Emerging Technologies’ Impact on Business and Social Life

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Table of Contents

Executive Summary
Research Proposal
Purpose Statement
Main Aims, Hypotheses, Variables and Themes
Recipients for the Research
Suitability of Researcher for the Research
Literature Review
Research Methodology
References

Executive Summary

The fourth industrial revolution has come at a time when companies are under immense pressure to manage stiff competition and highly demanding customers. The use of digital technologies, such as robotics, artificial intelligence, cloud computing, 5G and sophisticated sensors is steadily becoming common as manufacturers and other industries continue to replace human capital with machines. These smart technologies make it possible for large manufacturers to collect data, generate intelligence and use it to; manufacture customer-tailed products without any major human intervention, provide digital banking personalized services, smart grid monitoring in the power transition, digital oil fields, smart and safe cities, robotics in surgical operations and many other intelligent applications. This study seeks to investigate the relevance of these emerging technologies in the different industries and the impact of that on our social lives, economy, safety and happiness. Assessing the pros and cons of the new technology makes it possible for the relevant stakeholders to understand the right path that should be taken as they continue to embrace emerging technologies and go through the industry 4.0 journey.

Research Proposal

The industrial revolution had a major impact on the manufacturing sector when machines were introduced in the production process. The fourth industrial revolution, often referred to as Industry 4.0 is meant to transform the sector even further. Anthopoulos (2019) defines Industry 4.0 as the application of “a combination of innovations in digital technologies, especially advancements such as robotics and artificial intelligence, sophisticated sensors, cloud computing, the Internet of Things (IoT), and compliance with smartphones” in the field of manufacturing. When machines were introduced in the manufacturing sector, it became possible to standardize products, improve efficiency and quality, and reduce the overall cost of production. Industry 4.0 goes a step further to introduce some of the newest technologies such as robots, cloud computing, 5G and artificial intelligence in many sectors including the production sector. As Aigbavboa and Thwala, W. (2020) note, it is creating an environment where machines can understand the demand in the market, determine the quality and quantity of products needed, then undertake the production without any direct human input. The use of new smart technology in manufacturing is efficient and cheaper than the current applications that rely on traditional production.

Some stakeholders may resist the application of Industry 4.0 in the manufacturing sector based on the concerns raised above, initial cost, complication, skilled resources, decline of employment, cybersecurity and lack of clear regulations for the data protection and privacy. However, Anthopoulos (2019) observes that digital transformation in the industrial sector remains crucial in lowering the cost of production, improving efficiency, and producing high-quality products. Firms cannot continue ignoring its significance. However, some of the concerns identified above may affect its application. It is necessary to find ways of addressing these concerns to ensure that it receives universal acceptance. All the stakeholders should understand the significance of this new technology in the production sector and the potential abundance it can bring to the current and future generations. In this study, the researcher seeks to determine the impact of industry 4.0 in the current highly competitive business environment.

Purpose Statement

Technology has continued to revolutionize all the industries over the recent past. Anthopoulos (2019) explains that in a highly competitive environment and in a market where tastes and preferences of customers continue to evolve, firms are under pressure to remain innovative. They are forced to develop new products, production methods and services that will ensure that their business remains sustainable. Industry 4.0 has emerged as the new frontier in the industrial revolution. The emergence of intelligent systems that facilitates self-monitoring, self-driving and self-decision making based on data obtained from the internet of things has made it easy for firms to shift from traditional methods of production and services to a new one where precision is always achieved. Large corporations are embracing industry 4.0 because of its numerous benefits. Aigbavboa and Thwala (2020) observe that besides precision production, the new concept also reduces costs, eliminates wastes, improves quality, and ensures that customers’ needs are met effectively. The following is the primary research question that should be answered through this research project:

Will industry 4.0 transform the way we live and bring abundance?

