GROUP 4

SUBMITTED BY-
MAAZ ALI KHAN (1827818)
UDDIPAN DE (1827931)
MOHAMMAD SUHAIM (1828019)
 INDUSTRY 4.0 FRAMEWORK FOR GLOBAL BUSINESS,
CHALLENGES, BENEFITS AND HOW TO CONNECT
PEOPLE, PROCESS AND INTERNET OF THINGS-

With the advancement in technology and information systems, it has led to new demand levels
from customers of all industries, resulting in an increment in the production systems to provide
a rapid and efficient response. The technological tools seek to meet constantly and efficiently
customer demand with the organizational structure that works with synergy and add maximum
value to the production. The reorganization of operations is not to mark a radical change in the
functioning of the organization but to adopt technology and management to the new level of
operating systems. (Martínez, Lara, Saucedo, Fierro, & Vasant, 2017) suggested that
keeping in mind the challenges to be met, the key to adapt the logistical means and determine
its scope. That is the reason why logistics must be known as an essential part of business today.
In the fourth wave of technological advancement- the rise of new digital industrial technology
known as Industry 4.0, a transformation that is powered by nine foundational technology
advances. (Rüßmann, et al.) mentioned that the industry4.0 will make it possible to gather
and analyse data across machines, enabling faster, more flexible, and more efficient processes
to produce higher-quality goods at reduced costs. This will increase manufacturing
productivity, foster industrial growth, and modify the profile of the workforce. (Rüßmann, et
al.) also mentioned in his research paper the nine pillars of technological advancement as- (1)
Big data analysis. (2) autonomous robots for example- Kuka, a European manufacturer of
robotic equipment, offers autonomous robots that interact with one another. (3) Simulation, for
example- example, Siemens and a German machine-tool vendor developed a virtual machine
that can simulate the machining of parts using data from the physical machine. Thus, it lowers
the setup time for the actual machining process by as much as 80 percent. (4) Horizontal and
Vertical System Integration, for example- instance, Dassault Systems and Boost Aero Space
launched a collaboration platform for the European aerospace and defence industry. (5) The
Industrial Internet of Things, for example- Bosch Rexroth, a drive-and-control-system vendor,
outfitted a production facility for valves with a semiautomated, decentralized production
process. (6) cybersecurity (7) The cloud (8) Additive Manufacturing for example- instance,
aerospace companies are already using additive manufacturing to apply new designs that
reduce aircraft weight, lowering their expenses for raw materials such as titanium. (9)
Augmented Reality.
Industry 4.0 serves as an important model to global operating companies for integration of
smart machines, products and production resources into manufacturing systems and the
integration of cross-industry value networks. (Kagermann, Anderl, Gausemeier, Schuh, &
Wahlster, 2016) mentioned that the experts in this field of study expected the resulting
productivity gains to significantly increase their global competitiveness and strong
manufacturing industry in different nations. Industry 4.0 is majorly associated with the smart
products, internet platforms and new business models. (Kagermann, Anderl, Gausemeier,
Schuh, & Wahlster, 2016) also mentioned in their research article that in a country like China
the government initiatives like made in China and the internet plus establishes a contextual link
between networking, integration and accompanying the new business model. The author also
mentioned the Germany and US context where the two countries are currently the leading
suppliers of industry 4.0 solutions, also highlighted the risk of developing products that lack
market relevance. In India’s context, the service sector has grown over the last few decades,
the initiatives like make in India aims to increase the manufacturing capabilities and
technological upgradation. The opportunities to MNC’s to set up low-cost plants in India which
will contribute in the manufacturing sector. (Iyer, 2018) mentioned in his article that the
industry 4.0 could play a major role in boosting the manufacturing industry’s share in the
country’s GDP from 17 to 25 percent by 2022.

The Internet of Things (IoT) is a system of connected people, devices, and services, allowing
the computers, sensors and actuators to facilitate the products and services by reducing cost
and improving the efficiency of existing systems. Internet of Things connects everything in the
smart world. (Zhu, Leung, Shu, & Ngai, 2015) in their research paper described the six
elements of IOT- identification, communication technologies, computation, services and
semantic. Functioning of different IoT applications and service requirements for these
applications, need to be better understood. (Zhu, Leung, Shu, & Ngai, 2015) also mentioned
that the IoT’s procedures are used to reduce the greenhouse effects of existing applications and
services but by further optimization, the greenhouse footprints of IoT can be reduced further.
IOT has many applications, one of them is in health care. To redesign the modern health care
with technological, economic and social prospects. IOT itself is a new trend in next-generation
technologies that can impact the whole business spectrum and can be thought of as an
interconnection of unique smart objects and devices with today’s internet infrastructure.
Medical care is one of the most attractive areas of IoT application, having the potential to give
rise to many new medical applications as remote health monitoring fitness programmes, elder
care and chronic diseases. (Islam, Kwak, Kabir, Hossain, & Kwak, 2015) said that the IoT
network for health care is one of the most vital elements and supports access to the IoT
backbone, it facilitates the transmission and reception of data and enables the use of health care
tailored communications. The healthcare system which is IoT based can be applied to a wide
spectrum of applications including paediatric care, elderly patients, the supervision of chronic
diseases and numerous other applications to give ease to the patients using the health care
system. (Islam, Kwak, Kabir, Hossain, & Kwak, 2015) mentioned an example where a
Chinese firm has developed mi Platform, an integrated all-in-one medical imaging and
information management platform supporting cloud-based image storage, computation, web-
based 3D image, post-processing and visual image and integrated telemedicine competence.

