“That’s very Industry 4.0.” Evidently the cultural arbiters have added another marketing catchphrase to the vernacular. Only this one carries some genuinely important implications for understanding how disruptive technologies are shaping what is effectively the fourth industrial revolution. (A summary of the prior three can be found here). We’ll offer a brief overview of what Industry 4.0 encompasses and why we should all be aware of the new technological opportunities it offers.
McKinsey & Co. has defined Industry 4.0 as the “next phase in the digitization of the manufacturing sector.” As in the past, advancements in technology have enabled revolutionary advancements (although supply and demand still drive the economics of industries). This revolution may or may not be televised, but it will definitely be enabled by these four disruptive technologies:
- Big Data
- Computational power and connectivity
- Low-power wide-area networks
- Analytics and machine learning
To harness the potential of this revolution, businesses of every size should consider three opportunities:
1. Companies can gather more information and make better use of data to improve offerings to customers, as well as employee productivity. With great data comes great responsibility. With the increased connectivity that accompanies this new revolution, the need for cybersecurity is heightened. As a result, companies will need to keep their employees apprised of all communication security protocols and to be cautious in granting user access to software and hardware.
2. In this new revolution, companies will be able to undertake more production, which may require increased data sharing across various sites and platforms. With cloud technologies improving in efficiency and capability, machine data and functionality will increasingly be deployed to the cloud. Companies are wise to explore the ways the cloud will enable more data-driven services, even if they are not involved in manufacturing. The cloud is truly a game-changing technology for businesses of every size.
3. To maximize the use of Industry 4.0 technologies, companies should prepare for a digital transformation, sooner rather than later. In order to execute a digital transformation, companies may begin now to search for the best talent that can help them build an infrastructure that supports the new technologies. A digital transformation should place data management and cybersecurity as high priorities.
As with big data and mobile technologies, experts suspect that early adopters of Industry 4.0 will be richly rewarded for their foresight in embracing new technologies, whereas those who are risk-averse may well be left behind.
Based on your company’s direction, team needs, and existing resources, are you poised to embrace this new industrial revolution? Have you wondered how an IT managed service provider could help? Contact us today to schedule a free consultation.