“Industry 4.0 is a marketing term that is also used in science communication, and stands for a “future project” of the German Federal Government ” (Gabler Lexicon). However, this so-called fourth industrial revolution does not yet seem to have been fully understood.

That is why there is still restraint in German companies at the moment. As the Bitkom studysays: “Industry 4.0 has reached the economy, but companies are still reluctant to invest in innovative digital technologies for connected production and products.”

For this reason, this article is intended to examine and argue about the potential benefits of Industry 4.0. On the basis of these, the considerations for Industry 4.0 can be further mentioned. Now I’ll show you some selected benefits of Industry 4.0.

Reading tip: What is Industry 4.0

Transparency and communication

Thanks to the various interfaces and reports as well as the real-time notifications by RFID chips, among others, a higher transparency in the supply chain can be created. This also increases communication, as reports are sent automatically and employees can track production at other locations in real time.

Simplifying processes

New software and hardware can simplify processes. For example, an ERP tool makes ordering parts easier and easier to get forecasts and reports from a document management system.

Automated processes

You know this: processes are carried out manually over and over again. This can be tiring, cause mistakes and demotivate employees. By automating processes, this can be handled.

Good employees could also devote themselves to other tasks and improve production instead of just working in it. Automated processes can be used to increase employee satisfaction and efficiency.

Forecasts and Big Data

All these software tools produce data. Data that can be used to make predictions and predictions. On the basis of these, informed decisions can be made. These can also be used to initiate processes such as ordering new goods or alerting them for shipping.

Efficiency

Thanks to the added efficiency, the adherence to deadlines can be increased and with the help of the software tools, on the one hand, faster and more products can be produced and on the other hand customers can be satisfied. Keep in mind that you could show your customers a dashboard by tracking your parts live or by ordering them conveniently through an online store.

Business

New opportunities can be used to better respond to changing customer conditions. By partnering with startups and other manufacturers, new synergies and products can be created.

Other services such as a dashboard fee or the use of the live tracker to make the parts may also be charged. Own developments such as production utilization control can also be sold to other companies as a consultancy or service.

A final example is the opening of a manufacturer’s platform. On this basis, production companies can jointly develop and offer services and products digitally. The following applies to the customer: Everything in one place, anytime and anywhere!

New career opportunities

With the help of the new human-machine cooperation, man can serve as a monitor and manager in production and will also be challenged. Instead of monotonous operation of machines, creativity is required and continuous further training is required.

In this way, an employee can constantly develop and also help shape the IT landscape and digital processes. All this can keep employees in the company longer and especially attract skilled workers, especially in rural regions from the metropolises.

Tip: Book suggestions for Industry 4.0

Conclusion: Benefits of Industry 4.0

The advantages of Industry 4.0 are obvious, but there still seems to be a high degree of uncertainty and a shy ness against high investment costs in German companies. This text has highlighted cases that Industry 4.0 can bring.

In addition to increased efficiency and big data, employees can also be happier and offer new opportunities. Synergies between manufacturers and new business models are also conceivable.

I hope to be able to give a first thought with the articles and look forward to comments. But as always, these advantages also bring disadvantages, which should be taken into account. Therefore, read also the disadvantages of Industry 4.0.

industry 4.0 advantages disadvantages
Industry 4.0 – Advantages and disadvantages (own presentation)
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I blog about the impact of digitalization on our working environment. For this purpose, I present content from science in a practical way and show helpful tips from my everyday work. I am a manager in an SME myself and I wrote my doctoral thesis at the University of Erlangen-Nuremberg at the chair of IT Management.

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