Rise Of Industry 4.0 and Coping Mechanisms in The Global Business Era

Abstract

Industry 4.0 has both expanded the possibilities of digital transformation and increased its importance to manufacturing with an emphasis on globalization, international trade and foreign direct investments. Industry 4.0 combines and connects digital and physical technologies including artificial intelligence, the Internet of Things, additive manufacturing, robotics, cloud computing, and others to drive more flexible, responsive, and interconnected enterprises capable of making more informed decisions (Tim, Andy, Matt, & Brenna, 2018). This Fourth Industrial Revolution carries with it seemingly limitless opportunity and seemingly limitless options for technology investments. As organizations seek digital transformation, they should consider multiple questions to help narrow their choices: what, precisely they hope to transform; where to invest their resources; and which advanced technologies can best serve their strategic needs. Further, digital transformation cannot happen in a vacuum; it does not end simply with implementing new technologies and letting them run. Rather, true digital transformation typically has profound implications for an organization affecting strategy, talent, business models, and even the way the company is organized (Tim, Andy, Matt, & Brenna, 2018).The infusion of digital technologies in the value chain processes of Research and Development, Design, Production, Marketing, Distribution and Customer Services will drive efficiency in production, thereby increasing the ambits of international trade. The increase in the pace of international trade will further shrink the interconnectedness of the world i.e. globalization. Shrewd businesspeople are already taking positions in moving capital abroad in form of foreign direct investments (FDI) to countries that embraced the digital transformation. The adoption of industry 4.0 has challenges including political, environmental, legal, technological and socio-economic impacts. These can be surmounted if the benefits of the fourth industrial revolution are well-harnessed by all the relevant stakeholders.