These days, there's a lot of talk about Industry 4.0, Digital Transformation, IoT (Internet of Things), 5G, and various "new" terms that promise to change the way we live, especially in the business world. But the truth is that not everyone (and not all companies) really knows the true meaning of these powerful words.
If you are a business owner or professional looking to improve your results and stand out from the competition, it is essential that you stay up-to-date. New concepts, tools, and strategies emerge every day with the potential to boost your business.
With that in mind, today we're going to 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 should communicate intelligently, in an integrated and online way. This involves keeping processes, machines, devices, and people as part of a large, intelligent business network.
Making all parts of a business increasingly interconnected and autonomous, generating data and information that are important to the business and that were previously unanalyzed.
Industry 4.0 is a concept based on the premise that companies should integrate technologies (both physical and digital) to create an intelligent network of their resources, allowing various actions to be 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 steam engine and coal.
- 1870, Industry 2.0: electricity and mass production.
- 1970, Industry 3.0: Computing and technologies taking their first steps.
- Today, Industry 4.0: Intelligent processes, with various integrated resources.
Despite its name, Industry 4.0 is not limited to the industrial sector. Quite the contrary. The concept is applicable to a wide variety of sectors, 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:
Artificial Intelligence
The application of Artificial Intelligence in business assists various areas of a company. One example of how AI can be applied in an organization is in the sales sector. With the help of a tool (such as CRM, for example), it can analyze the profiles and behaviors of leads and customers, aiming to increase the volume and quality of sales.
Big Data Analytics
Another great ally of Industry 4.0 is Big Data Analytics. It is the pillar responsible for handling important data, defining actions, and assisting in decision-making 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've already discussed in this post, IoT is the pillar that connects the information of a given resource, whether it's a system or machinery, to the rest of the business network. It's fundamental for creating a connected network.
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've already read our post explaining what Digital Transformation is in companies, you might be wondering:
So, what is the difference between Digital Transformation and Industry 4.0? As we explained 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 for making tasks and processes more effective with tools and technologies.
While Industry 4.0 is the concept that makes these technologies (applied with Digital Transformation) interconnected and integrated into a large intelligent network of systems, technologies, and processes, we can say that Digital Transformation is part of the process of the 4th Industrial Revolution.
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 fact is that Brazil still has a very long way to go to grow when we talk about this subject.
A survey conducted 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.
These numbers show how Brazil and its companies need to evolve. At the same time, they reveal a great business opportunity: Brazilian companies that begin to introduce the fundamentals of Industry 4.0 before their competitors will have a significant competitive advantage in the market.
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.
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 remain based on technology. They are companies immersed in Industry 4.0, and are benchmarks 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.
Below we list some impacts that are already present in our daily lives and others that are yet to come, check it 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 emergence of new business models, customers are becoming increasingly demanding. This applies not only to new market players, but also, and especially, to organizations that still need to adapt to this new landscape.
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 in this mission, we've listed 4 tips on how to apply Industry 4.0 in practice:
1. Define the Mindset
Your team's mindset is key to the Digital Transformation process and preparation for Industry 4.0. Implementing various tools and strategies aligned with the 4th Industrial Revolution would be pointless if you and your team are not aligned with the work methods and purpose of this entire change.
As we always say here at Bytebio: "Digital Transformation happens in the business mentality"
2. Use Process Automation
Process Automation makes the entire operation much more fluid and practical. Replacing human labor with automated labor.
Some examples of operations where automation can be applied in daily tasks include sales funnels (for advancing deals), lead management (for classifying and evaluating your database), and any other activity that can be activated by a specific trigger.
3. 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.
4. 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 behavioral patterns that generate important actions, whether positive or negative, and define a strategy to anticipate them effectively.
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 range of services to bring your business into Industry 4.0 with Digital Transformation solutions. Chat with us below so we can learn more about your business.
Do you want to prepare your company for Industry 4.0? Talk to us.
