What Was the Industrial Revolution?

The Industrial Revolution was a period of major industrialization and innovation that took place
during the late 1700s and early 1800s. The Industrial Revolution began in Great Britain and quickly
spread throughout the world.

The American Industrial Revolution commonly referred to as the second Industrial Revolution,

started sometime between 1820 and 1870. This period saw the mechanization of agriculture and
textile manufacturing as well as a revolution in power, including steamships and railroads, that
affected social, cultural, and economic conditions.

Understanding the Industrial Revolution

Although the Industrial Revolution occurred approximately 200 years ago, it is a period that left a
profound impact on how people lived and the way businesses operated. Arguably, the factory
systems developed during the Industrial Revolution are responsible for the creation
of capitalism and the modern cities of today.

Before the revolution, most Americans made their living farming and lived in widespread rural
communities. With the advance of factories, people began working for companies located in urban
areas for the first time. Often the wages were low and conditions were harsh. However, working for
businesses paid a better living than farming.

Production efficiency improved during the Industrial Revolution with inventions such as the steam
engine. The steam engine dramatically reduced the time it took to manufacture products. More
efficient production subsequently reduced prices for products—primarily due to lower labor costs—
opening the marketing doors to a new level of customers.

The United States government helped businesses by instituting tariffs—taxes on foreign goods—so
that products like steel made by U.S. companies was cheaper than foreign imports. Cheaper steel
prices encouraged the development of infrastructure such as railroads and bridges during the
American Industrial Revolution.

KEY TAKEAWAYS

 The American Industrial Revolution commonly referred to as the second Industrial

Revolution, started sometime between 1820 and 1870.

 The Industrial Revolution led to inventions that included the telephone, the sewing machine,
X-ray, lightbulb, and the combustible engine.

 The increase in the number of factories and migration to the cities led to pollution,
deplorable working and living conditions, as well as child labor.

Increased Employment and Innovation

The Industrial Revolution created an increase in employment opportunities. As factories became

widespread, additional managers and employees were required to operate them. Since most of the
factories and large companies were located near the cities, the U.S. population migrated to urban
areas often overwhelming the available housing.

Increased innovation led to higher levels of motivation and education that resulted in several
ground-breaking inventions that are still used today. These inventions include the sewing machine,
X-ray, lightbulb, calculator, and anesthesia.

Due to the Industrial Revolution's advancements, the nation saw the first combustible engine, the
first incandescent light bulb, and the first modern assembly line used in manufacturing. The
Industrial Revolution changed how people worked, the technologies available to them, and often
where they lived.

Pitfalls of the Industrial Revolution

Although there were numerous advancements during the Industrial Revolution, the rapid progress
caused many issues. As workers left their farms to work in factories for higher wages, it led to
a shortage of food being produced.

The sharp increase in the number of factories led to an increased in urban pollution. Pollution wasn't
contained to the factories as people flocked to the cities, the living conditions were deplorable as
the urban resources were overwhelmed.

Sewage flowed in the streets in some cities while manufacturers dumped waste from factories into
rivers. Water supplies were not tested and protected as they are today. As a result, regulations, and
laws were enacted to protect the population.

The Industrial Revolution provided an incentive to increase profits, and as a result, working
conditions in factories deteriorated. Long hours, inadequate remuneration, and minimal breaks
became the norm. Child labor was a major issue. Health issues arose for many of the factory workers
giving rise to the labor movement throughout the U.S.

Pros

 Advancements in production

 Growth in innovations and inventions

 Workers earned higher wages

 Improvements in transportation networks

Cons

 Deplorable working conditions and child labor

 Unsanitary living conditions and pollution

 Food shortages

Real-World Examples of the Industrial Revolution

The first cotton mill was built after Samuel Slater brought Britain's manufacturing technology to the
United States. The mill was powered by water bringing jobs and commerce to the Northeast. In the
following years, many factories and mills were built using the same technologies. 

In 1869, the first transcontinental railroad was completed and was a major accomplishment for the
U.S. since it allowed the transportation of goods, people, and raw materials nationwide.

Also, during the American Industrial Revolution, Samuel Morse created the telegraph, which sent
electric signals over a wire allowing the nation to communicate. Andrew Carnegie built the first steel
mills in the U.S. while Alexander Graham Bell invented the telephone. (For related reading, see "Is
Industrialization Good for the Economy?")

