The survey revealed that respondents consider Industry 4.0 manufacturing as a crucial initiative, with 90% expressing the belief that it will have a significant impact in the next five years.

1. Fourth Industrial Revolution | Industry
4.0
Industry 4.0, also known as the 4th Industrial Revolution, is changing how
businesses operate. This transformation is driving them to compete in new ways
and on different levels.
The Fourth Industrial Revolution is creating a demand for new skills and new
competencies.
NICKY VERD.
The Fourth Industrial Revolution: Transforming
Manufacturing with Smart Factories
The industrial revolutions have evolved over time. The first revolution introduced
mechanization with water and steam power. And, The second revolution brought mass
production and assembly lines powered by electricity. Furthermore, The third revolution
incorporated computers and automation. Now, the fourth industrial revolution builds upon
these advancements and enhances them further. Furthermore, It utilizes smart and
autonomous systems driven by data and machine learning. The fourth industrial revolution
is the digital transformation of manufacturing/production and related industries and value-
creation processes.
Industry 4.0, also known as the 4th Industrial Revolution, is changing how businesses
operate. This transformation is driving them to compete in new ways and on different
levels.
Organizations must decide where & how to invest in these new technologies and recognize
which ones might best encounter their needs. Without full knowledge of the changes &
opportunities Industry 4.0 brings, companies may be at risk.
Industry 4.0 manufacturing brings about a transformative change by enabling data
collection and analysis across machines. This facilitates faster, more systematic, as well as
more flexible processes for manufacturing high-quality products at reduced costs.
The fourth industrial revolution introduces a new era known as Industrial Revolution 4.0. It
combines advanced production techniques, operational strategies, and also the smart
digital technologies to create a digital venture. The characteristics of this venture include
autonomy, interconnectedness, and the capacity to analyze, communicate, and utilize data
for intelligent actions in the physical realm. It also involves integrating smart, connected
technology into organizations, assets, and individuals, and is marked by the emergence of
novel capabilities.
In 2011, during the Hannover Messe, the German government introduced an initiative
called Industry 4.0, aiming to digitize manufacturing. Less than a decade later, the adoption
of Industry 4.0 principles has been remarkable, not only in Germany and Europe but
worldwide.

2. Table of Contents:
• The Fourth Industrial Revolution: Transforming Manufacturing with Smart
Factories
• The Fourth Industrial Revolution Cycle
• Importance Of Fourth Industrial Revolution
• Technologies Modifying Fourth Industrial revolution
• Smart Factory
• Smart Factory Capabilities according to Learn Transformation:
• 5G could Stimulate Approval of Smart Factory Solutions
• Key Elements of Smart Factory Transformations
• The Familiar Themes:
• The “Smart Factory–specific” Themes
• Realizing the Value of Smart Factory Transformation
o Frequently Asked Questions
o Key Takeaways:
The Fourth Industrial Revolution Cycle
The fourth industrial revolution integrates physical and digital technologies. It includes
robotics, analytics, high-performance computing, additive manufacturing, advanced
materials, natural language processing, artificial intelligence, cognitive technologies, and
augmented reality. So, It consists of 3 steps:
• Physical to Digital: Gather information from the physical world & develop a digital
record from physical data.
• Digital to Digital: Share information & uncover meaningful insights using artificial
intelligence, advanced analytics & scenario analysis.
• Digital to Physical: Put in algorithms to interpret digital-world decisions to
effective data, to stimulate action & change in the physical world.
Also Read: Best Books
Importance Of Fourth Industrial Revolution
The survey revealed that respondents consider Industry 4.0 manufacturing as a crucial
initiative, with 90% expressing the belief that it will have a significant impact in the next
five years. Only 9% downplayed its impact. In addition to this, The primary objective of
Industry 4.0 is to transform manufacturing and related industries, including logistics, by
making them faster, more customer-centric, and highly efficient. Additionally, Industry 4.0
aims to move beyond automation and optimization, exploring new business opportunities
and models.

