Fourth Industrial Revolution

Fourth Industrial Revolution

The period 2010 to the present day (2025) is popularly known as Industry 4.0. In this phase, we are experiencing smart factories integrating digital and physical systems, with machines, products and systems communicating with one another for optimised production. The maturity of technologies such as AI, IoT, 3D printers, blockchain, robotics, AR and VR have had a profound impact on the automation and productivity of manufacturing processes. Being able to carry out predictive analytics to prevent malfunctioning or production stoppage (the sensors providing real-time data on machine and product performance to take actions expeditiously), rapid prototyping with the help of 3D printing, fostering security and controls through blockchain technology, augmenting the workforce through robotics and visualisation of customer experiences through AR and VR technologies have catapulted manufacturing capabilities to higher levels of efficiencies and innovation.

The speed and the quantum of benefits to the industry from these technologies have been ably facilitated by 5G networks and cloud computing capabilities developed by the telecommunications and digital industry in parallel.6

Emerging Fifth Industrial Revolution

The Fifth Industrial Revolution, which commenced in the 2020s, is presently concurrent with the Fourth Industrial Revolution. This phase is slated to bring about transformation through what is being touted as sustainable and human-centric manufacturing. The focus is on conserving depleting resources (namely, raw materials, energy and water) and promoting circular economy principles to reduce waste. Cobots (human and robots working together) are likely to be prevalent in the workplace. Quantum computing, autonomous systems, XR and Internet of Bodies are expected to leapfrog and become drivers of the manufacturing processes. It is anticipated that with these developments, there would be enhanced quality of life, higher levels of conscious action towards environmental sustainability and empowered decision-making at multiple levels.7

The DNA for Change

The ability of organisations to withstand the jolt from constantly evolving technological changes, foresee these trends, embrace the appropriate technologies that suit the industry and reskill/encourage the existing teams to adapt their processes and businesses would be the key to survival and excellence. Many organisations have had their share of struggles during such transitions and could not survive for long. Let us examine some examples of companies that have managed to withstand the strong currents of change and some others that have been swept aside.

Several cottage industries, guilds and home-based production centres could not adapt to the power of the steam engine and folded. Boulton & Watt (United Kingdom) were pioneers of the steam engine that powered factories and mills. They enabled several companies to shift from manual processes to mechanised production.8 Lowell Textile Mills in Massachusetts adopted steam-powered looms and pioneered large-scale textile manufacturing processes in the United States, which enabled them to expand their business and enhance their productivity.9

During the Second Industrial Revolution, with the spread of electricity, General Electric became a leader in the consumer electronics industry with its pioneering efforts in electrification in manufacturing and household products. However, a combination of strategic misses, professional mismanagement and inability to adopt the right technologies at the right time have been the death knell for the iconic organisation as it was in its heyday, which has since been split into three entities.10 Only time will tell whether any of these entities will rise from the ashes like a phoenix and shine once again!

There are several other examples of companies whose technology strategy backfired or did not fire at the right time due to which they have gone out of the reckoning. Kodak and Polaroid were two companies well known for camera and films that had almost a monopoly in the market. However, they failed to foresee the digital impact, and once digital photography was born, these companies became irrelevant in the marketplace.11 Once a leader in telegraphy, Western Union did not effectively transition into the new age of telecommunications, losing ground to companies that embraced telephone technology. As the digital age progressed, Intel dominated the microprocessor market for several years, providing essential components for computers and digital devices. Their products fuelled the rise of personal computers and the tech industry. Intel’s bold byline, ‘Intel Inside’, virtually meant most computers shipped were built around Intel’s microprocessors. However, Intel failed in the race for a share in the AI era, allowing Nvidia to take a substantial lead over it. Nvidia overtook Intel’s market value for the first time in 2020, and by 2025, Nvidia’s market cap had reached an astronomical US$4 trillion, more than double the combined values of AMD, Arm, Broadcom and Intel. Today, the position of Intel has been taken over by Nvidia as one of the three large tech equity benchmarks, and there are talks about its future including possibilities of being bought by one of the large tech companies.12

Nokia created the world’s first international cellular network and, for almost a decade until the early 2000s, was the global leader in mobile phones. However, its late entry into the smartphone market meant that iPhone and Android technology had taken a significant lead over Nokia, who then had no option but to exit from this business.13 Blackberry Motion was another manufacturer of smartphones that was successful until the late 1990s with its device, which had an arched keyboard. When touchscreen displays became commonplace in the mobile industry, Blackberry continued to protect its products and technology, little realising that its products had outlived the industry. Finally, in 2017, Blackberry officially announced the end of its smartphone business.14 Motorola’s cell phones were considered for the hardware quality. However, with customers becoming familiar with the software features other products offered and Motorola’s continued thrust on hardware with innovation in software not forthcoming, Motorola was left behind in the shift to 3G.15

To remain competitive in the marketplace, businesses must be cognizant of the sweeping changes in technology and gear up at the right time to back the right technologies that would define the future of the business. In the context of AI, several areas of manufacturing and allied services are getting impacted, and it would be useful to examine them to decipher how leading manufacturing companies are building strategies to enhance their operational efficiencies while delivering superior value to their customers and remaining competitive in the marketplace.