A revolution is defined as a forcible approach for advancement of existing results or introduction of new results. LINQ, for example, signified a revolution in programming languages. Cloud servers are a revolution when compared with on-premises servers. Smart watches could herald a revolution in health care. A decade ago, we never imagined measuring our blood pressure and heart rate without visiting a clinic. In this chapter, you’ll be introduced to today’s industry and how it evolves over the period. You’ll also learn about Internet of Things (IoT) and Industrial Internet of Things (IIoT).
An explanation of the historical approach to Industry 4.0
The building blocks of Industry 4.0 and how they are related to IoT
Benefits and challenges of Industry 4.0
Historical Perspective: Setting the Stage for IIoT
The four industrial revolutions
The First Industrial Revolution: Version 1.0
Humans have been manufacturing goods for and by themselves for ages. At first, they were mostly engaged in farming. Later they started exchanging farming products for other goods they needed. The first Industrial Revolution picked up in 1760. During this revolution, place, path, and pace all changed. The place changed from home in a village to a factory in town. The path changed from horse, walking, or boat to railroad or steamboats. Pace of production changed to mass production due to mechanization in factories. Here we started using machines. The first generation ran to the end of the eighteenth century, and then matured from Europe to the United States. In this period, factories were powered by steam and water and much focus was on manufacturing of textiles.
The Second Industrial Revolution: Version 2.0
The first Industrial Revolution ran for a century and then humankind saw another big shift. We called it the second Industrial Revolution. This time path and pace changed. The path changed to oil and gas. During this time the two big innovations were the introduction of electricity and aviation. Pace changed multifold due to communication advances like the telegraph. The introduction of steel helped in making engines and machines, and the introduction of chemicals helped in making dyes and fertilizers during this phase.
The Third Industrial Revolution: Version 3.0
Another century passed after the second Industrial Revolution and humankind saw another big shift, the third Industrial Revolution. This time again path and pace changed. The path moved to nuclear energy. Pace changed again multifold due to communication by transistor and microprocessor. This period of advancement considerably improved the efficiency of assembly lines. During this time, early computers were introduced with limited computing power and exceptionally large physical size. This laid the foundation for today’s computer systems. This revolution gave us an era of high-level automation in manufacturing. Due to information technology (IT) this revolution has also been called the digital revolution.
The Fourth Industrial Revolution (Industry 4.0): Version 4.0
We are currently in the fourth Industrial Revolution, an era of automation with advanced programmable logic controllers (PLCs) that started between 2011 and 2015. We are still using the same place (i.e., factories) and the same path (i.e., power source and communication systems) of the third Industrial Revolution, but this time industries moved more toward digitization, including new technologies like artificial intelligence, cloud computing, robotics, 3D printing, the IoT, and 5G wireless technologies. Although we didn’t change the power source, we actually added renewable power sources like solar farming and wind energy. These new power sources reduced the rate of carbon emissions, making the earth greener. Digitization led to a change in the pace, or production efficiency. Industry 4.0 started when industries started increasing automation, introducing smart machines and proactive monitoring.
IT systems were always collecting data. We were good at taking backups and storing huge amounts of data. Recent advancements, though, started converting these data into meaningful information and thus helped users make meaningful decisions.
The Internet connected humans, and was therefore known as the Internet of Humans (IoH). When devices like thermostats, light bulbs, fitness bands, microwaves, and doorbells were connected, it became known as the IoT. When sensors, instruments, and devices started interconnecting with the Internet to change, improve, or optimize industrial processes, this became known as the IIoT. Some people also call it the Internet of Industrial Things (IoIT).
The introduction of smart industries helped employees to focus more on customers and less on monitoring and processes. One key thing that helped in achieving this was sensors. Factories started using the IoT for example systems to monitor, analyze, and make decisions to improve working conditions. Throughout this book, you will be introduced to the different possible uses of IIoT and how IIoT is an industry-agnostic concept. Various countries promote different environments of research and standards for Industry 4.0. The United States has the Smart Manufacturing Leadership Coalition (SMLC), a nonprofit organization working to provide easy and affordable smart manufacturing platforms. Throughout this book, you will learn how every type of industry can and should take advantage of the IIoT to save operational costs, optimize productivity, and proactively detect failures.
