Digitization is often confused with Digitalization. While digitization is the other name of computerization and gained prominence during Industry 3.0, Industry 4.0 brought along true digitalization. The Fourth Industrial Revolution, which is the other name of Industry 4.0 or IR4.0, is steadily gaining importance and also presence across various industries, including transportation, logistics, banking, shipping, hospitality, travel, eCommerce, communication, healthcare, retail, telecom, manufacturing, and public governance. The main difference between the fourth industrial revolution and its predecessors lies in the strong disruption and transformation that it augurs to bring in.
The industry 4.0 paradigm begins with embracing cloud computing and goes on to the adoption of other components. In totality, these components the overall operations easier and businesses more profitable. It includes the following components.
Cloud Computing: Infrastructure is the key to the growth of an organization. It includes the basic compute capability that the entire organization uses to run its operations and build its solutions for its customers. However, the cost of procurement of hardware, installation, connectivity, security, and annual maintenance cause a lot of Capital Expense (CapEx) and Operational Expense (OpEx) for an organization. Cloud Computing Infrastructure is a solution to all these challenges faced by an organization. It works on the concept of shared infrastructure used in a service model. The two biggest advantages that an organization gets from the cloud model of infrastructure is that they can be on the latest technology whenever they want, and they can increase and decrease their capacity demand based on their business growth.
Internet of Things (IoT) and Industrial Internet of Things (IIoT): IoT forms the basis of reaching out to each device working in the field. The IoT devices send the data that is collected by the IoT platforms and further stored on the cloud for analysis and action.
Big Data and Analytics: With the help of IoT, a humongous amount of data is collected from every corner. All this data needs to be stored in appropriate structures and analyzed continuously. That is the role played by the Analytics stream.
Artificial Intelligence (AI) and Machine Learning (ML): As part of the analysis of data, trends are created, and applications can draw conclusions from the trends to make decisions on behalf of humans. AI & ML helps with actionable decisions by applications without human intervention.
Augmented Reality (AR) and Virtual Reality (VR): AR & VR help in creating digital twins for expensive machinery, like a container crane at a seaport, or in providing operations simulation for training purposes. They deduce the future state of machinery and help in making efficient decisions in advance.
Blockchain: It adds the element of decentralization without impacting the trust. It is best suited for transactions that involve a large number of known parties that can transact amongst themselves without the presence of a central authority. The best use case is in preparing a contract chain for transporting a container through multiple seaports across the globe.
Advanced Robotics: It plays the role in day-to-day operations by taking the smallest of decisions and actions without any human effort. The best example is that of an automated forklift sorting the cargo in a storage yard all by itself. Likewise, multiple forklifts operating themselves at a fast pace without hitting each other or interfering in each other’s tasks.
Cyber Security: Security is the key component in the entire setup of IR4.0. The entire setup is exposed to various degrees of threats over the network. It ensures the protection of data and application from any kind of external attack and accidental exposure of data.
Horizontal and Vertical Service Integration: This is key to the expansion of businesses beyond their areas of expertise into new domains by acquiring or collaborating with other industry players. It helps them in having seamless integration of various business and operational processes.