Main Aims, Hypotheses, Variables and Themes

The use of technology in the manufacturing and other sectors is an area of research that has attracted the attention of scholars for decades. Anthopoulos (2019) notes that it is always critical to define a specific aim that one seeks to achieve in an investigation. It makes it possible to define the type of data that should be collected from the field. This study aims to investigate the impact of digital transformation, specifically focusing on Industry 4.0, in the way we do business, live and the value it brings to us. The study will assess the possible applications of industry 4.0 in different areas of our business and life, both benefits and challenges of its application to determine the need for such applications. The cost-benefit analysis will make it possible for stakeholders to understand why it is essential to embrace Industry 4.0 in their business. In this qualitative and quantitative research, various themes and hypotheses will be discussed to achieve this aim. The following are the main hypotheses and themes that will form the basis of the analysis:

Hypotheses:

H1o. Industry 4.0 is not the solution to create abundance and meet the growing demand for food, gods, precision and security.
H1a. Industry 4.0 is the solution to create abundance and meet the growing demand for food, gods, precision and security.
H2o. Political-Socio-cultural- economic practices and beliefs don’t have a direct impact on the ability to embrace IR4.0.
H2a. Political-Socio-cultural- economic practices and beliefs have a direct impact on the ability to embrace IR4.0.

Themes:

The current rate of application of Industry 4.0 among various firms around the world.
Benefits that these firms enjoy when using the industry4.0 applications.
Challenges associated with the application of Industry 4.0 in the different sectors.

Each of these themes will be supported by patterns based on the information obtained from the participants. As Anthopoulos (2019) observes, proponents of Industry 4.0 have outlined numerous benefits of this technological transformation and why firms need to embrace it. On the other hand, some have criticized its application, believing that these machines should not operate autonomously because they may have various negative impacts. Those who have had the opportunity to operate in an environment where this technology is used are in a better position to provide reliable information about it.

Recipients for the Research

The findings from this study will be essential can be used by different stakeholders in the government and the private sector from other parts of the world. In particular, the government can find the outcomes of this study essential in making policies that align the country with the need to meet the global manufacturing and commercial trends, which can make the country successful in digitizing its systems. This research’s findings can also help different public and private businesses adopt digital technologies to increase their productivity, lower operational costs, and enhance their return on investments. Furthermore, the current study will also help in filling the literature gap on how Industry 4.0 will transform how people live in the near future.

Suitability of Researcher for the Research

The study of the impact of Industry 4.0 is essential in the present ages and requires in-depth understanding based on the knowledge of scholars and experience from the industry. The researcher in this proposed research is an Industry 4.0 expert with years of experience in the field. The researcher has a rich background, having studied and been involved in engineering, ICT, consulting, and systems integration fields. As the regional managing director and SVP of a global ICT organization dealing mainly with IR4.0 technologies, the researcher has accumulated the advanced knowledge necessary for providing great insights on the concept of Industry 4.0. Moreover, the researcher leads the business of billions of dollars and thousands of people in the area of ICT and IR4.0, which makes the researcher fit to conduct the proposed study and give recommendations.

Literature Review

The fourth industrial revolution, also referred to as Industry four, Industry 4.0, IR4.0, or I4, comprises technologies that span mobile and cloud computing. It has undergone tremendous changes over the last decade since its first inception in Germany (Feng, Zhang, & Zhou, 2018). The transformation in IR4.0 over the years has made it ready to be utilized in various industrial needs, such as in manufacturing through interconnected systems that enhance commercial activities. It works better by harnessing the need to access, analyze, and process real-time data, thus providing results that catapult the industry into untapped lean achievement levels (Santos et al., 2017). Therefore, IR4.0 can help the industry grow in multiple ways, depending on the area of application and the various technologies used.

Five Pillars of Industry 4.0

Industrial 4.0 is not a simple idea that can be understood and used without understanding its principles. For instance, IR4.0 covers multiple technologies and can be used in various contexts. According to Xu and Duan (2019), five pieces are defining the core of Industry 4.0, which include big data, smart factories, cyber-physical systems, the Internet of things (IoT), and interoperability. Xu and Duan (2019) further note that the five pieces are identical though they can be integrated to create capabilities that have never been possible in the industries. Therefore, it is essential to understand these backbones of Industry 4.0 to understand its impacts in the various industrial sectors.

