A report to be launched by multinational service providers PWC today warns that Australia risks being left behind in a “fourth industrial revolution†in which entire supply chains are to be automated, linked, and able to learn from each other.
The term ‘Industry 4.0’ is becoming increasingly accepted as the name for this fourth industrial revolution. (Other related terms include the ‘Industrial Internet’ or the ‘Digital Factory’). While Industry 3.0 focused on the automation of single machines and processes, Industry 4.0 focuses on the end-to-end digitisation of all physical assets and integration into digital ecosystems with value chain partners.
Industry 4.0 digitises and integrates processes vertically across entire organisations, from product development and purchasing, through manufacturing, logistics and services. Thus, it must be acknowledged and assimilated not only by manufacturers, but also by importers, exporters and transport service providers.
In media reports today, one industry leader described the consequences of Industry 4.0 as being “profoundâ€, warning that Australia needs to act quickly to capture its share of the potential. Commentators are keen to point out that the transformation need not lead to job losses, although occupations would change and workers may need to be retrained. The message is that Australian businesses must spend more on technology if they are to stay afloat on the wave of this fourth industrial revolution as it sweeps the world. The rewards will be worth it: experts say Industry 4.0 will add $21 trillion to the global economy by 2030.
To read more about the adoption of industry 4.0 initiatives in Australia, a PDF document called report on Industry 4.0 from an Australian Perspective may be useful.
