You might have heard about Industry 4.0. This is the term used to describe the times we live in at this very moment. It refers to yet another stage of the industrial revolution.
Industry 4.0 brings us brand-new revenue streams and some challenges to deal with.
To avoid confusing Industry 4.0 with Business 4.0, let’s start this article with a quick understanding of both terms. You may be familiar with more 4.0 terms, too, like globalization 4.0, which is a topic we’ll cover in another article.
If we were to pick just two words to synthesize the meaning of Industry 4.0, automation would be the first choice and Internet the second.
It’s Industry 4.0 that’s changing the way companies go about their business, including creating new and improving existing products, manufacturing, and distribution. Plus, it doesn’t stop there, as other business areas benefit from digital transformation.
Digital technologies for new business models
The digital transformation era has resulted in a lot of automation using artificial intelligence that is present… everywhere, really.
Think about it. For companies, AI is in their smart factories, plus in their marketing campaigns, customer engagement, and support systems, e.g., data capture and analysis for personalized lead generations and communications, and chatbots.
For a consumer like you, AI is in all those apps on your smartphone. You may not know it’s there, but AI is helping your device apps calculate things, bring up suggestions and sometimes make decisions for you. If you’re a fan of Apple, you’ll use Siri on your iPhone, Mac, and Apple TV. That’s quite helpful, isn’t it?
The second word that’s synonymous with Industry 4.0 is the Internet. It is so powerful right now that many sophisticated engineering projects can be performed remotely, from home. The last pandemic has proven this. And that level of connectivity combined with automation slowly reduces traditional management approaches.
Business 4.0 is a new business model that emerges from Industry 4.0. Integrate your digital or online channels and improve daily business operations. You’re probably most keen to know how digital transformation is creating exponential value and profit for businesses with Business 4.0.
Integrating digital technologies
In times of the fourth industrial revolution, business 4.0 is mainly based on integrating digital technologies in order to reach operational excellence compatible with many departments simultaneously. Sometimes this refers to interconnection with other industries working together on different markets, sharing a specific feature: they are global.
And that results in creating exponential value of opportunities and profit. It also brings new risks, that’s true. But by embracing risk and integrating digital or online solutions, modern business leaders are taking the world by its horns, so to speak. Those who refuse to do it… the future doesn’t have much room for them. There’s only one way in this direction. It’s business 4.0.
Modern business behaviors
So, modern business behaviors are highly associated with digital tech, especially if it works through the Internet. It’s not just sending emails, mind you.
Bigger yet easier
Basically, by creating an integrated network of contacts and online cloud computing, incorporated with AI and machine learning technologies, companies create the whole leveraging ecosystems that provide mass personalization of products and new services to sell.
Plainly speaking, it all just gets bigger and easier at the same time.
Pathway To The Future
As you can see, business 4.0 is something that matches our current world perfectly. What’s more, developing this model is possible with Industry 4.0, and it is a pathway to the future.
For business survival, it’s impossible to ignore digital transformation. Taking it a step further soon, any company choosing to get the path of Business 4.0 may see itself falling behind the competition. You don’t want that, do you?