INTERNATIONAL SCHOOL OF BUSINESS & MEDIA

A study on industry 4.0: The global and Indian

scenario

Riya Agarwal – N20223025

Sakchi Gupta – N20223036

Sakshi Kshrisagar – N20223027

Samiksha Bhalerao – N20223028

International School of Business and Media, Pune IOSCM:

Introduction to Operations & Supply Chain Management

PGDM BATCH 2022-24

Dr. P. K. De

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 TABLE OF CONTENTS

1. ABSTRACT
2. INTRODUCTION
3. OBJECTIVE
4. METHODOLOGY
5. LITRATURE REVIEW
6. MAIN PROJECT WORK
7. OBSERVATION & CONCLUSION
8. REFERENCES

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 ABSTRACT

Industry 4.0 is a strategic initiative recently introduced by the German government. The goal of
the initiative is transformation of industrial manufacturing through digitalization and exploitation
of potentials of new technologies. An Industry 4.0 production system is thus flexible and enables
Individualized and customized products. Digitization and intelligentisation of manufacturing
process is the need for today’s industry. The manufacturing industries are currently changing
from mass production to customized production. The rapid advancements in manufacturing
technologies and applications in the industries help in increasing productivity. The term Industry
4.0 stands for the fourth industrial revolution which is defined as a new level of organization and
control over the entire value chain of the life cycle of products; it is geared towards increasingly
individualized customer requirements. Industry 4.0 is still visionary but a realistic concept which
includes Internet of Things, Industrial Internet, Smart Manufacturing and Cloud based
Manufacturing. Industry 4.0 concerns the strict integration of human in the manufacturing
process so as to have continuous improvement and focus on value adding activities and avoiding
wastes. The objective of this paper is to provide an overview of Industry 4.0 and understanding
of the nine pillars of Industry 4.0 with its applications and identifying the challenges and issues
occurring with implementation the Industry 4.0 and to study the new trends and streams related
to Industry 4.0.

Keywords: Industry 4.0, Internet of Things, Cyber Physical System, Smart Manufacturing, Cloud
based Manufacturing

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 INTRODUCTION

INDUSTRY 4.0: THE GLOBAL & INDIAN SCENARIO

Industry 4.0 is a term often used to refer to the developmental process in the
management of manufacturing and chain production. The term also refers to the fourth
industrial revolution.

The term Industry 4.0 was first publicly introduced in 2011 as Industry 4.0 by a group of
representatives from different fields (such as business, politics, and academia) under an
initiative to enhance the German competitiveness in the manufacturing industry. The
German federal government adopted the idea in its High-Tech Strategy for 2020.
Subsequently, a Working Group was formed to further advice on the implementation of
Industry 4.0.

In 2003, they developed and published their first set of recommendations. Their vision
entailed that

These Cyber-Physical Systems comprise smart machines, storage systems and

production facilities capable of autonomously exchanging information, triggering actions
and controlling each other independently. This facilitates fundamental improvements to

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the industrial processes involved in manufacturing, engineering, material usage and
supply chain and life cycle management.

As the term industry 4.0 is not well known outside the German speaking area .It is worth
looking at comparable

ideas from a global perspective .Some commentator promotes a similar idea under the
name of cyber physical systems ,smart factory, smart production, machine -to machine ,
advanced manufacturing ,internet of everything or industrial internet . Industry 4.0 or
fourth industrial revolution also refers to next phase in digitalization things looks to play
a huge role that have the potential to feed information into it and add value to
manufacturing industry to realize a low-volume ,high-mix production in a cost efficient
way. It also involves the management and organization of the entire value chain
process of the manufacturing industry. Various organization have been advocating
industrial internet of things and industry 4.0 concepts to create smarter factories.
Meanwhile according to the idea of industry 4.0 includes a wide variety of devices, from
smart phones, gadgets, televisions and watches to household appliances which are
becoming more flexible and intelligent.

