Learning content

An Introduction to Industry 4.0

Industry 4.0 refers to a new stage within the organisation and control of the industrial value chain: the so-called 4^th industrial revolution. This era corresponds to the digital transformation of manufacturing, production and value creation processes. It integrates automation, data analytics, cloud computing, Internet of Things, cybersecurity and other digital solutions.

The industrial revolutions

1st revolution 1765	2nd revolution 1870	3rd revolution 1969	4th revolution 2000 – in progress
Mechanization Steam engines Water/steam power New manufacturing Iron production Textile industry Mining and metallurgy Machine tools Steam factories	Technological electrification Production line Mass production Globalisation Engines/turbines Broad adoption of telegraph, gas, water, supply	Computer / digital manufacturing / PLC/robotics / Robotics IT and OT Digitization Automatization Electronic / digital Networks Digital Machines	Convergence IT/ OT Autonomous machine Advanced robotics Big Data / Analytics Internet of Things Digital ubiquity /Cloud Smart factory Machine learning & AI Cyber Physical

Source: https://www.i-scoop.eu/industry-4-0/

Industry 4.0 is based on Cyber-Physical Systems, embedding software systems, and disposing of an Internet address to connect and be addressed via the Internet of Things (IoT), the key component of a smart factory.

In other words, IoT is what makes technologies and devices communicate information in real time. For instance, the floor of a smart factory is equipped with sensors that contain an IP address, which allows the machines to connect with other web-enabled devices.

In this way, the collection, analysis and exchange of large amounts of valuable data become easier and more efficient. This provides several new opportunities for the production of goods and services, and also new challenges for the job market, as workplaces and workers have to adapt quickly and efficiently to technological improvements. Here is a list of some of the Industry 4.0 benefits

• Enhanced productivity

A higher level of automation reduces production time. 4.0 technologies enable better inventory management and assets utilization, costs and process optimization, saving costs, increasing profitability, reducing waste, automating to prevent errors and delays, speeding up production etc.

• Personalization and customization for the new consumers

Consumers search for a degree of personalization, for possibilities to have a direct interaction with a brand and its manufacturing capability. Digital platforms for the customisation of products offer the co-creation possibilities and short routes between production and delivery.

• Agility, scalability, flexibility

Leveraging technologies, Big Data, AI, robots and cyber-physical systems enable to prediction and meet seasonal demand, fluctuations in production, and the possibility to downscale or upscale.

But also:

• Increased speed
• Competitive products and price differentiation
• Real-time data for a real-time supply chain
• Advanced maintenance and monitoring possibilities, through the use of sensors and actuators
• Better quality products
• Expansion to new services and business models, increased innovative capability
• More occupational safety through increased automation
• Better working conditions
• Increased collaboration within the network thanks to the huge availability of data
• Optimized use of resources and therefore environmental protection

4.0 technologies

Industry 4.0 concepts and technologies can be applied across all types of industrial companies, from discrete and process manufacturing to oil and gas, mining and other industrial segments.

Overall, Industry 4.0 is composed of many different technologies. Knowing them allows you to better understand the multitude of challenges in Industry 4.0 and to be able to adapt to them more rapidly.

Main 4.0 technologies

CYBER-PHYSICAL SYSTEM (CPS)

A computer system integrated into the physical world. Smart grids, medical devices (such as blood glucose sensors for people with diabetes) or smart cars (with auto-pilot, recognition of threats, etc.) are examples of CPS.

INTERNET OF THINGS (IoT)

As mentioned above, the principle of IoT is to connect any object to the internet. Industry 4.0 is only possible because of IoT, a technology that enables communication and exchange of information in real-time between different devices - machines, tools, operation systems, etc. (For further information go to the Advanced Module)

If you are interested in this field, these are some of the IoT jobs you may specialize in:

• IoT/Cloud Software Developer
• IoT Infrastructure Architect
• IoT Systems Administrator
• Vulnerability/Cyber Engineer
• Test Engineer

For further details go to: Careers in Internet of Things (IoT): CompTIA’s Future of Tech

If you want to know more about the skills required for an IoT developer see: https://developer.ibm.com/learningpaths/iot-getting-started-iot-development/concepts-and-skills/

CLOUD COMPUTING

Through Cloud Computing, large amounts of data can be stored, analysed and processed more efficiently and cost-effectively. The Cloud is what allows you to access your files and the majority of services everywhere and from any device Go to the advanced level, to know more about different cloud structures and models.

