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Technology has provided new operating models that are much more efficient and productive for companies.
We are arriving in a new era called Industry 4.0 or 4th Industrial Revolution, these expressions bring together some technologies for automation and data exchange and use concepts of cyber-physical systems, Internet of Thins and Cloud Computing. This revolution goes for beyond these issues, encompassing several new conceps, technologies and tools.
The Fourth Industrial Revolution represents a structural change in the way people live, work, relate to the environment and to each other. This new Revolution has been integrating the physical, digital and biological worlds that, for the first time, started to act directly synchronized, leveraging human development to levels never seen before.
One of its biggest differentials, compared to previous revolutions, is the ability to scale results exponentially (and not just linearly). Its high speed and efficiency of transformation and the wide scope of applications, made possible by the integrated use of cutting-edge technologies, provided a new dynamic to the world, imposing an accelerated pace of changes not only in the production lines, but also in management and governance.
The concept concerns the integrated and systemic application of various technologies, such as artificial intelligence, internet of things, robotics, nanotechnology, biotechnology, 3D printing and quantum computing.
THE 4th INDUSTRIAL REVOLUTION ORIGIN
The main characteristic of an industrial revolution is the occurrence of radical and sudden changes, usually initiated through the adoption of new technologies.
The 4th Industrial Revolution began to take shape in 2011, through investments by developed countries in new technologies. Basically, it came from:
OTHER INDUSTRIAL REVOLUTIONS
The 3 revolutions that precede this new moment began in developed countries. The first, between 1760 and 1840, was based on the use of mechanical technologies, with the use of railroads and steam engines. It came to replace the use of animals and people in the manual generation of force. The second, between 1850 and 1945, was marked by innovations such as the advent of electricity and, consequently, its use in consumer goods and household appliances. The main symbol of this period was the assembly of Henry Ford’s cars, which disseminated mass production. The third revolution, which started around 1960, was marked by the emergence of information technology, information technology, the use of computers and, later, in the 90s, the use of the internet.
THE 4th INDUSTRIAL REVOLUTION CONCEPT
We are currently going through the transition to the 4th Industrial Revolution, which is based on the incorporation of new technologies and the frequent innovations that transform the routine of companies and people. The expectation is that they will completely change the world as we know it today. This period will be characterized by investment in disruption, using technologies such as artificial intelligence, robotics and augmented reality, among others.
The idea of adopting the nomenclature of Industry 4.0 comes precisely from the fact that we are going through the 4th Industrial Revolution. The term well defines the trend for the development of intelligent factories, which integrate virtual (use of technologies) and physical systems.
PRINCIPLES OF INDUSTRY 4.0
For the development and implementation of Industry 4.0, it is necessary to be based on 5 principles, which promote intelligent production, they are:
» Ability to operate in real time (consists of capturing and processing data instantly, enabling agile decision making);
» Virtualization (it involves simulations and the existence of digital copies of the factories);
» Decentralization (use of cyber-physical systems for real-time decision making, always based on production needs);
» Service orientation (this is the alignment between the concept of Internet of Services and software architecture, service oriented);
» Modularity (use of modules in production that facilitate the switching of tasks between machines).
IMPACTS OF INDUSTRY 4.0
One of the biggest impacts that Industry 4.0 will cause is in the creation of new business models, with repercussions in the market and in commercial relations. Within the context of an intelligent factory, the idea is to consider product customizations according to the needs and expectations of each customer, making appropriate adaptations. Nor can we fail to mention the development of research and solutions aimed at security in Information Technology, for the interaction between machines and the reliability of the production process. The objective is a continuous improvement for companies to adapt to this new industry model. We can also mention the need for adaptation on the part of professionals, since some demands will cease to exist, while new needs will arise.
Clearly, Industry 4.0 provides several advantages for the markets and companies that are part of the model.
Creation of new business models:
Many segments will have the opportunity for innovation and will be impacted by disruptive work. This is true even for more traditional branches, such as agribusiness.
Smart factories are able to perform remote monitoring of the shop floor, which allows real-time data to be made available to managers and analysts.
Optimization of the use of natural resources:
Industry 4.0 also comes with a strong demand for sustainability. This reduces the use of natural resources and the impacts of the operation on the environment.
The minimization of errors is based on the reduction of human intervention in the production processes. Machines can also be programmed to achieve a minimum number of errors.
Innovations have appeared constantly both in the production processes and in the provision of new products. Workflows on the plant floor have been completely changed, mainly due to automation and the use of robots. The tendency is for this to develop even more over the years and for employees, even those with more operational functions, to assume a more supervisory role in the work of the equipment, failing to act so actively in production.
Advanced manufacturing has the ability to accommodate the different mass production and customization requirements commonly encountered by the industry, without the need for excessive capital investments.
