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Since the convergence of IT, OT and their backbones such as networks and infrastructure, whereby we can also add CT or communication technologies essentially boils down to an advanced and enhanced application of Internet, IT technologies and IT infrastructure impacted by IoT data cloud infrastructure, server infrastructure, storage and edge infrastructure etc. A first integration or convergence is that of information technology IT and operational technology OT. Cyber-physical systems form the basis of Industry 4. Remember that in the Industrie 4. In the view of the Boston Consulting Group we tackle their Industry 4. It only shows how relative revolutionary terms are as the three industrial Internet innovation waves respectively were:. Five years later, in , Dr. This too impacts the various systems employed in industrial markets and in the end is all about data and how, why and where it is used at the right time and right place for the right reasons to paraphrase the good old mantra of information management and business intelligence experts, with on top of course the good old DIKW model ; from data to knowledge with the additional layer of action: decisions. The economy is on the verge of the fourth industrial revolution. In the context of Industry 4. Cyber-physical systems create the capabilities needed for smart factories. Along with these other partners, including acatech, they still work on Industry 4. So, a third wave of innovation instead of a fourth revolution in the industry. It also looks at the impact on and role of society and workers e. Just as is the case with IoT deployments you need a strategic and staged approach. As industrial assets and critical infrastructure from critical power buildings to energy grids and more get connectedand attacks are on the rise in the traditionally rather isolated industrial environments the stakes and dangers of vulnerabilities and attacks are huge in industry 4. This is also what the Boston Consulting Group found in a December report: companies are implementing Industry 4. Kagermann, Dr. So, collaboration became obvious, even more so because both industry bodies were working on an architectural framework. The government expressed its intention to support the business and science community to develop and implement Industrie 4. After all; in the end, regardless of the different technologies and market context in manufacturing, digital transformation is a universal given in any industry whereby similar capabilities and outcomes are sought. So, what does it take to move to those next maturity stages?{/INSERTKEYS}{/PARAGRAPH} Where the Boston Consulting Groups says that the vast majority of respondents see Industry 4. So, Industry 4. Before diving into all the mentioned evolutions, integrations, cyber-physical evolutions, IoT elements, big data aspects and before looking at the origins of Industry 4. An additional element that is key to mention in this quick introductory overview is indeed that of semi-autonomous and autonomous decisions, cornerstones in both Industry and Logistics 4. The second is horizontal integration which is not about the hierarchical view of several systems as in vertical integration but about the mentioned end-to-end value chain: from supplier and the processes, information flows and IT systems in the product development and production stage to logistics, distribution and ultimately the customer. As you will discover in this guide Industry 4. More in the paper PDF opens and in our Industry 4. Wolf-Dieter Lukas from the Federal Ministry of Research and Education presented the results of the work of the advisory group across various domains, including Industrie 4. Vertical integration will make the traditional automation pyramid view disappear. In the rest of this page we look deeper at the mentioned elements and more. Yet, Industry 4. This overall security challenge and certainly the ICS security and end-to-end cybersecurity challenge ranks high among the Industry 4. These are the same capabilities we know from the Industrial Internet of Things like remote monitoring or track and trace, to mention two. All the technologies in Industry 4. The Industrial Internet, as we wrote previously a term coined by American industrial giant GE, looked pretty much like Industry 4. After all, we still do live in a globalized world, certainly in industrial production and related markets. They use modern control systems, have embedded software systems and dispose of an Internet address to connect and be addressed via IoT the Internet of Things. Without IT and OT convergence there is no industrial transformation, let alone modern building management and several other areas where the silos between different traditional systems dissapear due to, among others, IoT on one hand and where IT and OT meet on the other, which is the case in close to all industries. The future project Industrie 4. The first is vertical integration whereby all the systems in the traditional automation pyramid are affected: from field level and control level to production level, operations level and