International Journal of Management (IJM)

Volume 11, Issue 2, February 2020, pp. 132–140, Article ID: IJM_11_02_014
Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=11&IType=2
Journal Impact Factor (2020): 10.1471 (Calculated by GISI) www.jifactor.com
ISSN Print: 0976-6502 and ISSN Online: 0976-6510

© IAEME Publication Scopus Indexed

INDUSTRY 4.0 SOLUTIONS – A PATHWAY TO

USE SMART TECHNOLOGIES / BUILD SMART
FACTORIES
Dr. N. Venkateswaran
Professor, Department of Management Studies,
Panimalar Engineering College, Chennai, India
E-mail: profvenkimba2019@gmail.com

ABSTRACT
Today Industry 4.0 moving in faster pace across sectors through newer
approaches which helps to migrate entire society and human body. Technologies like
additive manufacturing, robotics, quantum computing, internet of things [IoT],
nanotechnology and autonomous vehicles, machine learning are under the umbrella
of Industry 4.0 solutions moving in exponential rate. This paper helps to connect
almost everything from machines to humans through cloud by showing drastic and
dramatic improvements to improve business efficiency and also protecting and
regenerating natural environment by bringing forward better asset management
techniques.
Worldwide companies looking for smarter work by making themselves more
competitive and sustainable through infrastructure investment by expanding their
business platforms by transforming themselves through digitally enabled technologies.
Digital transformation is every key motive to survive in Industry 4.0 era which
help industries to attain competitiveness and at the same allowing them to have an
ability to take optimal decisions across all the phases of their activities. Industry 4.0
and IoT have some tangible benefits with proven ROI.
Keywords: IoT, smart products, physical security systems, digital twin, digital
intelligence.
Cite this Article: Dr. N. Venkateswaran, Industry 4.0 Solutions – A Pathway to Use
Smart Technologies / Build Smart Factories, International Journal of Management
(IJM), 11 (2), 2020, pp. 132–140.
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=2

1. INTRODUCTION
Every industry is driving the next industrial revolution as both a lead operator and lead
supplier of Industry 4.0 solutions. Today Industry 4.0 moving in faster pace across sectors
through newer approaches which helps to migrate entire society and human body.

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 Dr. N. Venkateswaran

Technologies like additive manufacturing, robotics, quantum computing, internet of things

[IoT], nanotechnology and autonomous vehicles, machine learning are under the umbrella of
Industry 4.0 solutions moving in exponential rate.
Smart technologies using Industry 4.0 solution allows firms digitally enabled automated
self-optimized production capability including deliveries without human interventions. These
firms establish value networks and it should be decentralized in nature and their
manufacturing or transport facilities should take autonomous decisions instantaneously [2].
With huge automation portfolio as a pathway and roadmap and an abundance of human
resource production experience across plants worldwide irrelevant of the sectors, modern
sectors can now offer leading automation and manufacturing solutions – migrating from
single-piece to high-volume production by enriching their infrastructural base.
Industry 4.0 allows delivering of excellent and prominent benefits which makes firms to
initiate smart factory. Combination of digital technologies with automated solutions makes
every manufacturing sector a major jump start and newer ways of growth strategies for every
sector. It is a right time for every time and it is crucial also for every companies who should
have a vision to capitalize their investment on smart manufacturing which make them key
competitive advantage.
In the VUCA complex world, radical innovations happened across sectors for
sustainability. Better business models with dynamic characteristics developed continuously
which allow them to attain complementary competency. For example, automobile
manufacturers keep improving their existing value chain by merging through interdisciplinary
partnerships with different service providers, suppliers and cross industry disciplines since
closer horizontal partnerships are not restricted in the field of innovation. This approach allow
them to find out better and newer solutions for produce customizable goods according the
changing needs in customer expectations with faster delivery and also in effective manner.
Industry 4.0 applications shows unexpected quantitative benefits over the next coming
years from the investments planned across the sectors. Across the sectors they continuously
anticipate an increase in the average efficiency of 25% through digitalized economy. This
shows an annual increase of 4.5%. One fourth of the firms see greater potential in their
existing operations. The improvements may be in reduction of wastages in process, quality
loss, more flexible and coherent in making processes and converting themselves in focusing
on core areas in individual value chain.
By 2025, 85% of the firms will achieve digitization as high degree on their manufacturing
products and services. This percentage will tend to increase more than five times from current
9% to 45%. Companies wish to excel internationally should take this has a major challenge.
The existing business models across sectors will become more data centric, much efficient
and more customer focused because of improvement in connectivity and usage of
analytical/data abilities across processes. The two important qualitative benefits of Industry
4.0 should be more improve planning and control abilities and greater customer satisfaction.
Basically the term "smart" means combining tangible or intangible goods using digital
systems. Through smart applications and technologies firms able to communicate intelligently
with each other, allowing firms to generate value added services for their customers
continuously. The goods and services sometimes expand their original range of services many
times over.
The intelligent factory or smart factory is the recent heart of Industry 4.0 solutions. Their
aim is to establish autonomous production through which firms resources [people, machines,
plants and products] communicate independently with each other called cyber-physical
systems make production more flexible and efficient. This establishment makes firm possible

