**5.3 The impact of industry 4.0 on business models and market**

In the previous few years, company models and markets have swiftly altered, and new inventive business models will emerge. In the context of Industry 4.0, the introduction of new disruptive technologies has altered the way products and services are sold and delivered, disrupting established enterprises, and introducing new business prospects and models [33]. As a result, value chains are becoming more responsive, as Industry 4.0 encourages integration between manufacturers and customers, allowing for closer customer connection and business model adaption to market demands. The rising digitalization of industrial production, combined with system integration and complexity, will result in the establishment of increasingly sophisticated and digital market models, boosting competitiveness by removing barriers between information and physical structures [1].

### **5.4 The impact of industry 4.0 on the work environment**

Because of technological advancements, the workplace environment is changing fast, and Industrial revolution 4.0 is redefining jobs and key competencies. The most significant transition is the human-machine connection, which includes employee contact and a set of new collaborative work approaches [18]. The number of robots and intelligent technologies is growing, the real and virtual environments are merging, implying the existing work environment is undergoing a considerable transition [13].

The rising importance of human-machine interfaces will encourage interaction between production elements as well as the necessary communication between smart machines, smart products, and employees, which will be aided by CPS' vision of IoT and IoS. As a result, ergonomic concerns should be considered in the context of Industry 4.0, and future systems should emphasize the relevance of workers. Job profiles, as well as work management, organization, and planning will be affected by the integration of Industry 4.0 in industrial systems and the rising deployment of new technologies [12]. In this scenario, the major task is to avoid technological unemployment by reframing present jobs and taking steps to adapt the workforce to the new jobs that will be generated [28].

## **5.5 The impact of industry 4.0 on skills development**

One of the most significant fundamental factors for a successful acceptance and implementation of the Industry 4.0 framework is skill development, which will lead to demographic and societal changes. New competencies will be required in the future work vision, and it will be vital to provide opportunities for the acquisition of these abilities through high-quality training. This new industrial paradigm will have a significant impact on the labor market and professional roles, and it will be critical to ensure that more jobs are generated than are lost [26].

Interdisciplinary thinking will be vital, and outstanding abilities in social and technological domains will be desired. The new required competency sectors must be included in schooling. As a result of Industry 4.0's rising automation of jobs, workers must be prepared to take on new responsibilities [28]. The same can be said for engineering education, which has a lot of promise in terms of training future professionals and informing them about new technical trends and opportunities, as well as managers who need to adapt their management strategies to meet changing market demands. Furthermore, in order to address Industry 4.0, more qualified personnel will be required in technological sectors [1].

In summary, Industry 4.0 has enormous potential in many areas, and its implementation will have an impact across the entire value chain, improving production and engineering processes, improving product and service quality, optimizing customer-organization relationships, bringing new business opportunities and economic benefits, changing educational requirements, and transforming the current work environment.

#### **5.6 The impact of industry 4.0 on the economy**

An economy can be inspired by the introduction of new models and emerging technological improvements. Digitization involves the convergence between physical and virtual worlds and will have a widespread impact in every economic sector [15]. This will be the primary driving force behind innovation, which will be crucial to productivity and costs of production, which is reflected in the competitiveness (companies, sectors, and nations) [17].

Industry 4.0 also, can transform existing relationships in the manufacturing process, allowing the manufacturing sector to join the information age by allowing communication at all stages of the manufacturing process. Some academics anticipate that Industry 4.0 would lead to new economic forms in the industry, agriculture, and services [3]. The majority of businesses expect a two-year payback on their Industry 4.0 investments, which leads to a considerable rise in investment in this area is likely, it's reflected in economic growth [37].

On the other hand, some experts believe that Industry 4.0 will result in increased inequality due to its threat of disrupting labor markets. It is argued that the continuous growth in automation, robots, and computers will take the jobs of workers in many industries with the most worrying factor being the increased danger of the disappearance of low-skill/low-pay jobs which will cause a lot of challenges for the poor, which will lead to a rise in social tensions [37]. The most concerning fact in Industry 4.0 is that it is not only the transfer of labor from one sector of the economy to another but also the availability of technology that will replace human capital, in other words, taking people's jobs. The technological revolution will also have an impact on topics such as material or ideological changes brought about by the

introduction of new gadgets or systems, all of which will have an impact on redefining humanity's culture [3].

