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Industry 4.0 NEW 1
Industry 4.0 NEW 1
Introduction
Industry 4.0 is one of the most pressing concerns in strategic operations management
today, this can also be termed as the fourth industrial revolution, which is altering company
operations and, redefining the way products are produced (Kagermann et al., 2013). Industry
(AI), cloud computing, advanced robotics, the Internet of Things, and big data analytics
(Atzori et al., 2010). Industry 4.0 has been a game-changer for businesses, as it promises to
revolutionize how businesses work, increase efficiency, productivity, and profitability (Atzori
et al., 2010). Additionally, according to Kagermann et al. (2013), the term "Industry 4.0"
refers to the fourth industrial revolution. In this line, the first three industrial revolutions were
brought by IT, mechanization and electricity (Kagermann et al., 2013). Industry 4.0 is
important consideration for companies (Kagermann et al., 2013), as it provides a platform for
the introduction of new products and services, as well as new ways of doing business.
Organizations must consider how they can leverage the opportunities offered by Industry 4.0
According to Atzori et al (2010), Internet of Things (IoT) is a major tool for Industry
4.0 hence it cannot be separated from it. The Internet of Things (IoT) can thus be
will be affected by the IoT in both positive and negative ways given its relatively recent
origins and high level of ambiguity. This study will discuss the implications of Industries 4.0
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for strategic operation management, including its impact on businesses, the challenges it
presents, and strategies for effectively utilizing the technology. The study will utilise
determine if the risks of Industry 4.0 exceed the benefits or vice versa, concluding arguments
will be made. Finally, options for additional research will be briefly discussed.
As stated by Mishra et al. (2016), the Internet of Things (IoT) can be divided into four
key domains: personal and social, healthcare, industry, and ultimately market environments.
The Industry domain is therefore vital for this study because it directly ties to the idea of
industry 4.0. Meanwhile, Personal and social domain connects existing public-accessible
systems such as phones and tablets. It would be erroneous to separate the Internet of Things
with this sector since Personal and Social domain is one that general public can understand
better. Smart Environments domain can be defined as those domains that extend on this
comparatively clear use (Mishra et al., 2016). However, the most common and possibly most
sophisticated IoT use comes from the industry area, which Borgia (2014) postulated. The
Internet of Things may be used in all sectors of industry and can be incorporated into any
subfields that are pertinent to Industry 4.0 which include monitoring parameters and data
inputs/outputs. Subsequently, using a range of IoT sensors then IoT may be utilized to
improve safety and efficiency in industry. Although the notion of Cyber-Physical Systems
(CPS) is introduced, Borgia (2014) does not specifically mention it. Secondly, Borgia (2014)
shows how logistics and product lifecycle management are ideal for IoT use. He conjectures
that when shelves are bare, retail sales fall by 8.3%. As (Borgia, 2014), that a key component
of the Internet of Things ecosystem is the display of data and information through a
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system that gathers and keeps track of environmental data. These data serve two purposes:
first, they are utilized to create weather forecasts, and second, a machine learning method is
used to find telemetry equipment flaws and drift from calibrated settings. Through this
secondary usage, its main goal is to come up with a telemetry network that is self-managing
and self-healing. This is familiar to the definition proposed by Gubbi et al. (2013) on the
Internet of Things as a network of sensing and actuating devices that allows information to be
According to Borgia (2014), Cyber Physical Systems are characterized as systems that
have the aforementioned IoT properties and are meant to take the next logical step toward
integration with the physical systems they control. Cyber Physical Systems comprises of four
technologies which are significantly linked to Industry 4.0. These include The Internet of
al.,2016). There is emphasis by Karpisheck (2009) on the crucial aspects of IoT which is,
how technologies such as Near-Field communication (NFC) Radio Frequency ID (RFID) and
smartphones chips can establish effective Industry 4.0 foundational elements. For this reason,
the prerequisites for Industry 4.0 are the data and human interaction. For instance, where
through the ERP systems the RFID tags in the clothes retail setting would provide sales
employees with NFC capabilities. Near Field Communication (NFC) enables smart phones to
detect goods and subsequently generate the delivery pull request. In their study on industry
4.0, Kagermann et al. (2013) suggests this precondition and proposes that the beginning of a
technologically enabled process is the human interaction such us with smart phones,
Operations Management development in line with the prevailing trend of industry 4.0
The Department for Business, Innovation and Skills from the UK government (2010),
underlined in their research on the expansion of Industry 4.0 and advanced manufacturing in
general. Industry 4.0 was one of the major areas that are identified to bring a positive impact
on Gross Value Added (GVA) for the country, this would finally lead to the growth of UK
economy. The government went ahead and advocated policies to embolden more venture in
Industry 4.0. Industry 4.0 could impact the government more positively in developing and
component in their economical and industrial plans. In addition, organisations can benefit
from the sector’s high level of attention from succeeding government as a key growth sector.
