Impacts of IoT and Industry 4.

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IMPACTS OF IOT AND INDUSTRY 4.0

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Discuss the likely technological, social, and economic impacts of the Internet of Things and the

Fourth Industrial Revolution

In contrast to that which experienced the first industrial revolution, contemporary society

is quite advanced socially, economically, and indeed technologically. Most of these

advancements have been occasioned by the fourth industrial revolution, commonly referred to as

Industry 4.0. The fourth industrial revolution is defined as the rapid interconnectivity of digital

technologies across physical and digital boundaries. On the other hand, the Internet of Things

(IoT) refers to the connection of digital devices over the internet from where they can share,

collect, and communicate. Essentially, the IoT is vital for the fourth industrial revolution's

success, given the vital linkage role it plays for various technological devices. Industry 4.0 is also

vital for society, given the automation, connectivity, and amounts of data likely to be handled by

different companies and organizations. These technologies can, therefore, provide crucial

benefits to manufacturing processes and business decision-making abilities. It is essential to

consider these technological innovations, given that their adoption is crucial to future and present

generation's issues. They can offer vital applications and services that solve crucial social and

technological challenges. They can, therefore, improve the quality of life for many globally

given potential economic savings and business opportunities. Nonetheless, IoT and the fourth

industrial revolution can also pose significant privacy and employment challenges, given the vast

amount of connections, user data, and automation in industries. This paper argues that the

Internet of Things (IoT) and the Fourth Industrial revolution will have diverse impacts on the

social, technological, and economic spheres globally.

Social Impacts
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The IoT and the fourth industrial revolution will have significant social impacts that will

be beneficial and detrimental to society. The main benefits of IoT and industry 4.0 will be felt in

improved living, environmental, relationship, and transportation systems. Social innovations,

such as social networking sites, increasingly alleviate popular communication problems that have

plagued society. Safer and more efficient AI-controlled transit systems, for instance, can

streamline public transport, reduce accidents and therefore improve the movement of people in

society (Schwab, 2016; Mundlak & Fudge, 2020; Williams, Nurse, & Creese, 2016). According

to Klein (2020), IoT increases the ease of access to information for individuals across society.

This is vital, especially in emerging democracies that require much more access to political

decisions from a dictatorial regime. Such increased information access contributes to a more

informed citizenry able to hold their leaders to account. Remote learning, facilitated through

internet technologies, also facilitates improved reach to education to previously maligned

communities. Significant benefits are also likely to be felt in the healthcare sector through

improved monitoring, sensing, and medical diagnosis (Klein, 2020; Williams, Nurse & Creese,

2016). Telehealth innovations with devices such as smartwatches improve critically ill

individuals' health and well-being, thereby improving their quality of life.

However, Industry 4.0 can also significantly contribute to increased social inequalities.

Mostly, this can be witnessed through gender and loss of employment opportunities to robots or

AI technologies. According to Rubery and Hebson (2018), "if a high-level job is being

restructured to reduce costs, employers may prefer to substitute women for men on the grounds

that new practices and lower pay levels may be easier to introduce…" (p. 419). The authors

discuss the general divide, especially in STEM fields, where men are disproportionately

represented compared to women. Mostly, women's influx into these careers may see reduced
 Impacts of IoT and Industry 4.0 4

wages in tandem to other gender inequalities that exist in employment and income in society

today. Further, the high number of men in science and technology fields’ disadvantages women

in terms of adoption and effective utilization of IoT and other Industry 4.0 technologies (Awad,

2018). Ultimately, the social benefits from these technologies far outweigh some of the possible

adverse outcomes.

Technological Impacts

The technological impacts of the fourth industrial revolution will be witnessed across

businesses, given improved efficiencies. According to Williams, Nurse, and Creese (2016), the

fourth industrial revolution and IoT technologies "enable pervasive data collection at a scale far

greater than previously possible" (p. 614). Such large amounts of data are vital for businesses,

especially those that rely on the analysis of the same for their decision-making. For instance,

marketing companies can gain insights from social media and other internet platforms on their

target markets' characteristics. Such information can then inform their advertising messages and

strategies employed.

Further, AI technologies make it possible to analyze big data much faster and efficiently

to improve business decisions and outcomes (Mundlak & Fudge, 2020). This hastens decision-

making and ensures decisions are made on insights from data and, therefore, likely to contribute

to profits for the organization (Williams, Nurse, & Creese, 2016). Transportation efficiencies

occasioned by AI-driven vehicles will also minimize losses from accidents and improve business

logistics (Klein, 2020; Williams, Nurse & Creese, 2016). Cyber-physical systems and the

connectivity made possible by Industry 4.0 also improves human and organizational efficiencies.

For instance, cloud computing technologies are vital to improving remote connectivity between

organizations, their clients, and all across the supply chain.

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These technologies are vital for better decision making, given that employees have access

to business data and information at any time. Significantly, such technologies reduce the need for

employees to commute to and from work. Further, Schwab (2016) notes that the fourth industrial

revolution is likely to see reduced digital devices and internet connectivity costs. Such reductions

will increase access to the technologies and provide vital social and economic benefits for

society.