Bonus Read
Do you realize it has been just about a decade we have been in the fourth Industrial Revolution, but we are already moving toward the fifth Industrial Revolution? There is a blurry line between Industry 4.0 and Industry 5.0. Most of the place (i.e., factories), path (i.e., power source), and technology remain the same, but pace will again be enhanced multifold in manufacturing and production systems. It is just a natural and obvious upgrade to Industry 4.0. The main thing that would change is the relationship between human and machine. The decision is now datacentric. There was always a line between where machine ends and where human takes over; we never worked together. In Industry 5.0, though, we work side by side. With Industry 4.0 nothing is impossible, but with Industry 5.0, technology will alter our behaviors and relationships, and become a more integral part of our physical and social spaces. For example, robotics, IoT, drones, AI, and machine learning will make most of the decisions: Genetically modified seeds reduce the use of pesticides in farming, autonomous vehicles will run on roads, avoiding accidents, and wearable devices will take care of health in real time.
Building Blocks
IIoT
Cloud technology
Data analytics
Security
Building blocks of Industry 4.0
Industrial Internet of Things
The first building block of Industry 4.0 is sensors and devices. Sensors are the hardware that detects and measures a physical property of some kind; for example, pressure sensors measure pressure on an object. Assume your machine is getting large amount of pressure from gas accumulating in pipes. What would happen when you don’t have a pressure sensor? Your machine breaks down, production stops, and a new pipe could take hours, if not days, to arrive. Are sensors new in the business? No. They have been available for some time, but we converted sensors and devices into smart sensors and smart devices in Industry 4.0. These smart sensors and smart devices are collectively referred to as Things.
These Things not only detect and measure a physical property, but record an infinite volume of data and store it on a network via an available communication channel like Wi-Fi, Internet, Bluetooth, and so on. With new emerging technologies, these Things can process these data using embedded intelligence and can react to it; for example, they might trigger some event and communication with other Things. Technically, these Things allow a wide variety of functions over the same or different communication channels.
Most of these sensors have been available for years, but mass production and availability have improved the affordability of such Things. With growing needs and high demand, we are developing new Things that are easy to use, and can also perform analysis, draw conclusions, and trigger action .
We will be talking about various type of sensors in the next chapter.
Cloud Technology
The next important building block of Industry 4.0 comes from the solution to where we store the infinite abundance of data generated from smart Things . We have created more data in the last two years than was created in thousands of years of human existence. The question is what we should do with it. How can we analyze and use it?
Data have always been a problem. For the first three generations of industry, the absence of data was a problem. Now, with Industry 4.0, the abundance of data is a problem. We realized this and developed devices and the infrastructure to store data in hard drives and developed the knowledge and skills to analyze these data. Sharing this huge amount of data was an issue, too. We also realized that and we moved to the cloud.
Cloud platforms are the future due to the introduction of new capabilities and technologies. It is very complex and not cost-effective to keep such a large data infrastructure in house. The performance of cloud technologies made it easy to share and mine these data.
Industry 4.0 has become a success because it is not reserved for large corporations. It can help any organization, from startups to medium-sized businesses, in addition to large corporations. The cloud made this emerging technology and infrastructure affordable to all types and sizes of organization.
Speed (i.e., reaction time) is another challenge with thousands of sensors and terabytes of data. Moving such a large volume with low latency can be achieved by the cloud. For example, streaming a video feed to detect a face in a crowd or find a tool on the floor requires sufficient processing power and speed .
In-depth discussion of data analysis and machine learning is outside the scope of this book. I highly recommend reading Machine Learning with Microsoft Technologies by Leila Etaati (Apress, 2nd ed. edition (November 27, 2019)), and The Decision Maker’s Handbook to Data Science by S. Kampakis (Apress, 1st ed. edition (June 13, 2019)).
Data Analytics
Industry 4.0 is supported by a third building block, data analytics . I remember my first database class in graduate school, when the professor asked what the difference is between data and information. Raw and unorganized facts are data. The knowledge you gain after processing those data are called information. Smart sensors and devices generate data, but not information.
It is true that it is important that we understand and learn how to analyze data, but it is equally true that we need to make conclusions and take action based on those data. Thus, Industry 4.0 needs a workforce who can analyze real-time data, make meaningful conclusions about the patterns and relationships, and finally provide the necessary actions to managers.
