Industry 4.0 and the connected society

Despite India’s notable advancements in IT and communications technologies, it still needs to overcome the challenges of a fully connected world.

The fourth industrial revolution, widely known as Industry 4.0, is transforming societies around the world. It promises a future where digital, physical, and biological systems interconnect and interact in unprecedented ways, leading to transformative changes in how we live, work, and interact. Let us examine the concept of Industry 4.0 and its implications for the connected society, focusing on the case of Japan and understanding the implications for India.

THE CASE OF JAPAN: SOCIETY 5.0

In Japan, the concept of the connected society is shaping the lives of its citizens and the direction of its economy. It is characterised by the widespread use of information technology to create networks of connectivity between individuals, communities, institutions, and things.

India is ready to catapult directly into Industry 4.0, where machines will be equipped with the ability to communicate​​.

Being an influential player in the realm of technological advancements, Japan is proactively steering towards the realisation of Society 5.0. This initiative is aimed at transcending the boundaries of Industry 4.0 by integrating cyber and physical systems to create a human-centric society that balances economic advancement with the resolution of social problems.

Society 5.0 is the fifth stage in the evolution of societal structures. The concept builds on the preceding stages, namely: hunting societies (Society 1.0), agricultural societies (Society 2.0), industrial societies (Society 3.0), and information societies (Society 4.0). Society 5.0 represents a shift from a society of mass consumption to one that is oriented towards personalised services, addressing diverse consumer needs, and solving pressing societal challenges.

In the context of Society 5.0, technology is not merely a tool but an integrated part of society, enhancing human capabilities and fostering well-being. Society 5.0 leverages technologies like Artificial Intelligence (AI), the Internet of Things (IoT), robotics, and big data to create systems that can respond in real-time to complex and rapidly changing social conditions. The key lies in the advanced integration of cyberspace or virtual space and physical space or real space.

Japan’s pursuit of Society 5.0 aims to address various challenges including an aging society, productivity improvement, disaster response, and energy conservation. It envisions a society where innovative technologies can be harnessed to provide solutions to these pressing issues, resulting in an improved quality of life for all.

A connected society is characterised by the widespread use of IT to create networks of connectivity between individuals, communities, institutions, and things.

The government of Japan has played a key role in fostering this connected society. It has implemented policies that encourage the development and adoption of new technologies, and it has invested heavily in infrastructure to support connectivity.

This connected society is transforming various aspects of life in Japan. In the realm of work, it has enabled flexible and remote work arrangements, reducing commuting times and improving work-life balance. In healthcare, telemedicine and digital health records have improved access to care and patient outcomes. And in the realm of social interactions, social media, and other digital platforms have created new ways for individuals to connect and interact.

THE STATE OF INDIA’S INDUSTRY

Moving to the Indian context, the country’s industrial sector is currently at a crucial juncture. While India has made significant strides in recent years, with rapid growth in sectors like information technology and telecommunications, there are still many challenges to overcome.

India’s industrial sector is diverse, with key areas including manufacturing, mining, construction, and electricity. While the service sector has been the primary driver of India’s economic growth, the industrial sector also plays a vital role. However, this sector is characterised by a high degree of informality, with many businesses operating on a small scale and with limited access to technology.

Driven by the rise of data, connectivity, analytics, and man-machine interaction, Industry 4.0 is the next phase in digitisation in manufacturing.

India’s industrial sector is also facing numerous challenges. These include a lack of skilled workers, inadequate infrastructure and a complex regulatory environment. Moreover, the sector is grappling with the impacts of climate change, with a growing need to transition to more sustainable practices.

While these challenges are substantial, they also present opportunities. The need for improved infrastructure, for example, can drive investment in sectors like construction and manufacturing. And the transition to sustainable practices can spur innovation and create new industries.

INDUSTRY 4.0: THE NEW PARADIGM

Before we delve into the potential of Industry 4.0 for India, let us clarify what Industry 4.0 is and how it differs from the third industrial revolution, or Industry 3.0.

Industry 4.0 represents the fourth major upheaval in industrial practices since the first Industrial Revolution in the 18th century. While Industry 3.0 was marked by the introduction of computers and automation, Industry 4.0 takes this a step further by introducing smart and autonomous systems powered by data and machine learning.

The key defining feature of Industry 4.0 is the creation of “smart factories”. These factories utilise cyber-physical systems, the IoT, cloud computing, cognitive computing, and AI to create an environment where systems can monitor physical processes, make decentralised decisions, and perform tasks with minimal human intervention.

Industry 4.0 or 4IR, is the next phase in digitisation within the manufacturing sector. It is driven by disruptive trends including the rise of data and connectivity, analytics, human-machine interaction, and improvements in robotics​. Overall, four fundamental categories of disruptive technologies form the foundation of Industry 4.0.

Connectivity, data, and computational power: This includes the significant influence of cloud technology, the IoT, blockchain, and sensor technology.

