Data has and will continue to fuel this newest transformation, driving machine and human decisions. Bernard Marr from Forbes describes this as interconnected computer networks that learn, make decisions, and communicate without the need for the type of human intervention required by manufacturing in the past. The German government coined Industry 4.0 in 2003, as part of a new industrial policy in response to decentralized, autonomous, real-time manufacturing practices. Industry 4.0., also known as IIoT or “Smart Factories,” describes collective market responses to the enormous amount of data generated very quickly. E-commerce and demonstrated a more efficient supply chain delivering goods at less cost.ĭata drives this Fourth Industrial Revolution. Advances in biological technologies meant people lived longer. The personal computer allowed people to take work home. Industry 3.0 captured the use of information technology. During Industry 2.0, electricity led to the rise of mass-produced goods and new devices such as the telephone and automobile. Factories opened, transforming manufacturing that had been done on the homestead or farm. The First Industrial Revolution occurred with engines powered by steam and water. Companies are experiencing this type of radical shift today, as shown by Germany Trade & Invest (GTAI), the economic development agency of the Federal Republic of Germany. Why talk about Industry 4.0 instead of advancements inĮach industrial revolution, with faster and more efficient results, greatly changes how people think of and do business. Close to 70% of companies have initiated Industry 4.0 prototypes struggling to gain traction and “less than 30% of manufacturing companies are actively rolling out Industry 4.0 at scale.” This article will clarify Industry 4.0 by explaining why it is - and will continue to be - a major transformation. Understanding the intricacies of Industry 4.0 can be tricky for many company leaders.