The decisions of our past are the architects of our present. – Dan Brown (Inferno)
We see 2012 to 2015 as the period when Industry 4.0, where IoT is the major push, was at the Peak of Inflated Expectations. At that time, a major IoT surge yielded a lot of investor money for consumer-focused companies like Nest, and every tech publication was buzzing. Followed by 2015, the consumer IoT industry hit the Trough of Disillusionment when we all realized that a lot of consumer products didn’t really need to be connected. At the time, there just wasn’t enough value in connectivity for most of the products on the market. Since 2018, industrial and business-to-business use cases have represented IoT’s big comeback. We’re seeing companies in “unsexy” industries like HVAC, industrial monitoring, energy production, etc., starting to adopt IoT for a variety of use cases—not to mention a rise in relatively new industries like micromobility that only exist because of IoT. Overall, it is believed that IoT is early on the Slope of Enlightenment. Excitement around IoT reached its peak prior to the 5G marketing boom, and in many ways, has receded into the background since—even as many industries continue to adopt the technology. Some reference.
Industry 4.0 are we there yet? 🫏
It’s been a while since this question came up. The switch to Industry 4.0 has been slower than expected, especially in developing countries. These countries tend to adopt Industry 4.0 technologies at a lower rate than developed nations because of some main challenges. Developed countries, especially those with strong industries like Germany and the United States, have made great progress in using digital technologies, automation, and advanced data analysis in their manufacturing processes. This success is helped by good infrastructure, access to funding, and a skilled workforce that understands high-tech operations.
What are the hurdles for adaption of Industry 4.0?
No doubt, we see huge advantage of adapting to Industry 4.0 to Corporate as well as SMEs, then what is the hurdle? I think the hurdle are multiple, and one can compartmalize them in few buckets namely
- Infrastructure
- Awareness
- Inertia
Infrastructure
Last mile connectivity for Industry 4.0 is a major concern. It’s a technological issue as well. Typically to connect a big equipment to Internet, the internet ready hardware has Ethernet port, and some one has to lay cable till the machine, establish a small local server to fetch and push data to cloud. Given human nature, these activities falls under ‘unproductive’ work, or ‘too much of work for the benefit’ and the machine never gets connected to Server. From infrastructure point of view, accessibility of high speed network, both wired and wireless is still a question in most part of country. You may get big hoarding on 5G connectivity, however call drops and low internet speed is the fact of the day. The dual issue of OEM not making machines ready with low hurdle options (WiFi ready or Bluetooth ready machines) and lack of Infra to give high speed access to data both becoming a challenge for the adaption.
Awareness
It’s important that the consumer and OEM both see the ‘value of this new technology’. I came across this article https://elischragenheim.com/2018/10/01/the-big-slogan-and-the-potential-real-value-of-industry-4-0/, and the article asks six questions, to enable user get the awareness of the technology and find the value.
- Question 1: What is the power of the new technology?
- Question 2: What current limitation or barrier does the new technology eliminate or vastly reduce?
- Question 3: What are the current usage rules, patterns and behaviors that bypass the limitation?
- Question 4: What rules, patterns and behaviors need to be changed to get the benefits of the new technology?
- Question 5: What is the application of the new technology that will enable the above change without causing resistance?
- Question 6: How to build, capitalize and sustain the business?
here in the sixth question, we need to look at the global aspects of using a specific new technology. When considering multiple applications of new technologies, question 6 should be applied to all of them together. So, when examining the different parts of Industry 4.0, the first step is to pick a few for closer study. The last step is to evaluate the overall strategy and decide which ones to implement, if any, and what other actions are needed to achieve the expected value as quickly as possible.
Inertia
Inertia, especially in the context of Original Equipment Manufacturers (OEMs) supplying machines aimed at enhancing the last mile of connectivity, presents significant challenges. This resistance to change does not originate from a lack of interest among end users or industries; rather, it stems from a comfort with the current state of affairs—often referred to as the ‘As-is’ state. Many individuals and organizations find solace in familiar routines and established practices, which naturally leads to reluctance when faced with the prospect of change.