Analytics and intelligence: Advanced analytics, machine learning and artificial intelligence play a crucial role in Industry 4.0.

Human-machine interaction: The interaction between humans and machines has evolved significantly over the years and it now covers virtual reality (VR) and augmented reality (AR) technologies, robotics and automation, and autonomous guided vehicles.

Advanced engineering: This includes additive manufacturing such as 3-D printing, renewable energy, and nanoparticles​.

However, technology alone is not sufficient. To thrive in the Fourth Industrial Revolution, companies must ensure their workers are adequately equipped through upskilling and reskilling. Upskilling involves employees learning new skills to help them adapt to their evolving roles. Reskilling, on the other hand, involves retraining workers with new skills that enable them to fill different positions within their companies​.

4IR has the potential to make products and services more easily accessible and transmissible for businesses, consumers and stakeholders all along the value chain. Preliminary data indicate that successfully scaling 4IR technology makes supply chains more efficient, working hours more productive, reduces factory waste and has countless other benefits for employees, stakeholders and consumers​​.

THE OPPORTUNITIES IN INDIA

The potential for Industry 4.0 in India is vast. The adoption of new technologies could help address many of the challenges facing India’s industrial sector, from improving efficiency and productivity to promoting sustainable practices. The implementation of Industry 4.0 technologies could also help to formalizen m8mdsdhxzs x x cxvc India’s industrial sector, bringing more businesses into the formal economy and providing better conditions for workers.

India’s tech sector is already making strides in areas like AI, machine learning, and IoT, all of which are critical components of Industry 4.0. The country’s thriving startup scene is driving innovation in these areas, and the government is increasingly recognising the importance of supporting technological development.

The implementation of Industry 4.0 technologies can help in the formalisation of India’s industrial sector, attracting more businesses into the formal economy.

The country has also made progress in building the necessary infrastructure for Industry 4.0. The government’s Digital India initiative, for instance, is working to expand internet access across the country, laying the groundwork for widespread digital connectivity.

Despite these promising developments, there are significant challenges to overcome. The adoption of new technologies requires significant investment and a skilled workforce, both of which are areas where India faces hurdles. The country will need to invest heavily in education and training to ensure its workforce is equipped for the jobs of the future.

It can be inferred that, during the last few decades of the 20th century, India saw the advent of Industry 3.0, characterized by the emergence of computer systems and automation. However, due to readily available labor and access to limited software, many Indian manufacturers were still caught in Industry 2.5, with their paper-based processes and heavy human dependency. The country, however, is ready to catapult directly into Industry 4.0, where machines will be equipped with the ability to communicate​​.

Industry 4.0 will transform existing technologies and capabilities in the manufacturing and production industry. It will amalgamate traditional manufacturing practices and sophisticated technology, provide real-time visibility of the complete value chain, and lead to greater efficiency and productivity​.

These digital technologies enable the democratisation of data and allow insights at a broader level. The vision of Industry 4.0 will not only make machines integrated but will also establish a connection that will go beyond the manufacturing plant walls, offering complete visibility of the manufacturing process, even during the transit of the shipment​​.

A PWC India study published in 2016 indicated that more than 80% of the manufacturing industry is expecting a greater than 10% improvement in efficiency, while over 60% of the surveyed respondents expect a 10% improvement in additional revenue. Industry 4.0 will also yield the benefit of a faster learning cycle and give an edge to Indian companies that are competing with legacy producers in Europe and the Americas, which have had a head start​​.

However, it is also important to acknowledge the challenges. For instance, data has become a new currency for many companies, but inaccurate or disorganised data holds no value. To unlock value from their assets, manufacturers will need to integrate their IT and OT and make data easily accessible but secure. They should be able to run AI models that can predict or correlate, ultimately augmenting human decision-making. While companies remain reluctant to invest in new technologies, this revolution cannot be overlooked​​.

There is a need to upskill talent within factories rather than replace them. The most important action is to invest in capability building and cultural change. Upskilling in the areas of analytics and digital technologies will prepare the workforce for the changing environment and also make them ready for future learning, thus keeping them relevant​.

It is also essential to leverage these emerging technologies into the entire enterprise value chain and their external diffusion into inter-organizational supply-chain networks. This would be an effective use of AI and machine learning from real-time data acquired from across the value chain, thus providing intelligent insights that would prompt smarter decisions​.

All of this is not possible without a robust ecosystem of partners, such as start-ups and tech providers, who would develop easy-to-access and affordable technology to enable this revolution. Academia can conduct research and development to further foster the advancement in technology. The Industry 4.0 revolution is already underway. By 2023, the competitive advantage of businesses in all industries will be driven primarily by innovations developed in AI. The fourth industrial revolution will allow for new ways to design organisations to operate, and it will also transform the way we work​. The time is ripe to shape it productively for a connected society in India.

Lt Gen Dr S P Kochhar

The author is the Director General of the Cellular Operators Association of India (COAI).

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