The industrial revolution has taken place over the last few decades, the fourth trend being Industry 4.0.

The industrial revolution has taken place over the last few decades, the fourth trend being Industry 4.0.

Industry 4.0 offers a more integrated, interconnected and holistic approach to production. It connects the physical with the digital and provides better interoperability between departments, partners, suppliers, products and people, giving business owners better control and understanding of every aspect of the business. Based on Industry 4.0, the use of digital technology in recent decades has been taken to a whole new level through usage of Internet of Things (IoT), real-time access to big data, and the introduction of cyber-physical systems.

Successfully implemented latest solutions provide high returns. According to a McKenzie study, throughout a wide range of sectors can often be observed:
– 30-50% reduction in downtime of machines,
– 10-30% increase in bandwidth,
– increase productivity by 15-30%,
– more accurate forecasting by 85%.

For example, the consulting company BCG, reported on its work with a global manufacturer of car seats, that the use of big data analytics in production has reduced the number of defective parts by 25%. Another example is a multinational corporation in the plastics sector, where the use of energy control trackers has reduced energy consumption by 40%, saving about $ 200,000 a year.

One of the decisive factors on the way to high-tech production Industry 4.0. are investments in R&D. Companies from Europe, the United States and China have invested about 75% of the total investment in IoT technology. China and the United States are also the undisputed leaders in the implementation of 5G technologies and the largest investors in artificial intelligence startups (94% of all investments in the last 5 years).

As companies become more productive and their competitiveness increases, they are more likely to hire more highly skilled workers for better jobs. Countries where companies are implementing Industry 4.0 can expect greater growth in productivity and wages. At the same time, Industry 4.0. creates new challenges. For example, many studies estimate a large proportion of jobs lost in the economy through the introduction of AI and automation. On the other hand, new jobs will be created, thus, new skills and knowledge will be in demand, and the process of implementing these technologies leaves time for the workforce to adapt.

Another important aspect is the difficulty of moving to Industry 4.0. in developing countries. Here, governments and international organizations play a key role in building a system of interaction between all stakeholders and international cooperation to accelerate the transfer and exchange of new technologies.

The development of IT technologies and high startup culture, as well as the experience of Ukrainian companies that have already successfully implemented the latest solutions in production, create the necessary technological base for the construction of Industry 4.0. in Ukraine. In recent years, we have seen greater use of AI and machine learning by IT companies, as well as an increase in the number of investment funds and accelerators driving these industries forward. That is why the conclusion can be that the production and technological sectors of Ukraine are ready to restore the industry according to the new Industry 4.0 standards.

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