One of the drivers of Industry 4.0 is the use of big data to generate usable contextual intelligence. According to Santos et al. (2017), big data refers to collecting data from various sources, including traditional and digital sources, available within or external to a given company, representing a source for analysis or discovery that is in progress. Data has always been available, though the collection and processing of the needed information have been challenging. However, with the current interconnected systems, sensors, and mobile devices, it is easier to collect, analyze, and process data for a particular use. Xu and Duan (2019) posit that even though data is readily available for collection and processing, Industry 4.0 has not found the best way to interpret the actual meaning of such data. This reveals that one aspect of the data remains for big data to become usable for industrial development. According to Damgrave and Lutters (2020), since Industry 4.0 is still in development, it will change how different organizations work together to ensure that data is continuously processed, making it easier for different teams to make better and smarter choices regarding their activities.

One of the main debates in recent years is the rate at which machines replace human capital in different production sites. This is the concept called Smart Factory, which involves the interconnection of specific production steps from the initial planning stage to the last point of sales (Shi et al., 2020). The trend in the industry indicates that in the near future, both machines and equipment will enhance processes in the factories through self-optimization and align the work to the traffic and network environment (Shi et al., 2020). According to Liaqat (2019), the Autonomous Mobile Robots (AMRs) are critical elements of Smart Factory since the intelligence they gather enables the plant to connect all the relevant processes, thus resulting in seamless operations. Siemens Electronic Works is one of Germany’s leading factories utilizing the Smart Factory concept, enabling its machines to coordinate the production and distribution of built-to-order products, which involve 1.6 billion components globally (Tarasov & Popov, 2018). The advantages realized in plants using Smart Factory will compel other markets such as consumer goods and healthcare to utilize Industry 4.0 technologies to achieve more significant outcomes.

Another area that has seen the adoption of Industry 4.0 is the control of various industrial processes through cyber-physical systems. According to Xu and Duan (2019), cyber-physical systems involve physical, network, and computational interactions. In this case, using feedback loops, computers, and network systems are used to check and control different physical processes. As Kuo, Hsu, Li, and Chao (2021) reveal, given feedback causes the physical system to react in a given way relative to the feedback received, causing the software used in the loop to interpret the output, initiate measures, and track results. The concept lies in the use of computers and software embedded within the devices, thus enabling a feedback loop and a corrective action, hence achieving machine learning.

The interconnectivity of various industrial processes is possible due to the compatibility in multiple devices, thus giving rise to the Internet of things (IoT). Device compatibility results in the connection of different devices through the Internet, making it possible to control, read, and interpret information from the connected machines. According to Zhang and Chen (2020), IoT is made from the concept of cloud computing and data-gathering networks, hence making it a virtual, instantaneous, and mobile connection. The interconnection of devices through the Internet enables smart factories to optimize space and process from different parts of the world, making it easier to manufacture other products from equipment made from various locations. Moreover, this interconnection is essential in understanding how to track the movement of particular equipment or product and its status report, thus enabling ease of learning and efficiency in work.

Interoperability is another concept associated with Industry 4.0 and involves combining the factors mentioned above. It consists in connecting humans, cyber-physical systems, and smart factories so that the three can communicate with each other through IoT. According to Lelli (2019), this interconnection enables companies to share relevant data with their partners quickly. Since no single organization can dictate its partners on using specific software or confirm to some given standards, interoperability allows error-free data transfer and translation so that the recipients can receive the initially sent information. This advantage is seen in manufacturing processes where 3D printing is used, resulting in efficient, accurate, and reliable operations.

