INDUSTRY 4.0 : The Digital Technology Transformation
We need to know the cause of the digital revolution that happens nowadays. Expert said that we are currently facing industrial revolution phase called Industry 4.0. Previously, there was an industrial revolution that changed the fundamental side of industry in the world. Industry 1.0 occurred around 1784 when the steam engine was invented. The invention created the so-called Mechanization where the production evolved from physical strength to machine power. Started in the UK, the industrial revolution then spread throughout Europe and the USA. Industry 2.0 came with the occurrence of its technological revolution. Happened around 1879, electrical technology was developed and used in production. The machines were further advanced and the production capacity was increased greatly. Around the 1950, the Era of Digital Technology was started especially when Z1 was discovered, an electrically driven mechanical calculator and the emergence of computers were used in production process followed by First Programmable Language (PLC) Modicon 084 in 1969. This computer marked the birth of Industry 3.0 where the computer dominated our lives and further use of electronics and IT assisted the production automation and reduced human-power in life.
Today, Industry 4.0 occurs where the machines manage themselves into production process. The machines are integrated into the computer, communicating with each other with intelligent connectivity that enables intelligent decision. Furthermore, this advanced technology is called Internet of Things. Industry 4.0 creates rapid and disruptive changes in every line and sector. This transformation includes improving customer experience, increasing speed to market and reducing costs. New industries and technologies are emerging. This change also creates new business models and new value propositions. Some emerging terms related to Industry 4.0 include the Internet of Things (IoT), Cloud Computing, Big Data Analytic, Cyber Physical System, Cryptocurrency (Blockchain), Artificial Intelligent, 3D printing, etc. These technologies will probably continue to grow as digital enterprise arises.
Nowadays, we see how incumbent business players (old) have been shifted by new players (called start-up). Value migration creates a new business model based on digital technology. Prominent example is printed media has been replaced with online media, traditional taxi service is replaced with online transport, Telco service is replaced with OTT (Over The Top) e.g. WhatsApp. Recently, we know about Cryptocurrency (Blockchain) which may be able to replace the existing currencies. Industry 4.0 also creates a so-called Smart Factory that integrates intelligent connectivity of smart devices in its plants, from manufacturing to delivery to end customers. Industry 4.0 itself is originally derived from the Germany Government project focused on improving production process through increasing automation by using IoT technology, promoting the computerization of manufacturing with the goal of interconnection and collaboration between people, products and machines within enterprises. Furthermore, Industry 4.0 gets global attention.
The impact of Industry 4.0 that can be felt today is the creation of a Monopolistic Effect where the market is dominated by some dominant players which possess the platform. For examples Google, Facebook, Amazon, Airbnb, Alibaba, and eBay have enormous power in disrupting the market with a platform-based business model. Google becomes the most powerful search engine in the planet and does have huge amount of data. Google knows the information about what people searched for the past 10 years which is a very powerful resource. Amazon and Alibaba successfully conquer online retail and become e-commerce giant. The development of Industry 4.0 does not only lead to positive impacts, the automation of the industry sector will also increase the unemployment rate where the production process will be replaced by robots with the advancement of AI and IoT. No Industrial Company can afford to ignore fundamental changes that industry 4.0 brings. They need to find new industrial product with digital features and enhance their portfolio and become a digital enterprise.
Industry 4.0 digitises vertical and horizontal integration across smart factory. Vertical Integration refers to operation within organisation from product development, manufacturing, purchasing, logistic and service. All data related to the operation process and quality are presented in real time plus the ability to analyze and optimize. Horizontal Integration refers to internal business process or supply chain process from supplier to customer. It provides track and trace device and all the parties concerned with the supply chain that can trace interdependencies. It is part of the IoT use cases in the manufacturing sector that makes Industrial IoT and Industry 4.0 have a cause-and-effect relationship where IoT becomes an essential element for the transformation.
Winix Technologies as one of IoT start-up has developed IoT platform that can be used for various purposes. One example of its use case is Wireless Tracking System called Wi-MAP. Wi MAP is an Indoor Location Intelligence Platform that combines the best of Wi-Fi, Bluetooth and low energy sensors. It can be used to collect movement of people through an area, provide them with turn-by-turn indoor guidance on a map or floor plan, and trigger actions when a device is near or leaves a point of interest. Using Wi-MAP, users can follow the movements of people and assets and more, in real-time. The best part of it is that all these features have been developed while keeping the privacy of people in mind. Wi-MAP is built as a part of the retail infrastructure to accurately define POS by knowing customer movement in real-time. In the schools, Wi-MAP can be incorporated to establish better security and to enable parents and teachers to have knowledge of location of their kids in real-time, from school bus to classrooms. Wi-MAP targeting public spaces like shops, shopping malls, exhibition hall, hospital, museum, etc.
Reference:
https://www.cgi.com/en/white-paper/Industry-4-making-your-business-more-competitive
www.pwc.com/industry40
Winix Team