enterprise planning level. These latter capabilities also lead to the types of use cases and deployments as well as the benefits of industry 4. If you look at Industry 4. Plattform Industrie 4. The same goes for several systems and applications across these various levels. This more or less summarizes the key aspects, elements and evolutions in Industry 4. This is exactly the same phenomenon we see in any industry that is in digital transformation — or revolution if you prefer. Obviously not all definitions of Industry 4. In other words: MOST manufacturing and industrial companies there are plenty of exceptions and we mention several across this site are still in that stage where the intention to transform exists and isolated efforts exist but there is often a lack of a bigger picture, a broader strategy or, as the Boston Consulting Group calls it in the Industry 4. It directly touches upon what we cover next: Industry 4. The initial goals in Industry 4. This Industry 4. The new capabilities of Industry 4. On the other hand, the impact of ongoing automation in all organizations, including factories, has a clear impact on work and society. The document described the characteristics of the industrial production of the future as follows:. Industrie 4. Moreover, Industry 4. And what means readiness in this industrial context to begin with? To examine the priorities of the high-tech strategy and come up with innovation recommendations, a working advisory group for innovation policy was created. This situation is poised to remain like that for a while tough as, despite the increasing number of large IoT projects, the Internet of Things is more seen as strategic and tactical than transformational and internal goals are key. As a reminder the classic view of these four industrial revolutions, as Industry 4. If we take the above-mentioned German Plattform Industrie 4. Some are in the guide itself, others are added and for the time being linked to. The difference between Industry 4. It is important to note that Industry 4. You can perfectly compare this with the findings of IDC regarding the gradual evolution from Internet of Things pilot projects to more scalable deployments, whereby IDC found that the sought benefits of these deployments are mainly focused on internal goals and on operations. Yet, here as well it is argued that this is merely a result of the next steps in the third industrial revolution where automation already was intensive on many levels. To further develop it, Plattform Industrie 4. To understand Industry 4. Yet, as mentioned in the beginning of this article, Industry 4. This is exactly the same as with digital transformation strategy and gets covered in depth when we look at Industry 4. The business potential of the 4th industrial revolution lies not only in operational process optimization, but also in its services for a wide range of applications. With Industry 4. This global diffusion of the Industrie 4. The cyber-physical system, its components e. On an Industry 4. In essence, the technologies making Industry 4. The cyber-physical systems are the basis and enable new capabilities in areas such as product design, prototyping and development, remote control, services and diagnosis, condition monitoring, proactive and predictive maintenance , track and trace, structural health and systems health monitoring, planning, innovation capability, agility, real-time applications and more. It also addresses ecological and social challenges such as resource efficiency, environmental protection or urbanization. Most Industry 4. The goal is to enable autonomous decision-making processes, monitor assets and processes in real-time, and enable equally real-time connected value creation networks through early involvement of stakeholders, and vertical and horizontal integration. Given the internationalization of Industry 4. Most are closely tied to Industrie 4. Although Industry 4. In the end, it remains business — with the innovative twist of innovation and transformation of business models and processes: increase profit, decrease costs, enhance customer experience , optimize customer lifetime value and where possible customer loyalty , sell more, and innovate to grow and remain relevant. Several parties that were involved in Industry 4. The definition of Industrie 4. It is safe to say that Industry 4. In other words: what are the characteristics, principles, technological maturity levels, achieved and desired benefits and realizations and where do we start with Industry 4. Still, there are several hurdles to take before the Industry 4. Today the concept of four industrial revolutions, however, has gained widespread adoption and so has Industry 4. And in Industry 4. All revolutions and associations aside, the question is how far we are in Industry 4. At the very core Industry 4. If you are in a hurry, there is a chapter on Industry 4. The illustration below from the Boston Consulting Group shows some aspects of this broader ecosystem of possibilities, beyond the enhance productivity dimension. {PARAGRAPH}{INSERTKEYS}Industry 4. Are manufacturing companies fully ready?