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The concept of Industry 4.0 encompasses the digitization of the manufacturing sector and the advent of the Internet of Things, associated with artificial intelligence and data science. Properly implemented, Industry 4.0 will enable manufacturers to increase efficiency while reducing their costs.
Nothing unexpected in this revolution since the planet will have thirty billion connected devices by 2020, resulting in exponential growth in data.
Determining the best way to identify, collect and interpret this increased volume of data will allow manufacturers to better understand their market and their customers, as well as gain market share.
Megatrend 1 - Demographic upheaval
The increase or demographic decline by country, a growing middle class, consumer markets moving from west to east, and an aging population providing less labour are all factors that have a direct impact on the manufacturing sector. This is where new technologies are a natural response to this need for adaptation: in addition to continuing to facilitate collaboration, they attract a savvy Generation Y. However, it is expected to make up 75% of the global workforce by 2025 and play an important role in a manufacturing sector that will continue to evolve.
Megatrend 2 - Globalization of future markets
As companies expand their operations globally, the volume of exports is expected to triple by 2030. It is even expected to quadruple in emerging and developing countries, and bilateral and regional trade agreements are expected to further expand borders. The share of GDP generated by the BRICs (Brazil, Russia, India and China) will grow. The countries of the MINT subgroups (Mexico, Indonesia, Nigeria and Turkey) and MIST (Mexico, Indonesia, South Korea and Turkey) are well placed to outperform developed countries. Technology will always play a key role in globalization. Not only through e-commerce and the emergence of new markets, but also through integrated management packages (ERPs) that manage cross-border trade operations and multinational manufacturing processes.
Megatrend 3 - Resource scarcity
Energy consumption and requirements are increasing, and with them our resource needs. By 2030, most of the essential raw materials are likely to come from China and certainly from countries outside the United States and Europe. This could potentially be tempered by innovative recycling technologies and technology platforms that streamline processes to facilitate the transition.
Megatrend 4 - The Knowledge Gap and Intergenerational Gap
The talent pool will shrink and industrialists will suffer. There will be a shortage of qualified staff for future positions. The pool of available workers is likely to come from developing countries, where the percentages of the population graduating from higher education exceed those of developed countries. The increasingly mobile workforce will continue to be a challenge for employers, perhaps leading them into a global struggle to recruit qualified employees. To attract this new generation of employees, employers will need to promote mobility, provide a sophisticated user experience and offer more flexible ways of organizing work than ever before.
These four megatrends associated with new convergent technologies will impose a transformation among industrialists. It's a great opportunity... However, it requires the use of emerging information technologies (social networks, mobility, analytics and cloud), as well as operational technologies (sensors, machine-to-machine communication, additive manufacturing and robotics). It is therefore essential that manufacturers determine whether their ERP environment is ready to accompany them to Industry 4.0. Taking a critical look at their current IT environment is the first step in understanding where their business is prepared compared to Industry 4.0.
by Hélène Forge, Senior Territory Manager Western Europe at Epicor Software
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