What is Industry 4.0 and why does it matter?

​In the midst of significant transformation in the way we produce products and connect with consumers, we hear a lot about Industry 4.0 – that is because digitalization has become an essential part of our daily lives. But what exactly is Industry 4.0, and why does it matter?

Industry 4.0 represents the fourth revolution that has occurred in manufacturing. From the first industrial revolution through water and steam power, to the mass production and assembly lines in the second, the fourth industrial revolution will combine the adoption of computers and automation that started in the third revolution with smart systems fueled by data and machine learning.

Though a lot of people dismiss Industry 4.0 as just another buzzword, it is important to recognize the shifts we can already see in our digital systems.

As for any change, implementing Industry 4.0 comes with uncertainties and fear. Many businesses are still unsure of how to adopt Industry 4.0 to their unique environments, however, there are others that are already implementing changes and studying how they can benefit from smart machines in order to improve their business.

There are many ways in which companies can benefit from the advances in smart technologies that come with Industry 4.0. Here are a few that show why this industrial revolution is so important for organizations today:

Identifying patterns and trends represents a huge challenge for humans – it is extremely hard for us to perform that task in a reasonable time frame. Although it is done today, it is something very time-consuming. Connected machines can collect a tremendous amount of data that can inform pattern, maintenance, performance, as well as other issues in a short amount of time. Industry 4.0 offers the opportunity for organizations to optimize their work by quickly knowing what is in need of attention, and what is working well.

With Industry 4.0, everything in the supply chain system is connect – and with a connected supply chain it is possible to adjust and accommodate changes whenever new information is presented. If something unexpected comes up that can potentially delay a shipment, a connected system can adjust to that reality and modify manufacturing priorities.

With the advances in the digital world, robotics has become more affordable for organizations of every size. Robots can quickly sort out products and get them ready to ship, as it is done in Amazon warehouses, and they can quickly and safely assist manufacturers.

It is likely that if you've heard of Industry 4.0 in the past, you have also heard of Internet of Things – that is because IoT is a key component of Industry 4.0, which is characterized by connected devices.

Industry 4.0 is still evolving, but it is extremely important that organizations are aware of its benefits and are ready to incorporate it in their systems – when used correctly, it will only improve organizations' development and consumer relationships.

At Phoenix Systems, we are always looking into the future. We hope this information was helpful. If you have any other questions please feel free to email us at This email address is being protected from spambots. You need JavaScript enabled to view it..