With associated funding and investment opportunities, this will be so if they consider
implementing an Industry 4.0 strategy or project as outlined in the BIS (2010) Growth
Review Framework. Terreich and Totenberg (2016) emphasize the political risks or hurdles
associated with Industry 4.0 adoption. There is a distinct problem and innate reluctance to
adopt any upcoming technology. In his research on Building Information Management (BIM)
implementation globally, Smith (2014) makes the assumption that the current state of the
world economy makes it difficult for industry in general to advance to the Industry 4.0, this
offers a rebuttal to this claim by putting out the theory that for organizations to adopt such
industry 4.0 technologies it vital for them to be provided with the necessary incentives.
Governments have started to compel the application of Industry 4.0 which include BIM or
RFID in their intended projects as emphasized by Smith (2014) as a push or a sticky strategy,
this might in turn viewed as a threat to a politically motivated Industry 4.0 adoption.
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et al. (2015) made a suggestion on the use of modern manufacturing or industry 4.0, which
can increase industrial flexibility where the economic benefits of adopting industry 4.0 are
thought to be desired. Regardless of the batch size of a manufacturing output, Sirkin et al.
(2015) assert that such Industry 4.0 procedures can and should, if properly applied, boost
standardization and improve quality. When these strategies are coupled with the greater
aspect of cost transparency that is possible when adopting an Industry 4.0, there is a
substantial possibility to boost competitive advantage (Smith, 2014). Big data utilization in
construction projects has potential benefits a suggested by Bilal et al. (2016). They explicitly
assert that projects adopting Industry 4.0 approaches for component design, prefabrication,
and assembly can successfully eliminate design conflicts by utilizing the volume of data
created by such projects (Bilal et al.,2016). Across the supply chain, the reduction in building
time equated to significant economic gains are demonstrated in a situation where time is
money.
The sector of capital equipment would move away from reactive maintenance when
the IoT technology is applied (Oesterreich and Teuteberg, 2016). In this line, using IoT
technology in industries like mining and construction might result in cost savings and
increased productivity by keeping a close eye on the component and equipment health
(Manyika et al., 2015). However, the risks that are economical and associated with
implementing Industry 4.0 are comparable to those associated with any major capital
investment or organizational change. Akanmu and Anumba (2015) identify two economic
variables that they believe would make applying CPS in the actual world challenging in their
study on hurdles to the adoption of CPS in the facilities management business. The initial
economic consideration is who should foot the bill for IoT or CPS hardware. The primary
reason for the lack of adoption and execution is highlighted in this subject. Akanmu and
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Anumba (2015) continue by stating that the sector's risk tolerance for making substantial
investments in such equipment, is not high because there is lack of a recognized facilities
investment in the vast majority of businesses. For this case, organizational change and
adaptation within the industry were nothing new (Smith, 2014). This has enabled business
companies to be typically compelled to modify and reposition their offerings, for them to find
the changing wants to customers and the wider industry. It is noted that, while there are
significant expenditures involved with software and technology, it is because of the larger
expenses attributed to the employee’s up skilling and training. The behind knowledge
required to fully exploit Industry 4.0's underlying technologies is technical hence expensive
to acquire. Benefits to the end user or consumer, as well as those that directly influence in the
sector adopting Industry 4.0, can be roughly classified as social benefits for Industry 4.0
adoption. To start with, consumers and other end user’s benefits is supposed to be considered
significantly. In their recent discussion of the vison and the Internet of Things' problems
Sundmaeker et al. (2010) concluded their research with a theory of IoT enabling consumers.