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 Industry 4.0 Solutions – A Pathway to Use Smart Technologies / Build Smart Factories

enough to implement individual customer wishes through better product customization at

minimum costs with better quality efficiency that were not been possible in during previous
revolutions called mass production.
Artificial intelligence and machine learning are currently driving smart manufacturing but
still human input is essential. This smart manufacturing requires human computer interaction
which they provide direction and control apart from overseeing technology. Technology
empowers human workforce which is a requirement of many industries to migrate themselves
to build smart factories and has a growing role across sectors.
This solution helps to connect almost everything from machines to humans through cloud
by showing drastic and dramatic improvements to improve business efficiency and also
protecting and regenerating natural environment by bringing forward better asset management
techniques. There is an option available for sectors is data-driven manufacturing to
manufacturers allowing them to access all types of data in various forms and sizes from
smallest shops to the largest plants. It is simpler to implement, scalable and affordable.
Industry 4.0 also referred as IIoT [Industrial Internet of Things] or smart manufacturing,
currently married physical production and operations with smart digital technology, machine
learning, and big data to create a healthy and better connected digitally for companies which
focus on smart manufacturing and modern supply chain management practices [12]. With the
evolution of hybrid architectures, each sector increases their potential in resource efficiency,
effectiveness and flexibility in their approaches.
Worldwide companies looking for smarter work by making themselves more competitive
and sustainable through infrastructure investment by expanding their business platforms by
transforming themselves through digitally enabled technologies.
Digital transformation is every key motive to survive in Industry 4.0 era which help
industries to attain competitiveness and at the same allowing them to have an ability to take
optimal decisions across all the phases of their activities. Industry 4.0 and IoT have some
tangible benefits with proven ROI.
In the recent scenarios all manufacturing systems are harnessing the full array of new and
emerging technologies. Using internet as foundation base every organization link their
existing equipment, their sensors, and analytical tools and people in ever more intricate and
resourceful ways. Big data, robotics, machine learning, artificial intelligence, augmented
reality, 3D printing, predictive analytics all these things and more are now converging slogans
dictated by every sectors [10]. And with the heightened level of control and oversight that
they bring, firms can now build a ―digital twin‖ of their existing core process, and so allowing
firm to optimize their core business performance by creating a healthy working atmosphere of
their existing physical object or process.

2. PRACTICAL IMPLICATION OF INDUSTRY 4.0 SOLUTIONS

The practical implication of this research is to examine the current challenges and
opportunities that are more relevant in implementation of Industry 4.0. More companies today
looking for transition to attain competitive advantage and most importantly their security
concerns in managing their business are in compulsion over decades all are rewriting,
destabilizing themselves to become smart by connecting their process, product and service to
improve economies within the society. Industry 4.0 is a key solution for these business
concerns which will create rapid progress in sustainability in all domain areas of an
organization.
Recent manufacturing methodological practices are becoming more complex and dynamic
especially non-linear patterns in data, data driven approaches are becoming ever more critical.

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 Dr. N. Venkateswaran

Invention of connected devices offering new opportunities with self-configuring automations

allows a one step forward change in productivity measures [9]. It is must for smart enabled
industries to identify and find newer tools which helps them to transform their existing data
into models which allows them to predict, detect, classify and forecast manufacturing
operations more efficient by finding ways to real competitive advantage.