The concept of Industry 4.0 however, is not a simple one. It envelops many
technologies and is used in a variety of different contexts. There are five pieces that
define Industry 4.0 at its core. Each piece is similar in nature but, when integrated
together, create capability that has never before been possible. In an effort to
understand Industry 4.0, the following five terms are explained as they contribute to
the next industrial revolution:

1.BIG DATA

As per Forbes, Big Data is a collection of data from traditional and digital sources inside and
outside your company that represents a source for ongoing discovery and analysis. Today data is
collected everywhere, from systems and sensors to mobile devices. The challenge is that the
industry is still in the process of developing methods to best interpret data. It’s the evolution of
Industry 4.0 that will change the way organizations and solutions within those organizations
work together; teams will be able to make better, smarter decisions.

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2.SMART FACTORY

The concept of Smart Factory is the seamless connection of individual production steps, from
planning stages to actuators in the field. In the near future, machinery and equipment will be able
to improve processes through self- optimization; systems will autonomously adapt to the traffic
profile and network environment. Autonomous Mobile Robots (AMRs) are an integral part of the
Smart Factory, as their autonomous intelligence connects the factory together, allowing seamless
operations.

Leading by example is the Siemens Electronic Works facility in Amberg, Germany. Smart
machines coordinate production and global distribution or a built-to-order process involving
roughly 1.6 billion components. When the Smart Factory is achieved, it will represent a pivotal
shift for Industry 4.0, as the revolution will begin to roll out across multiple verticals. Various
markets spanning healthcare to consumer goods will adapt Industry 4.0 technologies initially
modelled in the Smart Factory.

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3.CYBER PHYSICAL SYSTEMS

Cyber physical systems are integrations of computation, networking and physical processes.
Computers and networks monitor and control physical processes with feedback loops; the
physical system reacts; the system uses software to interpret actions and tracks results. The
notion centers on computers and software being embedded in devices where the first use is not
computation; rather it is a loop of action and machine learning.

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4.INTERNET OF THINGS (IOT)

The internet of things is a simple term for a grandiose concept. IoT is the connection of all devices
to the internet and each other. As Wired said, its built on cloud computing and networks of data-
gather sensors; its mobile, virtual, and instantaneous connection. This interconnection will enable
smart factories to take shape as equipment will use data to manufacture, move, and report and
learn at astounding rates, efficiently.

OBJECTIVES

 Enables machine with various sensors,so that machine may talk to each other.

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 Establish a notion of automation in all sorts of industries.
 Take a net leap forward which also involves artificial intelligence,cloud computing.
 Increase productivity and effectiveness of factories by mlore than 15 percent by various
technical interventions.
 Make industries more employable and more profitable for all the stakeholders.
 Anticipated to gain a sound momentum in its growth because of the support obtained
from the digitalization and interconnection of various products and services.

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 METHODOLOGY
Research approach

This study employed a qualitative research approach. This approach was considered suitable for
the study as it provided useful insights into how the industry 4.0 will affect the Indian Workforce.

The extensive literature reviews were carried out from various available databases related to
knowledge sharing, knowledge transfer and knowledge flow. For this, the authors referred
different papers from the database viz. Web of Science (WoS) and Pro Quest which contains a
significant number of renowned publications, like Emerald, Taylor and Francis, Springer, IEEE,
and Elsevier. The structured review methodology adopted a five-step process as shown
in Figure 1.

Database Selection: The search strategy was developed by first going through the
relevant data sources i.e. Database. To have access to a wide range of academic and
conference publications, the Web of Science and ProQuest database was selected. These
are one of the most extensive abstract and citation databases, includes thousands of
peer-reviewed journals.

Keyword Selection: The most relevant and appropriate articles are cited in this paper. So,
the keywords used for the search process are very specific viz. Industry 4.0, Industry 4.0,
Workforce, HRM, Indian Industries

Collection of Articles: The initial search results in generating 698 articles published from
2012 onwards. The articles published in different conference proceedings, book

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chapters, news articles, doctoral thesis and editorial notes were excluded. The articles
then dropped down to 134. The year wise distribution of 134 articles is shown in Figure
2.