The First Industrial Revolution

The industrial revolution in Britain came in to introduce machines into production by the end of the
18th century (1760-1840). This included going from manual production to the use of steam-powered
engines and water as a source of power.

This helped agriculture greatly and the term “factory” became a little popular. One of the industries
that benefited a lot from such changes is the textile industry, and was the first to adopt such
methods. It also constituted a huge part of the British economy at the time.

The Second Industrial Revolution

The second one dates between 1870 and 1914 (although some of its characteristics date back to the
1850) and introduced pre-existing systems such as telegraphs and railroads into industries. Perhaps
the defining characteristic of that period was the introduction of mass production as a primary
means to production in general.

The electrification of factories contributed hugely to production rates. The mass production of steel
helped introduce railways into the system, which consequently contributed to mass production.
Innovations in chemistry, such as the invention of the synthetic dye, also mark such period as
chemistry was in a rather primitive state then.

However, such revolutionary approaches to industry were put to an end with the start of World War
I. Mass production, of course, was not put to an end, but only developments within the same
context were made and none of which can be called industrial revolutions.

The Third Industrial Revolution

Perhaps the third one is much more familiar to us than the rest as most people living today are
familiar with industries leaning on digital technologies in production. However, the third industrial
revolution is dated between 1950 and 1970.

It is often referred to as the Digital Revolution, and came about the change from analog and
mechanical systems to digital ones.

Others call it the Information Age too. The third revolution was, and still is, a direct result of the
huge development in computers and information and communication technology.
THE DEFINITION OF THE FOURTH INDUSTRIAL REVOLUTION AND HOW IT IS DIFFERENT FROM THE
THIRD

The fourth industrial revolution takes the automation of manufacturing processes to a new level by
introducing customized and flexible mass production technologies.

This means that machines will operate independently, or cooperate with humans in creating a
customer-oriented production field that constantly works on maintaining itself. The machine rather
becomes an independent entity that is able to collect data, analyze it, and advise upon it.

This becomes possible by introducing self-optimization, self-cognition, and self-customization into

the industry. The manufacturers will be able to communicate with computers rather than operate
them.

INDUSTRY 4.0 DESIGN PRINCIPLES

The design principles allow manufacturers to investigate a potential transformation to Industry 4.0
technologies. Based on the components above, the following are the design principles:

 Interoperability: Objects, machines and people need to be able to communicate through the
Internet of Things and the Internet of People. This is the most essential principle that truly
makes a factory a smart one.

 Virtualization: CPSs must be able to simulate and create a virtual copy of the real world.
CPSs must also be able to monitor objects existing in the surrounding environment. Simply
put, there must be a virtual copy of everything.

Decentralization: The ability of CPSs to work independently. This gives room for customized products
and problem solving. This also creates a more flexible environment for production. In cases of failure
or having conflicting goals, the issue is delegated to a higher level. However, even with such
technologies implemented, the need for quality assurance remains a necessity on the entire process

Real-Time Capability: A smart factory needs to be able to collect real time data, store or analyze it,
and make decisions according to new findings. This is not only limited to market research but also to
internal processes such as the failure of a machine in production line. Smart objects must be able to
identify the defect and re-delegate tasks to other operating machines. This also contributes greatly
to the flexibility and the optimization of production.

 Service-Orientation: Production must be customer-oriented. People and smart

objects/devices must be able to connect efficiently through the Internet of Services to create
products based on the customer’s specifications. This is where the Internet of Services
becomes essential.

 Modularity: In a dynamic market, a Smart Factory’s ability to adapt to a new market is

essential. In a typical case, it would probably take a week for an average company to study
the market and change its production accordingly. On the other hand, smart factories must
be able to adapt fast and smoothly to seasonal changes and market trends.
THE BENEFITS AND THE CHALLENGES

Industry 4.0 will truly revolutionize the way manufacturing processes work. However, it’s important
to weigh the advantages and the challenges that companies may face.