3. ORIGINALITY/VALUE
Most of the researchers across various domain and technologies contributed many research
papers on Industry 4.0 solutions but this manuscript provides an alternative path on by
measuring how industry 4.0 solutions gives business firms by identifying there suitable
technologies by converting themselves to produce smart product and services. Also currently
there are wide spread manufacturing technologies solutions available across globally. This
paper suggests how these technologies are supportive for business environment.
Increasing importance of Industry 4.0 offers combination of digitization which allows
manufacturing firms not only link their internal production facility but also link entire
production facility. Many industries over the year are migrating themselves by building
paradigm shift towards Industry 4.0 solution because of the following reasons[6]. First,
Industry 4.0 reduces Mean Time to Repair [MTTR] which enables predictive maintenance of
components and machines. Most of the legacy devices across firms migrating towards smart
devices helps manufacturing process to identify detection of faults and reduction in repairing
time. User dash boarding an evolving concept of cloud integration benefit user in analyzing
fault logs and pattern of faults, auto job assignment via E-mail. Multiple legacy devices are
easily communicated via IoT Protocol gateway.

4. LITERATURE REVIEW
Industry 4.0 is recently a new booming topic by everybody across the world a comprehensive
overview of the state of the emerging industrial revolution is essential to investigate on
Scopus database. Most of the researchers across global shown recently a major interest in this
topic.
The search was refined considering only articles. As an author we referred more than 150
published articles since 2014. Since 2017, there is a growing trend of publications on these
issues. This strong interest is certainly due to continuous changes happening across sectors
due to automation, modern methodological practices purely through smart manufacturing both
from a research and business point of view.
Personal flexibility with respect to work time, work contents, workplaces and mindsets are
prerequisites competencies for an agile production, to respond quickly to market need and
environmental situations. In addition, today and future managers need the ability to transform
their management and leadership styles from power-driven to value-driven, as the teams of
the Smart Manufacturing and Industry 4.0 are currently diversifying themselves all in
geographical location, culture, and education.
According to Stephen Gold, President and CEO, MAPI, US gross domestic product is
11% of the manufacturing output but its total economy is three times more than it total value
chain. Reasons for this complete digital transformation allows US companies to be more
competitive and continuous research and development provides them excellent insights for
their manufacturing leaders which they propel their digitalization journey irrelevant of their
existing state of their operations.
According to MGI report, ―The Internet of Things: Mapping the Value Beyond the Hype,‖
predicted that the application of the Internet of Things in the manufacturing context alone—in

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 Industry 4.0 Solutions – A Pathway to Use Smart Technologies / Build Smart Factories

other words, using sensors to bring intelligence to each piece of production equipment on the
factory floor to optimize their collective use—would increase manufacturing productivity by
10 to 25 percent, with the potential to create as much as $1.8 trillion in new value per year
across the world’s factories by 2025.
Many market research firms estimate smart manufacturing / technologies will reach
greater heights over the next 5 – 10 years with hundreds of billions of dollars range. Grand
View Research predicts reach USD $400.3 billion by 2026, Future Market Insights ―420B‖ by
2029, Statistica ―$482B by 2023‖, Markets and Markets ―$205B by 2022‖ and Orbis
Research ―$595B by 2024‖
Manufacturing output may be 11% of U.S. gross domestic product, which is three times
ahead of its total value chain for the economy. Digital transformation increase
manufacturing's importance and competitiveness which provides a modified research
approach and insights. Many manufacturing leaders across sectors already propel their
digitalization journey, regardless of the current state of their operations.
According to Vodafone, companies ―adopting the IoT‖ brings average cost savings for
industry of 18 percent, with nearly 10 percent of IoT adopters reducing their costs by over 25
percent, in addition to realizing other benefits including: process efficiencies; speed and
agility in decision making; better customer service; consistency of delivery across markets;
transparency/predictability of costs; and better performance in new markets. McKinsey has
subsequently developed a ―Digital Compass‖ diagnostic tool to guide companies in their
adoption of Industry 4.0 and has worked with the Digital Manufacturing Design and
Innovation Institute which allow the firm to evaluate their actual returns through realizing
from digital manufacturing implementations.
According to US Department of Commerce survey more 95 US manufacturers and
vendors found that smart manufacturing allow firms and provide $63 billion dollars cost
reduction annually. This represents on an average and approximate reduction of 4.5%
reduction in shop floor production cost. Techniques such as seamless digital transformation,
monitoring and sensing, advanced analytical data save many manufacturers in excess of $20
billion annually.
According to a Research & Markets report, in 2014 global manufacturing market was 20
billion dollars and it will show progressiveness by an increase of 13.5% per year till 2024.
The major reason for these drivers of development is mainly because of industrial process
automation and every sectors are looking for integrated analysis and design solutions. Every
industries in the recent platforms keen on reducing costs, continuously improving and
launching through speeding up their product development life cycles, migrating themselves
towards simulation applications through cloud based platforms.
The analysis pointed out that 53.2% of the analyzed publications refers to engineering
issues, 29.2% refers to communications issues, and 17.6% refers to business process
management. Analyzing the 150 articles found, the search was more refined using seven
specific keywords that characterize ―Industry 4.0‖ as detailed below:
 Cyber-physical systems
 Big data or digitalization or digital.
 Automation or artificial intelligence or robotics
 Additive manufacturing or 3D printers
 Simulation/augmented/virtual reality
Industry 4.0 moves from potential to reality open standards are more crucial for successful
deployment. 4.0 solutions are highly dependent on connectivity – technically as well as
organizationally within the entire value creation process of every firm connecting suppliers