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 LITERATURE REVIEW

The German Federal Government presents Industry 4.0 as, an emerging structure in which
manufacturing and logistics systems in the form of Cyber Physical Production System (CPPS)
intensively use the globally available information and communications network for an
extensively automated exchange of information and in which production and business processes
are matched. The four main drivers of Industry 4.0 are Internet of Things (IoT), Industrial
Internet of Things (IIoT), Cloud based manufacturing and smart manufacturing which helps
intransforming the manufacturing process into fully digitized and intelligent one. The nine pillars
of Industry 4.0 will transform isolated and optimized cells production into a fully integrated,
automated, and optimized production flow. This leads to greater efficiency and change in
traditional production relationships among suppliers, producers, and customers as well as
between human and machine.

Ulrich & Brockbank, There are various roles HR professionals has to perform, namely, employee
advocate, human capital developer, functional expert, strategic partner and leader.

Bakuwa, 2013; Mamman, Rees, Bakuwa, Branine, & Kamoche,The role of HR professionals as
employee advocates involves addressing the current needs of employees by listening and
empathizing with them The employee advocacy role requires HR professionals to serve the
interests of employees, as well as execute other roles towards stakeholders of the business that
recruited the employee

De Ruyter, Brown, & Burgess, Rizvi, This role can be used to mitigate the negative effects of
anxiety and career doubt, which is vital in industry 4.0 as the introduction of new of technology
results in job collapse, deskilling, job insecurity and increasing inequities.

De Ruyter et al ; Sharma Human resource professionals as employee advocates need to engage

with employees, establish personal career objectives for them and formulate a plan of action to
achieve these objectives. Mamman & Kulaiby, The human capital developer role entails the
management and development of employees to meet future needs of the organization

Bakuwa,The role of HR professionals as human capital developers involves overseeing and

advancing HR collectively or individually, with the objective of equipping employees to thrive in
the future. De Ruyter et al.Industry 4.0 brings about new technological advancements and job
opportunities, and employees will therefore have to update their competencies as demanded by

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this new industry Özüdoğru, Ergün, Ammari, & Görener. As such, employees will have to be
retrained to accommodate this transformation. Bakuwa, The functional expert (previously known
as administrative expert) role is associated with the human capital practices that are key to the
HR value Sharma,This role requires HR professionals to develop HR systems and arrange for
HR development (HRD) audits to keep abreast of how HRD systems are functioning in the
organization. Human resource professionals as functional experts contribute towards giving their
organization a competitive edge in terms of their human capital by selecting and hiring the best
candidates.The strategic partner role of HR professionals comprises of dimensions such as
consultant, business expert, knowledge manager, change agent and strategic HR planner who
facilitate the HR systems to achieve the organizational goals. The strategic partner role requires
HR professionals to identify the main areas requiring attention with regard to people and
technology Al Mamun, Shamima, & Islam,Strategic HR activities help boost the productivity of
employees, and future productivity results should indicate how employees use technological
innovations In the age of digitisation it is vital for HR professionals to become change agents;
they need to assess the current state of the organization, deal with employees’ resistance to
change and provide employees with the necessary competencies to deal with changes
DiRomualdo, El-Khoury, & Girimonte, Human resource should start by preparing the changes
they will need to meet the needs of organizational digital transformation Bakuwa, Mamman &
Kulaiby,Sheehan et al. In a leadership role, HR professionals are required to act as credible
leaders and partner with other leaders to set and improve the level of strategic thinking The
leader role relates to the credible activist competency of HR professionals, which requires them
to be self-aware and dedicated to developing their profession Ahmed & akhtar In his study
focussed upon examining the effect of HRM practices (i.e. training, personorganization fit, and
rewards). on organizational commitment in Jordanian public and private organizations. The
training programmes given to employees have positive impact on their level of organizational
commitment.

Kumara & Pandey revealed in his studies that there was no significant difference among the
turnover, intentions of library working personnel by their place of work states that the job
performance of individual’s workers may vary with the extent of ambivalence being experienced
by them during work time. Lal et al. found that with the change in the scenario of working
environment, the ways of performing job roles have undergone a drastic change. It was found
that the job satisfaction is related directly to employee turnover/retention rates & absenteeism
and indirectly related to job performance and productivity in the industrial setup.

