Fourth Industrial Revolution

The Fourth Industrial Revolution is conceptualized as an upgrade to the Third Revolution and is characterized by a fusion of physical, digital, and biological technologies. Instead of prolonging the current revolution, it will mark a new stage-the impact of velocity, scope, and systems, and will lead to the transformation of entire production, management, and governance systems. In simple words, it is possible to suggest that the modern revolution is the emergence of cyber-physical structures that, while relying on the technologies and infrastructure of the Third Industrial Revolution, reflect completely new ways in which technology is incorporated into communities and even our human bodies.

• In Britain in the 18th century, the 1st Industrial Revolution used water and steam power to mechanized manufacturing, harness steam power and the birth of a modern factory.

• From the last 3rd of the 19th century to the outbreak of World War I, the 2nd Industrial Revolution was propelled by advances in energy, transportation, chemicals, steel, and mass production and consumption.

• Now the 4th Industrial Revolution, the digital revolution that has been taking place since the middle of the last century, is building on the 3rd. It is defined by a convergence of technologies between the physical, digital, and biological worlds that blur the boundaries.

 

 

There are three reasons why today's developments are not only a continuation of the 3rd Industrial Revolution, but rather the arrival of a 4th and distinct one: the effect of velocity, scale, and systems. There is no historical precedent for the pace of current breakthroughs. The 4th is progressing at an exponential rather than a linear rate as compared to previous industrial revolutions. Moreover, almost every industry in every country is threatened by it. And the scope and depth of these changes signify the conversion of entire manufacturing, management, and governance structures.

• The developments underpinning the 4th Industrial Revolution would have a huge effect on companies. Many industries are seeing the implementation of new innovations on the supply side, which enable radically new ways of servicing existing needs and dramatically disrupt existing value chains in the industry. The standard, velocity, or price at which value is delivered will be increased.

As growing openness, customer interaction, and new patterns of consumer behavior (increasingly built on access to mobile networks and data) push businesses to adapt the way they develop, sell, and deliver goods and services, this will also lead to significant changes on the demand side.

• It will allow the creation of technology-enabled networks that combine both demand and supply to challenge current sharing or demand-economy business structures. In the meantime, these technology networks can build completely new ways to access products and services. It will reduce the barriers to wealth development for corporations and individuals, altering the personal and professional environments of employees. The key impacts on business of the 4th Industrial Revolution are consumer preferences, product development, collective creativity, and organizational types.

• Increasingly, emerging technologies and channels will allow people to communicate with governments, express their views, organize their efforts, and even bypass public authorities' oversight. Nevertheless, governments will obtain new technical forces, based on pervasive surveillance systems and the ability to monitor digital technology, to expand their monitor over populations. They will, however, face growing pressure to change their existing approach to public engagement and policymaking.

• The Fourth Industrial Revolution would have a significant effect on the nature of national and international security, impacting both the likelihood of war and its nature. Technological developments can generate the ability to reduce the extent or effect of violence through, for example, the creation of new types of defence, or greater precision in targeting.

• Not only can the 4th Industrial Revolution affect what people do, but also who they are. Identity and all the issues associated with it will be affected: sense of privacy, conceptions of ownership, habits of use, the time people spend on work and leisure, and how they build jobs, develop skills, meet people, and cultivate relationships. Constant connection can deprive individuals of one of the most valuable assets of life: the opportunity for meaningful interaction to pause, reflect, and engage.

 

 

• FIR's World Economic Forum study concludes that it will have an unavoidable effect on work scenarios worldwide that will disrupt former, well-established firms, introduce sweeping changes to labour markets, and alter business models on the basis of new economic theories.

• The Fourth Industrial Revolution has the ability to increase the amount of global income and boost the quality of life of people across the globe.

• Technical progress would also lead to a supply-side miracle in the future, with long-term increases in productivity and quality.

• The cost of transportation and communication will decrease, logistics and global supply chains will become more competitive and trade costs will decrease, opening up new markets and driving economic growth.

 

As the spread of computers expands economies and disrupts labour markets, the revolution is likely to increase inequality in the world.

• The main social problem associated with the Fourth Industrial Revolution is inequality.