The Rate of Adoption of Industry 4.0

Industry 4.0 is the current norm in most factories around the world, using in both manufacturing and commercial businesses. Consequently, there has been a steady rise in the adoption of the current industrial revolution. According to Grzyb (2019), the worldwide estimate of the market size of Industry 4.0 was 101.69 billion US dollars, according to the 2020 report. When the COVID-19 pandemic hit the world, most of the industries and economies were affected. However, this resulted in the rising of various Industry 4.0 solutions in different parts of the world. According to the analysis by Grzyb (2019), IR4.0 grew by 14.5% in 2020 with respect to the year-on-year growth witnessed from 2017 to 2019. The analysis projected that Industry 4.0 market was expected to grow to 116.14 billion dollars in 2021. However, the projection also revealed that the IR4.0 market would reach 337.10 billion dollars in 2028, representing a compound annual growth rate (CAGR) of 16.4% within the same period (Nick & Pongrácz, 2016). The report further indicates that the steady increase in the CAGR results from the growth and demand in the market, which will be witnessed after the COVID-19 pandemic.

The last years have been associated with an increase in Internet penetration and digitization of processes as a result of the industrial focus on the need for efficiency and reduced cost of production. This has consequently boosted the growth of the Industry 4.0 market in different parts of the world. Since operations are being automated and digital technologies are taking over the industry, there is an excellent opportunity to grow industrial value chain disruption. IR4.0 enables companies to improve their efficiencies, reduce production costs, increase output, customize goods and services, and create new business and revenue models.

Industry 4.0 market is experiencing significant growth due to digital technologies, including IoT, AI, 3D printing, augmented reality, blockchain, and virtual reality, which are disrupting various value chain elements. For example, manufacturing, supply chain, and customer experience processes are currently the function of digital technologies. Moreover, Industry 4.0 has grown and continues to grow due to the various government support, initiatives, and policies, to align their respective economies with the global production trends.

Merits of Industry 4.0

The fourth industrial revolution has been possible due to improved performance and the availability of supporting technologies. The rise of Internet adoption has been the force behind digitization and systems optimization. In particular, the Internet has made it possible for organizations or systems to be connected remotely, making it easier to operate a given operation from different locations at the same time. Companies invest millions of dollars into these technologies due to the advantages that result from digital technologies.

One of the main benefits of IR4.0 is productivity improvement. These technologies enable companies to realize more significant production of goods and services with fewer resources than before. This makes it possible for manufacturers to work faster, hence allocate the company resources more cost-effectively and efficiently. In addition, the production line undergoes less downtime due to improved machine monitoring and automation of machines. The automation of machines and the production process results in improved efficiency in different areas of the company’s production. One of the main areas associated with improved efficiency is batch changeover and automated reporting and tracking processes. Moreover, the companies that have adopted IR4.0 reveal that new product introduction has been efficient due to ease in the decision-making.

Industry 4.0 also increases avenues for sharing knowledge and working with different teams. Unlike the traditional firms that operated in silos, digitization of technologies enables factories to align different production lines, departments, and various company processes to communicate effectively regardless of the barriers resulting from differences in location, time zones, and platforms. This happens automatically so that the company resources are rescheduled for other more critical areas of production. Moreover, this makes it possible to reduce the human intervention in areas where machines can do the work due to the feedback received from one point of the production line. To a greater extent, this can be seen as a factor of flexibility and agility, which help the manufacturing process to scale production depending on the demand.

Industry 4.0 also enhances compliance in the production line as it ensures that every detail of the process adheres to the standards required by the regulators. Some industries such as medical device and pharmaceutical manufacturing are subjected to tough regulations, hence may not require manual processes, which are subjected to errors. IR4.0 enables a manufacturing business to automate the various compliance requirements by ensuring quality inspection, tracking the products, serialization of finished goods, and data logging, which provides a steady flow and detailed processes. This results in reduced cost of operation through better resource utilization, faster manufacturing, reduced machine downtime, reduced instances of product quality issues, and minimized operating costs.