Ray &Ray focussed HRM practices and its impact on job satisfaction in selected iron and steel
firm in India. Factors like self-directed work teams, job rotation, recruitment and selection have
very little impact on job satisfaction. Chauhan & patel concluded in his studies that recruitment
and selection, carrier growth, working conditions have a positive impact on job satisfaction in the
hotel industry in Udaipur (India). All the HRM dimensions exercised in the hotels of Udaipur
division do not satisfied the employees equally. Enormous studies are available on the

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technological changes and its impact of workforce market and jobs. These studies are based on
the industrial revolutions and discussion was on destruction of jobs and creation of new variety
of jobs, is a continuous process of formation and re-formation of workforce market arrangement
(Autor, 2015; Deming, 2017; Goldin & Katz, 2009; Arntz, Gregory & Zierahn, 2016; McKinsey
Global Institute, 2017; Spitz-Oener, 2006; World Economic Forum, 2016).

In recent years, the debate on how Industry 4.0 will change the workforce market both I
developedl and developing countries including India. Several agencies(Govt. and Non Govt.) and
scholars have also conducted several studies on the impact of technologies on Indian job market
and on workforce in recent years such as FICCI (2017), NASSCOM (2017), ILO (2018),
Chapman and Sonne (2018). These studies claim that India’s workforce is largely involved in
low-skilled and low-paid informal sector and in formal or organized sectors. Therefore, Industry
4.0 will have less impact on informal sector, while formal or organized sector. Fewer studies
also indicated that the acquiring of Industry 4.0 will also benefit informal sector in the form of
higher income and better working conditions (Ilavarasan, 2017; Mehta, 2018). However, mostly
these studies have covered either selected industries or one particular industry. Hence, this study
is an effort to fill the void by exploratory research on the impact of Industry 4.0 on Indian
workforce market in a comprehensive way. The World Economic Forum’s (2016) report
highlighted the direct impact of Industry 4.0 technologies on existing jobs and new ways of
work globally—specially on entry level, low-medium skilled jobs (World Economic Forum,
2017). The report suggested that with the exponential technologies on the horizon, the higher-
value jobs will be fabricated that would require different set of skills and result in likely job
losses in developed as well as developing countries including India.

As per the World Bank report, the proportion of jobs threatened by Industry 4.0 technologies in
India is 69 % year-on-year (Business Today, 2017). Further it stated that sectors such as
automobiles, IT, financial services, manufacturing, transportation and packaging are in the
switching mode and are adopting new technologies for better control which is affecting and
reshaping the workforce. Lease Services et.al. study confirms that 52–69 per cent of repetitive
and predictive roles in these sectors will be exposed to the risk of Industry 4.0 technologies.

Job Buzz survey states that about 70 per cent of the Indian employees perception is that
automation will carry off their jobs and 20 per cent feel that Industry 4.0 technologies will make
their jobs better (Ganesh, 2018). 55 % of employees would like to enhance their skills to battle
the impact of Industry 4.0. FICCI study pointed out that that there will be decline in lower- and
middle-skilled associated jobs and consequent increase in high-end jobs, referred as ‘job
polarization’ (Mehta, 2018). In this Industry 4.0 technologies context, the governments,
policymakers, academicians and members of civil society are raising concerns with regard to the
future of workforce in India. The debate so far has more focus on developing countries like
India. Within this perspective, this article explores the existing workforce market structure and
the impact of new technologies on India’s workforce with specific focus on structure, skill level,
various sectors and challenges.

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 MAIN PROJECT WORK

HISTORY

A] 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

B] 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.

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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.

C] 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.

IMPORTANCE & SCOPE OF TECHNOLOGY IN INDUSTRY 4.0:

Before diving into all the mentioned evolutions, integrations, cyber-physical evolutions, IoT
elements, big data aspects and before looking at the origins of Industry 4.0, definitions,
evolutions, global implications, similar initiatives, Industry 4.0 design principles, building blocks
and the Reference Architecture Model Industry 4.0 a final word on technologies and people to
wrap up this quick introduction.

