Industry 4.

0
Carlos Carbajal
 1. Emergence of Industry 4.0
2. Definition of Industry 4.0
Agenda 3. Key technologies
4. Challenges for Management and Business

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What is “Something different that has impact”
innovation? Anthony, S. (2012)

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 “The application of scientific knowledge for practical
What is purposes”
technology? Oxford Dictionary of English (2010)

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Emergence of Industry 4.0
Industry 4.0
 • Information
3rd • Automation of
Industrial production
Revolution

Industrial
revolutions 2nd
Industrial
Defined as a major disruption of the
industrial (and social) paradigm.
Revolution
• Electricity
• Division of labour
1st Industrial
Revolution
• Steam
• Mechanisation of
production

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 There is an exponential acceleration
in the evolution of technologies.
The Fourth
Industrial
Revolution Grounded on the recombination
Bolstered by Schwab, K. (2017). He
argue that this is a distinctive
of existing technologies.
paradigm for three reasons.

Have the potential to transform

entire systems/organisations.

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 First Machine Age
• 1st industrial revolution
• Substitution of physical
activities
The Second
Machine Age
Brynjolfsson and McAfee (2014):
The introduction of machines to
replace large portions of the human
activity. Second Machine Age
• 4th industrial revolution
• Substitution of cognitive
activities

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Definition
Industry 4.0
 Industrie 4.0 introduced with the High-Tech Strategy
2020 by the German Government in 2011.
Several countries, organisations and industries have
proposed various initiatives to advance the
development.
Industry 4.0
The term Industry 4.0 has been used to encompass
diverse strategies with the objective of increasing
automation, communication and interconnection
among organisations, particularly in the manufacture
industry.

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 Increase
flexibility

Reduce Increase
complexity efficiency

Industry
Expectations 4.0

Reduce Increase
cost security

Reduce
time

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 Increase
profit

To grow
Enhance
and
customer
remain
experience
Objectives relevant

Optimize
Encourage
customer
customer
lifetime
loyalty
value

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Key technologies
Industry 4.0
 Operational Information
Technology Technology
• [machines] • [data]
Types of • Cyber-Physical • Cognitive and
Systems Cloud computing
technology
Perhaps Industry 4.0 is mostly
recognised by its underlying Communication
technologies. However, these
technologies vary widely in their
technology
degree of maturity and level of • [interaction]
adoption.
• Internet of Things
(IoT)

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Cyber-Physical
Systems (CPS)

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Internet of
Things (IoT)
Ashton, K. (1999) vision suggested
the development of an internet
extension that would enable
objects, equipped with sensors and
actuators, to receive and transmit
data.

Ali, Hamouda and Uysal (2015)

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Cognitive and
Cloud
computing
Cloud computing is the delivery of
computing services – servers, storage,
databases, networking, software,
analytics, intelligence and more – over
the Internet (“the cloud”).

Cognitive computing seeks to

simulate human thought processes in
a computerized model. Using self-
learning algorithms that use data
mining, pattern recognition and
natural language processing.

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 Nano-
materials

Augmented
and virtual Blockchain
reality
Other Autonomous
vehicles

technologies (drones)

wearables Quantum
computers

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Digital twin
(Data)
Digital twin refers to a digital replica
of physical assets (physical twin),
processes, people, places, systems
and devices that can be used for
various purposes.

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Challenges posed for
management and business
Industry 4.0
 Managers
• Can we • Should we
make it? • How we make it?
Focus make it?
Engineers Strategist

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Business
Models
Innovation

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Value
Networks
Integration

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A
manufacturing
future for
Scotland
“We must develop a manufacturing
proposition that embraces new
digital technology, products and
services, and make use of the skills
available in Scotland, particularly
the talent on our Universities and
Collages.”

John Swinney MSP (2016)

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Participating
organisations

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 1. Technology has a part of every organisation.
2. Technology is an inherent part of innovation.
Takeaways
3. Without a clearly defined strategy, technology is
useless.

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 Questions?
Carlos Carbajal
carlos.carbajal@glasgow.ac.uk

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