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Businesses that adopt an industry 4.0 business model today will become the leaders of tomorrow. Industry 4.0 is a transformative model and affects every aspect of a business, from designing and manufacturing to sales and customer relations. Industry 4.0 provides transparency across all aspects of business enabled by an interconnected technological infrastructure built on recent developments in high-speed mobile internet, artificial intelligence (AI), machine learning, automation, use of big data analytics, internet of things (IoT), and cloud technology [1]. The advanced technological infrastructure of an industry 4.0 business model creates smart businesses that reap massive benefits.
Some benefits of an industry 4.0 model include:
Increased competitiveness and dominion over a larger market share is an attainable goal and a huge benefit for companies who adopt an industry 4.0 model early. Early adoption provides companies with the opportunity to stay competitive against large industry disruptors. Disruptors like Amazon and Walmart are ahead of the curve with industry 4.0 adoption and are resultingly taking over the market.
In 2020, Amazon and Walmart earned a massive 9.2% and 9.5% share of total retail spending in the US. Amazon took a 51.2% share of total e-commerce sales, vastly overshadowing Walmart's still outrageously impressive 5.6% share [2]. These companies are successful because they have industry 4.0 technology, systems, and processes to optimize logistics, supply chain management, and every other aspect of their business. Due to the industry 4.0 infrastructure, these companies practice greater efficiency, insight, control, and data visibility across their entire supply chain, resulting in better and faster delivery of products and services to market. Providing these giants with a value proposition that is hard to refuse and drives the enormous market share dominion. If your business wants a larger piece of the market, investment in technology and optimization solutions, designed to improve your company is paramount. To be competitive with the large players in the market and increase your market share, your company must have the technological, systematic, and procedural infrastructure in place to provide customers with an equal or better service.
A stronger and more collaborative workforce is a derivative of an industry 4.0 transformation. The nature of transparency and connectivity that typifies an industry 4.0 infrastructure enables increased collaboration between departments due to increased data sharing and procedural understanding. Additionally, there are opportunities to increase employee efficiency using data and analytics across all aspects of the business. Real-time data and analytics provide insights into problem areas affecting efficiency, like bottlenecks. Managers can identify these issues and take action immediately to resolve them. This allows employees to work with less friction, reach their full potential, and ultimately strengthening the entire workforce.
An additional aspect of industry 4.0 that makes stronger and more collaborative workforces is continual upskilling. The intrinsic nature of industry 4.0 is advancement. With the pursuit of continual advancement and improvements to the company comes the need to develop new skills. Upskilling programs will strengthen your workforce's skills and create a sense of community among employees, contributing to their collaborative efforts.
Increased profitability is the benefit that companies are most interested in. Industry 4.0 is undoubtedly growing. The global industry 4.0 market was valued at $70 billion in 2019, and by 2026, the industry 4.0 market is expected to reach $210 billion with a compound annual growth rate (CAGR) of 17% from 2019 to 2026 [3]. There is a reason that this market is booming - business owners recognize the profitability and growth potential that is achievable by adopting the business model. Smarter and faster decisions can be made about your business with the data collected in an industry 4.0 compliant smart business. This data helps optimize all aspects of a business.
Many outcomes of industry 4.0 processes contribute to overall profitability. Increased efficiency in the workforce, as discussed above, increases productivity and performance, largely impacting the bottom line. Also contributing to profitability is the ability to create better quality products, cheaper with advanced automation technology, and the ability for these machines to customize a product with the simple step of editing of code to direct the machine to make changes. In the oversaturated global retail market, having the ability to customize products with ease and little extra cost can provide a tremendous value proposition that will drive sales and increase profitability.
The savings a flexible automated machine can generate is immense because there is no lost time training an employee to complete the customization. Additional savings related to the workforce is that automation reduces human errors that result in costly mistakes. Flexibility and precision are not the only profitable aspects of advanced AI-enabled programs and automated machines. These programs and machines can predict when maintenance will be needed and detect and diagnose issues that arise immediately. This enables issues to be addressed before they become costly or disrupt business. This predictive AI can be useful in business processes, from inventory shortages or mistakes to manufacturing machine issues. The AI capabilities in an industry 4.0 smart business are designed to support all processes' optimization and efficiency to increase profitability.