It is important to note that Industry 4.0 is not just about those technologies. It also looks at the
impact on and role of society and workers (e.g. collaboration between man and machine as with
collaborative robots or cobots, new required skillsets of workers in industries amidst all these
changes and, inevitably, the loss of jobs due to ongoing automation as mentioned and how to
tackle this major challenge).

Moreover, Industry 4.0 also has a strong focus on security. This does not just mean security of
data and communication networks, data protection (including personal data protection, especially
since the arrival of the General Data Protection Regulation, the ePrivacy Regulation and coming
rules in several areas, including green facilities, energy and ecology, and again personal data in

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the wake of scandals that have emerged in consumer markets), cybersecurity in the broadest
sense and industrial control systems security (ICS security) but also the protection and security
of workers, industrial assets, critical infrastructure and physical security.

This overall security challenge and certainly the ICS security and end-to-end cybersecurity
challenge ranks high among the Industry 4.0 challenges and risks.

On an Industry 4.0 technology level, finally, on top of the mentioned technologies (or rather
groups of technologies) such as IoT, big data, IT, OT, several security technologies (industrial
cybersecurity, visual monitoring of critical facilities, wearables to monitor worker safety in
hazardous environments), artificial intelligence (AI), cloud, edge, fog and more you can add:
additive manufacturing and 3D printing, digital twins, virtual and augmented reality (also in the
context of digital twin simulation), advanced robotics and cobots, autonomous production, rapid
application development, autonomous production, consistent engineering across the entire value
chain, thorough data collection and provisioning, systems integration (cfr. vertical and horizontal
integration), a vast range of networking and communication technologies, integration and
connectivity standards/protocols, ways to make various IT and OT protocols interoperable and
far more on the horizon, such as blockchain and technologies to not just meet demands for more
bandwidth but also to power connected devices.

On the technological front It’s important to look at the technologies underneath terms such as
IoT but also to look at how it all connects, especially as on this technology level (where data and
how you leverage, protect, exchange, enrich and even monetize it is at the center as you can see
in the above list) the keyword is integration as well: from the integration of IT and OT to the
integration of IoT and AI; big data, IoT and AI; blockchain and IoT.

New Industry 4.0 technologies, spanning mobile computing to cloud computing, have undergone
vast development in the last decade and are now ready to be used as commercially available,
interconnected systems within manufacturing this is Industry 4.0. It holds the key to accessing
real-time results and data that will catapult the industry into new levels of lean achievements.

CURRENT STATE OF INDUSTRY 4.0 IN INDIA

India has to move from manufacturing outfits of Industry and 2.0 to Industry 4.0 and beyond.
EEPC India in association of Department of Heavy industries (DHI) is raising awareness on the
4th Industrial Revolution to drive the Indian manufacturing to a Smart and intelligent
Manufacturing Hub said Mr. Ravi Sehgal at a Industry 4.0 session .

Smart Advanced Manufacturing and Rapid Transformation Hub (SAMARTH) – Udyog Bharat
4.0 is an Industry 4.0 initiative of Department of Heavy Industry, Government of India under its
scheme on Enhancement of Competitiveness in Indian Capital Goods Sector. The initiative aims

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to raise awareness about Industry 4.0 among the Indian manufacturing industry through
demonstration centres. Currently there are four centres which include Center for Industry 4.0
(C4i4) Lab Pune; IITD-AIA Foundation for Smart Manufacturing; I4.0 India at IISc Factory R &
D Platform; Smart Manufacturing Demo & Development Cell at CMTI.

Indian Engineering Exports have been growing at a rate of 10% with variation, but the
Engineering Exports as a percentage of ASEAN and World Exports is stagnating at 0.8-1 % over
the last 10-15 years. This is because majority of engineering goods originated from low or
middle level products. Department of Commerce, Ministry of Commerce and Industry has given
to this apex engineering body a mandate to incarnate a Technology Centre to enable MSMEs to
benefit from various new technologies. India also needs to close a quality gap faced with the best
in class, and leapfrogging to newer technologies, will enable quality export products, hence
EEPC India Technology Centre gains ground.