This evolution promises to positively impact the economy in a significant way for several branches and industrial segments, using flexible production facilities and lines, completely adaptable to the most diverse manufacturing requirements and fluctuations in demand. It makes it possible to increase productivity and reduce waste, which is essential to make processes more sustainable and less costly.
Advanced Manufacturing is not exclusive to the manufacturing environment itself. It encompasses the entire value chain, from the initial phases of product design and prototyping to the most advanced stages of the logistics chain.
One of its main characteristics is the integrated use of so-called ICTs (Information and Communication Technologies), which articulate manufacturing operations and business activities in an automated, efficient and continuous dynamic.
ADVANCED MANUFACTURING BENEFITS:
Actions such as process automation, use of information technology and other solutions applied directly to manufacturing resources improve the processes of the machinery and equipment industry in such a way that the sector itself considers this wave of innovation as the fourth part of the Industrial Revolution.
Advanced Manufacturing proposes a transformation of factories into “smart factories”, capable of using technology to increase productivity, efficiency and customization power, generate increasing returns in scale and process improvement in several sectors of the industrial segment, in addition to to reduce the time to launch new products on the market.
In these “smart factories”, machines and inputs “talk” through industrial processes that occur in a relatively autonomous and integrated way.
Equipment located in different units of the industry can also exchange information in real time regarding purchases and stocks, for example, generating logistical optimization and establishing greater integration between the component parts of the production chain.
McKinsey Consulting predicts that by 2025, processes related to Advanced Manufacturing may reduce equipment maintenance costs by up to 40%, reduce energy consumption by up to 20%, and also increase the efficiency of work in the industry by up to 25%.
Economy 4.0 is the result of the synchronized practice of different disruptive technologies qualified to directly transform the routine of companies, the market and society in general.
The concept encompasses the fundamental segments of the economy that gradually develop in an interdependent manner, influencing (directly or indirectly) each other’s activities.
The beginning of this transformation in the economy begins in society. In the polls, executives believe that what will shape society in the future is not governments, but companies. The advancement of the economy allows the delivery of services that previously did not reach a large part of the population.
It is a synergy between technological innovations and high scalability, which generates cost savings and facilitates access to new consumers. An example is the massive micro investment that banks can now offer thanks to technology.
In the field of strategy, the short-term view loses more and more space. The broad and long-term approach, with sustainability, guides those who dictate the rules. A business may be good now, but it clearly may not be a “business of the future”. The most evident case is the counterpoint between hybrid cars and the oil industry.
Thinking in the same way and without doing anything different, such as connecting supply chains, optimizing processes, making systems more agile and reaching new markets, performance will not improve and results tend to remain the same.
The more process automation and integration of artificial intelligence in decision making, the more talent becomes valued. Having tools for operational work is essential, but it is no longer necessary to know everything, the most important to know where and how to find the right information quickly. Many executives did not absorb the urge to form a talented team to make a difference in Economy 4.0.
The driving force behind the fourth industrial revolution is the integration of the digital with the real. The application of new technologies promotes profound changes in business models.
It is a sequence of changes in the way of thinking, developing and delivering solutions. Those who use disruptive technologies to engage suppliers, employees and customers, enjoy the benefits. The point is that the vast majority feel unprepared.
In the present scenario of Economy 4.0, the role of companies as driving agents of transformation becomes even more essential. They are important pieces to create products and services that not only bring a new consumer experience, but are also able to correct deviations characteristic of modern societies, including damage to the environment.
Another important point of Economy 4.0 is related to the agility with which innovation generates changes within the business universe. The digital world opens up endless possibilities for creating, developing and integrating solutions every day, imposing an even tougher competitiveness scenario.
About half of the world’s population is already connected to the Internet. The digital revolution has been a reality for some time now and is taking a new direction with the introduction of increasingly powerful and intuitive devices. This introduction again moves the digital economy that reveals a new format for companies to operate within the market: organizations that do not reinvent themselves through the use of technological innovations and new business models will be left behind.
The Digital Revolution is directly related to the expansion of internet use in the business world. It marks the beginning of the Information Age, in the 1980s, when the technology of analog, mechanical and electronic devices advances to the digital phase currently available.
Also called the Third Industrial Revolution, the Digital Revolution opened doors to new patterns of mass production and also to leverage the widespread use of digital logic circuits, such as computers, cell phones, smartphones and tablets. It also redefined the traditional industry and, as a consequence, the way we live and work.
It was also after the Information Age that data started to be considered assets of fundamental importance within the business. Increasingly, they serve as inputs to build insights with numerous applications, which have led to radical changes in the way businesses, consumers and governments interact.
More recently, new digital technologies have been enhancing results from their systematic and strategic use in different business contexts. From this combination emerged what is called the Fourth Industrial Revolution, whose main characteristics are the high speed of transformation and the wide scope of applicability.
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