{"id":795461,"date":"2022-04-08T12:05:30","date_gmt":"2022-04-08T12:05:30","guid":{"rendered":"http:\/\/test.daliworks.net\/index.php\/2022\/04\/08\/industry4-en\/"},"modified":"2026-07-28T01:29:06","modified_gmt":"2026-07-28T01:29:06","slug":"industry4-en","status":"publish","type":"post","link":"http:\/\/test.daliworks.net\/index.php\/2022\/04\/08\/industry4-en\/","title":{"rendered":"What Is Industry 4.0? | Definition, Benefits, Use Cases, and How to Adopt It"},"content":{"rendered":"

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Industry 4.0<\/span> Explained | Definition, Benefits, Use Cases, and How to Adopt It<\/span><\/h2>\n<\/blockquote>\n

At the 2016 World Economic Forum (WEF), its chairman, Klaus Schwab, used the term “Fourth Industrial Revolution” for the first time. The fourth industrial revolution now under way, also called Industry 4.0, refers to a new industrial era built on information and communications technology (ICT). Advanced technologies such as artificial intelligence (AI), the Internet of Things (IoT), and Big Data are reshaping the economy and society as a whole. The fourth industrial revolution is characterized by hyper-connectivity between people, between people and machines, and between machines over ultra-fast networks and interfaces; by superintelligence based on big data and rapid computing power; and by predicting human behavior from the resulting analysis. Experts forecast that the fourth industrial revolution will change how people work, how they consume, and even how they think.<\/p>\n

What Is Industry 4.0?<\/h2>\n

Industry 4.0 can be understood in a narrow sense and a broad sense. In the narrow sense, Industry 4.0 refers to Germany’s national manufacturing strategy, conceived to raise production competitiveness and further strengthen the country’s position as a manufacturing powerhouse by fusing ICT with manufacturing. In the broad sense, it refers to an automated production system in which production equipment and products can exchange information through cyber-physical systems and IoT technology, a concept that has become a trend among manufacturing nations worldwide seeking to raise national competitiveness.
\nAmerica’s Remaking America, China’s indigenous innovation drive, Japan’s Industry Revitalization Plan, Korea’s Manufacturing Innovation 3.0 strategy, and India’s Make in India are all manufacturing strategies grounded in Industry 4.0. This article adopts the broad definition of Industry 4.0.<\/p>\n

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Industry 4.0 and the Smart Factory<\/h2>\n

The smart factory is the centerpiece of Industry 4.0. The concept emerged as factories evolved and dramatically broadened their use of ICT in preparation for the fourth industrial revolution. Whereas the third industrial revolution achieved automation only in isolated areas, Industry 4.0 applies the latest ICT across factory operations and management to raise process efficiency, automating and optimizing every stage from product development through manufacturing to post-distribution services. The key elements of the smart factory are as follows.<\/p>\n

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Cyber-Physical System (CPS)<\/h4>\n

A CPS is a system in which all things are connected on an IoT foundation and computing merges with the physical world, making things automatically intelligent. CPS is still an evolving concept, but it is not merely an embedded system or a real-time system. A CPS must allow physical elements to be operated from the cyber side; its operations must be independent, reorganizable, and redefinable; it must be automated to a degree that allows closed-loop operation; and it must be capable of learning and of growing across multiple networks.<\/p>\n

Internet of Things (IoT)<\/h4>\n

The Internet of Things refers to intelligent networking technologies and environments in which surrounding objects, connected over wired and wireless networks, organically collect and share information and interact with one another. It is a system in which objects in the physical world and the sensors attached to them are connected to the wired and wireless internet, with people, things, and services as its components.<\/p>\n

Big Data<\/h4>\n

Narrowly defined, big data is data characterized by high volume, varied formats, and high-speed generation and processing, with value recently added as a fourth trait. Broadly, the term has evolved into an umbrella definition covering not only the data itself but also the big data industry and big data technologies. Big data is framed by the scale of data, the speed of data, and the variety of data.<\/p>\n

Cloud Computing<\/h4>\n

Cloud computing breaks from the traditional model of installing programs and storing data on each individual PC; instead, all computing resources are stored on the internet network and allocated to individual computers.<\/p>\n

The Benefits of Adopting Industry 4.0<\/h2>\n

The essential goal of Industry 4.0 is to optimize production processes with efficient, scalable solutions that sharpen competitiveness, improve operational efficiency, and maintain compliance. It is about becoming faster, more efficient, and more customer-centric while moving beyond automation and optimization to create new business opportunities. The benefits of adopting Industry 4.0 parallel those of the digital transformation of manufacturing, IIoT adoption, the optimization of operations and business processes, and the establishment of an information-driven value ecosystem.<\/p>\n

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Higher productivity through optimization and automation<\/h4>\n

Optimizing processes and productivity is the first benefit manufacturers see. As the first goal of an Industry 4.0 project, it delivers cost savings, greater profitability, less waste, automation that prevents errors and delays, faster production, and digitized data, enabling faster intervention in production-related problems. Organizations make data-driven decisions across the board, sharpen forecast accuracy, support on-time delivery, and build plans optimized for profit.<\/p>\n

Real-time data for a real-time supply chain<\/h4>\n

Looking across manufacturing’s entire value chain and ecosystem, many stakeholders are involved, and all of them want higher productivity no matter where they sit in the supply chain. When end customers want good products delivered quickly and raise their expectations for customer experience, quality, and service, the effects ripple across the entire manufacturing value chain and ecosystem. A speed advantage becomes a competitive advantage, and it is also a matter of cost and value creation. The more data you collect, and the more timely its delivery, the more value you can extract from the supply chain.<\/p>\n