The benefits mentioned above collectively result in a better customer experience with the company. The automated tracking and tracing capabilities of IR4.0 enable the business to improve its service to the customers, thereby increasing their satisfaction and experience through faster problem-solving. Moreover, there will be few instances of product quality and unavailability but more excellent opportunities for improvement and customization of the goods and services to meet customer needs. The feedback received from the customers provides insights for innovation and inspiration to create new and better processes. Eventually, a happy client means a consistent and loyal buyer, who can also act as a point of advertisement to potential customers. This results in higher revenues for the company, allowing it to invest more in its production line. It is critical to note that the business profits from a collective method resulting from the digitization of technologies, but more so, from the reduced cost of staffing. Therefore, it is crucial to invest as much as necessary in the technologies to regain a better return on investment.

The Impact of Political, Social, Cultural, and Economic Practices and Beliefs in Adopting Industry 4.0

Since Industry 4.0 is still a new concept, numerous issues surround it, from political, social, cultural, and economic practices and beliefs in different parts of the world. As a new concept, not many scholars have delved deeper into each of these concepts, though international conferences have been held to discuss the modalities of safely adopting the digitization of technologies in different areas. Consequently, there is still no unanimous direction regarding how different parts of the world perceive industry 4.0, except the important principles that can be adopted from understanding the dynamics of new phenomena.

Disruption is necessary for any evolving system and can be partial or total in nature. In most cases, problems that face the adoption of Industry four in the political, social, cultural, and economic perspectives are the forces against changes in the systems that have been in place for a long time. The current disruption affecting the global manufacturing and commercial settings has directly resulted from Industry 4.0. This change in the way processes is done resulted in the desire to meet consumers’ needs and address emerging issues. However, different countries and communities are still struggling to adopt the current digital technologies fully. For instance, the gap between developed nations and developing ones is large, making it impossible to fully embrace the present digital systems and effectively run processes in different parts of the world. Various governments of developing countries understand the importance of adopting these technologies but at the same time worry about their negative consequences. For instance, the use of digital technologies results mainly in the replacement of people with robots.

The decisions governments make directly affect the people of that country. In this case, some countries find it more challenging to replace the human factor with machines as there are no alternative sources of income. The existing high unemployment rates in most countries have been a social issue that most of the affected countries have dealt with over the years. For instance, the jobless youths have resorted to drug use and crimes, which eventually have affected the future of such countries. According to Ciffolilli and Muscio (2018), most governments have played a critical role in embracing such technologies for the benefit of their citizens. However, this has also come with severe consequences since countries adopting the concepts of Industry 4.0 are making significant economic improvements. Therefore, there is a dilemma in the adoption of these technologies and to need to keep people working.

Some other social and cultural practices and beliefs have affected how different parts of the world view digitization of processes. For instance, some people believe that working with machines rather than hand is against work principles and can be perceived as a show of weakness. Such beliefs are outdated and can compromise the necessary steps in the right direction of improving efficiency. This can be understood from the historical perspective that each industrial revolution has been associated with the desire to ease work and enhance production. Therefore, the countries that have embraced the current industrial revolution have also significantly benefitted from adopting the current technologies. However, in most cases, disruptions and new concepts have been affected by misconceptions about some elements. For instance, there have myths regarding the effects of 5G, which can affect the ease of penetration of the technology Webb (2018). However, according to Webb (2018), 5G technology is safe and should be adopted to enhance the full adoption of Industry 4.0. The understanding of concepts and the technologies behind them can help discredit such myths and help embrace the benefits of new disruptions.

The essence of embracing new technology and adopting the current industrial revolution is to have economic benefits to the users, the countries, and the entire globe. According to Aquilani, Piccarozzi, Abbate, and Codini (2020), the competition realized between countries result from the way they do business, their educations, and the value associated with the citizens, all of which focus on the creativity among the people and innovation in the industrial process. Cordova and Celone (2019) indicate that the parameters associated with the creativity and innovation of a country’s citizens result from the analysis of the bank research. Cordova and Celone (2019) further opine that the developed countries are determined by their various allocations, such as having 10% in natural resources, 20% in technology, 25% in networking, and 45% in creativity and innovation. This shows that a country can develop primarily by becoming innovative in using its available resources.

