2. TOPICS
• Revolution
• Industrial revolution
• History of industrial revolution
• Characteristics of industrial revolution
• Fourth industrial revolution
• Importance of 4IR
• Key technologies in industry 4.0
• Pros and cons of 4IR
• Impact of 4IR in accounting & finance
• Future jobs
3. Revolution
The word “revolution” denotes abrupt and radical change. Revolutions have occurred throughout history when new
technologies and novel ways of perceiving the world trigger a profound change in economic systems and social
structures.
Industrial Revolution
Industrial revolution is defined as the major change and transition in manufacturing and industrial process with new
innovative techniques.
5. Industrial Revolution 1.0 (1IR)
First industrial revolution began
in England, in the 18th century; it
covered the period from around
1760 to 1840. By the latter period
of the 18th century, the industrial
revolution had already spread to
the United States. The era was
mainly characterized by the
mechanization of production and
vast usage of steam power. It also
marked the first major transition
from a handicraft economy to one
involving the use of machines in
the manufacturing processes.
6. Industrial Revolution 2.0 (2IR)
The second Industrial revolution
began in the 19th century, around
the 1870s. It mainly occurred in
Germany, America and Britain.
Some historians also refer to this
period as the “Technological
Revolution” era. It mainly
involved industrial processes that
used machines powered by
electrical energy.
7. Industrial Revolution 3.0 (3IR)
The third industrial revolution
is also commonly referred to as
the ‘Digital Revolution’ or the
‘First computer era.’ It began in
The 20th century, around the
70s. During this period, simple,
Yet relatively large computers
Were developed .These
computers had quite a good
computing power, and they laid
a strong foundation for the
development of modern-day
machines.
8. Industrial Revolution 4.0 (4IR)
Industry 4.0 is the industrial
revolution being currently
implemented in our modern
world. As a development of
the Third Industrial
Revolution, this era is
characterized by the use of
communication and smart
information technologies in
various industries. Also, network
connections are used to expand
production systems that already
incorporate automation and
computer technologies.
9. Characteristics of Industrial Revolutions
Period Transition
Period
Energy
Resource
Main
Technical
Achievement
Main
Developed
Industries
Transport
Means
I: 1760-1900 1860-1900 Coal Steam Engine Textile, Steel Train
II: 1900-1960 1940-1960 Oil Electricity Internal
Combustion
Engine
Metallurgy,
Auto,
Machine
Building
Train, Car
III: 1960-2000 1980-2000 Nuclear
Energy
Natural Gas
Computers,
Robots
Auto,
Chemistry
Car, Plane
IV: 2000- 2000-2010 Green
Energies
Internet, 3D
Printer,
Genetic
Engineering
High Tech
Industries
Electric Car,
Ultra-Fast
Train
10. INDUSTRY 4.0
Industry 4.0 (4IR)
• Industry 4.0 is a new phase in
the industrial revolution that
introduce intelligent networking
of machines and process for
industry with the help of
information and communication
technologies.
• In short, we can say that it
connects physical world with
digital world.
Importance of Industry 4.0
• Industry 4.0 technology helps
manage and optimize all aspects
of manufacturing processes and
supply chain. It gives you access
to the real-time data and insights
you need to make smarter, faster
decisions about your business,
which can ultimately boost the
efficiency and profitability of your
entire operation.
11. Key Technologies in
industry 4.0
Internet of things (IOTs)
Advanced robotics
Artificial intelligence (AR)
Cloud computing & big data
Cyber security
Additive manufacturing
Augmented Reality (AR)
Virtual Reality (VR)
12. Key technologies in industry 4.0
Internet of Things (IOTs) :
• It is a network of physical objects
that are able to collect data with help
of sensors and exchange data each
other with the help of internet.
Advanced Robotics :
• Robots are programmable
machines that are usually able to
carry out a series of actions
autonomously or semi-
autonomously.
• Robotics is a branch of technology
that deals with physical robots.