EEPC India Technology Centre in Bengaluru and also the one would be opened shortly in
Kolkata , with a view to develop export product by providing a forum for Industry and Academia
discussion and learning'' Mr. Sehgal said at the seminar. It was a day long productive session
where eminent speakers from DHI, IIT Kharagpur, ISI-Kolkata; CMERI- Durgapur; CMTI, C4i4
Pune motivated the stakeholders on the theme

In its pursuit to foster best-in-class manufacturing infrastructure in India, the Make in India
initiative is spearheading wider adoption of Industry 4.0, the new buzzword for the combination
of industry and the current Internet of Things (IoT) technology, in the country.

Banking on Indias strength in Information Technology and a large workforce of IT professionals,

the transformative journey of manufacturing through Industry 4.0 has already begun in the
country. Under the Government of Indias Smart Cities Mission, the projects to build 100 smart
cities across India are being touted as the forerunners of the Industry 4.0 environment.1

Additionally, the Indian Institute of Science (IISc) is building Indias first smart factory in
Bengaluru with a seed funding from the Boeing Company.2 Bosch, a German auto component
manufacturer will begin implementation of smart manufacturing at its 15 centres in India by
2018.3 General Electric has invested USD 200 million in the facility in its only multi-modal
factory in India where digitally interlinked supply chains, distribution networks, and servicing
units form part of this intelligent ecosystem. With rapid development in the fields of information
technology and hardware, the world is about to witness a fourth industrial revolution.4 the
concept of Industry 4.0 is going to change the way India manufactures, designs and refurbishes
the products. Driven by the power of big data, high computing capacity, artificial intelligence
and analytics, Industry 4.0 aims to completely digitize the manufacturing sector.

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The Benefits of Industry 4.0

Competitive Advantages: Industry 4.0 smart solutions and services offer a wide range of
competitive advantages for organizations that are able to successfully launch these new strategies
and technologies.

Increase in Operational Efficiency: The hope for Industry 4.0 is that the next generation of
industrial revolution will drive even greater profitability for organizations, as they are able to
squeeze greater output from the same resource input.

Better Products and Services: Whether it be product quality, safety, or customer experiences,
Industry 4.0 will drive greater visibility and throughput for operations, allowing them to continue
driving value for customers to retain business.

Growth of Markets and New Markets: With any technological revolution, new services,
products, and software will be needed to support the transformation of organizations. This will
create entirely new product categories, new jobs, and more.

Improving Lives Overall: With new technologies, higher profitability, and growth in economies,
peoples' lives as a whole generally get better, with income rising, better health solutions, and
overall a higher quality of life.

The Downsides of the Fourth Industrial Revolution (4IR)

High Costs: Not only is technology a major cost to consider, but the expertise in enabling the
technology to be implemented. Having the know-how in newer fields like IoT, Augmented
Reality, and AI can lead to major budget constraints, not to mention a lack of understanding
among all parties involved.

High Rate of Failure: The difficulty in launching Industry 4.0 initiatives is that there is often a
lack of direction when it comes to establishing objectives. They are often cross-functional
projects with many stakeholders, which can mean projects can become mired in conflicting
goals, and may simply sputter out.

Cybersecurity: People, products, and equipment is, and will increasingly be, connected to the
internet. Although this gives us greater access to data via the cloud, it opens up opportunities for
hackers to access networks.

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Need for Highly Skilled Labor: Manufacturing, and industry as a whole, continues to rely on
humans to enable production. However, with the move to digitally connected systems, there is a
greater need for highly skilled labor, which may unintentionally reduce the need for low-skill
labor.

Industry and Market Disruption: With new technologies available, existing solutions will
eventually be phased out. Similar to the Blockbusters of the world, certain industries will be
unable to survive what Industry 4.0 brings to market.