In general, digitization and interconnection of industrial processes, lead to potentials in all three dimensions of sustainability. However, achieving long-term benefits of sustainability is accompanied by several challenges respectively, especially in the implementation phase of Industry 4.0 [38].

*Referring to the economic perspective of Industry 4.0*, transparency and interconnection of processes enable process optimization, resulting in increased efficiency, flexibility, quality, and customization. Industry 4.0 allows load balancing between smart manufacturing technologies, innovative value propositions, and increasing demand orientation. All these are enabling smart products, which boost a company's competitiveness [39]. In the same regard, increasing process openness in intra- and inter-firm logistics can also be accomplished, lowering logistics costs. On the other hand, such procedures, as well as the adoption of Industry 4.0 in general, represent risks in terms of high investments and uncertain profitability [38]. Furthermore, manufacturers consider the transition to Industry 4.0 of their current business models to be difficult. Furthermore, Industry 4.0 necessitates the standardization of processes both within and between businesses. Due to their low degree of process standardization, more flexible but less automated manufacturing equipment, and resource limits, among other things, both undertakings, i.e., business model change and standardization, can become particularly problematic for SMEs [40].

*Regarding the ecological dimension of sustainability*, Industry 4.0 offers a number of advantages: transparency in demand and process enables for an intelligent task and process scheduling, resulting in lower energy use [38]. Furthermore, direct data linkage from product consumption back to design can improve manufacturing design, resulting in improved product lifecycle management, including recycling, as a result, Industry 4.0 aids in the identification and reduction of greenhouse gas emissions [40]. As a result, waste reduction and resource consumption can be improved. Reduced transportation operations and superfluous material flows can also be realized in logistics [25]. Furthermore, data openness across the entire supply chain can reduce the frequency of incorrect deliveries, wasteful waiting time, and damaged items. Decentralized production close to the point of consumption minimizes both logistics costs and environmental concerns [41]. Similarly, emerging manufacturing technologies such as additive manufacturing can aid in the reduction of waste in manufacturing and logistics processes, such as replacement parts [42].

Regarding the social dimension of Industry 4.0, several benefits for employees are named, such as improved human learning through intelligent assistance systems as well as human-machine interfaces that lead to increased employee satisfaction in industrial workplaces [8, 22]. However, current literature cannot provide a unified perspective on whether Industry 4.0 will cause an increase or decrease in employee numbers in the industry. In this regard, concrete numbers named differ to a large extent [3, 15]. In general, a further replacement of simple tasks is expected, whereas tasks such as monitoring, collaboration, and training will still be required [3]. Hereby, new job profiles with novel requirements for training and education are expected to emerge, mostly referring to decreasing importance of manual labor in contrast to IT skills. On the other hand, tasks that include planning and monitoring, as well as decision-making, could fall to autonomous systems, therefore, possibly replacing jobs in this area.

*Regarding the social dimension of Industry 4.0,* Several benefits for employees are mentioned, such as improved human learning through intelligent support systems

#### *Industry 4.0 and Its Implications: Concept, Opportunities, and Future Directions DOI: http://dx.doi.org/10.5772/intechopen.102520*

and human-machine interfaces that lead to increased employee satisfaction in industrial environments [38]. However, the present research cannot agree on whether Industry 4.0 would result in an increase or decrease in the number of employees in the industry [25]. In general, easy jobs will be replaced further, while monitoring, collaboration, and training will continue to be required. It is possible that occupations in this field will be replaced [38]. As a result, implementing Industry 4.0 in an organization necessitates deliberate transformation activities, sometimes known as "digital transformation." It necessitates new attitudes for dealing with digital transformation difficulties as well as a unified approach for staff qualification and acceptance [43].

#### **5.7 The impact of industry 4.0 on value chains and supply chains (SC)**

The fourth industrial revolution has a significant impact on supply chain interactions, which is mainly due to the exponential growth of sensible data and the widespread of digitalized processes [40]. To understand the impact of the adoption and exploitation of Industry 4.0 technologies on the value chains and supply chains (SC). Based on the review, the effect of Industry 4.0 implementation on the supply chains (SC) are identified as follows:

*Agility and Customization*. Industry 4.0 implementation enables real-time planning and control, permitting organizations to be flexible and agile in responding to rapidly changing conditions; for example, by faster reacting to changes in demand, supply, and prices, companies can reduce planning cycles and frozen periods [34]. Future events and trends, such as consumer behavior, delivery time, and industrial output, can be predicted using business analytics techniques. Real-time delivery routing and tracking also allow logistics operations to be more flexible, efficient, and agile [44].