13. Key Technologies in industry 4.0
Artificial Intelligence (AR):
• Artificial intelligence is a
computer program which enable a
machine to simulate human
behavior like learning, planning,
reasoning, knowledge sharing,
problem solving, etc.
Cloud Computing
• Cloud computing is use of remote
servers to store, manage, process
data which can be accessed
through the internet on demand.
14. Key technologies in industry 4.0
Augmented Reality (AR):
• It is a technology that create
enhanced version of real world in
front of you by adding a layer of
digital information on that. There
are many devices using
augmented reality. It can be smart
phone, tab, smart glasses or other
smart devices.
Virtual Reality (VR):
• VR is the use of computer technology
to create a simulated environment.
15. Key technologies in industry 4.0
Big Data Analytics
• It is a process of store and
examines large volume of data
from various sources and
systematically extracts useful
information from that.
Additive Manufacturing
• It is a computer controlled process
that creates three dimensional
objects by depositing materials
usually in layers. It is also known
as 3D printing.
16. Key technologies in industry 4.0
Cyber Security :
• Cyber security is the practice of
defending computers, servers,
mobile devices, electronic
systems, networks and data from
malicious attack.
• “As data becomes the
currency of our digital lives,
companies must ensure the
privacy and security of
customer information”
• -Marc Benioff, Salesforce
Chairman and CEO
17. Pros and Cons of the 4IR
Pros of the 4IR
• Higher productivity
• Improved quality of life
• New markets
• Lower barrier to
entrepreneurship
Cons of the 4IR
• Inequality
• Cyber security risk
• Core industries disruptions
• Ethical issues
18. Impact of 4IR on Accounting & Finance
For accounting firms, 4IR means there are more sophisticated systems
becoming available for various tasks. While some technologies are already
being applied and enjoying widespread usage in the accountancy and auditing
fields, others are still being explored and not used to their full potential yet.
19. Impact of 4IR in Accounting & Finance
Accounting software
Accounting software packages offer
reporting options, generate financial
statements, and perform repetitive
record keeping more efficiently and
accurately using robotic process
automation. With auditing, data
analytics tools are used to extract
large amounts of data from a client’s
financial records and to use this
information to detect patterns and
pick up irregularities using the entire
range of entries, rather than just a
sample. There are several accounting
tasks which “machines” can do
effectively, from bank reconciliation
and monthly processing responding
to queries from
Block Chain
Block chain technology is expected to be
the next revolutionary development to
affect accounting and auditing
processes. The benefit of this would be
to make financial record-keeping more
affordable, reliable, precise and secure.
How it works: Block chain technology
eliminates the need for an intermediary,
such as a bank, to verify a transaction
and operates through a secure peer-to-
peer network. In terms of accounting,
this technology could be used as a kind
of incorruptible digital ledger where
transactions from buyers and sellers can
be recorded instantly and
simultaneously. All parties involved in
the transaction have access and are able
to confirm the details of the transaction
before it is recorded. Once a transaction
is added, it is encrypted and cannot be
deleted or changed.
20. Benefits of 4IR
• The benefits of these new technologies for the accounting
professional are many and can actually improve client relations in
several ways:
• The number of repetitive tasks done by employees are reduced,
meaning more time for other valuable work and interaction with
clients.
• Instead of manually dealing with traditional bookkeeping and
auditing tasks, accounting professionals learn to become experts at
using new software and other technologies at their disposal.
• Cloud-based accounting systems mean that files can be accessed and
edited from anywhere.
• Client data can be managed with much greater ease, speed and
accuracy.
• Security and compliance measures to protect clients are greatly
enhanced.
• Accountants are better equipped to answer client questions or
provide feedback/ give advice instantly.
• There is greater transparency around a client’s financial insights.
21. Jobs of the Future
• Data Analysts and Data
Scientists
• Artificial Intelligence (AI)
and Machine Learning
(ML) Specialists
• Digital Marketing
Specialists
• Internet of Things (IoT)
Experts
• Cyber security Specialists
