Industry 4.0: Building the Digital Industrial Enterprise

This Middle East study explores the benefits of digitising your company’s horizontal and vertical value chain, as well as building your digital product and service portfolio.

Evolution of Industry

End of 18th century

Industry 1.0 In the late 18th century, the invention of mechanical production powered by water and steam started the first industrial revolution.

Beginning of 20th century

Industry 2.0 The second industrial revolution was fueled by the start of mass production powered by electricity and combustion engines to power machines in the beginning of the 20th century. The first assembly lines were introduced, the use of new materials and chemicals became possible and communication was getting easier.

1970

Industry 3.0 In the 1970s, the introduction of automation and robotics ushered a new era, the third industrial revolution. Electronics and IT such as computers, robots and the Internet constitute the beginning of the information age.

2015+

Industry 4.0 At present, we find ourselves at the beginning of the fourth industrial revolution. Based on cyber-physical production systems aiming to connect the physical and digital world of production, Industry 4.0 / Digital Operations comprises the digitization and integration of value chains and products and/or services. IT, machines and humans are connected, interacting in real time thus creating a more flexible, resource-efficient, customized way of manufacturing – the Smart Factory which leverages the Internet of things (IoT). The integrated analysis of data and collaboration form key value drivers.

  • Explore key findings

  • From talk to action
    From talk to action

    From talk to action

    Industry 4.0 has moved from talk to action

    The buzz around Industry 4.0 has moved from what some had earlier seen as hype to investment and real results today. Middle Eastern companies report they are making substantial investments.

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  • Digitisation is driving leaps in performance
    Digitisation is driving leaps in performance

    Digitisation is driving leaps in performance

    Digitisation is driving quantum leaps in performance

    Our survey respondents anticipate significant gains over the next five years from the implementation of Industry 4.0 initiatives.

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  • Deepen digital relationships with customers
    Deepen digital relationships with customers

    Deepen digital relationships with customers

    Deepen digital relationships with more empowered customers

    As Industry 4.0 develops, it will greatly enrich the opportunities to retain and grow the client relationship. It will also make the fight for the customer more intense.

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  • Focus on people and culture
    Focus on people and culture

    Focus on people and culture

    Focus on people and culture to drive transformation

    implications for the way in which a company chooses to organise itself and its delivery model. Companies will need to make sure staff understand how the company is changing and how they can be a part of it.

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  • Data analytics and digital trust
    Data analytics and digital trust

    Data analytics and digital trust

    Data analytics and digital trust are the foundation of Industry 4.0

    Data lies at the heart of the fourth industrial revolution, but the value of a massively growing information flow is limited without the right analytics techniques and the wider infrastructure to support it.

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  • Enterprise-wide data analytics capabilities
    Enterprise-wide data analytics capabilities

    Enterprise-wide data analytics capabilities

    Robust, enterprise-wide data analytics capabilities require significant change

    Another challenge lying in the way of companies establishing strong data analytics capabilities is getting robust organisation and governance frameworks in place. We found that many companies still have ‘ad hoc’ approaches to data analytics.

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  • Accelerating globalisation
    Accelerating globalisation

    Accelerating globalisation

    Industry 4.0 is accelerating globalisation, but with a distinctly regional flavour

    Companies are actively looking to expand their local markets. Although the global goods trade has flattened and cross-border capital flows have declined sharply since 2008, globalisation is being redefined by soaring flows of data and information.

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  • Big investments
    Big investments

    Big investments

    Big investments with big impacts and rapid returns

    Big investments are being made in Industry 4.0 initiatives. The prize for companies is a very special one – the prospect of achieving significant revenue gains while simultaneously reducing costs.

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Blueprint for success

To move forward with Industry 4.0, digital capabilities are all-important. These take time and concentration; a step-by-step approach is important. But move with deliberate speed, so that you don’t lose the first-mover advantage to competitors.

Don’t buy the hype. Buy the reality. Industry 4.0 will be a huge boon to companies that fully understand what it means for how they do business. Change of this nature will transcend your company’s boundaries and lead to a complete transformation of your organisation.

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Contact us

Anil Khurana
Partner, Strategy and Innovation,
Lead Consumer and Industrial Products , PwC Middle East
Tel: +971 4 304 3100
Email

Reinhard Geissbauer
Head of EMEA Industry 4.0 Digital Operations Team, PwC Middle East
Tel: +49 170 939 1263
Email

Jatin Arora
Director - Consumer and Industrial Products, PwC Middle East
Tel: +971 56 418 9789
Email

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