Industry 4.0 vs 3.0: Key Differences & Advantages
Industry 3.0 vs. Industry 4.0
Industry 3.0
- Automation is key: Factories use machines controlled by computers, but people still make most of the decisions.
- Humans manually planned based on past experiences, aiming to optimize production through methodologies like lean manufacturing.
- IT systems are closed and focused on production, without connections to other parts of the company.
- Focuses on mass production.
- Objective: to save money.
Industry 4.0
- Interconnectivity is key: Machines, devices, and systems are connected, sharing real-time information to work together.
- Systems analyze data and adjust production in real-time based on current data (without humans, this creates smart manufacturing).
- Technology (e.g., IoT) connects not just the production line but also marketing, finance, and other parts of the company. (work together.)
- Makes it easier to customize products due to its flexibility and capacity to adapt.
- Interconnectivity enables the creation of new revenue streams and business models based on additional services (e.g., digital support).
Collaborative Economy
A collaborative economy is a marketplace where individuals exchange goods and services through various methods like giving, borrowing, trading, renting, and sharing for a fee. These transactions typically occur between someone who possesses a resource and someone who needs it, often through online platforms. This allows for more direct peer-to-peer interactions, eliminating intermediaries.
The Concept of “Ba”: Shared Spaces for Collaboration
“Ba” creates spaces for this collaboration between the Public Sector, Academics, Businesses, and Users:
- Future Center: A place where companies, local governments, and educational institutions come together to brainstorm new ideas. Example: Philips working with universities and cities to design new medical devices.
- Innovation Center: A space where businesses work with experts to turn these ideas into real products. Example: Philips teaming up with doctors to improve healthcare tools.
- Living Lab: A real-world testing area where these products are tried out and improved. Example: Testing Philips’ medical devices with patients in hospitals.
What is Intellectual Capital (IC)?
IC is the combined knowledge, skills, and assets of a company that help it innovate, improve efficiency, and gain a competitive edge. Though it’s not easily visible or measurable, it plays a key role in an organization’s success.
- Human Capital: The knowledge, skills, and expertise of employees.
- Structural Capital (non-human): The internal processes, patents, databases, company culture, and branding that support the business.
- Relational Capital: Relationships with customers, suppliers, partners, and competitors.
Digital Disruption
Digital Disruption refers to the changes that happen when new digital technologies affect the value proposition of existing products and services. This creates changes in the competitive environment that can weaken the position of established companies and create new competition.
Key Aspects of Digital Disruption:
- New Technologies like SMACIT (Social, Mobile, Analytics, Cloud, and Internet of Things) are causing major changes in industries.
- Disruption leads to New Business Models that change traditional ways of delivering value.
- Enhances customer expectations for personalized, convenient, and immediate services.
- Threats and Opportunities: While it can harm traditional businesses, digital disruption also gives them a chance to adapt and grow. Companies need to think about the best strategies to deal with the Threats & Opportunities and how to execute them effectively.
Two Types of Digital Strategies
- Customer Engagement Strategy: Focuses on building strong, personalized relationships with customers through meaningful interactions across all platforms. The goal is to increase customer loyalty and satisfaction.
- Digitized Solutions Strategy: Transforms traditional products/services by integrating digital technology (like automation or real-time data), turning them into connected, smarter solutions that provide ongoing value.