In addition, it is very crucial to understand that such alpha convenience can bring about
efficiency that is greater and advancement of society at large, this s a clear reflection of the
definition of Industry 4.0 from the previous definitions that pre-exists. The potential for
the fact that IoT in consumer contexts appears to be growing popularity reinforces this
assertion. Onwards, it is clear that those who work in industries and healthy are likely to
prevented by aiding of the value of real time monitoring of Personal Protecting Equipment
(PPE), a concept concluded by (Barro-Torres et al., 2012) in their aim to study PPE
monitoring systems. In their study, they have limited to establishing the practicality of the
concept and cutting-edge of IoT- based systems. Nevertheless, the suggested approach would
start to solve the problems with PPE use and efficacy, and as a result, it can be assumed to
offer the employee or user a social advantage. A variety of monitoring techniques are applied
in order to expand the applications of the RFID and IoT technologies, these devices monitors
condition can be monitored and be minimized. Such applications can therefore be preferred
by industries to lower accident and mortality rates, as well as a broader gain in terms of
productivity. This clearly demonstrate how beneficial such measures are to society and
environment. However, there are limitations to this quantitative data because there are no
Moving on to the societal risks and concerns related with Industry 4.0, they can be
divide into those that have an impact on the consumer and those that impact the employees
within an industry. However, up skilling personnel in this sector is a far more pressing
concern. In this regard, it is vital to note that, there is sufficient great demand on large
increase in training due to the degree of change within the various industry sectors, as
suggested by Ariyici and Coates (2012). According to their research, this transition affects
people's work routines and day-to-day activities, making them feel psychologically as though
their job security is jeopardized. Smith (2014) adds that the challenge for firms trying to
deploy Industry is shifting staff mind-sets to embrace and adapt to new technology Methods.
Some employee’s intrinsic intolerance to change, along with underlying concerns about job
security, is a key barrier to the successful adoption and execution of an Industry 4.0 plan.
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There is more openness to digital technologies and change by the younger generation of
workers transitioning into professional roles, in turn the exposure to such technologies allows
them to mitigate potential challenges and risks of Industry 4.0 practices implementations.
The heart of dangers and problems confronting customers and end users of Industry
4.0 practices, is a major perceived loss of confidentiality and privacy linked to the use of new
technologies. In a study to determine the convenience and privacy issues in IoT, Weinberg et
al. (2015) suggests about the risk of Industry 4.0 and IoT producing considerably increased
(2015) argue that much greater emphasis should be placed on data ownership and related data
flows. Additionally, in their study of an alpha convenience, Nolin and Olson (2016) suggest
that the universal nature of IoT and Industry 4.0 raises concerns about the acceptable limits of
privacy. They conclude that, should these technologies be adopted, their nature would make it
impossible for users to avoid them. According to Nolin and Olson (2016), technological
determinism, in which technology drives societal development, poses a rather dystopian risk.
Clearly, adoption of Industry 4.0 and IoT faces a potentially insurmountable challenge. and
The most important catalyst for the developing technology is the use of IoT hardware
and sensors, this can be stated as the main benefits of implementing industry 4.0 and IoT.
Oesterreich and Teuteberg (2016), such as cranes and loaders, and as a result, manufacturers
are under more technological pressure to build sensors that are resistant to harsh
relation to Industry 4.0 and the Internet of Things, this challenge may be regarded as good for
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technology and technical industries. Furthermore, Strange and Zuchella (2017) state that
there has been a paradigm shift in the capabilities of industrial robotics as a result of the
adoption of IoT and Industry 4.0. Traditional robotics systems, according to Strange and
Zuchella (2017), their use and powers have been limited. They move to add that advances in
industrial robots, IoT, and Industry 4.0 have expanded the versatility of current robotics,
allowing them to handle more sensitive and complex jobs and work more successfully in the
technology domain, as Strange and Zuchella refer to it. Concerning the risks associated with
advancements caused by the adoption of Industry 4.0 and IoT. This has both an advantage
and a risk, similar to the requirements for more computing hardware described by Oesterreich
and Teuteberg. (2016). Even in areas where computing and technology have traditionally
played a minor role, there is an increasing demand for gear to be installed in environments
that are generally hostile and uncomfortable. This takes place in the construction and mining
Industry 4.0 practices and applications may face a deficit of standards; this is a bigger
problem that affects all business sectors implementing applications for Industry 4.0 and IoT.
opinions, limits the scope implementing Industry 4.0 techniques until clearly defined
standards are adopted (Smith, 2014). Kagermann et al. (2013) identified the problem of
Industry 4.0 reference architecture and standards as one that needed more investigation and
discussion. Industry 4.0 methods adoption contain security concerns which are crucial and
substantial risks being the same challenges faced by many modern technologies. In their
study on IoT security, Li et al. (2016) stress that the open eco-system nature of IoT, raises
increased security risks due to the very nature of IoT and Industry 4.0 solutions. According to
Li et al. (2016), in order to enable a reliable and secure IoT and networking, IT security must
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undergo a paradigm shift. The implementation of industry 4.0 would take this as a substantial
risk especially with industries that are still in their early stages of information and cyber
developments.
serve as a stimulus for the establishment of a more powerful legal system and monitoring
framework for Industry 4.0, IoT, as well as the larger technology and personal data sectors.