*Accuracy and Efficiency*. Industry 4.0 technologies provide better decision-making by providing real-time, consistent, and accurate data. As a result, next-generation performance management systems will improve end-to-end visibility across the value chain. The data includes everything from key top-level performance metrics like customer service and order fulfillment to detailed process data like a truck position in the logistics network. The automation of physical tasks, planning, control, and information exchange processes improves supply chain (SC) efficiency. Automated technologies are used by a large number of businesses, particularly in their logistics operations [44]. Companies choose cross-company transportation optimization to optimize truck utilization and boost transport flexibility by cooperating and sharing facilities. The entire SC network design is constantly optimized to ensure that it is a perfect fit for business needs [34].

## **6. Key drivers and obstacles or barriers of industry 4.0**

#### **6.1 Key drivers of industry 4.0**

Despite the rapid rise of Industry 4.0, research related to the identification of potential drivers and hurdles to its implementation are scarce. To better understand the motivations and challenges to the adoption and use of Industry 4.0 technologies, a literature review was conducted. The following are the primary drivers for Industry 4.0 implementation, as determined by the review:

*Agility and Customization*. Industry 4.0 implementation enables real-time planning and control, permitting organizations to be flexible and agile in responding to rapidly changing conditions; for example, by faster reacting to changes in demand, supply, and prices, companies can reduce planning cycles and frozen periods [34]. Future events and trends, such as consumer behavior, delivery time, and industrial output, can be predicted using business analytics techniques. Real-time delivery routing and tracking also allow logistics operations to be more flexible, efficient, and agile [44].

*Accuracy and Efficiency*. Industry 4.0 technologies provide better decisionmaking by providing real-time, consistent, and accurate data. As a result, nextgeneration performance management systems will improve end-to-end visibility across the value chain. The data includes everything from key top-level performance metrics like customer service and order fulfillment to detailed process data like a truck position in the logistics network. The automation of physical tasks, planning, control, and information exchange processes improves SC efficiency. Automated technologies are used by a large number of businesses, particularly in their logistics operations [44].

#### **6.2 Applications of fourth industrial revolution**

In this section, we introduce an overview of some applications of the Fourth Industrial Revolution. Also, we provide a case study for these applications by *KUKA Group* in many fields. KUKA is an international automation corporation based in Augsburg, Germany. As a world-class provider of intelligent automation solutions. In areas such as automotive, electronics, metal & plastic, consumer products, e-commerce/retail, and healthcare, KUKA provides everything from a single source: from robots and cells to completely automated systems and their networking [45].

The "*Smart Factories*" are automation solutions from KUKA, which is able to transport aircraft components around the production hangar with millimeter precision. The employees at the Airbus production plant move enormous A380 fuselage sections, weighing 90 tons and measuring 15 meters in length around a building the size of a football stadium. This is made possible by the KUKA omniMove mobile transport platform, a transport vehicle for heavy loads that is equipped with omnidirectional Mecanum wheels [46].

Similarly, using techniques such as *Machine-to-Machine* (M-2-M) and *intelligent robots* as applications from the KUKA company. Robot-based KUKA system technology for machine tool automation is used, among other things, for the loading and unloading of machines and supports elements of Industries 4.0 [47]. In the KUKA's site in Augsburg, work 7 robots, which is a typical production environment at an international machine manufacturer [48].

Another application of industry 4.0 in the *medical sector*, automation solutions for greater efficiency in hospitals, in areas of diagnosis and surgery to therapy, KUKA robots meet the stringent requirements of the medical sector and are well-suited to a wide range of medical technology applications. For this, KUKA offers a wide range of medical high-tech products, ranging from robot-based help systems for surgery to assistive components for diagnosis or rehabilitation [45].

There are several applications for industry 4.0, for example, the KUKA corporation which works in the areas, for instance, smart factories, M-2-M, computing cloud, intelligent robots, e-commerce, and so on.