Economic Impacts

Business organizations, employees, and governments are bound to benefit immensely

from the IoT and the fourth digital revolution. The adoption of IoT and Industry 4.0 technologies

will contribute to employment opportunities for many people globally. According to Rubery and

Hebson (2018), there is likely to be a reduction in prices, which will see more jobs across the

supply chain of IoT technologies. Further, Awad (2018) argues that increased adoption of

Industry 4.0 technologies will significantly increase government and business revenue streams.

Essentially, increased adoption implies more opportunities for manufacturing companies to make

more devices. This ensures more people can be employed besides also providing substantial

revenues to governments through taxation. In this way, the technologies can spur economic

growth for whole governments, companies, and individual households.

IoT technologies, through the connectivity of sensors and mobile devices, can also save a

business's high operational costs. These technologies mostly allow for remote monitoring and

tracking of transported goods, personnel, and the routes used. Such technologies thereby ensure

that goods are efficiently and safely delivered from source to destination without losses.

Importantly, the technologies ensure efficient energy use through mapping out the shortest routes

for making deliveries, which improves the profitability of a given company (Klein, 2020). Such
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advanced traffic control through traffic sensors and CCTV captures can improve transport

logistics in the public sector, which would ensure faster and safer movement of commodities and

citizens. Ultimately, such improvements are vital for economic health, given the detrimental

impact of traffic snarl-ups and accidents on nations' economic health.

The benefits of Industry 4.0 technologies and IoT, such as collaboration and

competitiveness, translates to more profits for any company. For instance, companies that adopt

these technologies will have a competitive edge over their competitors, given improved

efficiencies. For instance, improved delivery-times or interaction with customers through social

media platforms are vital for any organization today (Schwab, 2016; Mundlak & Fudge, 2020;

Rubery & Hebson, 2018). This means that adoption will see more identification by customers

with a given product or company and thereby see more profits. Ultimately, there are numerous

economic benefits from the fourth industrial revolution for humanity.

Possible Counterarguments

Despite the stated benefits of the fourth digital revolution and IoT, some concerns have

been raised. These touch on the privacy, adoption, and loss of employment challenges

occasioned by the adoption of IoT and other technologies. According to Awad (2018), the

adoption of AI technologies in the manufacturing sector has created anxiety amongst the human

workforce. Schwab (2016) goes further to note that the fourth industrial revolution might

occasion lower wages, the substitution of human labor by machines, a decline in labor revenues,

and polarized labor markets across the world. Notably, a key concern is regarding the privacy of

user data and the security of their information over IoT and Industry 4.0 platforms (Klein, 2020;

Mundlak & Fudge, 2020; Schwab, 2016). For Rubery and Hebson (2018), the challenges lie in

the limited adoption and opportunities afforded to women. Primarily, fewer women are present
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in the STEM fields and are further discriminated against in pay and career progression

opportunities. However, most of these arguments ignore the crucial role that government policies

can play in improving users' privacy, data protection, and appropriate behavior. For instance,

such policies, enacted through legislation, can ensure efficient data control, access, and penalties

for any breaches to user privacy. Additionally, Mundlak and Fudge (2020) argue that technology

creates additional jobs, increases productivity, and emphasizes organizations' human resources.

Essentially, individuals should not fear the adoption of Industry 4.0 technologies as their benefits

far outweigh any adverse effects.

As discussed, IoT and the fourth industrial revolution has numerous social, technological,

and economic impacts on the world today. The major social impacts are felt in the healthcare,

education, transportation, and information access domains. The technological benefits are likely

to be seen in the improved efficiencies, business analytics, and remote working capabilities

across organizations. Further, Industry 4.0 offers immense economic benefits in employment,

improved savings, and more global citizens' economic opportunities. Ultimately, the fourth

industrial revolution and IoT technologies should be viewed positively, given the numerous

benefits across various social, technological, and economic levels.

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References

Awad, A. B. (2018, March 19). Decent employment in the fourth industrial revolution.

Sustainable Development Goals, 2018, pp. 79-81.

https://www.sustainablegoals.org.uk/wp-content/uploads/2018/03/079-081-SDGs-

AWAD.pdf

Klein, N. (2020, May 8). Screen New Deal. The Intercept,

https://theintercept.com/2020/05/08/andrew-cuomo-eric-schmidt-coronavirus-tech-shock-

doctrine/

Mundlak, G. & Fudge, J. (2020, June 5). The Future of Work and the COVID-19 Crisis. Future

of Work, retrieved from https://futuresofwork.co.uk/2020/06/05/the-future-of-work-and-

the-covid-19-crisis/

Rubery, J., & Hebson, G. (2018). Applying a gender lens to employment relations:

Revitalisation, resistance, and risks. Journal of Industrial Relations, Vol. 60(3), pp. 414–

436. https://doi.org/10.1177/0022185618766680

Schwab, K. (2016, January 14). The Fourth Industrial Revolution: what it means, how to

respond. World Economic Forum, https://www.weforum.org/agenda/2016/01/the-fourth-

industrial-revolution-what-it-means-and-how-to-respond/

Williams, M., Nurse, J.R., & Creese, S. (2016). The Perfect Storm: The Privacy Paradox and the

Internet-of-Things. 2016 11th International Conference on Availability, Reliability, and

Security (ARES), pp. 644-652. ARES. DOI: 10.1109/ARES.2016.25