Advantages of Industry 4.0

 Optimization: Optimizing production is a key advantage to Industry 4.0. A Smart Factory

containing hundreds or even thousands of Smart Devices that are able to self-optimize
production will lead to an almost zero down time in production. This is extremely important
for industries that use high end expensive manufacturing equipment such as the semi-
conductors industry. Being able to utilize production constantly and consistently will profit
the company

Customization: Creating a flexible market that is customer-oriented will help meet the
population’s needs fast and smoothly. It will also destroy the gap between the manufacturer
and the customer. Communication will take place between both directly. Manufacturers
won’t have to communicate internally (in companies and factories) and externally (to
customers). This fastens the production and delivery processes.

Pushing Research: The adoption of Industry 4.0 technologies will push research in various
fields such as IT security and will have its effect on the education in particular. A new
industry will require a new set of skills. Consequently, education and training will take a new
shape that provides such an industry will the required skilled labor.

Challenges facing Industry 4.0

 Security: Perhaps the most challenging aspect of implementing Industry 4.0 techniques is
the IT security risk. This online integration will give room to security breaches and data leaks.
Cyber theft must also be put into consideration. In this case, the problem is not individual,
but can, and probably will, cost producers money and might even hurt their reputation.
Therefore, research in security is crucial.

 Capital: Such transformation will require a huge investment in a new technology that
doesn’t sound cheap. The decision to make such transformation will have to be on CEO level.
Even then, the risks must be calculated and taken seriously. In addition, such transformation
will require a huge capital, which alienates smaller businesses and might cost them their
market share in the future.

 Employment: While it still remains early to speculate on employment conditions with the
adoption of Industry 4.0 globally, it is safe to say that workers will need to acquire different
or an all-new set of skills. This may help employment rates go up but it will also alienate a
big sector workers. The sector of workers whose work is perhaps repetitive will face a
challenge in keeping up with the industry. Different forms of education must be introduced,
but it still doesn’t solve the problem for the elder portion of workers. This is an issue that
might take longer to solve and will be further analyzed later in this report.

 THE FUTURE WORKFORCE

 Industry 4.0 has a lot to promise when it comes to revenues, investment, and technological
advancements, but employment still remains one of the most mysterious aspects of the new
industrial revolution. It’s even harder to quantify or estimate the potential employment
rates.

 What kind of new jobs will it introduce? What does a Smart Factory worker needs to have to
be able to compete in an ever changing environment such as this? Will such changes lay off
many workers? All of these are valid questions to the average worker.

 Industry 4.0 might be the peak of technological advancement in manufacturing, but it still
sounds as if machines are taking over the industry. Consequently, it is important to further
analyze this approach in order to be able to draw conclusions on the demographics of labor
in the future. This will help workers of today prepare for a not so far future.

 Industry 4.0 might be the peak of technological advancement in manufacturing, but it still
sounds as if machines are taking over the industry. Consequently, it is important to further
analyze this approach in order to be able to draw conclusions on the demographics of labor
in the future. This will help workers of today prepare for a not so far future.

 Given the nature of the industry, it will introduce new jobs in big data analysis, robot
experts, and a huge portion of mechanical engineers. In an attempt to determine the type of
jobs that Industry 4.0 will introduce or need more labor in, BCG has published a report based
on interviews with 20 of the industry’s experts to showcase how 10 of the most essential use
cases for the foundation of the industry will be affected.

 The following are some of the important changes that will affect the demographics of
employment:

 Big-Data-Driven Quality Control: In engineering terms, quality control aims at reducing the
inevitable variation between products. Quality Control depends to a large extent on
statistical methods to show whether a specific feature of a product (such as size or weight) is
changing in a way that can be considered a pattern. Of course such a process depends
largely on collecting real-time or historical data regarding the product. However, since
Industry 4.0 will rely on big data for that, the need for quality control workers will decrease.
On the other side, the demand for big data scientists will increase.

 Robot-Assisted Production: The entire basis of the new industry relies of the smart devices
being able to interact with the surrounding environment. This means that workers who
assist in production (such as packaging) will be laid off and be replaced with smart devices
equipped with cameras, sensors, and actuators that are able to identify the product and
 then deliver the necessary changes for it. Consequently, the demand for such workers will
drop and will be replaced with “robot coordinators”.

 Self-Driving Logistics Vehicles: One of the most important focuses of optimization is

transportation. Engineers use linear programming methods (such as the Transportation
Model) to utilize the use of transportation. However, with self-driven vehicles, and with the
assistance of big data, so many drivers will be laid off. In addition, having self-driven vehicles
allows for restriction-free working hours and higher utility.