Summary of the Chapter

Industry 4.0 is still a new concept though different countries are making significant achievements by embracing it. This happens as s result of their understanding of the five critical pillars of Industry 4.0, which include big data, smart factory, cyber-physical systems, internet of things (IoT), and interoperability. The adoption rate of various digital technologies is high throughout the world, and the market is continuously increasing and is projected to hit over 330 billion dollars in 2028. This shows the need for countries to invest heavily in this fourth industrial revolution. It has several benefits such as more outstanding production of goods and services, improved efficiency, increased avenues for knowledge sharing and working with different teams, and reduced human intervention where machines can do the work. Industry 4.0 is also beneficial is it results in the company’s flexibility and agility, enhanced compliance, reduced cost of operation, better customer experience, and improved and customized goods and services meeting customer needs. Industry 4.0 impacts political, social, cultural, and economic aspects in different ways depending on a given country developmental state.

Research Methodology

Research Design

When planning to conduct research, it is essential to define the design that would be appropriate for processing primary and secondary data. Aigbavboa and Thwala (2020) suggest that it is essential to start by defining the appropriate philosophy that will define the assumptions made in the study. A researcher can use positivism, pragmatism, realism, and interpretivism. The choice of the philosophy depends on the aim that one seeks to achieve in an investigation. The selected philosophy should embrace assumptions that would make it possible to achieve research objectives. Interpretivism would be the most appropriate philosophy that will make it possible to investigate specific phenomena related to the application of this technology. The researcher believes that the view that individuals hold about Industry 4.0 is based on their personal experiences or information they obtained from trusted sources. The study will use inductive reasoning to develop new knowledge about the impact of smart technologies in different sectors. The investigation will focus on allowing them to explain their views in detail, both objectively and based on their personal feelings. The researcher intends to use qualitative and quantitative research methods to answer the research question and achieve the aim. The researcher will also use deductive methods, which start with developing hypotheses that have to be confirmed or rejected through statistical primary data analysis.

Sample

Sampling is essential when conducting research, especially when the targeted population is large. The researcher intends to gather data from individuals who have worked at companies where Industry 4.0 has been applied. The researcher will also gather data from experts in Industry 4.0 who are trying to promote its application. Stratified sampling method will be used to help classify participants. The researcher will gain access to these participants through their companies. They will be contacted through phone calls and emails. A sample of 100 participants will be sufficient for the investigation.

Data Collection

The researcher intends to use a questionnaire to collect data from the sampled participants. The researcher will develop structured questions that can be coded and analyzed mathematically. This tool will be emailed to the participants with clear instructions on how to answer each question. They will be expected to fill the questionnaires within two weeks. They will then email back the document to the researcher to facilitate the analysis.

Data Analysis

Once the filled questionnaires are obtained from the sampled participants, the next phase will be the analysis process. As mentioned above, the researcher intends to use qualitative and quantitative methods to process the data. Information obtained from the participants will be used to identify patterns that come out from the investigation. These patterns will then be classified to identify themes based on the research aim.

Ethical Consideration

It is always necessary and practical for each research to adhere to research ethics. According to Resnik (2018), this ensures that both the stakeholders such as the university sponsoring the researcher, the participants of the study, and the intended consumers of the research findings can have confidence in the data collected from the survey conducted. Conducting research that follows ethical provisions also ensures that the participants’ information is kept securely and privately. In the proposed study, the researcher will implement all ethical principles, such as ensuring that any data collected will be securely kept to avoiding any possible instance of data corruption. In addition, the proposed research will be sent for reviews by peers and the university department in charge of research (IRB) to ensure that every aspect of the study and ethical research standards are considered and utilized effectively. Moreover, the researcher intends to conduct the study by following every step, such as seeking guidance and permission from authorities and consent from the participants of the research.

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