3. Below, we survey some key insights that can enable business leaders to imagine how the
4th Industrial Revolution could affect their worlds.
Leader’s Tip:
Encourage a culture of creativity, ongoing learning, and technological
acculturation in order to fully realise the potential of Industry 4.0 and smart
factories.
1. Fourth Industrial Revolution Affects Each & Everything in Our
Daily Lives-
The Industrial Revolution 4.0 just doesn’t touch “manufacturers” but it can affect all of
us. Industry 4.0 originates from the supply chain and manufacturing sectors, which are
fundamental to our world. The product life cycle includes product composition,
manufacturing locations, production processes, logistics for delivery, and subsequent repair
destinations also. Hence, All these aspects are integral parts of understanding the journey a
product undertakes throughout its lifecycle.
Industry 4.0 principles will not only modify the manufacturing process but also have the
potential to impact the movement of goods through distribution and autonomous logistics.
Furthermore, these principles can also influence the way consumers interact with the
products. Industry 4.0 goes beyond production by integrating smart technologies and
digitalization. It brings significant advancements that revolutionize supply chain
management, and delivery systems, and enhance the overall consumer experience.
2. Fourth Industrial Revolution Improves Productivity Through
Optimization & Automation-
The goals of fourth industrial revolution projects encompass several objectives: increasing
profitability, cost savings, error and delay prevention through automation, waste reduction,
real-time production acceleration, digitizing paper-based processes, and rapid intervention

4. in case of production issues. Industry 4.0 offers a range of solutions to optimize various
aspects, including asset utilization, production processes, logistics, and inventory
management, during lean transformation.
3. Real-time Data for a Real-time Supply Chain in a Real-time
Economy-
Fourth industrial revolution is about the complete life cycle of products & manufacturing
doesn’t stand on its own.
The complete value chain and ecosystem of manufacturing operations involve numerous
stakeholders. These are all customers. And customers also want to improve productivity,
regardless of where they fit in the supply chain.
The heightened expectations of end customers, which encompass factors like product
quality, timely delivery, and exceptional customer experience, profoundly influence the
entire supply chain transformation. Certainly, This influence extends throughout the value
chain, encompassing manufacturing and extending beyond it.
4. Better Quality Products: IoT-enabled Quality Improvement, Real-
time Monitoring, and Cobots-
In the interconnected environment where software, sensors, IoT technologies, systems of
insight, and customer interactions are pivotal, there is a substantial opportunity to enhance
product quality. Further, Automation, along with cyber-physical systems and the Internet of
Things, enables real-time monitoring of quality aspects and reduces errors through the
utilization of robots. Hence, This integration of technology and data enables enhanced
quality control throughout the manufacturing and production processes.
Enough companies have increased the usage of robots and at the same time hired more. The
reason we mention it in the context of quality is that this is certainly one area where you see
cobots popping up (cobots is a term for advanced collaborative robots or say more simply:
robots that fit cooperation between man and machine).
5. Higher Business Continuity through Advanced Maintenance &
Monitoring Possibilities-
When a central industrial asset, such as an industrial robot in a car manufacturing plant,
breaks down, it’s not just the robot that is affected. So, The impact extends to the production
process, resulting in financial costs and dissatisfied customers. In some cases, the
breakdown can lead to a complete disruption of production. It’s anyone’s worst dream as
business continuity is an especially high concern.
In addition to fixing work, resources, and costs, a damaged reputation and canceled orders
can result. Connecting industrial assets and monitoring them through the Internet of Things
(IoT), and addressing potential issues beforehand, offer significant benefits in VUCA
environments.
Alerts can be set up, assets can be proactively maintained, real-time monitoring & diagnosis
becomes possible, engineers can fix issues and the list goes on. A world of new maintenance
services opens up as we’ll see. No wonder asset management & maintenance are the second
largest area of IoT investments in manufacturing.

