Industry 4.0: Disruptive Technology that drives digital transformation in vertical/horizontal value chains

From ancient times to present times, civilization have surfaced and communities have emerged. With this development comes allocation of scarce of resources to satisfy unlimited needs and wants of man. Inventions and discoveries took place; crude hunting weapons;  domesticating plants and animals for human consumption; smelting metals; masonry; architecture;  production and trading of goods and services; better communication and transportation;  then comes the industrial revolution.

Historians say that industrial revolution started in  Great Britain. In 17th century Britain, the beginnings of an agricultural revolution would eventually lead to an industrial revolution, changing the country – and the world – forever. 

Industrial Revolution Stages

Stage 1: Mechanization, water power, steam power

The First industrial revolution was the transition to new manufacturing processes in the period from about 1760 to sometime between 1820 and 1840. 

The Industrial Revolution began in Great Britain, and many of the technological innovations were British. By the mid-18th century Britain controlled a global trading empire with colonies in North America and Africa, and with some political influence on the Indian subcontinent, through the activities of the East India Company. The development of trade and the rise of business were major causes of the Industrial Revolution.

Stage 2: Mass Production, Assembly line, and Electricity

This Second Industrial Revolution gradually grew to include chemicals, mainly the chemical industries, petroleum (refining and distribution), and, in the 20th century, the automotive industry, and was marked by a transition of technological leadership from Britain to the United States and Germany.

The increasing availability of economical petroleum products also reduced the importance of coal and further widened the potential for industrialisation.

A new revolution began with electricity and electrification in the electrical industries. The introduction of hydroelectric power generation in the Alps enabled the rapid industrialisation of coal-deprived northern Italy, beginning in the 1890s.

Stage 3: Computer and Automation

The Digital Revolution is the shift from mechanical and analogue electronic technology to digital electronics which began anywhere from the late 1950s to the late 1970s with the adoption and proliferation of digital computers and digital record keeping that continues to the present day.

Stage 4: Cyber Physical Systems

According to ‘The Future of Jobs’ 2016 report by the World Economic Forum, we are in the midst of a fourth phase of industrial revolution, with technology rapidly developing in areas like 3D printing, robotics and artificial intelligence.

Industry 4.0 is a name for the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of things, cloud computing and cognitive computing.

The required key technologies for Industry 4.0 transformation are in the field of artificial intelligence, internet of things, machine learning, cloud systems, cyber-security, adaptive robotics cause radical changes in the business processes of organizations.

What will be the Impact of INDUSTRY 4.0 on Philippine Industries.

According to Mr. George Yan, founder and CEO of AI-Pros, the problems that the society will be facing in Industry 4.0 will be:

Jobs Vulnerability. Nearly 47 % of jobs will be vulnerable (by OM research study) since Artificial Intelligence and Robotics will be in place.

Man Vs. Machine - Humans are subjected to a lot of different factors that affect their performance (the need to rest, the need to eat, the need to socialize, and etc.) while on the other hand AI and robotics can perform longer hours, no need to rest, no need to eat, no need to socialize in parties, and etc.

In the journey towards digital transformation and industrial revolution "Industry 4.0", the current business models will be disrupted rapidly, jobs will be replaced by AI and Robotics, Blockchain technology will change the transaction processes in the economy, Internet of Things will speed decision making and drive actions through data-driven insights, even 3D Printing can now print anything even functional objects like guns, human body parts, food, and etc.

The solution is AUGMENTATION. Bringing together these developments to make it one with human.

The big QUESTION here is are we ready for this change?  For the government; how do we align our policies to regulate this and to protect the welfare of the general public particularly those that will be affected (whose jobs will be replaced, the Micro-Small-and-Medium Enterprises that might close down). Capacity building programs for those that will be displaced is a must so that they will be able to penetrate and move-on to other industries.

Today, more than ever is a need for collaboration between the private sectors and the public sectors.

Sources:
https://www.thenbs.com/knowledge/four-phases-of-industrial-revolution-phase-one
https://en.wikipedia.org/wiki/Industrial_Revolution
https://en.wikipedia.org/wiki/Information_revolution
https://en.wikipedia.org/wiki/Fourth_Industrial_Revolution
https://en.wikipedia.org/wiki/Industry_4.0
http://industry.gov.ph/manufacturing-summit-2017/
http://www.dti.gov.ph/