Increased growth capabilities are a benefit of industry 4.0 business models that piggybacks on increased profitability. With more capital, a company can reinvest and continually improve and expand its operation. By design, the internet and cloud-based infrastructure of industry 4.0 is easily scalable. Gartner forecasts “end-user spending on public cloud services to reach $396 billion in 2021 – and grow 21.7% to reach $482 billion in 2022” [4]. With this technological architecture, growth is limitless. The transparency and data provided by the business model can provide clear insights on where growth is needed and what is required for expansion.
The attraction of top talent is an important benefit in the current labor market. The US Chamber of Commerce found that 74% of hiring managers feel there is a skills gap, and 48% report that candidates do not have the skills needed to fill open jobs [5]. Deloitte reports that businesses with an established industry 4.0 model are believed to be more successful across multiple dimensions, including talent acquisition [6]. The majority of the workforce is now comprised of the millennial generation. Alastair Mitchell, the co-founder and CEO of Huddle.com, makes a valid point that, "having grown up with technology at their fingertips, millennials won't put up with poor enterprise technology" [7].
Companies that invest in the modern and innovative technology required to adopt an industry 4.0 model are better position to attract and retain workers who have the skills required to fuel the industry 4.0 transformation at your company. Aspects that work in tandem with industry 4.0 also contribute to the attraction of top talent. Upskilling required to keep your workforce competitive and implement new technology is also a driving factor for attracting and retaining top talent.
The benefits of industry 4.0 should make it clear that immediate adoption of this business model is advantageous to your company. It will put your business in a position to grow and become a competitive player in your industry.
How Can You Launch an Online Learning Platform to Become an Industry 4.0 Champion?
Industry 4.0 transformations have some limiting factors. The top two factors are cost and availability of skilled labor. Updating businesses with the technology required to become industry 4.0 compliant comes with a high initial price tag but will prove worthy of the investment once the benefits which contribute to higher profitability and market share dominion are seen.
If your company has the capital available for a major transformation, profit and results will be seen quickly. However, for the many businesses that do not have the required capital upfront for a full transformation, adopting an industry 4.0 business model is still attainable. Companies can overcome this financial hurdle by gradually adopting industry 4.0 compliant aspects over time and using increased profits to fuel further transformations. Starting small – beats not starting at all.
Only 10% of global manufacturing companies have a highly developed and wholly adapted Industry 4.0 strategy. But 66% of companies are beginning their transformative journey [8], so your business is in good company if they are just starting to take steps to adopt an industry 4.0 business model. The key is to begin transformation as soon as possible to ensure your business stays competitive and is prepared for the future of industry.
Regardless of the ability to pay for industry 4.0 transformations, if your workforce is not versed in the required skills to implement and support the new technology, processes, and way of conducting business, the investment will become null and major issues will arise. There is a simple way to overcome the lack of industry 4.0 skills in your current workforce and save money while doing it. Upskill your employees in advance of these transformations. Your company will also want to upskill during and after the adoption process to create and retain a skilled and competitive workforce that develops with your company and fuels the growth and benefits industry 4.0 provides. Upskilling can also help with business growth, and productivity in addition to helping further Industry 4.0 goals.
Companies that invest in upskilling see:
Here are key elements that online learning platforms need to provide value to your company and employees:
Upskilling your workforce to support the industry 4.0 business model is a necessary step in the process of transforming your company. Without upskilling, there is little to no chance of a successful transformation because of this business model's advanced technology and transformative properties.
Amesite Offers a Single, Easy to Use, Scalable Solution
Launch an upskilling program that prepares your workforce for industry 4.0, so your company can stay competitive, build a stronger, more collaborative team, increase profits, spur growth, and attract top talent.
Amesite is the premier online learning ecosystem provider on the market today. We are well-positioned to provide your business with a world-class program designed to support industry 4.0 adaptation and prepare the future workforce.
Amesite's platform is high-tech and AI-powered. We specialized in scalable, custom branded online learning environments and content curation to meet employer's unique needs and support the business's upskilling efforts. Artificial intelligence drives some of the most compelling experiences on the internet, and Amesite brings these tools to education in a novel and transformative way.
Amesite's platform offers excellent insights to learners and employers using advanced data analytics, unparalleled ease of use, features that build communication and engagement, and provides compelling custom content.