#### **6.3 Key obstacles or barriers of industry 4.0**

There are also some intimidating resisting forces, barriers, for implementing Industry 4.0 practices. These obstacles may be classified under the following business dimensions: *Firstly, Financial constraints*. Financial constraints are a fundamental issue in implementing Industry 4.0 in terms of developing sophisticated contemporary infrastructure and sustainable process improvements [28]. *Secondly,* the *technical competency* of the focal organization is the key focus that influences the scale of investment. The economic perspective, on the other hand, is still in its infancy; a lack of clarity about cost–benefit analysis and monetary rewards on digital investments is a critical issue for deploying Industry 4.0 [40].

*Thirdly, Organizational nature*. Other obstacles that businesses aiming to integrate Industry 4.0 technologies confront include insufficient research and development procedures, a lack of infrastructure, poor data quality, a lack of digital culture, and a lack of trust among partners [17]. Poor infrastructure and internet connectivity are significant impediments to any digital transformation or adoption [22]. As well as *fourthly, Lack of management support and Resistance to change*. Industry 4.0 transformative changes are fast-paced and necessitate proper skill development and training, which is difficult to do without a high degree of management support, which is the most important requirement for launching Industry 4.0. Industries are unsure and unfamiliar with the term Industry 4.0 and are ignorant of the benefits of digital transformation due to which there is reluctance in adopting it [22].

Additionally, *Legal Issues*. The big data transaction brings cybersecurity risk; therefore, privacy and security concerns must be considered when implementing Industry 4.0 [44]. Finally, *Lack of policies and support from the government*. In most nations, governments supply the infrastructure for the digital world (such as the internet and communication networks). However, there is a lack of a roadmap for transforming industrial infrastructure, owing to a lack of clarity (for example, the development of the 5G network and its benefits for Industry 4) about the implications of Industry 4.0 [22].

## **7. Conclusion**

This study contributes to bridging the critical gap, by discussing the key components, characteristics, effects on many dimensions, drivers, barriers, and other implementation challenges of Industry 4.0, the fourth industrial revolution describes a future production system's vision. Industry 4.0 is an inevitable revolution covering a wide range of innovative technologies, such as cyber-physical systems, RFID technologies, IoT, cloud computing, big data analytics, advanced robotics, smart factories, etc. The Industry 4.0 paradigm is transforming business in many industries, e.g., automotive, logistics, aerospace, and energy sectors, etc. Industry 4.0 realizes the development and integration of information and communication technologies into business processes. The capabilities or components of Industry 4.0 bring significant advantages to organizations, including customization of products, real-time data analysis, increased visibility, autonomous monitoring and control, dynamic product design and development, enhanced productivity, and competitiveness.

The key characteristic features of Industry 4.0 are collaboration and integration of schemes, both horizontal and vertical. In vertical integration, Information and Communication Technology (ICT) is integrated into various hierarchical levels of

the organization, from floor-level control to production, operations, and management levels. This vertical integration networking empowers the use of components of Industry 4.0 for production to respond to demand disparity or the fluctuations in stock levels. In horizontal integration, ICT is used to exchange information between many players. Integration of these systems for a flawless collaboration, integration, and exchange of data with all the stakeholders is a complicated scenario. Implementation of Industry 4.0 apps support to reduce costs, improves productivity, efficiency, and flexibility, and enhance product customization.

Innovation and technological advancements perform an essential role in organizations, sectors, countries. However, the digital transformation improvements and the rising interconnectivity will bring new challenges to societies, since Industry 4.0 will significantly change the products and manufacturing systems regarding design, processes, operations, and services. Industry 4.0 uses several advanced tools and technologies, thus helping to redefine conventional industrial processes. Industry 4.0 has enormous potential effect in many areas, and its application will have an impact across the entire value chain, improving production and engineering processes, improving product and service quality, optimizing customer-organization relationships, bringing new business opportunities and economic benefits, changing educational requirements, and transforming the current work environment. Digitization and interconnection of industrial processes (Industry 4.0), leading to potentials in all three dimensions of sustainability.

There are several applications for industry 4.0, applied by the KUKA corporation which works in the areas, for instance, smart factories, M-2-M, computing cloud, intelligent robots, e-commerce, etc., these technologies or applications help the industry 4.0 to separate rapidly. On the other hand, there are also some barriers, for implementing Industry 4.0 practices. These obstacles may be classified into many business dimensions: financial constraints, technical competency of the focal, organizational nature, lack of management support and resistance to change, legal issues, lack of policies and support from the government.