If you are thinking of a career in cloud computing these are some possible careers:

• System administrator
• Software engineer
• Data scientist
• Data engineer
• Cloud engineer

To know more see: https://www.indeed.com/career-advice/finding-a-job/cloud-computing-careers

BIG DATA AND ANALYTICS

When the quantity of data generated grows beyond the possibilities of either humans or traditional computer systems, we refer to the creation of Big Data. It is important to know how this type of big data may be analysed in order to provide operators and managers with useful information to manage the processes or improve their products.

If you are interested in the bid data ecosystem, you should consider one of these careers:

• Software developer
• Operation Research Analyst
• Market Research Analyst
• Financial Analyst
• Statistician
• Database administrator
• Computer and Information Research Scientist

For further details go to Careers in Big Data: CompTIA’s Future of Tech

CYBER SECURITY

In Industry 4.0, ubiquitous internet connectivity facilitates hacker attacks, therefore security plays an enormous role in IoT device development and implementation. If you are an aspiring IoT professional, there are many carrier opportunities within the field of cybersecurity, such as:

• Security Administrator
• Security Specialist
• Information Assurance Technician
• Information Security Analyst
• Senior Cybersecurity Architect/Engineer

To know more: Careers in Cybersecurity: CompTIA’s Future of Tech

ARTIFICIAL INTELLIGENCE (AI)

Artificial Intelligence is a branch of computer science dealing with the simulation of intelligent behaviour in computers. Developers use artificial intelligence to more efficiently perform tasks that are otherwise done manually, connect with customers, identify patterns, and solve problems. To get started with AI, developers should have a background in mathematics and feel comfortable with algorithms.

ADDITIVE MANUFACTURING

Additive manufacturing is a set of production technologies that allow for obtaining a final product through the generation and subsequent addition of layers of material. It mainly refers to 3D printing, a technology, which allows you to create physical, three-dimensional objects directly from a computer design file, simplifying the assembly of products and reducing labour costs and time. 3D printing is particularly useful for spare parts and prototypes.

AUGMENTED REALITY

Augmented realty (AR) refers to technology that augments or supplements real-world objects using smart technologies such as 3D and other computer technologies.

To learn more about these 4.0 technologies or discover new ones we invite you to go to the Advanced Module or consult the i-scoop website.

Agility and Industry 4.0

The agility concept – the capacity to adapt quickly and effectively – is strictly connected to Industry 4.0 being considered as both a driver and a consequence of a company's 4.0 transformation.

Agility factors guaranteeing 4.0 Industry vs Agility factors stemmed from Industry 4.0

Source : https://www.researchgate.net/publication/353459940_Organizational_Agility_in_Industry_40_A_Systematic_Literature_Review

Research confirms that organizations already agile in nature are the first to adopt and implement Industry 4.0 technologies and leverage its competitive advantages (Mrugalska & Ahmed, 2021). In this sense, agility can be seen as a prerequisite for companies starting the 4.0 transformation.

Organisation agility is considered the ability to quickly reconfigure strategy, structure, processes, people, and technology toward value-creating and value-protecting opportunities (McKinsey, 2017). An Agile organization:

• Has skilled and proactive workers
• Values teamwork and collaboration
• Chooses inspirational leaders, who can be role models
• Values continuous learning of their workers
• Has clear long-term business goals

Are you an entrepreneur willing to start a 4.0 transformation or make your company more agile?

You should know which are the factors driving agility and how to boost them:

• Increase speed and efficiency by empowering employees, decentralizing decision-making, and simplifying procedures;
• Let people fail so they can learn from mistakes;
• Tap into employee innovation by offering employees the freedom/resources to experiment without facing criticism;
• Listen to employees through regular communication;
• Build a culture of collaboration and knowledge-sharing;
• Increase employee engagement;
• Encourage collective decision-making.

Are you searching for a job in the 4.0 industry or any other field?

You should be aware that the traditional structure of organizations is obsolete and incompatible with the Industry 4.0 ecosystem; the demand for agile employers able to collaborate with machines or collaborative robots or cobots will increase. Therefore, if you are searching for a job, agility will surely be the skill to make your curriculum successful.