Greater business continuity through advanced maintenance<\/h4>\n

Industry 4.0 can dramatically extend the life of entire facilities. Sensors embedded in equipment collect and analyze data, fundamentally transforming enterprise asset management. Technicians can monitor asset performance in real time, predict and prevent downtime, apply dynamic predictive maintenance, leverage digital twins, and tightly integrate assets with business processes. Alarms can be set for hazardous conditions, engineers can identify and resolve problems remotely, and accumulated data and analysis reveal problem patterns and yield insight.<\/p>\n

Better-quality products<\/h4>\n

Companies develop connected, self-aware products that can share information about their own condition, location, usage level, storage conditions, and more. The data these smart products share can improve every element of the business, from product quality and customer service to logistics and R&D. Products can also anticipate service requirements, receive remote upgrades, and open the door to new service-based business models.<\/p>\n

Empowered employees<\/h4>\n

No matter how autonomous systems become, people are still needed. Technologies such as AI and real-time sensor data can empower employees to grasp conditions on the floor, make decisions quickly, and handle problems as they arise. Wearable devices and augmented reality apps can also help resolve issues, monitor employee health, and keep workers safe.<\/p>\n

Better working conditions and sustainability<\/h4>\n

Working conditions can be improved based on real-time temperature, humidity, and other data from the factory or warehouse. Employee protection can also be reinforced by detecting the presence of hazards such as gas and radiation and sounding rapid alarms when accidents occur.<\/p>\n

Personalization and customization for new consumers<\/h4>\n

Consumers now want personalization, and that is disrupting traditional supply chains. Increasingly, consumers want the ability to interact directly with brands and their manufacturing capabilities: digital platforms for customizing products, shortened paths between production and delivery, and opportunities for co-creation. In many manufacturing environments this is already happening. Nor is it confined to consumer settings; we are seeing more and more customization in B2B contexts as well.<\/p>\n

Improved agility<\/h4>\n

Big data and AI technologies make it possible to forecast seasonal demand and potential production fluctuations. With the resilience and agility to respond to market and economic swings, companies build the digital supply chains of the future on sophisticated planning.<\/p>\n

Innovative capabilities and new revenue models<\/h4>\n

With sustainable, eco-friendly solutions that do not undermine profitability, customers move online to raise efficiency and economy, achieving environmental goals without compromising other business objectives such as profitability and scalability. Industry 4.0 solutions also cut costs, improve market efficiency, and connect supply chains across land, sea, and air. Companies can explore new business models and seize new opportunities quickly.<\/p>\n

Industry 4.0 in Action on an IoT Platform<\/h2>\n

Through its Industry 4.0 solution portfolio, Thingplus is transforming how production works, designing around the customer, and connecting entire organizations to reinvent the digital supply chain.<\/p>\n

1. Manufacturing Environment Monitoring<\/strong><\/p>\n

Monitoring is essential to the smart factory. For small and midsize manufacturers focused on parts production in particular, environmental conditions during production such as temperature, humidity, and air pressure can affect the finished product, making environmental management critically important. Thingplus manufacturing environment monitoring optimizes equipment operations through AI analysis of manufacturing equipment and factory environment data, and also provides root-cause analysis of manufacturing defects. With IoT technology, monitoring dust, gas, CO2, water, and other harmful pollutants inside the factory improves work safety, optimizes factory operations, and maintains a suitable factory environment.<\/p>\n

2. Factory Energy Management (FEMS)<\/strong><\/p>\n

The energy industry, including electricity, is changing within the broad framework of Decarbonization, Decentralization, and Digitalization. Manufacturing, which consumed 37% of total global energy use as of 2017, faces a wide range of energy management challenges. Only by preventing the waste of energy, a critical resource, and using it efficiently can energy translate into profit. Thingplus FEMS meters the power consumption of key equipment through IoT devices, analyzes electrical energy use, and monitors peak loads to raise energy efficiency. It can also manage electricity use automatically by controlling HVAC units, lighting, and other devices according to management scenarios configured around a space’s real-time electricity use or environmental changes (temperature, humidity, and more). Adopting an EMS system delivers average annual energy savings of 7.3%.<\/p>\n

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3. Predictive Maintenance for Machinery and Equipment<\/strong><\/p>\n

As production processes become mechanized, automated, and more sophisticated, dependence on equipment keeps rising, and as equipment investment grows, that investment must be managed effectively, making predictive maintenance more necessary than ever. Thingplus machinery\/equipment predictive maintenance is an AI-based predictive maintenance solution that applies machine learning to equipment operating patterns to predict warning signs in advance. It monitors equipment anomalies in real time and catches early-stage defects, securing a stable production environment and minimizing downtime. The longer the factory keeps operating, the more AI training data and analysis cases accumulate, raising AI prediction accuracy and making the solution even more effective.<\/p>\n

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4. Equipment Digitalization<\/strong><\/p>\n

Thingplus equipment digitalization is a service that digitizes analog data so equipment can be monitored in real time and productivity data can be analyzed and managed. Without altering how equipment operates or moving it, attaching IoT devices digitizes the equipment’s analog information, revealing the real-time operating status and utilization rates of factory equipment. Data from previously inaccessible machines can be checked remotely, the system analyzes devices autonomously, and the data is used for optimized control. When a machine malfunctions or emits an abnormal signal, an alarm goes out so action can be taken immediately. Adopting equipment digitalization lifts factory-wide productivity by an average of 18% and cuts labor costs by 12%.<\/p>\n

Start Industry 4.0 with IoT<\/h2>\n

The ultimate goal of Industry 4.0 is to use smart services to sharpen the competitiveness of products and services. The new source of manufacturing competitiveness in the 21st century lies precisely in these smart services, and an IoT platform is where they begin. If you are curious about the solutions and how to adopt them in practice, contact Thingplus!<\/p>\n","protected":false},"excerpt":{"rendered":"

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