General Data Protection Regulations (GDPR), a piece of European Union legislation that
takes effect in 2018, represent a move toward a more "workable" manner of data protection.
In their article examining the regulatory landscape for Industry 4.0, Russo et al. (2015)
emphasize how the creation of an effective and necessary technological, social benefits, and
environment of IoT and Industry 4.0 will be enabled and enforced by an IoT legal
framework. According to Trequattrini et al. (2012), the strategy that was emphasized in this
analysis section on political gains is the best course of action. In a similar manner to
legislation governing copyright and intellectual property, governmental regulations and laws
should be created and enacted. To begin with, there are ethical and legal issues with regard to
the surveillance of people and the gathering of their personal data, which includes location
data. Second, the underlying data protection laws that govern how this data are used, stored,
and their inherent privacy implications (Kagermann et al. (2013), even though there is an
emphasis on the importance of further, high priority risk research. Moving forward another
potential risk portrayed by an Industry 4.0 is Intellectual property and private information are
legally and contractually owned by implementations (Smith, 2014). In this line, Smith (2014)
and Technologies 4.0, as well as what has previously been thought to be relatively well-
defined intellectual property rights borders in the public domain. This is especially true when
the data generated by an Industry 4.0 installation is the result of numerous parties' efforts.
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Zuchella and Strange (2017) expand on this argument in the complex setting of the
system can be implemented according to the conclusion made by Zuchella and Strange
(2017) from their current research. Moreover, according to an article about greenhouse gas
emissions in the construction industry, there are significant benefits offered by the
deployment of Industry 4.0 methodologies and implementations (Tang et al., 2013). Big Data
and Industry 4.0 approaches are used in the production business to help close the gap between
project plan and finished project emissions (Tang et al. 2013). In additions, Tang et al. (2013)
emphasize that the precise planning and effective scheduling of activities enabled by Industry
4.0 techniques allows for higher levels of work efficiency and, as a result, a reduction in
emitted greenhouse gases brought by construction techniques and work that are inefficient. In
their study, Beier et al. (2017) demonstrate that utilizing an Industry 4.0 approach to work has
their comparative analysis of the sustainability elements of the digitalized industry. The
study, which focuses on resource efficiency, finds that the raw materials and energy used in
production utilizing an Industry 4.0 strategy are clearly lower than they were before Industry
4. 0. Furthermore, Beier et al. (2017) describe how Industry 4.0 adoption and the use of
renewable energy coexist in Germany. In addition, Industry 4.0 environment generates huge
amounts of data which should therefore theoretically allow a renewable energy application
from the Smart Factory and an on-demand renewable energy facility on-site. However, there
is a scarcity of empirical evidence that this has been used in a real-world environment.
resource energy consumption that is responsible for the environmental risk connected with its
implementation. Industry 4.0 has led to increased demand for energy that is to power
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machines such as computing gears, this is comparable to how Oesterreich and Teuteberg
examine the sustainability features of digitalized business, including energy utilization and
related resource consumption. In this line, raw materials, energy and environment are one of
the key parameters for Industry 4.0 hardware which strongly relies on them as concluded by
Beier et al. (2017). To stress on this, it is important to evaluate benefits from IoT
installations and adoption of Industry 4.0 methods implications of resources and in turn
assessing its ‘net’ benefit. From the above available research literature, it can be noted that
Conclusion
management that has far-reaching implications for the future of the industrial sector. It has
the potential to revolutionize the way businesses operate, allowing them to become more
efficient and reduce costs, while also allowing for more personalized customer experiences
that can increase customer loyalty (Beier et al.,2017). As the technology continues to evolve,
more organizations are likely to adopt these technologies and use them to their advantage. It
is important for organizations to be aware of the implications of this new technology and how
Future implications
As the body of research literature continues to grow, future studies should preferably
concentrate on showing examples of investigation areas that are specific and are more likely
to be of value to the research community and are likely to organically emerge. The focus on
dangers and difficulties of successfully integrating industry 4.0 and IoT would be really
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benefit the research community, as well as reducing the inherent bias in the literature
implementations in the actual world and comparing the advantages and risk of such.
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