Author: Shriya M. Bhatkhande


Every organization driving today is distinct but all experience a common challenge; the lack of connectivity and path to real-time visions across mechanisms, associates, products, and people. Industry 4.0, introduces a modern aspect in the Industrial Revolution that focuses mainly on automation, interconnectivity, machine learning, self-adaptation, and real-time data.[1] Industry 4.0, also occasionally mentioned as IoT (Internet of Things) or smart manufacturing, joins physical production and applications with agile digital technology, big data and machine learning to build a more comprehensive and better-linked ecosystem for businesses that concentrate on manufacturing and supply chain management.[2]


Manufacturing has evolved from the 1800s,

The Industry 1.0 (1700s - early 1800s) unfolded from directing on manual industry functioned by people and assisted by work animals to a more advanced mode of activity accomplished by people along with the usage of water and steam-powered motors.[3]

Industry 2.0 began in the early 20th century, with the influx of steel and the utilization of electricity in industries. This has facilitated producers to boost productivity and benefited factory machinery to become more mobile. During this stage, mass production concepts like the assembly line came into picture.[4]

Industry 3.0 started in the late 1950s, as businesses went into integrating more electronics and ultimately computerization. At this point, businesses experienced a shift that lay less priority on analog and mechanical technology and more on digital technology and automation software.[5]

Industry 4.0 emerged in the past few decades, introducing cyber-physical systems and the Internet of Things (IoT). It offers a more holistic approach in manufacturing, with ease in collaborations across company divisions, partnerships, dealers, products and people. Additionally, it empowers business owners to better propel and understand every aspect of their operations along with receiving instant data to promote productivity, enhance processes, and inspire advancement.

There are tons of abstractions that apply to Industry 4.0. However, there are twelve fundamental concepts used viz.,

  1. IoT - Internet of Things indicates networks linking machines to the internet.

  2. IIoT - Industrial Internet of Things refers to the conjunctions between data, people, and machines for manufacturing purposes.

  3. AI - Artificial Intelligence is the capacity of a computer to execute projects and compose decisions that chronically need some standard of human intelligence.

  4. ERP - Enterprise Resource Planning is a tool for business process management for operating information over an institution.

  5. Big data - It is data, structured or unstructured that can be assembled, stored, regulated, and interpreted to affirm patterns, trends, associations, and opportunities.

  6. Smart factory: It lends in and leverages Industry 4.0 technology, solutions, and approaches.

  7. Cloud computing - The method of employing interconnected distant servers received on the Internet to accumulate, administer, and process information.

  8. Ecosystem - It is the likely connectivity of your whole activity; supply chain management, planning, finance, manufacturing accomplishment, and client communications.

  9. Real-time data process - It is the intelligence of computer systems to continual and automated data, instant out-turn and wisdom.

  10. CPS - Cyber-physicalsystems is an Industry 4.0-enabled manufacturing setting that extends real-time data compilation, scrutiny, and clarity in every single facet of manufacturing activity.

  11. Machine learning - It is the expertise that computers ought to grasp and enhance on their own through artificial intelligence, with no explicit advice given duly.

  12. M2M - Machine-to-Machine is the conversation that goes on between two independent machines through Wi-Fi or wired systems.[6]

Industry 4.0 uses three approaches in the manufacturing process namely -

1.Predictive maintenance or analytics - Industry 4.0 solutions enable the skill to foresee when probable issues may emerge before they actually hit. IoT replaced the manual duty of precautionary maintenance to automated by sensing when complications are ensuing or machinery needs to be stabilized and can provide solutions beforehand. It is a holistic approach that asks proactive questions like, “what is going to happen,” and, “what can we do to avoid it from occurring?”

2.Asset tracking and optimization - Industry 4.0 solutions benefit manufacturers to grow into assets at every point of the supply chain, grant them to carry a rhythm on supply, characteristic, and developmental events accounting to logistics. IoT set up in an industry allows workers to get stronger clarity into their assets globally. Standard asset management tasks such as asset relocations, categorization, alterations and clearances can be well organized in no time.

3. Supply chain management and optimization - This provides a more considerable vision, authority, and data envisage that covers the complete businesses supply chains. As a result, businesses are able to distribute products and services to market quicker, more economical, and with finer quality to achieve an edge atop inoperative participants.[7]


Industry 4.0 covers the unified product life cycle and supply chain; layout, purchases, inventory, organizing, quality, engineering, client and field maintenance. People provide informed, timely, analytical, applicable outlooks of production.

It increases team participation. Industry 4.0 resolutions advance predictive and prescriptive expertise, so that operators, managers, and executives can make better agreements while administering day-to-day duties. It enables proactivity in addressing potential concerns beforehand.

It draws you more competing, chiefly against agitators like Amazon. As businesses like Amazon endure to amend logistics and supply chain administration, you require spending in automation solutions that benefit development in operation. To stay competitive, processes should be in situ so that customer service is similar to that of Amazon.[8]

It makes you more enticing to the youthful employees. Businesses that devote themselves to Industry 4.0 technologies are better suited to have new employees. It curtails expenses, raises benefits, and fuels improvement.

Industry 4.0 is molding the manufacturing industry globally by assuring the modernizations equip a return on investment (ROI) for the future.[9]


To establish a sustainable, accessible company in the current market setting, you need to employ tools that back you with organized projects, push efficiency and partnership, and leverage data in realtime.

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[1]https://www.twi-global.com/what-we-do/research-and-technology/technologies/industry-4-0 [2]https://www.researchgate.net/publication/289983696_Manufacturing_logistics_and_supply_chain_Relationship_and_economic_importance [3] https://www.history.com/topics/industrial-revolution/industrial-revolution [4] https://www.history.com/news/second-industrial-revolution-advances [5] https://significans.com/blog/industry-3-0/ [6]https://www.researchgate.net/publication/303561107_Industry_40_the_Future_Concepts_and_New_Visions_of_Factory_of_the_Future_Development [7]https://www.researchgate.net/publication/329122235_Management_approaches_for_industry_40_-_The_organizational_culture_perspective [8]https://aws.amazon.com/devops/#:~:text=Automation,container%20management%2C%20and%20configuration%20management. [9] https://slcontrols.com/benefits-of-industry-4-0/

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