Digital technology as driving force for industry 4.0 and digital economy

IBM Institute for Business Value
Sutawijaya, IBM Software Architect
Digital Technology as Driving Force for
Industry 4.0 and Digital Economy

©2015 IBM Corporation2 12 April 2018
The Industrial Revolution 4.0
Facing the new phase of Industrial Revolution …
We are Here now …
Used of water and
steam power for
mechanical
production
Used of
electricity
powered
assembly line for
mass production
Used of
electronics and
IT to automate
production
Source: https://www.ibm.com/blogs/internet-of-things/industry-4-0-meets-cognitive-iot/
Used of digital-
biological-physical
systems (e.g.,
machines and
robotics) will be
controlled by AI.
The Industrial Revolution is the rapid transition to new
manufacturing processes in industry, from manual process to
mechanization, started from hand process (manual), steam
power machine, electricity power assembly line, electronics and it
automation, to digital – biological - physical systems and AI

The Digital Economy
The Drivers…
The digital economy is the worldwide network of economic activities, commercial transactions
and professional interactions that are enabled by information and communications technologies
(ICT) (e.g., e-commerce, e-business, API economy). It can be succinctly summed up as the
economy based on digital technologies

The Digital Technology
Technology as a fuel of The Digital Economy…and Industrial Revolution
The backbone of the digital economy is hyper-connectivity which means growing
interconnectedness of people, organisations, and machines that results from the
Internet, social media, mobile technology, internet of things (IoT), cloud, and artificial
intelligence then later called Digital Technology.
The Digital Technology Forces
Mobile, IoT,
API economy

The Construct
The Model: Industrial Revolution – Digital Economy – Digital Technology

The Construct
Understanding the Relation …
The digital economy reflects the move from the third
industrial revolution to the fourth industrial revolution.
The third industrial revolution, sometimes called the digital
revolution, refers to the changes that happened in the late
20th century with the transition from analog electronic and
mechanical devices to digital technologies.
The fourth industrial revolution builds on the digital
revolution as technologies today continue to bridge the
physical – biological – and digital world with the advance of
Artificial Intelligence.
Source: https://searchcio.techtarget.com/definition/digital-economy

How Technology is Transforming Industry
IBM Point of View

Introducing IBM Research

The Technology that will Impact within next 5 Years…
“5 in 5” Technology Predictions
Crypto Anchor and Blockchain
Within the next five years, cryptographic
anchors and blockchain technology
will ensure a product’s authenticity -- from
its point of origin to the hands of the
customer
Lattice Cryptography
IBM researchers have already developed
a post-quantum encryption method called
lattice cryptography. No computer can
crack it, not even future quantum
computers.
AI Powered Microscopes At Nanoscale
Small, autonomous AI microscopes,
networked in the cloud and deployed
around the world, will continually monitor in
real time the health of one of Earth’s most
important and threatened resources: water.
Rooting Out AI Bias
IBM coming up with new solutions to
control bias in AI and champion AI
systems free of it.
Quantum Computing Goes Mainstream
Today, Quantum computing is a researcher’s
playground. In five years, it will be mainstream.
1 2 3
4 5

Crypto Anchor and Blockchain will Unite Against Counterfeiters
The Problem that we are facing today…
The Proposed Solution…
Within the next five years, cryptographic anchors — such as ink dots or tiny computers
smaller than a grain of salt — will be embedded in everyday objects and devices. They’ll be
used in tandem with blockchain’s distributed ledger technology to ensure an object’s
authenticity from its point of origin to when it reaches the hands of the customer. These
technologies pave the way for new solutions that tackle food safety, authenticity of
manufactured components, genetically modified products, identification of counterfeit objects
and provenance of luxury goods.

Crypto Anchor and Blockchain will Unite Against Counterfeiters
https://bit.ly/2HsPrB0

Hackers gonna hack. Until they encounter lattice cryptography.
IBM is developing encryption methods to keep pace with emerging technologies such as
quantum computers, which will someday be able to break all current encryption protocols. IBM
researchers have already developed a post-quantum encryption method, which we’ve
voluntarily submitted to the National Institute of Standards and Technology (NIST), called
lattice cryptography. No computer can crack it, not even future quantum computers. With
lattice cryptography we can work on a file, or encrypt it, without ever exposing sensitive data
to hackers.

Hackers gonna hack. Until they encounter lattice cryptography.
https://bit.ly/2EF2s7k

AI Powered Robot Microscope
Our oceans are dirty. AI-powered robot microscopes may save them.
In five years, small, autonomous AI microscopes, networked in the cloud and deployed around
the world, will continually monitor in real time the health of one of Earth’s most important and
threatened resources: water. IBM scientists are working on an approach that uses plankton,
which are natural, biological sensors of aquatic health. AI microscopes can be placed in
bodies of water to track plankton movement in 3D, in their natural environment, and use this
information to predict their behaviour and health. This could help in situations like oil spills and
runoff from land-based pollution sources, and to predict threats such as red tides.

AI Powered Robot Microscope
Our oceans are dirty. AI-powered robot microscopes may save them.
https://bit.ly/2IM4Fk0

Rooting AI Bias
AI bias will explode. But only the unbiased AI will survive.
Within five years, we will have new solutions to counter a substantial increase in the number
of biased AI systems and algorithms. As we work to develop AI systems we can trust, it’s
critical to develop and train these systems with data that is fair, interpretable and free of racial,
gender, or ideological biases. With this goal in mind, IBM researchers developed a method to
reduce the bias that may be present in a training dataset, such that any AI algorithm that later
learns from that dataset will perpetuate as little inequity as possible. IBM scientists also
devised a way to test AI systems even when the training data is not available.

Rooting AI Bias
AI bias will explode. But only the unbiased AI will survive.
https://bit.ly/2EF2X1c

Quantum Computing
Today, q5 in 5uantum computing is a researcher’s playground.
In five years, it will be mainstream.
In five years, quantum computing will be used extensively by new categories of professionals
and developers to solve problems once considered unsolvable. Quantum will be ubiquitous in
university classrooms, and will even be available, to some degree, at the high school level.
IBM Researchers are already achieving major quantum chemistry milestones. They
successfully simulated atomic bonding in beryllium hydride (BeH2), the most complex
molecule ever simulated by a quantum computer. In the future, quantum computers will
continue to address problems with ever increasing complexity, eventually catching up to and
surpassing what we can do with classical machines alone.

Quantum Computing
Today, q5 in 5uantum computing is a researcher’s playground.
In five years, it will be mainstream.
https://bit.ly/2HUWjGi

Thank You

Digital technology as driving force for industry 4.0 and digital economy

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