5. 6. Better Working Conditions and Sustainability-
Improving working conditions based on humidity, real-time temperature & other data in
the plant, Fast detection & improved protection in case of incidents, detection of the
presence of radiation, gasses & so on, better communication & collaboration possibilities, a
focus on ergonomics, clean air & clean factory initiatives the list goes on.
Hand-picked for you- Big Data/Analytics in Digital Supply Chain Transformation
Technologies Modifying Fourth Industrial revolution
Digital transformation technology is so far used in manufacturing, but with fourth industrial
revolution, now it will modify production. Additionally, It will drive to prominent
efficiencies & change traditional production relationships among producers, suppliers, and
customers—as well as between humans and machines. Learn Transformation Experts tells
some technology trends which shape the fourth industrial revolution manufacturing.
1. Big Data Analytics-
In an advanced manufacturing fourth industrial revolution context, the collection & broad
assessment of data from many different sources—production equipment & systems and
consumer-management systems—will be a format to hold up real-time decision making.
2. Autonomous Robot-
Robots will interact with one another & work safely alongside humans & learn from them.
These robots will have a wide range of capabilities & also will cost less than those used in
manufacturing today.
3. Industrial IoT-
Industry 4.0 means that more devices sometimes including unfinished products—will be
enhanced with fixing computing. It will allow field devices to communicate & interact both
with one another & also with more centralized controllers, as necessary. It will also
distribute analytics & decision making, enabling real-time responses.
4. Additive Manufacturing-
Companies have started to embrace additive manufacturing, such as 3-D printing, which
they use mostly to prototype & generate individual components. Industry 4.0 principles
promote the extensive utilization of additive manufacturing methods to produce
customized products in small quantities. Moreover, These methods offer construction
advantages, including the ability to create compound and lightweight designs.
5. The Cloud-
More production-related agreements will need increased data sharing across sites &
company boundaries. Further, The performance of cloud technologies will improve,
obtaining response times of some milliseconds. Consequently, machine data and
functionality will gradually transition to the cloud, enabling the development of data-driven
services for production systems.
Smart Factory

6. The smart factory is a supple system that can self-optimize performance across a wider
network, self-adjust to & learn from new conditions in real or near-real time, and freely run
complete production processes.
The smart factory, a quintessential term from Industry 4.0 & smart factory, use an amalgam
of connected devices, data & artificial intelligence to make manufacturing more flexible and
responsive, actually revolving around big data analytics, Industrial IoT, connected physical
equipment, production techniques, & what can be done with it in a cyber-physical scope.
The strategic importance of smart factories is unquestionable, as early acceptors have
reported operating more efficiently & driving more to the conclusion. In the US alone, 86 %
of manufacturers believe that smart factories will be the main driver of competition by
2025. Moreover, 83 % believe that smart factories will modify the way products are made.
Research on smart Factory:
Research constantly discloses improvement in quality, cost, safety, throughput, and revenue
growth through the implementation of smart factory technologies that integrate capabilities
in the industrial internet of things (IIoT), robotic process automation (RPA), cloud and edge
computing, machine learning, artificial intelligence (AI) and augmented and virtual reality
systems, among others. Leaders have a wide range of choices & opportunities concerning
smart factory transformations, both in terms of which technologies to use, and how to
deploy them during the process of business transformation.
What manufacturers genuinely need is a partner skilled in all 3 features, who has sound
knowledge of machines & the manufacturing process, who can find how and where
digitalization can help, and who can install as well as service the tools needed to get there.
The productivity gains achieved through smart factory initiatives will help the
manufacturing industry to add $2.2 trillion of value to the global economy by 2023. So far,
even if the expected average added value from smart factories is high at $1.9 trillion &
expectations concerning smart factory benefits are on the hike.
Smart Factory Capabilities according to Learn
Transformation:
• Eases end-to-end integration with suppliers & customers.
• Provide real-time, on-demand performance progress reports noticeable across the
production supply chain transformation.
• Filter processes as well as master production through advanced analytics.
• Give the information & technologies to enhance physical process control.
• Enables supple, adaptive & energetic production.
5G could Stimulate Approval of Smart Factory Solutions
5G could be the prime factor leading the growth of smart factory solutions. Analysts predict
that 5G will be a prime answer to smart factory adoption since it provides higher bandwidth
& speed as well as low latency. Moreover, It can enable more organizations to adopt smart
factory solutions like autonomous guided vehicles, warehouse automation, automated
assembly lines & condition-based monitoring,