Amesite's product is easy to acquire, use, scale, and offers:
Amesite has experience curating course content and robust online learning platforms that are engaging and deliver the necessary results in fields relating to industry 4.0. Our partnership with Wayne State University exemplifies this. Farshad Fotouhi, Dean of Wayne State University College of Engineering and a collegiate partner of Amesite, recognizes the need for education of industry 4.0 skills and mentions it among course topics like artificial intelligence, mobility, communication between vehicles and infrastructure, electrification technology, and manufacturing are constantly evolving [13].
In reference to the online learning platform and course curriculum designed for WSU, Fotouhi said, "Working with Amesite, we had nearly 100% retention in our programs. That's not an accident. Artificial intelligence is critical in creating engagement and is important for us not only to build programs, but to build programs that people complete." He goes on to say, "The feedback from our students and instructors has been overwhelmingly positive. In working with Amesite, we have access to the best technology with a partner that we trust. They customized to our needs and to our market. And helped us deliver in a way that supports the professionals who are transforming [industry]".
Amesite can provide your company with world-class upskilling to train your workforce in preparation for your company's adoption of an industry 4.0 business model to ensure a smooth transition and fast growth.
Let Amesite help your company upskill today and prepare it for industry 4.0! Request a Demo!
Check out some of our customer success stories: Michigan Works! Southeast, Wayne State University.
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Resources:
[1] Change. 2018. How Will the Fourth Industrial Revolution Impact the Future of Work? https://www.changerecruitmentgroup.com/knowledge-centre/how-will-the-fourth-industrial-revolution-impact-the-future-of-work Accessed May 4, 2021.
[2] Pymnts. March 11, 2021. Amazon And Walmart Are Nearly Tied In Full-Year Share Of Retail Sales. https://www.pymnts.com/news/retail/2021/amazon-walmart-nearly-tied-in-full-year-share-of-retail-sales/#:~:text=Amazon%20And%20Walmart%20Are%20Nearly,Year%20Share%20Of%20Retail%20Sales&text=According%20to%20PYMNTS%20data%2C%20Amazon,share%20held%20by%20its%20rival. Accessed May 4, 2021.
[3] Global News Wire. Dec. 10, 2020. Industry 4.0 Market Size Growth Will Reach USD 210 Billion by 2026: Facts & Factors. https://www.globenewswire.com/news-release/2020/12/10/2143051/0/en/Industry-4-0-Market-Size-Growth-Will-Reach-USD-210-Billion-by-2026-Facts-Factors.html Accessed May 4, 2021.
[4] Bmc. September 17, 2021. The State of SaaS in 2022: Growth Trends & Statistics. https://www.bmc.com/blogs/saas-growth-trends/. Accessed October 12, 2021.
[5] US Chamber of Commerce. March 14, 2020. Closing the Skills Gap. https://www.uschamber.com/series/above-the-fold/closing-the-skills-gap Accessed May 4, 2021.
[6] iScoop. Industry 4.0: the fourth industrial revolution – guide to Industrie 4.0. https://www.i-scoop.eu/industry-4-0/#:~:text=Industry%204.0%20is%20the%20current,called%20a%20%E2%80%9Csmart%20factory%E2%80%9D. Accessed May 4, 2021.
[7] Epicor. Sept. 6, 2019. How to Leverage Technology to Attract a Younger Workforce. https://www.epicor.com/en-us/shopfloor/leadership-and-culture/leverage-tech-to-attract-younger-workforce/ Accessed May 4, 2021.
[8] PWC. 2019. The Lost Workforce Upskilling for the Future. https://www.pwc.com/m1/en/world-government-summit/documents/wgs-lost-workforce.pdf Accessed May 4, 2021.
[9-11] PWC. 2020. Upskilling: Building confidence in an uncertain world. https://www.pwc.com/gx/en/ceo-survey/2020/trends/pwc-talent-trends-2020.pdf Accessed July 19, 2021
[12] PwC. 2019. The Lost Workforce Upskilling for the Future. https://www.pwc.com/m1/en/world-government-summit/documents/wgs-lost-workforce.pdf Accessed July 19, 2021.
[13] Gov Tech. April 23, 2021. Amesite Platform for Wayne State Uses AI to Find Content. https://www.govtech.com/education/higher-ed/amesite-platform-for-wayne-state-uses-ai-to-find-content Accessed May 4, 2021.