printing consists of creating a
physical object by printing layer upon layer from a digital 3D drawing
or model.
• The technology is being used in a broad range of applications, from
large (wind turbines) to small (medical implants). For the moment, it
is primarily limited to applications in the automotive, aerospace and
medical industries
 Smart Senses
• 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.
• 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.
• 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."
• 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.
 Big data Analytics and advanced algorithms
• Big data analytics is a form of advanced analytics, which involve
complex applications with elements such as predictive models,
statistical algorithms and what-if analysis powered by analytics
systems.
• Organizations can use big data analytics systems and software
to make data-driven decisions that can improve business-
related outcomes. The benefits may include more effective
marketing, new revenue opportunities, customer personalization
and improved operational efficiency. With an effective strategy,
these benefits can provide competitive advantages over rivals.
Multilevel customer Interaction & Customer
Profiling
• Customer profiles are “customer types,” which are created to represent the
typical users of a product or service, and are used to help make customer-
focused decisions without confusing the scope of the project with personal
opinion.
• Multichannel support services have replaced the classic idea of
a support department or a Help Desk receiving calls. Today,
phone calls, email, chat, self-service portals, knowledge databases
and social networks are all possible channels for providing
support.
• In addition, customers become more demanding and the
complexity in Customer Service Management increases
considerably.
Companies need to centralize the management of their
Multichannel Customer Service in a Single Point of Contact
(SPOC) to deal with this complexity. Furthermore, companies that
provide a physical and virtual support require an additional
degree of flexibility incorporating the concept of Multilevel.
 Augmented Reality
Augmented reality (AR) is an interactive experience of a real-
world environment where the objects that reside in the real world
are enhanced by computer-generated perceptual information,
sometimes across multiple sensory modalities, including visual,
auditory, haptic, somatosensory and olfactory
 Other Technologies...
• Autonomous Vehicles
• Advanced Robotics
 Autonomous vehicles
• The driverless car dominates the news but there are now many other
autonomous vehicles including trucks, drones, aircrafts and boats.
• As technologies such as sensors and artificial intelligence progress,
the capabilities of all these autonomous machines improve at a rapid
pace. It is only a question of a few years before low-cost,
commercially available drones, together with submersibles, are used
in different applications.
• As drones become capable of sensing and responding to their
environment (altering their flight path to avoid collisions), they will be
able to do tasks 19 such as checking electric power lines or delivering
medical supplies in war zones. In agriculture, the use of drones –
combined with data analytics – will enable more precise and efficient
use of fertilizer and water, for example
 Advanced Robotics
• Today, however, robots are increasingly used across all sectors and for
a wide range of tasks from precision agriculture to nursing.
• Rapid progress in robotics will soon make collaboration between
humans and machines an everyday reality.
• Advances in sensors are enabling robots to understand and respond
better to their environment and to engage in a broader variety of
tasks such as household chores.
• Contrary to the past when they had to be programmed through an
autonomous unit, robots can now access information remotely via
the cloud and thus connect with a network of other robots. When the
next generation of robots emerges, they will likely reflect an
increasing emphasis on human-machine collaboration
Challenges of the Fourth Industrial
Revolution
Economic
• High economic costs
• Business model adaptation
• Unclear economic benefits/excessive investment

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 worker
Challenges of the Fourth Industrial
Revolution-
Political
• Lack of regulation, standards and forms of certifications
• Unclear legal issues and data security

Organizational/ Internal
• IT security issues, which are greatly aggravated by the inherent need to open up those previously
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 the fourth industrial revolution
• Low top management commitment
• Insufficient qualification of employees
 Examples
• Abu Dhabi National Oil Company (ADNOC)-Oil and gas 4.0
-No stranger to global market volatility, oil and gas producers are using
Industrial IoT, big data, advanced visualization and artificial intelligence
to integrate and maximize return across asset and operation value
chains
-https://www.aveva.com/en/perspectives/success-stories/adnoc/
 Examples
• Commercial Banks
- Flash, making it Sri Lanka’s first trilingual digital banking App, which will allow us to appeal and
cater to other under-banked and unbanked segments of the market.
- Flash currently offers 100% digital, customer on-boarding, with the exception of a single visit to a
branch of the Bank to comply with Sri Lanka’s current KYC requirements. As the country’s
regulatory environment changes in line with the increased digital penetration, Flash has
positioned the Bank as a market leader in digital banking.
- With the launch of Blockchain technology for remittances in April 2019 by partnering with
RippleNet, both inward and regulator enabled outward blockchain technologypowered
remittances became reality. Joining RippleNet ensures that remittances are received instantly
with an end-to-end tracing and tracking solution, ensuring that the process is transparent and
tamper-proof, and that remittances of lower denominations are viable due to the application of
lower rates. RippleNet’s technology facilitates a simplified experience for customers by offering a
simple remittance process with the removal of multiple steps. Blockchain also provides the ability
to move money on real time basis, leading to improved productivity
- Cloud Applications
Levels of digitalization
 Requirements
• For a selected company in Sri Lanka, prepare a report to be presented to its board of directors on the
impact of Industry 4.0 on the company’s business model and finance function. The report should cover
the following.
1. Discussion on the relevance and limitations of the Industry 4.0 with regard to the selected company, and
how technological evolutions have been influencing the industry which the selected company belongs to.
2. Assessment of the impact of Industry 4.0 on the business model, processes and strategies of the
selected company.
3. Critical evaluation of the current level of adaptation of Industry 4.0 technologies in the selected
company.
4. Evaluation of the impact on the finance function of the company as a result of Industry 4.0 and
suggestions to improve this function using Industry 4.0 technologies.
5. Propose strategies (with specific time frames) to be implemented with a view to enhance the value of
the company by considering the present nature of competition, the supply chain, global realities and likely
modes of production and organisational structures.