7. Many companies have started developing 5G enabled smart factory technologies.
Mitsubishi Electric has been experimenting with 5G networks to strengthen human-
machine interfaces for manufacturing. At its 5g connected plant in Texas, Ericsson has also
been working on 5G infrastructure equipment. The first millimeter-wave Street Macros
base stations were gathered at the factory initially this year. In South Korea, many big
telecommunications operators including KT Corp, SK Telecom & LG Uplus Corp have
evolved 5G enabled smart factory solutions to help SMEs in magnifying their manufacturing
output & reducing costs.
Key Elements of Smart Factory Transformations
“How will you make certain that you can modify your processes & people when they have
been working for so many years, and give them tools involve them?” In this section, we take
envision from some interviews to expose the key elements of smart factory
transformations.
The Familiar Themes:
Change Management in Smart Factory Transformations-
1. Human-centered Design Based on Real User Needs-
Successful smart factory transformation leaders know that it is a need to consider user-
oriented perspectives to achieve business objectives when designing smart factories.
So, Take some time to understand how individual roles to work & what tools they need,
involving a “human-centered approach to understand what [the user’s] trouble points are &
making sure we understand how they need to use information, why they need to inspect it,
what they need to look for & how they need to take action on it“.
By prioritizing the user’s needs, one can identify and address issues and behaviors that
require change. Subsequently, the focus shifts to leveraging technology to support these
efforts. The key is to consider not just how to make the technology engaging but also how to
make the application relevant and valuable to the user. The human element is a crucial
factor that must be properly understood and incorporated; failure to do so can result in
investment failure for projects.
2. The Top-down, Bottom-up Approach led by Change Champions-
Change champions play a vital role in leadership transformation by providing support both
at the strategic level and on the ground. Further, They help eliminate barriers, secure
organizational buy-in, and articulate the business case for implementing smart factories.
Leaders understand the significance of executive-level sponsorship as these initiatives often
require significant investments of resources, such as time, personnel, finances, and assets.
By having strong support from leadership, organizations can effectively drive the adoption
of transformative initiatives. They also speak regularly about the need for a project sponsor
to lead projects forward.
More than that, support from every side is important when the rubber meets the
road. Senior leaders across operations, strategy, supply chain, and other functions can
strategically leverage the smart factory transformation to generate value at a network
level. Those on the ground— manufacturing operators, plant managers, technicians, plant
engineers & others—can drive change & results on the shop floor. As one individual noticed,
“If any factory wants to introduce Industry 4.0 or a smart factory. It has to be a top-down,

8. bottom-up approach. Thus, It must be both sides. That would be the greatest key to
success.”
3. Diverse Teams with a Broad Variety Of Skill Sets-
Diversity reproduces vision. So, The required skill sets for the smart factory transformation
include IT, engineering, production, supply chain, user interface designs, master data
management, analytics, finance, digital marketing, and human resources, among others.
Cross-functional teams play a crucial role in minimizing the likelihood of overlooking
important controls, processes, and cultural elements during the transformation process. By
involving representatives from different functions, these teams help ensure a
comprehensive approach to the smart factory implementation, enabling the delivery of
value across the organization. Research shows that cross-functional teaming has resulted in
greater organizational innovation & growth. Hence, This means transformation leaders
should take pains to make sure that the right skills are implemented at the right time, and
that a diverse mindset can inform the complete approach.
4. Ongoing Support & Learning-
In order to successfully implement the smart factory, organizations must consider how to
acquire new skills and develop existing skills within the company. Skill acquisition and
development pose significant challenges for organizations, as highlighted by a recent global
survey where only 14% of C-level manufacturing leaders strongly agreed that their
organizations currently possess the skills needed for future requirements in lean
transformation. Addressing this skills gap becomes crucial for organizations to effectively
embrace the smart factory concept.
Smart factories require new and different skills due to advanced technologies, posing
challenges for upskilling. Organizations can sustain smart factory systems through
collaborations with universities, alternative talent models, and leveraging ecosystem
partners for skills.
The “Smart Factory–specific” Themes
1. Connectivity is Critical-
It all starts with connectivity. It would be fair enough to say the smart factory and its
resulting value normally hook on the ability to connect assets, people, processes & devices.
This is not a small task. According to the Deloitte-MAPI survey, 33% of smart factory
leaders identified a lack of required IT infrastructure as a major obstacle to smart factory
initiatives. The connectivity of applications and processes to the network is crucial for
sharing and accessing information. Without proper network connectivity, even well-
designed applications or processes are bound to fail.
Yet that connectivity provides multiple opportunities to reform how value is captured
within the smart factory, and beyond it. Leaders should consider not only the connectivity
and data collection within the factory premises but also the scalability of connectivity and
data sharing across networks and ecosystems. This holistic approach enables effective
leadership transformation and facilitates the seamless flow of data for informed decision-
making and collaborative efforts.