• Suppliers of intellectual and physical resources to innovators, shareholders and investors tend to be the largest beneficiaries of innovation, illustrating the growing wealth disparity between those who are dependent on capital versus labour.

• The net replacement of jobs by machines could worsen the difference between returns to capital and returns to labour as automation substitutes for labour across the entire economy.

• With this revolution, it is also possible that the crucial factor in development will be talent, rather than money, in the future.

This would lead to a labour market that is increasingly divided into low-skill / low-pay and high-skill / high-pay divisions, contributing to an rise in social tensions in turn.

• Not only can the Fourth Industrial Revolution affect what we do, but also who we are. It will influence our identity and all the related issues: our sense of privacy, our conceptions of ownership, our habits of consumption, the time we spend on work and leisure, and how we grow our jobs, grow our abilities, meet people, and maintain relationships.

 

• India offers potentially enormous market access.
• There is a very lucrative demographic dividend with Indian youth, accounting for approximately 20 % of the global workforce by 2020. India will play a crucial role in shaping the world's fourth industrial revolution in a responsible, scalable and inclusive way, with more than 50 percent of its population under the age of 27.
• The middle class is on the rise.
• Within two decades, India is expected to become the fifth largest consumer market. Within this context, any mode of consumption, entrepreneurship, start-up or industry can be seen as an opportunity to scale.

• Measures have already been taken by the subcontinent to become an e-government. The government has made attempts, for instance, to enrol its citizens in a national database. With 1.2 billion Indian citizens enrolled so far, Aadhaar is the world's biggest biometrics database.

• India also wants to become an AI centre, with the government recently announcing its National AI Program to support the growth of the country's AI-related technologies.

• India is also growing rapidly in the innovation ranks. The nation jumped up five spots on the Global Innovation Index last year, ranking 57th out of 125 nations. India was ranked first in the category of ICT service exports.

• India also has a large start-up scene, which, except for the US and the United Kingdom ( UK), is estimated to have more companies than anywhere else in the world.

• With one of the world's youngest labour forces, considerable technological skills, the second largest number of mobile internet users and the second largest English-speaking population, India is well placed in the post-fourth industrial revolution period to expand its global leadership.

• With the right accelerator combination-like regulatory mechanisms, ecosystems of education and government incentives. India is able to lead the fourth industrial revolution while improving the efficiency, equity and sustainability of its own growth and development performance at the same time.

o The enablers of updating India 's sustainable transition to the fourth industrial revolution include:

- Creation of an enabling ecosystem through incubators and accelerators to develop and scale innovations in ‘Future Now’ Cleantech sectors like clean energy, climate-smart agriculture, circular economy, green buildings and e-mobility is critical from the Indian context, to achieve transformative goals.

- Proactive initiatives and policies to build on the positive aspects of the new industrial revolution and preventing further widening of the inequality gap are necessary. The Government of India, through its unique initiatives like Digital India, Startup India and Make in India Initiative is bolstering the opportunities for industry 4.0 and green entrepreneurs.

- Participation of relevant ministries (like MoEFCC, MNRE) and Government-led coalitions (like International Solar Alliance) must be leveraged to champion this on-going movement.

- World Economic Forum, in partnership with the Government of India has set up the Center for the Fourth Industrial Revolution India to design and pilot practical tools for specific technologies. Such platforms and coalitions must be leveraged to assess the feasibility and scale innovative business models - Access to finance commensurate with maturity of the business model and beginning stage of the start-up lifecycle is extremely important to scale innovations. While Government-led initiatives like Start-Up Sangam will play a key role in crowding capital, private sector participation through grants, seed funding, equity capital and mainstream debt is necessary to scale innovations

-Corporations will play a key role in promoting this ongoing trend, leveraging the ART Model – Alliances, Relationships enabled through Technology.

-- India is currently at the height of the technological revolution and the transition to a prosperous and inclusive growth path will be accelerated by pioneering technologies, enabling policies and financial availability. Such innovations would contribute to the emergence of 'new-Gen' business models, characterised by DICE-Entrepreneurship driven by design , innovation and imagination to generate positive social , environmental and economic effects.