in annual revenue gains
in annual cost and efficiency gains
in annual digital investment
Industry 1.0 In the late 18th century, the invention of mechanical production powered by water and steam started the first industrial revolution.
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.
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.
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.
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.
Partner, Strategy and Innovation,
Lead Consumer and Industrial Products , PwC Middle East
Tel: +971 4 304 3100