The underlying reasons for this resistance are often tied to concerns about potential negative consequences that could arise from adopting new technologies or processes. Change, by its very nature, is an unsettling force, and the anticipation of negative outcomes can evoke fear and skepticism. For instance, the introduction of new medical drugs, while aimed at curing an illness, frequently comes with side effects that can be severe or even counterproductive. This analogy is not confined to the pharmaceutical realm but extends into all areas of innovation and transformation.
In industries where established practices have yielded satisfactory results, any proposed changes may be perceived as a threat to the status quo. The examples of disruptions in various commercial sectors often illustrate a pattern where innovation, despite its potential benefits, is met with resistance due to fears of failure or unforeseen impacts. This caution is not inherently negative, as it reflects a desire to protect existing investments and avoid potential risks. Nonetheless, it highlights the intricate balancing act organizations face when striving for progress while managing the inertia of their current operations.
Thus, fostering an environment that promotes openness to change requires not only a clear communication of the benefits but also addressing the fears associated with potential drawbacks. Educating stakeholders about the supportive measures in place to mitigate risks and enhance their experience can pave the way for smoother adaptation, ultimately leading to a dynamic evolution in processes and technologies that serve to enhance the last mile of connectivity and beyond.
Industry 4.0, what next?
Industry 4.0, slowly but surely showing its advantage to public at large, many governments are also adding new packages, to help adapt to these technologies. Also Infrastructure are upgrading and with penetration of mobile network and miniaturising electronics boards, the technology is becoming more accessible to all. Specially from Industry perspective, young entrepreneurs are quick to adapt the technologies, and giving access to Industry 4.0, we see quick adaptation rate, and more demanding customer base to harness true power of Industry 4.0! Power of visualising data, identifying patterns, itself gives huge productivity boost. On my personal account, I’ve seen improvement of OEE from 10-15% just by visualising data and trends.
COVID-19 has rapidly sped up Industry 4.0 transformations for many companies. By embracing digitization and artificial intelligence, organizations are strengthening their resilience in these difficult times. Companies seizing this opportunity now will gain a significant advantage in the future.
With long term quality data harnessing, which is happening in process industry for long, and they are on the cusp of making a breakthrough, Machines and plants are still in process of aggregating data and streamlining data in more quality and quantitative way. Once the data is harnessed and aggregated, the hyped ‘predictive’ and ‘preventive’ analytic will be making Total cost of ownership lower, and increase the adaption in return.
With burst of AI technologies, the adaptation curve will be faster, however the spike will come only once we harness the data. Machines, which are less of timeseries data unlike process industries, will take a bit longer to come up with practical applications of AI based predictive and preventive maintenance model or Just in Time spare inventory. I’m sure this is happening in Countries like Germany and USA, but again not to the scale, which was anticipated. The struggle is same across the domain.
So what’s Industry 5.0🤔
As we talked about before, we are not yet fully at Industry 5.0. Many companies are still focusing on Industry 4.0 or are changing their plans to follow this trend. Industry 4.0 includes important elements like automation, robotics, big data, smart systems, virtualization, artificial intelligence, machine learning, and the Internet of Things. While businesses are still working through this fourth stage, Industry 5.0 is just starting to take shape. Before you feel rushed to make decisions, let’s take a quick look at what Industry 5.0 means and how it might impact your business plans in the future.
Industry 5.0 is an emerging concept that shifts focus from mere efficiency and productivity to the wellbeing of workers and societal contributions. The European Union describes it as a movement that utilizes new technologies to ensure prosperity while respecting environmental limits. It builds upon Industry 4.0 by prioritizing research and innovation for creating a sustainable, human-centric industry. This approach marks a significant change in prioritising people and the planet over profits, contrasting with historical concepts like Corporate Social Responsibility and ESG.
Summary 🔖
Industry 5.0 is still a new idea, with most businesses focused on Industry 4.0 or earlier stages. Sustainability is also a growing concern. However, the EU’s push towards Industry 5.0, built on human-centricity, resilience, and sustainability, offers a vision for future progress.
Whether this vision is exciting or overwhelming depends on the company and individual. The level of adoption will vary widely. Yet, given today’s challenges, Industry 5.0 seems like a future promising path. By prioritizing people, adaptability, and environmental responsibility, organizations and societies can find solutions to current problems.