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 Conclusion

In this paper, the background and development of the Industry 4.0 concept are presented.
Although the concept is very comprehensive and complex, three main points can be identified:

• The Industry 4.0 concept is not limited just to the direct manufacturing in the company
but it includes also a complete value chain from providers to customers and all enterprises
business functions and services

• The Industry 4.0 assumes broad support of an entire life cycle of systems, products and
series, distributed both spatially and organizationally. The smart products are not smart only
during the manufacturing process but they continue to provide the data about their state also
during their lifetime. These data can be used for preventive maintenance; it can provide the
manufacturer useful information about lifetime and reliability of their products.

• The Industry 4.0 is a specialization of the Internet of Things applied to the

manufacturing/industrialenvironment. It assumes a real-time data collection leading to the issue
of handling and analysing huge data and cybersecurity.

Industry 4.0 is new industrial revolution of the 21st century, which enables companies to create
smarter products and services by reducing costs and increasing efficiency, where the human
factor is crucial for the application and the work is based on the existing literature in the area.

Smart Factory makes a solution which, due to the systems automated procedures, uncomplicated
setup including simple, need-based installation and ultimately, high degree of scalability, can
help companies in the manufacturing sector further optimize their processes and significantly
boost their internal efficiency.

Five million workplaces could be lost due to digitalization in major industrialized nations. Also,
it will quickly stop the market demand for the products made with outdated technologies due to
lack of quality and such production would have to be shut down due to high costs and
inefficiency.

Finally as Mr. Warren G. Bennis said:

The factory of the future will have two employees; a human and a dog. The task of the human
will be to feed the dog. The dog will have the task to dissuade the human to touch the automated
systems.

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The world at the entry point of fourth industrial revolution (Industry 4.0). The first industrial
revolution in late 18th century was driven by hydro and steam power leading to mechanization.
The second by electricity and resulted in mass production through assembly lines and the third
industrial revolution led       to large scale automation through programmable logic controllers.
The fourth (Industry 4.0) is about high speed digital networks, cloud computing, and artificial
intelligence. It is about creating new age corporations with cyber physical systems and internet
of things (IoT).

India lost out on the first two industrial revolutions due to rule of colonial powers and the third
one due to bureaucratic red tape.

Missing industrial revolution 4.0 can be a major catastrophe. With huge availability of IT and
engineering graduates, a conducive environment for startups, India is better placed than many
countries to be a part of industry 4.0. The physical infrastructure for internet and
telecommunication has improved considerably in the last decade. This has been supported by
mass scale electrification of urban and rural India. India has the highest penetration of internet-
connected smart phones in the world. Added to this, there is a supportive government with
business-friendly policies, willing to act as a catalyst. This has led to emergence of world class
digital companies such as Flipkart and Myntra in e-commerce, Practo in healthcare, Voonik in
women’s clothing and Ola in transportation. Many others are evolving to serve the digitally
connected global consumer. However, despite huge valuations, most entrepreneurs at the back-
end run brick-mortar, slow paced organisations not aligned with technologies of the future.

The Indian entrepreneur needs to understand the architecture of future-ready global corporations.
These entities use application programming interfaces (API) to integrate software development
with IT operations (DevOps) apart from using AI, cloud computing and IoT. The new
corporation shall utilise the potential of augmented, virtual and mixed reality, robotic process
automation (RPA), quantum computing and machine learning to find sustainable solutions to the
problems of the global economy.

Corporations in developed countries are already using these technologies. This has led to
innovations in managing data storage, data security and interrelationships between enterprise
data. Focus is also on blockchains, the technology behind the infamous cryptocurrency market.
Though cryptocurrencies are illegal in India, the entrepreneurs have been able to implement
blockchain technologies in healthcare, education and land registrations.

Rapid integration and alignment of India with Industry 4.0 is visible. Digital entrepreneurs are
providing support to both public and private sector. The efficiency of e-governance systems has
already improved considerably. Augmented and mixed reality is being used in healthcare and we
are seeing a steady adoption of robotic process automation for supply chain and management of
financial control systems.

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The new age digital entrepreneur is expected to change the ways of business is conducted in
India and the way we live.

26
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