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 Dr. N. Venkateswaran

and manufacturers by breaking the wall of existing technology boundaries by collaborating

with research organizations, OEMs, manufacturers, and others.
The application of IoT is projected to generate $1.2 to $3.7 trillion of value globally by
2025, in four primary forms: 1) operational efficiency; 2) predictive and preventative
maintenance; 3) supply chain management; and 4) inventories and logistics.8 While
manufacturers’ IoT implementations often address multiple facets of these manufacturing
processes, the following paragraphs provide specific examples of IoT being used to facilitate
each of these four types of manufacturing processes.
Almost all firms are almost working under real-time conditions by slowly reengineering
existing in-house production process to be radically optimized by initiating flexible
production systems. Nowadays, production advantages are completely changed and it has not
limited solely to one-off production conditions, but it can get optimized through adoption and
self-organizing production units by enriching every operator to look up on multiple processes
to establish global network standards.
Today, in an Industry 4.0 smart factory, all manufacturing machines are integrated
through collaborative community. This setup requires use of advanced prediction tools for
factories, so that data within data warehouse / database can be systematically processed into
information to overcome / manage uncertainties allowing firms to make more informed
decisions [1]. Industry 4.0 describes different meaning — basically Information Technology
(IT) driven—changes in manufacturing systems. These tremendous developments allowing
firms not only to have technological advancements but also versatile organizational
implications [4]
The principles of IoT or ―Internet of Things‖ allows factory planners to embrace the
vision without traditional hierarchical ways where smart objects have capable of self-
organizing for a specific task through proper interaction based on semantic services [5].
Hermann, Pentek and Otto [3] and their co-authors, identified four basic tools needed to
implement Industry 4.0 within a company by making research and analysis from different 50
studies. Most of the tools searched with keywords like CPS, IoT, the Internet of Services and
the Smart Factory. The tools chosen by the authors are all comprehensive categories, and they
do not specify technical tools needed to operate the CPS (e.g., sensors).
To establish a smarter working environment using Industry 4.0 solutions Wang et al. [7]
discussed in his research work identified four layers, which can contribute to a closed-loop
system: (1) a resource layer; (2) an industrial network layer; (3) a cloud layer; and (4)
supervision and control terminal layer. These layers allows to link people within the smart
factory, In addition, Monostori [6] states that cyber-physical production systems do not follow
the traditional automation model since higher levels of the hierarchy are decentralized.

5. DIGITAL MODEL IN SMART TECHNOLOGIES

Adoption of digital model is key strategy in the modern manufacturing process in production
workflows. In the traditional methodologies of product development from inception to
deployment takes longer time whereas through digitally enabled smart technologies
collaboration between teams improved through agile way and the prototype development
assimilated quickly into production and in faster mode the end product will hit the market
with better product efficiency [2]. Through Industry 4.0 solutions firms create end-to-end and
cross functional research and development allowing them to operationalize their digital
innovation through smart technologies like AI, 3D printing, digital twin, cloud computing,
high-performance computing, quantum computing, wireless connectivity, advanced sensor
technologies, computer aided design (CAD) and engineering (CAE) software at every stage of

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 Industry 4.0 Solutions – A Pathway to Use Smart Technologies / Build Smart Factories

product and service development. This newer approaches prefers firms to unlock new
revenues by closer interaction with the stakeholders as whole.
Industry 4.0 indicates that lower and middle tier staff may be subjected to be less required
with the time as smart machines will replace that role and while the new skill requirements in
terms of digital supervision will still exists. This will prompt the change roles from machine
operators to supervisory roles [5].
In the digital world, based on customer requirements all inbuilt monolithic process based
applications within organizations are shifting their manufacturing processes towards
personalized, automated and localized value chains. This shift of technology definitely
provides a greater personalized infrastructure for the firms to sustain competitive advantage
among competitors. The following business models analyze and interpret better results for
every industrial survival to benchmark their product and services continuously.
 Collaborative robots to augment workforces
 Cloud robotics & APIs give manufacturers greater control
 Robotics-as-a-service make robotics viable for smaller manufacturers
 5G & Multi-access Edge Computing (MEC) help keep factory workers informed
 Edge computing to see new use cases
 Cybersecurity will be given greater priority
 Digital twins will be employed more widely across manufacturing and the supply
chain
 Additive manufacturing will be used to create final products
 Wearables will become commonplace on the factory floor