When you analyze data for predictive maintenance, it is called predictive analysis; for example, a temperature sensor shows that the temperature in a machine room is increasing. When you analyze data to find the root cause of an issue it is called diagnostic analysis; for example, analyzing a pressure sensor to find out why the shaft broke in a boiler. When you analyze existing data to predict the future, this is called prescriptive analysis. Industry 4.0 is based on prescriptive analysis. AI and machine learning are the most learned technologies in the last few years.
Maximizing profit and increased competitiveness are among the top goals of management. IoT helps in maximizing production efficiency and increasing productivity and better decision making via prescriptive analysis on the data.
Security
Threat to information
Threat to assets
Securing information means securing design documents, proprietary processes, intellectual property, financial documents, and client information. Securing assets means protecting the platform, equipment, and machines.
If the security of information is compromised, then a company’s competitive advantage is jeopardized. If the security of assets is compromised, then machine breakdowns, accident, or a total shutdown could happen. In today’s world, each device and network is a vulnerability. When sensors and devices are connected and communicating over a network about the environment and taking actions, they need to be secure.
Each company should choose vendors with security credentials and purchase hardware only after validating security. Also, IoT sensors and devices should be segregated from the main network. Security should be a shared responsibility between the IT team and managers.
Industry 4.0 poses potential dangers. Therefore, our goal is to have a security-first culture in every industry.
Benefits and Challenges
Increased productivity: Production lines can produce more and do it faster. Machines experience less downtime because of enhanced machine monitoring and real-time decision making.
Increased profitability: The mantra of increased profitability is simple: higher revenues and reduced costs. Industry 4.0 technologies enable organizations to produce higher quality with higher productivity.
Faster decision making: With feedback and data analysis, managers can make faster and more accurate decisions for managing existing products and in launching new products.
Increased competitiveness: With online inventory management solutions and tracing of real-time demand and supply, managers can better forecast demand.
Lack of in-house talent: Developing solutions using any new technology is complex and draws on many different types of skills and experiences. IoT is no different. The skills gap is perceived as a major challenge, especially because it requires all three critical skill sets: hardware expertise, device programming, and the derivation of useful information using AI and machine learning. There are, however, some proactive steps organizations can take, like training in-house employees, giving incentives to take on new challenges, and hiring part-time or contract employees.
Increasing operating expenditures: Full IoT project implementation could require hundreds of devices and sensors. For most large-scale environments, this number can grow into the thousands. Managers need to provide proof of value to show whether these IoT investments can either save costs or increase revenue and get the required executive approval. In most cases it is hard to get these answers due to lack of expertise and confidence among business executives and board members.
Lack of IT reliability: Information infrastructure includes information management systems, data communications networks, and storage and computation capacity. For an IoT solution to work, information infrastructure must have the high degree of connectivity, compatibility, and ease of use that already characterizes traditional physical infrastructure. Currently communication networks are a challenge in hard-to-reach areas like offshore oil rigs, electricity towers in mountains and forests, and ships sailing in deep oceans. Satellite communication can bridge some of these gaps, and 5G will help bridge the gap further.
Lack of IoT standards: In Chapter 2 you will learn about different type of protocols supported by IoT device manufacturers, cloud providers, and software development kits (SDKs). We also cover various communication media used by the heterogeneous family of connected Things. Due to a lack of standards, manufacturers and IoT solution providers are building solutions using unlimited possible combinations of these technologies. Some cheap products don’t follow all security guidelines and have serious security vulnerabilities, making them a threat. Many standardization organizations and government organizations are creating IoT standards and regulations to overcome this issue. Chapter 14 includes a list of current IoT standards and regulations.
Security concerns: Although I identify security as a challenge in all the industry-specific chapters in this book, I dedicate a full chapter to it. Chapter 14 provides a more detailed discussion of the problem and recommends solutions so that readers can access advanced security issues without having to make notes in each chapter separately.
Summary
This chapter provided theoretical information about the generations of industry, past and present. It discussed how industry has evolved and what it took to make the industry of the present, Industry 4.0. I pointed out several benefits of the current era that managers can leverage and challenges they must tackle.
This discussion sets the stage for the introduction of IoT, which managers hardly think of when talking about process improvement, increasing production, and optimizing cost and waste reduction. The next chapter discusses how IoT can be your partner at each stage to achieve this.