Industry 4.0: Technology Trends and Israeli Pioneers
Industry 4.0 is the fourth industrial revolution, and it’s on track to change everything we know about manufacturing. There is so much more that defines Industry 4.0, but simply put – it is the full-scale digitalization of the supply chain. Converting data into information, and then using that information to make better decisions, is how this revolution aims to digitalize every step of the production process.
By creating factories that are smarter, leaner, and ultimately, more efficient, companies can produce goods faster, reduce human/process error, and improve worker safety.
Industry 4.0 can provide:
– Real-time access to information and actionable insights about operations at all plants and facilities.
– Remote monitoring and control of equipment.
– Performance optimization based on new, real-time data analysis.
– The ability to scale up production with increased automation to accommodate changes in demand.
Regarding Industry 4.0, the main question isn’t how it will affect manufacturing in 50 years, but rather how it will change the world now.
Industry 4.0 – Global Technology Trends
The adoption of the fourth industrial revolution has been accelerating since 2010. The need for changes in manufacturing processes due to worldwide advances in technology, global competition, and environmental considerations is stronger now than ever before.
Technology Trends
The Internet of Things (IoT) is one example of a trend that can transform entire industries with improved efficiency through real-time data sharing and analysis. Sensor technology that allows devices to “talk” to each other will change how manufacturers produce their goods. Cloud computing is yet another way of allowing companies to share data, applications, analytic tools, and knowledge bases across a global network.
Additionally, new business models are being developed in response to this technology. Subscription-based services, marketplace platforms, and data as a service are all being created, taking advantage of the gaps in this new market. By using the information gathered with smart technology, manufacturers will be able to increase production volume by as much as 25%, while reducing downtime by as much as 45%.
The technology used at the forefront of this revolution enables streamlined and more transparent processes that focus on actual product and manufacturing needs. This offers a welcome shift from the more linear and subjective perspective of the traditional supply chain operations.
Business Trends
The investment in digitalization has grown at unprecedented rates. With the Industry 4.0 market valued at $102 billion in 2020, it is reportedly projected to grow to $337 billion by 2028, according to Fortune Business Insights.
Right now, we are in a similar situation that occurred with manufacturing before Industry 4.0 existed. Companies that will be the most successful in Industry 4.0 are not those who sell robots, programming languages, and other technologies (Operations), but rather ones who find a way to take advantage of them and create income (Value).
And, as in any new era, there are some challenges. Let’s take a look at Israeli Startups willing to rise up, take on challenges, and provide solutions that work now.
Global Industrial 4.0 Challenges and Israeli Start-ups Rising to Meet Them
1. Cybersecurity Threats
A study carried out by more than a thousand security experts found that an estimated $1 trillion would be spent globally on tackling cybercrime this year and that 90% of all data breaches are caused because of human error rather than sophisticated hacking techniques. Therefore, it is vital for IoT security solutions to be flexible, to adapt to the inevitable changes, and be able to securely store data. All the while, they need to be able to recognize new threats and offer real-time protection.
One Israeli start-up has been able to do just that by providing a centralized, easy-to-manage, and up-to-date inventory of all assets. They aim to analyze and protect inherent risk factors ranging from misconfigurations to inefficiencies. This allows for threats to be quickly detected and effectively handled as soon as they surface. Lastly, they can integrate these security processes with all business operations, mitigating risk across every division comprehensively.
2. Optimizing Data Use
Research shows that 99% of data is currently being discarded, regardless of its potential. According to Gartner Group, total digital information is expected to exceed 79 zettabytes (or 79,000 gigabytes) by 2021. The creation of technology that can track ALL this data, in real-time, at any time, is a necessity to the growth and success of Industry 4.0.
Another Israeli start-up is using process-based artificial intelligence as a solution to this challenge.
Process-based artificial intelligence can provide automated root-cause analysis to help you understand where process-driven losses are occurring. It can also provide predictive recommendations that prompt you to act proactively in preventing future losses. Without this process-based artificial intelligence, the digitalization of every step in the manufacturing process would be too time-consuming, labor-intensive, and costly to be viable.
3. Increased Labor Costs
Manufacturers must also adapt to increases in labor costs. Using machinery that can function consistently, manufacturers can limit risk and cost that will further impact industrial efficiency.
A third start-up in Israel is using technology to monitor the actual physical equipment, further saving time and costs related to human labor and error. This “electronic skin,” as they call it, uses nanomaterial printing technology to provide real-time remote access to any changes in the mechanics by providing alerts on abnormalities in advance. This addition is easy to deploy, has no installation downtime, and provides instant results.
These three start-ups are growing at unprecedented rates and acquiring millions in funding, for very good reasons. There is great potential for this digitalization to increase efficiency, lower costs and risks, and provide solutions to help companies grow. And this is just the beginning. The answer to the question of what the future holds for companies in Industry 4.0 is simple: it will be transformational.