9. Implementing smart factory technologies across the network requires a carefully planned
strategy with certified advisors. It involves developing a flexible digital infrastructure to
meet the specific demands of each environment.
2. Managing the Reality Of Diverse Devices-
The diversity of sensors, machinery& other devices that exist on the shop floor is important
to consider. You must be able to connect it & make it all work together. Smart factory
practitioners interviewed as part of the research:
• Diversity in Purpose: New real-world applications of devices allow teams to
innovate, explore data collection methods, and discover value opportunities.
• Diversity in Age: Smart factory deployments encompass both cutting-edge
manufacturing technologies and longstanding ones. As one leader noted,
“Connecting these old machines, from the 1950s & 1960s, was a
challenge.” Combining these age groups can be challenging, yet it can also unlock
significant value by providing leaders with access to data on functions and processes
that were previously inaccessible.
• Diversity In Data Structure And Format: Data comes from different sensors &
devices and takes many formats. Integration and interoperability are crucial in a
smart factory to ensure seamless data flow and compatibility between systems and
devices. Cleansing & mapping efforts are often critical to developing visibility into
smart factory processes.
3. Bridging the IT/OT Divide-
Developing a seamless integration between information technology (IT) and operational
technology (OT) is a major challenge for 27% of respondents in the Deloitte-MAPI survey,
impeding the advancement of smart factory initiatives. Some OT leaders & teams may also
experience discomfort with agile sprint methods, which are meant to enable change swiftly.
IT organizations have historically made large investments in qualifying & securing
technology assets. Obtaining balance among competing priorities, and understanding across
different professional cultures can make all the difference.
Realizing the Value of Smart Factory Transformation
How can companies shift from lessons learned from smart factory transformations toward
outcomes, and the methods smart factory capabilities make processes & organizations
better? We explore some of these opportunities.
1. Illuminating the Hidden Factory-
The important thing is connectivity & the need to connect assets and data across a wide
range of platforms, systems & data structures. Once its assets are connected, they free a
flood of information to be unraveled, translated & acted upon. The addition of new data
enables organizations to see things that were always present, but previously impossible to
observe.
2. Grip Current Systems in New Processes to Achieve Operational
Excellence-
Companies can digitally combine systems and leverage data to enhance lean manufacturing,
workforce management, and optimize operations, leading to higher productivity and talent
leverage in organizational transformation.

10. 3. Authorize Digital Lean-
Approaches such as lean have been used for decades to optimize processes &workflows,
maximize value, identify & reduce waste. Companies can digitally combine systems and
leverage data to enhance lean manufacturing, workforce management, and optimize
operations, leading to higher productivity and talent leverage in organizational
transformation.
4. Utilize AI & Other Advanced Tools to get to the Next Level-
It is an amalgam of humans & technology, including IT and OT, that makes a smart factory
smart. Physical technologies like robotics have transformed smart facilities. IoT, cloud, and
edge computing have facilitated data integration. AI enables various applications, such as
robots with navigation and human-like vision and hearing for quality sensing and asset
health prediction.
It can lead to predictive maintenance; dynamically route inputs and analyze, sense, and
energetically respond to circumstances. AI can optimize product and process performance
through digital twins and digital threads, enabling observation and improvement. Digital
twins allow companies to capture value by detecting potential issues sooner.
Likewise, AI can be installed in the digital thread, creating a digital record of the life cycle of
products themselves. Some leaders reported double-digit % improvements in machine
utilization, production processes, and throughput by installing AI-driven capabilities.
5. Scale throughout Networks & Ecosystems-
Scaling smart factory capabilities and processes throughout the enterprise network
maximizes the recognition of value on a broader scale. For example, a consumer products
manufacturer obtained substantial ROI by leveraging advanced analytics and AI to optimize
input purchasing decisions across its manufacturing network.
In another, a biopharma company predicted a net value of US$50–75 million year over year
in expense reduction. Data and information influx can drive improved operations across the
network and even have a positive impact on the broader economy.
Leader’s Tip:
By making upskilling investments, encouraging human-machine
collaboration, and cultivating a digital mentality, you can lead the workforce
change.
Final Word
Technology-driven change in almost any organization appears inevitable. Industry 4.0
technologies permit us to connect all the stakeholders, including the product, into a
resource for feasibility and future development in the penetrating society.
Key Takeaways:
• Digital transformation is fueled by Industry 4.0 and smart factories,
which also optimise operations, enable predictive maintenance, and
improve product customization.

11. • Successful implementation, strategy alignment, fostering data-driven
decision-making, and resolving workforce difficulties all depend on
effective leadership.
• Organisations may stay competitive, achieve operational excellence,
and satisfy changing customer demands in the digital age by
embracing Industry 4.0 and smart factories.
This blog is originally taken from : https://learntransformation.com/fourth-industrial-revolution-
smart-factory/