While digital transformation is most commonly associated with firms that deal mostly with information and data—financial services, telecommunications, retail, and so on—it is also having a big influence on the manufacturing industry. “Industry 4.0” refers to the trend of computerizing and reforming production systems.

But, first and foremost, what is Industry 4.0? What technology is enabling this? What are the advantages and challenges of transforming operational technology (OT) environments?

What is Industry 4.0?

Because of the introduction and use of new, cutting-edge technologies that blur the border between information technology (IT) and operational technology (OT) to bring digital transformation to the factory floor, Industry 4.0, also known as the Fourth Industrial Revolution, is achievable.

Big data, big analytics, robots, edge computing, 3D printing, artificial intelligence and machine learning (AI/ML), hybrid cloud computing, and other cutting-edge technologies are among them.

What is Operational Technology?

The hardware and software that govern the actual industrial production process are referred to as operational technology. OT includes things like industrial control systems, programmable logic controllers, supervisory control, and data acquisition systems.

Usually, this technology has been highly specialized and isolated, commonly employing closed proprietary protocols. As a result, OT created data and communication silos, resulting in inefficiencies and making it difficult, if not impossible, to properly exchange and exploit existing data. These constraints are being removed with Industry 4.0.

Industry 4.0 in context

First, let’s take a step back and speak about the first three industrial revolutions so we can have a sense of the historical backdrop.

The Industrial Revolution

The First Industrial Revolution, commonly known as the Industrial Revolution, was a time of radical change during which conventional manufacturing methods (which were mostly done by hand) were supplanted by new mechanical processes.

New sources of power (such as steam and water), increasing usage of iron and steel, and a range of innovations, such as the internal combustion engine and the powered loom, all contributed to this.

The Industrial Revolution began in the 18th century in Great Britain, Europe, and the United States, while other regions of the world trailed behind and did not have their industrial revolutions until considerably later (often much later).

Second Industrial Revolution

The Second Industrial Revolution, often known as the Technological Revolution, occurred from the late 1800s through the first half of the 1900s.

Further inventions and scientific discoveries enabled this period of explosive industrial growth, which included significantly more efficient industrial output, the use of electricity for power and light, machine tools, petroleum production and refining, telegraphs and the telephone, the automobile, the construction of railways, and much more.

Third Industrial Revolution

The Digital Revolution, often known as the Third Industrial Revolution, began in the second half of the 20th century and continues today.

As you might expect, the Digital Revolution is defined by the rapid and widespread deployment of digital computers. The mass manufacture and use of computers, the development of the Internet, the advent of the World Wide Web, and the creation and dissemination of smartphones are just a few of the technical developments that have enabled this.

Fourth Industrial Revolution

We’re currently in the Fourth Industrial Revolution, often known as Industry 4.0, which builds on the foundation of the Digital Revolution and is having a major influence on how industrial operations are conducted today.

With the quick speed of change and technological growth, Industry 5.0 and other generational evolutions are already being discussed. In Japan, for example, “Society 5.0” is being discussed, which builds on four previous socioeconomic stages: hunting, agriculture, industry, and information. But for now, let’s focus on Industry 4.0 and how it enables OT transformation.

OT transformation and Industry 4.0 technologies

While the development and exponential expansion of computers and the Internet enabled the Digital Revolution, Industry 4.0 builds on and expands that digital base to provide the circumstances for OT transformation.

During the Third Industrial Revolution, computers began to appear and multiply in factories, but they mostly worked in silos, acting as isolated islands where data was not visible, accessible, or shared. These silos are being dismantled in the Fourth Industrial Revolution, and data is becoming more public and accessible. Deeper analysis, higher efficiency, and degrees of global optimization never before feasible are now possible.

OT transformation is made possible by a variety of technologies, including:

• Edge Computing

• Robotics

• Digital twins

• Cyber-physical systems

• Internet of Things (IoT)

• Hybrid cloud computing

• Big data, big analytics, and data visualization

• Mobile devices

• Augmented reality and wearables

• Cyber security improvements

• Fourth and fifth-generation wireless (4G and 5G)

• High touch customer interaction and detailed customer profiling

Of course, this isn’t an exhaustive list, but it gives you an idea of the technologies that are enabling the generation, capture, processing, and utilization of data almost anywhere, which, when combined with advances in operational technology, is allowing a massive change in modern industrial operations, leading to OT transformation.

IT/OT Convergence

When firms integrate their information technology and operational technology systems, they begin to replace specialized and bespoke OT systems with software-defined techniques and off-the-shelf IT hardware.

This convergence allows businesses to make greater use of the data they already have—data created by OT systems on the factory floor may be sent to IT for processing and analysis, and then utilized to adjust or enhance manufacturing processes.

IT/OT convergence also enables front-loading problem resolution, which allows potential issues to be detected and resolved sooner in the design and development process, saving time and money.

Of course, this convergence has an influence on IT, which is shaped by OT needs like security, dependability, and low latency, among other things.

OT Transformation Benefits

Manufacturing advantages from OT transformation, which is enabled by these new technologies and IT/OT convergence, include:

• Improving the production quality, performance, and availability of manufacturing activities through increasing overall equipment effectiveness (OEE).
• Using AI/ML-driven predictive maintenance to reduce production downtime caused by equipment breakdowns.
• Increasing worker efficiency and effectiveness by providing them with the correct and timely information they need to make decisions.
• Smart factories that are increasingly self-contained and capable of managing and optimizing output with minimum human interaction.
• Enabling “mass personalization,” or the mass manufacture of customized or personalized things, which customers anticipate and desire.
• By identifying possible problems and prescribing cures for difficulties as they develop, AI/ML may be used to improve inventories, equipment, and processes.

This isn’t a comprehensive list of OT transformation and Industry 4.0 advantages, but it demonstrates some of the gains and efficiency that may be achieved when information technology and operational technology meet.

OT Transformation Challenges

Of course, there are other barriers to OT transformation implementation and acceptance, including security, skill gaps, and so on.

• Vulnerabilities in cyber security are always a problem, but they’re much more so now since IT/OT convergence has enlarged the attack surface.
• Due to OT experts retiring and taking their unique abilities and expertise with them, skill-set and talent gaps have already been highlighted as a major threat to digital transformation initiatives.
• Existing assets are integrated. There are a plethora of protocols, interfaces, and open standards, especially when it comes to the extended life cycles of OT equipment, which are often far over ten years.
• The amount of data created may soon become overwhelming, necessitating additional storage and processing power as well as data professionals with specialized skills and training.

Again, these are not the only OT transformation and Industry 4.0 difficulties that businesses will encounter, but they are not impossible.

Conclusion

While Industry 4.0’s digital transformation of the industry comes with some problems, the benefits and efficiency it may deliver are enormous. IT/OT convergence, or the merging of information technology with operational technology, may improve industry efficiency, resilience, and responsiveness, benefiting consumers, workers, and companies as a whole.

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