 Production Line Simulation: While the need for optimization for transportation declines, the
need for industrial engineers (who typically work on optimization and simulation) to
simulate productions lines will increase. Having the technology to simulate production lines
before establishment will open up jobs for mechanical engineers specializing in the industrial
field.

 Predictive Maintenance: Having smart devices will allow manufacturers to predict failures.
Smart machines will be able to also independently maintain themselves. Consequently, the
number of traditional maintenance technicians will drop, and they’ll be replaced with more
technically informed ones.

Interoperability

This refers to the ability of machinery and related components to connect and communicate
with people through the Internet.

Transparency in information

This principle requires that information systems should be able to create virtual copies of the
physical world by configuration of digital data into sensor data. For this to be achieved, raw
sensor data has to be aggregated with compatible context data.

Technical assistance

This concerns the ability of the systems to support humans through comprehensive aggregation
and visualization of information for better decision-making and quick solutions to problems.
Technical assistance also focuses on the ability of cyber-enabled systems to physically support
human resources by handling various tasks, which are considered time-consuming, harmful and
exhausting to people.
Decentralization of decisions

This principle refers to the ability of cyber-enabled systems to independently come up with
decisions and carry out their dedicated functions. This can only be changed in the event of
interferences or conflicts with the intended goals, which may require some tasks to be handled
at other levels. The concept is characterized by greater customization of products in flexible
manufacturing environments, as in industries dealing with mass production.

Principle 1: Interoperability (Interconnection)

Interoperability defines the ability of the components of industry (such things as machines,
devices, sensors, and people) to connect and help create the Internet of Everything (IoE). A
significant component of the IoE is the Internet of Things (IoT), which works to connect together
the elements that make up the smart factories.

Wireless communication is an essential part of the IoT since it allows the components to
communicate together locally as well as being accessible through the internet. Communication
standards are defined which lets different vendors provide modular components in building the
smart factories.

An essential part of the IoE is the Internet of People (IoP), which allows human actors in the
manufacturing process to interchange information with the IoT. Through the IoE, people and
devices remain flexible to quickly adapt to market fluctuations.

Principle 2: Information Transparency

This principle defines the ability of Smart Factories to create a virtual copy of the physical world
through the use of complex sensor data fed to digital plant models.

The merging of the physical and virtual world allows for a context-aware information model. The
resulting information is required for IoE actors to correctly respond to requests for decisions
from the manufacturing process.

For transparency to be achieved, the resulting information needs to be accessible to all IoE
participants. In the case of mission-critical processes, real-time access is of marked importance.

Principle 3: Technical Assistance

With Industry 4.0, the role of humans shifts from operators of equipment to strategic decision
makers with flexible capabilities. In order to stay in control of increasingly complex designs,
humans require technical assistance from intelligent systems that gather data and presents it to
the human participant in a clear and informative manner.

Technical assistance may include physical robotic components to gather information in

situations that could be harmful to people. These robots play a role in cases where it would be
excessively exhausting or unpleasant for humans to undertake.

To make sure that humans are able to communicate effectively with the robotic information
gatherers, protocols are defined for human and machine collaboration. Training in the use of
these protocols is required for the IoP participants.

Principle 4: Decentralized Decisions

The fourth principle defines the ability of decentralized decisions to take place within the Smart
Factories of Industry 4.0. Each cyber-physical subsystem should be able to independently make a
decision and continue on with their dedicated functionality.

Decentralized decision capability allows each definable section of the IoE to act as an
autonomous agent in completing their required tasks. Decisions are spread throughout the
system to maximize response time and optimize flexibility while continuing to operate. The only
time decisions are passed to a higher level is in the cases of exceptions, interferences, or
conflicts.

There could be multiple layers in the decision process, with each layer having a broader view of
the operations than the one below it. This layering allows for a decentralized regional decision
without requiring a more centralized response.

Depending on the critical nature of the decision at hand, some requests can be passed up to a
strategic decision maker, often part of the IoP. By layering the decision response structure, the
system remains flexible and autonomous for all but the most challenging decisions.

Industry 4.0 is promising to lead the future of Mankind as we interact with the many new
products that we can create with an unprecedented degree of quality. Contact us to see how our
award-winning products can help you take part in Industry 4.0