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What is Industry 4.0 and how to apply it to your business

Understand what Industry 4.0 is, also known as
4th Industrial Revolution, and learn how to prepare your
company with tips and practical examples
In this post you will see:

After all, what is Industry 4.0? Is your company ready?

Now that you know what we prepared for you in this post, come with us!
Nowadays there is a lot of talk about Industry 4.0, Transformation, IoT (Internet of Things), 5G and several "new" terms that promise to change the way we live, especially in business. But the truth is that not all people (and companies) know for sure the real meaning of these powerful words.

If you are a businessman or professional looking to improve your results and stand out from the competition, it is fundamental that you stay up to date. New concepts, tools and strategies emerge every day with the potential to boost business.

With that in mind, today we will explain everything about the much talked about Industry 4.0. What it is, how it will help your business and much more.

What is Industry 4.0?

Industry 4.0, also known as the 4th Industrial Revolution, is a concept made up of its pillars and principles. The term appeared in Germany not long ago, in 2012.

The 4th Industrial Revolution is based on the idea that an organization's resources must communicate in a smart, integrated and online. Maintaining processes, machines, devices, and people as part of a large intelligent business network.

Making all parts of a business related increasingly autonomous. Generating important data and information for the business that had previously not been analyzed.
Industry 4.0 is a concept based on the foundation that companies must integrate technologies (both physical and digital) to create an intelligent network of their resources. Having several actions controlled autonomously
The term "4th Industrial Revolution" is also used because it is considered the fourth major change in the way of doing business:
1780
Industry 1.0
Introduction of the machine to
steam and coal
1870
Industry 2.0
Electricity and production
in large scale
1970
Industry 3.0
Computing and technologies taking their first steps
TODAY
Industry 4.0
Intelligent processes, with various integrated resources
Despite the name, Industry 4.0 not limited to just the industrial segment. Quite the opposite. The concept is applicable in the most diverse segments, in companies of different sizes. A little further down in this post you will see some examples of How your company can apply Industry 4.0.

Pillars of Industry 4.0

The 4th Industrial Revolution is supported by 6 major pillars:
Pillars of Industry 4.0 | Bytebio
Artificial Intelligence
The application of Artificial Intelligence in business, it helps the most diverse areas of a company. An example of how to apply AI in an organization is in the commercial sector. With the help of a tool (such as CRM, for example) analyzing profiles and behaviors of leads and customers in order to increase the volume and quality of sales.
Learn more about AI
Big Data Analytics
Another great ally of Industry 4.0 is Big Data Analytics. Being the pillar responsible for dealing with important data, defining actions and helping to make decisions based on its analysis.
Cloud
Ensuring secure accessibility to generated and analyzed data is essential for an operation based on Industry 4.0 principles to be sustainable.
IoT (Internet of Things)
As we have already commented in this post, IoT is the pillar that connects information from a given resource, be it a system or machinery, to the rest of the business network. Fundamental to creating a connected network.
Learn more about IoT
Mobility and Security
Gone are the days when people said that the future is mobile. We are already living in a world where business models that do not apply mobile first are losing sales and going bankrupt.
When applied and aligned with a well-defined strategy, all these pillars converge towards a business immersed in Industry 4.0. Increasing your results with the intelligent use of technologies.

Difference between Industry 4.0 and Digital Transformation

If you have already read our post explaining What is Digital Transformation in companies, you may be wondering:

So, what is the difference between Digital Transformation and Industry 4.0?

How we explain in the post here on the blog, Digital Transformation can be summarized as the use of technologies, in different ways, to optimize processes. It is the engine to make tasks and processes more effective with tools and technologies.

While Industry 4.0 is the concept that makes these technologies (applied with Digital Transformation) are interconnected and integrated in a large intelligent network of systems, technologies and processes. So, we can say that Digital Transformation is part of the 4th Industrial Revolution process.
Have them all your integrated systems

Industry 4.0 in Brazil x Industry 4.0 in the World

The concept of Industry 4.0 arrived in Brazil, initially by large multinationals, such as the automobile industries. And little by little, it has been adopted by companies of the most diverse sizes and segments.

The issue is that the Brazil still has a very open path to growth when we talk about the subject.