6. SMART TECHNOLOGY STANDARDS

Every factory has smart manufacturing vision to succeed, a series of standard protocols will
be indispensable to allow factories, machines, and products made by vendors from all over the
world to communicate and interact with each other and to ensure solutions can be used in any
country. Two key issues standardization must address are ensuring interoperable interfaces
between solutions from different manufacturers; and establishing open standards, which are
essential for the emergence of open, flexible, and dynamic manufacturing features all because
of innovative ecosystems which spans different manufacturers from different countries and
continents.
A number of risks arise if the international community fails to achieve standardization
around Industry 4.0. First, the inability of sensors, machines, and software produced by a
variety of different global vendors to seamlessly exchange data, information, and intelligence
in real-time would leave the smart manufacturing vision stillborn [11]. If no international
standards or universal solutions not properly followed across sectors providing
interoperability between different systems, individual companies run a major risk of suffering
technological lock-in.
Several key private-sector-led consortia are involved in smart manufacturing standards
development especially countries like United States who are the chief among Industrial
Internet Consortium (IIC). The IIC spans a number of fields including energy, healthcare,
manufacturing, the public sector, and transportation. The IIC has two key objectives: 1)
Promoting innovation through the establishment of use cases and test beds to enable rapid
testing of ideas and technologies in real-world applications; and 2) Facilitating the
development of the reference architectures, frameworks, and open standards required for the
interoperability of industrial systems.

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 Dr. N. Venkateswaran

7. FUTURE DIRECTIONS OF INDUSTRY 4.0

Industry 4.0 solutions expecting and newer version of Industry 5.0 in near future which may
happen has a natural progression for every industry. This solution may undertake modern
manufacturing process where this reintroduce ―human touch‖ component called Colloborative
robots or ―Cobots‖ may introduce across sectors and it may be more autonomous and work
along with our human colleagues by helping them in complete their work [13]. It would not
mean that Industry 4.0 [digital and automated technologies] may become disruptive but it may
use as a primary driver for development along with 5.0 delivering more personalized
experience and offering and also to increase efficiency and precision to the users.
The pure success or failure of smart technology and Industry 4.0 revolution highly depend
on contribution of human capital in their own way which may pave a right path in their
success and productivity. As we represent earlier human capital alone represents collective
value of Smart technologies and Industry 4.0 revolution’s competencies, knowledge and
skills. It is must for industries to renewal the better ways in identifying sources of creativity
and innovation which imparts industries to move towards Smart Manufacturing and Industry
4.0 revolution, and transition in making ability to change. Recent Industry 4.0 solutions
making workers within firm who need to stimulate physical, docile forms of tangible capital,
inert forms of material and equipment. Improving Human capital is an essential asset in
surviving in Smart Manufacturing and Industry 4.0 revolution and modern managers today
facing it as greatest challenge in their organizations

8. CONCLUSION
Industry 4.0 concept known worldwide and it may be the latest hot topic of discussion for past
five years across sectors. Industry 4.0 production concepts and their deployment is half-way
paths for many enterprises who are all still in infant stages and industries with an idea of
making themselves to be digitally transformable enterprises / smart enterprises need to
gradually reengineer their existing / legacy equipment and solutions without affecting their
existing production set-up.
The key element to deploy smart factory requires compound talents and multi-field
cooperation is required for every firm. The research shows to implement and establish smart
factory / smart technology integration of information technology is not alone sufficient but
also to include traditional disciplines such as control theory, materials and energy.
With the advancement of big data technology to improve product quality, increase
production efficiency, reducing energy consumption all firms uses data based virtual
manufacturing mode part of intelligent manufacturing and also based on big data which leads
major revolution on traditional industry.
It is must for every industry to overcome many challenges by managing systematic
transition on Industry 4.0 solutions by pushing themselves through research and
experimentation through identification of relevant fields especially on privacy, security and
employment. This strategy is applicable both for large corporation and public sectors and it is
a promising picture and should be truly revolutionary. Shop floor professionals and
manufacturing players get to operate in the factories of the future and improve their business
and growth while giving consumers exactly what they want.

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