Industry 4.0 has enormous economic potential and despite that the Small and Medium-sized
Enterprises (SME’s) in the industry remain relatively cautious about it. (Schröder, 2016)
mentioned after analysing that around 5 percent of the SME’s are thoroughly networked and
only a third of them are taking the steps in that direction or at least have plans to do so. The
expansion of industry 4.0 depends upon the company size, the circulation and deployment of
new technologies among large companies is higher than that of the SME’s. It is not easy for
the SME’s to access the technological solutions in their business due to lack of resources. Four
out of ten SME’s do not have a comprehensive Industry 4.0 strategy compared to the large
companies, SME’s tend to worry about opting wrong standards and data security. The main
challenge for the SME’s is to create a flexible organizational structure and to boost their
employees. The Experience and qualifications of the employees must be deployed in the
introduction of Industry 4.0 to reflect on the production process and bring improvements.
(Schröder, 2016) also mentioned in his research article that the percentage of manual and
hybrid activities is much higher in SME's. They produce majorly for niche markets and often
have a high degree of specialization. A qualified workforce is paramount for the introduction,
development and utilization of industry 4.0. The technical knowledge required is very high for
each phase. (Schröder, 2016) mentioned that it or so takes around a hundred and ten days to
fill a vacancy in storage occupations. The industry requirement is very high in due to the
implementation of these complex technologies and thus it takes more time to fill the vacancy
to give the right position to the right candidate. The field of application of supported Industry
4.0 technologies lies in production and to a lesser extent in auxiliary activities, such as logistics,
maintenance and product development, these value creation processes should receive more
support to boost economic use of industry 4.0. (Schröder, 2016) mentioned that the state
support provided in Germany for a specific industry 4.0 projects is at least 450 million euros
for a period of five to seven years. The industry 4.0 has a visible economic potential of
networked production in basic technologies available. The technological advances give rise in
productivity for SME’s too, but to realize the potential they require a more flexible
organizational structure. The management of SME’s should try to find out how much smart
their product range can be made, and which new business model can emerge from that as smart
products can increase the proportion of value added from the product sales. (Mohamed, 2018)
said that the most challenging aspects for the organizations that wish to adopt this new approach
are touch skills and qualifications of their workers concerning the problem-solving skills,
failure analysis, the ability to deal with constant changes and completely new tasks.
(Mohamed, 2018) also mentioned the benefits including virtual and augmented prototyping
which provides a full understanding of product features and benefits, facilitating the interactive
exploration of all products functionalities between every stakeholder.

References

• Martínez, J. A., Lara, M. P., Saucedo, J. A., Fierro1, T. E., & Vasant, P. (2017).
Industry 4.0 framework for management and operations: a review. Journal of Ambient
Intelligence and Humanized Computing.
• Rüßmann, M., Lorenz, M., Gerbert, P., Waldner, M., Justus, J., Engel, P., & Harnisch,
M. (n.d.). Industry 4.0: The Future of Productivity and Growth in Manufacturing
Industries.
• Kagermann, H., Anderl, R., Gausemeier, J., Schuh, G., & Wahlster, W. (2016).
Industrie 4.0 in a Global Context. acatech STUDY.
• Iyer, A. (2018). Moving from Industry 2.0 to Industry 4.0: A case study from India on
leapfrogging in smart manufacturing. Journal of Industrial Information Integration, 8.
• Zhu, C., Leung, V. C., Shu, & Ngai, E. C.H. (2015). Green Internet of Things for
Smart World. IEEE Access.
• Islam, S. R., Kwak, D., Kabir, M., Hossain, M., & Kwak, K.S. (2015). The Internet of
Things for Health Care: A Comprehensive Survey. IEEE Acess.
• Schröder, C. (2016). The Challenges of Industry 4.0 for Small and Medium-sized
Enterprises. a good society –social democracy.

• Mohamed, M. (2018). Challenges and Benefits of Industry 4.0: An overview.

International Journal of Supply and Operations Management, 256-265.