The Fourth Industrial Revolution, called 4IR or Industry 4.0, is named for the rapid change in technology, data connectivity, and smart automation that is driving improvement trends throughout the industrial world. Roughly starting in the early 2000s, companies have been implementing changes to improve productivity, efficiencies, and profitability by investing in digital technologies. Machine Learning, Industrial Internet of Things (IIoT), and decision-based software systems are becoming commonplace as costs come down and the need to stay competitive drives buying choices. Regardless of the industry type, companies are making strategic decisions on how best to apply digital technology to their day-to-day operations.
Research shows the primary focus for most digital transformation projects is on process improvements that enhance the customer experience, reduce energy usage, and minimize unplanned downtime. Beyond these main objectives, Industry 4.0 uses technology to help meet Environmental, Social, and Governance (ESG) sustainability by focusing on social development and environmental stewardship. Through these initiatives, companies are addressing not only how they do business now, but the way they will do business in the future. Many ESG digital investment decisions are driven by which aspect of sustainability nets the best results the fastest. Unlike the impact of manufacturing process changes, digitalization investments in ESG are about the long game.
The rewards from these efforts may not hit the bottom line immediately but they do go a long way towards shoring up interest from investors and meeting company sustainability goals. The commitment to a digital strategy gives companies the opportunity to use data connectivity and transparency in conjunction with technology to achieve all of their transformation objectives. All efforts are focused on finding the balance between the digital world while enhancing the human experience, profitability, and ESG sustainability. The urgency to act now and the speed of technological advances opens the potential for implementation pitfalls. Clear thinking and dedication to involving all the company stakeholders are critical before expecting any digital strategy to have the desired impact.Read more »