Some of the skills and competence of an agile worker are:

• Thinking agility: the ability to face and manage different situations, recalling previous experiences and relying on their logical and cognitive skills (critical thinking + problem-solving);
• Relational agility: the ability to collaborate within a team, understanding and dealing with the differences within the organisations;
• Change agility: the ability to react to external changes that are perceived as an opportunity;
• Result agility: the capacity to manage their own priorities, preventing burnout and promoting continuous self-development;
• Prioritizing flexibility and personal strengths while minimizing the constraints of a work schedule;
• Using the right tools to keep track of all the items on a to-do list so to see at a glance what needs to be tackled;
• Knowing at least basic concepts of 4.0 industry and technologies so to prove to be flexible, open to innovations and in line with the skills required in the market

Case study

An example of a 4.0 company - SEAT

SEAT has been acknowledged as a European leader in digital transformation, having established digitisation as a priority within the company’s strategy.

In recent years, the Spanish carmaker has applied new technologies to its entire production cycle. The factory has more than 2.000 industrial robots that are in constant operation; these are combined with more efficient management of data ensured by the use of artificial intelligence and big data, which made the company more efficient, flexible and agile.

The company also harbours a biomechanics laboratory, where it develops more ergonomic workstations. This laboratory uses cameras that capture the musculoskeletal features of its workers in 3D so to prevent injuries derived from work on the production lines and improve rehabilitation in the event of any of these injuries.

Questions and answers

Q: What are the required competences that I should have to start a carrier in the 4.0 industry?

A: Within Industry 4.0 there are many different working paths. There are several opportunities for different professional figures; however, to specialize in a particular field and learn practical skills, you should be able to:

• Collaborate between virtual team members via technology
• Filter information by importance and maximise cognitive functions
• Develop tasks and focus on the work process to achieve the desired outcomes
• Convey concepts to others and be able to stimulate reactions - social intelligence
• Demonstrate proficiency of thinking and coming up with solutions - adaptive thinking

Q: I am running a factory in food production, how can I assess if my company is ready to start a 4.0 transformation?

A: To assess the starting level of your company and plan a 4.0 strategy accordingly, you may use the online tool IMPULS Industry 4.0 Readiness Online Self-Check for Businesses. In this way, you will know the weakness and strengths of your company and will get some useful tips to start planning your transformation. The tool –developed by the Cologne Institute for Economic Research and the Institute for Industrial Management at Aachen University in Germany - enables users to measure the maturity of information and operations technology as well as management and business practices considering six key dimensions of Industry 4.0:

1. Strategy and organisation
2. Smart factory
3. Smart operations
4. Smart products
5. Data-driven services
6. Employees

The tool arranges these sub-dimensions along a spectrum of capabilities, measuring a company's technology and business maturity and developing a six-level model for measuring Industry 4.0 readiness. After you have completed and submitted the questionnaire, you will receive an e-mail with your personalized evaluation. Your results will be used to suggest a plan of action to enhance your company’s Industry 4.0 readiness.

References

• Mrugalska B. & Ahmed J. (2021). Organizational Agility in Industry 4.0:A Systematic Literature Review. Sustainability, 13(15).
• I-SCOOP.EU. (2022). Industry 4.0 and the fourth industrial revolution explained (i-scoop.eu), consulted online the 13^th dec. 2022.
• I-SCOOP.EU (2022) https://www.i-scoop.eu/internet-of-things-iot/ 13th dec. 2022
• McKinsey (2017) https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/how-to-create-an-agile-organization#/ 7^th Feb. 2023
• ThoughtExachange (2022) https://thoughtexchange.com/blog/agility-in-the-workplace/ 9^th Feb. 2023.
• Future of Tech, Careers in Cybersecurity: CompTIA’s Future of Tech (13/12/2022)
• Future of Tech Careers in Big Data: CompTIA’s Future of Tech (13/12/2022)
• Future of Tech, Careers in Internet of Things (IoT): CompTIA’s Future of Tech (13/12/2022)
• Security Scorecard, https://securityscorecard.com/blog/6-strategies-for-cybersecurity-risk-mitigation (22/12/2022)
• IMPULS 4.0 readiness tool: https://www.industrie40-readiness.de/?lang=en

Additional resources

i-SCOOP | Digital business and transformation hub – learning material to know more about each 4.0 technologies

https://www.eurotech.com/blog/ot-it-integration/ - benefits of OT/IT integration

https://www.womeniniot.org/ - Initiative to empower, support and connect women in IoT and tech industries