Thanks to Industry 4.0 we are about to enter the so-called fourth industrial revolution. In fact, it is probably more accurate to say that we are already living it. In fact, the revolution based on digitally based changes in production methods has already begun, as the first time the term "Industry 4.0" was used was in 2011, during a trade fair on industrial technologies in Hannover, Germany. The concept has since been cleared through government working groups in subsequent years. In fact, Germany is now, not surprisingly, a country at the forefront of both digital industrialization processes and the facilitation of startups at the fiscal level.
The Fourth Industrial Revolution
To understand why we talk about Industry 4.0, or the fourth industrial revolution, let's do a little history review:
- The first industrial revolution begins in 1784 with the birth of steam engines. It is based on harnessing water and steam to mechanize production;
- The second industrial revolution, on the other hand, begins in 1870 with the beginning of mass production. Exploited this time is the increasing use of electricity, alongside oil as an energy source and the advent of the internal combustion engine;
- the third industrial revolution came in 1970 with the birth of information technology, which enabled increased production through automation given by electronic systems and IT (Information Technology).
As we have said before, the fourth industrial revolution is what we are living through, and it will probably be up to posterity to define the exact timing of something that is now still in the making. It is the revolution that will lead to automated and interconnected industrial production. A technological mix of automation, information, connection, and programming that comes directly from the "digital transformation" that has been sweeping industry in recent years. Through the use of digital technology it will indeed change the way of working but also the nature of organizations.
The elements of Industry 4.0
There are 4 fundamental elements on which the 4.0 revolution is based:
- The use of data. It is in fact around them that the computing power of machines moves: data then is used as a tool to create value. Related to the use of data are the concepts of big data, open data, Internet of Things, and even cloud computing for centralizing and storing information.
- Once the data is collected, it has to be examined through what are called analytics, to understand how value can, from it, be derived. This sets in motion what is called "machine learning": machines figure out how to improve through data collection and analysis.
- Human-machineinteraction, ranging from simple touch to examples of augmented reality.
- The transition between digital and real, that is, how to make this collected and analyzed data true "manufacturing." Classic examples include 3D printing, robotics, machine-to-machine communication, and new technologies that purposefully store data in order to rationalize costs and optimize performance.
The impact of Industry 4.0 on the labor market
Words like "automation" or "robotization" always generate some fear. One worries that employment may be adversely affected: in short, one is frightened by the risk that machines may completely replace humans in production. Undoubtedly the labor market will undergo a radical transformation, but it is estimated that "an estimated 10 percent of workers are at risk of being replaced by robots, while 44 percent will have to change their skills" (from an analysis in Sole24).
Some professions therefore may indeed disappear, especially in administrative and production areas. But this loss will be partially compensated for by the emergence of new professions and thus new jobs, related to the areas of finance, management, information technology, and engineering. Thus, it is not exclusively a matter of losing jobs because they are replaced by robots, but rather a transformation of the jobs to be performed, accompanied by an updating of knowledge. As a result, the skills required are changing: alongside the very important skill of problem solving, creativity and critical thinking will also be increasingly sought after. This is a process in the making, but one that already sees, within the labor market, a rising demand for the figures of digital business analysts, cybersecurity experts, software engineers, but above all developers, capable of transforming existing companies into companies ready for the standards of Industry 4.0.