A survey carried out by Fiesp in 2018 showed that 32% of Brazilian companies do not know what the 4th Industrial Revolution is. Furthermore, the same survey showed that only 5% of companies in Brazil feel “very prepared” for the challenges of Industry 4.0.
5%
Brazilian companies feel "very prepared"
for the challenges of Industry 4.0
32%
Brazilian companies do not know what the
4ª Industrial Revolution
These numbers show how Brazil and its companies need to evolve. At the same time, it shows a great business opportunity: Brazilian companies that begin to introduce the fundamentals of Industry 4.0 before your competition, will have a great competitive advantage in relation to the market.
"Will Industry 4.0 affect my business?" is not the right question to ask.

But yes "When will it arrive and what impacts will it have on my business?"

The evolution of the market in the 4th Industrial Revolution

That the market is (and always has been) in constant evolution is a fact. We just need to look at the 5 most valuable companies in the American market in the 80s and compare them with the current scenario.
What can we see in the image above?

Until a few years ago, no technology company was among the companies with the highest market value. Large automakers and oil companies dominated the market for decades.

Today 4 of the 5 most valuable companies in the world were created and are still based on technology. They are companies immersed in Industry 4.0, references for the global market.

Therefore, the traditional discourse of "those who don't update themselves become obsolete" has never made so much sense. And the late Kodak's and Blockbuster's on the market are there to prove it.


Impacts of Industry 4.0

With all this movement in the way of doing business, some positive and negative impacts accompany Industry 4.0. And it is up to companies to adapt so that they remain relevant in the market.

We list below some impacts that are already present in our daily lives and others to come, check out:
  • New Business Models
    As we saw in the list of most valuable companies, Industry 4.0 brings with it new ways of doing business. Giving rise to new business models.
  • Most demanding customers
    With the new business models that emerge, customers are becoming increasingly demanding. Not only with new market players, but also - and mainly - with organizations that still need to adapt to this new scenario.
  • Process decentralization
    Aiming to further optimize business processes, resources begin to make decisions based on a history of behavior and actions. Without depending on human intervention and with the certainty that the decision made is well-founded.
  • Full Time Operation
    With machines and technological resources working in an integrated and intelligent way, organizations will be able to maintain their operations full time, 24/7. With the benefit of reducing the margin of human error to zero.
  • More optimized processes
    Manual processes are less and less part of our routine. Being replaced by technological resources that make these operations much faster and with no margin for error. With Industry 4.0, these processes become even more powerful by being integrated into a single business network.

How to apply Industry 4.0 in practice

If you've made it this far, you've certainly already realized the potential that Industry 4.0 principles have to boost your company's results. And as we mentioned at the beginning of this text, Industry 4.0 is accessible to all businesses, regardless of segment or size.

To help you with this mission, we have listed 4 tips on how to apply Industry 4.0 in practice:
  • Define the Mindset
    Your team's mentality is a key part of the Digital Transformation process and preparation for Industry 4.0.

    There would be no point in implementing various tools and strategies that adhere to the 4th Industrial Revolution if you and your team are not aligned with the way of working and the purpose behind all this change.

    As we always say here at Bytebio: "Digital Transformation happens in the business mentality"
    1
  • Use Process Automation
    Process Automation makes the entire operation much more fluid and practical. Replacing human labor with automated labor.

    Some examples of operations to apply automation in everyday life are sales funnel (for business advancement), lead management (for classifying and evaluating your base), and any other activity that can be activated from a specific trigger.
    2
  • Integrate your Systems
    As we have already highlighted here, integration is the focus of Industry 4.0. Once you have all your systems integrated, talking to each other intelligently, you have a network that will facilitate any and all business processes.

    Some examples of systems to be integrated: CRM, communicators (messengers), ERP, financial system, among others.
    3
  • Focus on Data
    From the moment you start using the tools and technologies in their entirety, you will begin to identify various information and data that are extremely relevant to your business.

    Learn from this data. Analyze behavior patterns that generate important actions, whether positive or negative, and define a strategy to anticipate them assertively
    4

Conclusion

There will never come a day when we will see an ad in the Jornal Nacional stating “Ready, now we are in Industry 4.0”. This moment has already begun and is happening. The 4th Industrial Revolution happens as the transition from day to night. Twilight happens gradually, and before we know it, it's already night. That's why we need to be prepared.

"Will Industry 4.0 really affect my business?" is not the right question to ask. But rather “When will it arrive in my business and what impacts will it generate”.

We here at Bytebio We offer a series of services to place your business within Industry 4.0 with solutions Transformation. Chat with us in the chat below to learn more about your business.

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