Also known as the fourth industrial revolution, it consists of the technological and economic evolution of humanity. It’s a relatively new concept that talks about these advances and how they’re currently displayed. Have you thought about how it benefits us? Today, we’ll talk about it.

The influence of industry 4.0 on the world economy

According to an article by Logicbus, industry 4.0 is a term created by the German government in 2010. In order to “describe a vision of manufacturing processes all interconnected via the Internet of Things (IoT)”.

We’re saying that Industry 4.0 is the current industrial revolution. Taking into account that this is the fourth with three others before it. The First Industrial Revolution occurred between 1820 and 1840 with the arrival of steam engines. The first primitive machinery that started it all.

industrial revolution economy
The first industrial revolution can be summarized with the development of new transports. In this case the railroad and other similar ones to transport the products to the markets. Source: Aion.mx

Then comes the Second Industrial Revolution with electricity and scientific advances between 1850 and 1914. Following it, between 90s and early 2000s, begins the Third Industrial Revolution. Known as the arrival of new communication and information technologies.

So, what’s the Fourth Industrial Revolution about? Experts agree that we’re entering it but it’ll become effective in 2020. So far we’re talking about transportation, science, machines, communication and information technology… However, the Industry 4.0 focuses on artificial intelligence.

Industry 4.0: Artificial intelligence, big data and algorithms

This industry is the largest and most modern we know. It focuses on redefining new means of production, namely, how processes occur in factories. PapelesdeInteligencia.com tells us a simple way to define this term:

“The 4th industry consists in the digitalization of the productive processes in factories through sensors and information systems to transform the productive processes and make them more efficient”. Based on this, we can conclude that this increases both efficiency and competitiveness within industries.

what's industry 4.0 about
Industry 4.0 currently employs what’s known as cyber-physical systems (CPS in English). Where the physical and software components are very intertwined. Source: Asidek

The protagonists of this industry understand are about CPS. As for example computer algorithms, which allow certain processes to be carried out so that something works in a certain way. Although it sounds complex, it’s about physical mechanisms or systems controlled or supervised under this type of intelligence.

Currently, all companies worldwide try to adjust to this new industry. That’s why we were talking about competitiveness first, because the leaders of each company in the world seek to adapt. Companies like Amazon, Google, Alibaba and many others are already entering what we know as Industry 4.0.

Industry 4.0 Companies
Imagine a company with automated processes and tasks and processes run by robots or drones controlled by humans. Source: Industrial Reporter

Industry 4.0 isn’t equal to a future dominated by robots like in the movie I, Robot. But in automated processes in our jobs through the Internet and artificial intelligence. It’s expected that more companies will incorporate this in their businesses to keep updated.

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This is the power of Industry 4.0!