What is Industry 4.0 and how does it work?

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The fourth industrial revolution is marked by the emergence of new technologies such as analytics, robotics, AI, nanotechnology, IoT, and more. These technologies are going to transform the world immensely, and if organizations do not leverage the benefits and opportunities that Industry 4.0 provides, they are sure to miss the market share

What is Industry 4.0?

When computers were introduced in Industry 3.0, it was disruptive due to the addition of an entirely new technology. Now, and into the future as Industry 4.0 unfolds, computers are connected and communicate with one another to ultimately make decisions without human involvement. 

Industry 4.0 is a broad term and does not refer to any specific technology. It amalgamates the technologies behind the industrial transformation, namely cyber-physical systems, the Internet of Things, cloud computing, artificial intelligence and cognitive computing. What sets this latest industrial revolution apart is the fusion of technologies to save time, enable quick decisions, and reduce errors.

Industry 4.0 Technology

Main Characteristics of Industry 4.0

We can integrate these technologies and relate them in unprecedented ways. The technologies mentioned in Industry 4.0 have similar characteristics, like:


This implies that human dependency is reduced, and machines are no longer dependent on human intervention to work. Physical systems have sensors connected to a network, capable of making automated decisions based on performance data.


IoT interoperability is the capacity for multiple components within an IoT deployment to effectively communicate, share data and perform together to achieve a shared outcome.


This indicates to the act of creating a virtual instance of a process rather than a physical version.

Real-Time Response

Today, sensors feed data and algorithms instantaneously. This real-time data and analysis provide immediate results for quicker responses to problems and even predictive maintenance.


Allows any production line activity to change immediately. With the connection and disconnection of different modules, companies can manufacture unique products in sequence without reconfiguring the entire assembly line.

Industry 4.0 Technology

As mentioned earlier, Industry 4.0 is not a specific technology but the integration of several technologies for advanced industry automation. Industry 4.0 networks a wide range of new technologies to create value. Let us know about some of those technologies that make Industry 4.0:

Cyber-Physical Systems (CPS)

Smart systems that connect to physical devices into a cyber-network to allow for the collection of data. Using cyber-physical systems that monitor physical processes, a virtual copy of the physical world can be designed. Characteristics of cyber-physical systems include the ability to make decentralized decisions independently, reaching a high degree of autonomy.

Internet of Things (IoT)

A key component of Industry 4.0 is the Internet of Things (IoT) that is characterized by connected devices. Not only does this help internal operations, but using the cloud environment where data is stored, equipment and operations can be optimized by leveraging the insights of others using the same equipment or to allow smaller enterprises access to technology they wouldn’t be able to on their own.

Big Data

The volume of data collected by CPS and IoT creates its own challenge: it’s too large to be analysed manually. Thus, big data arises to organize and store the information generated.

Cloud Computing

Cloud computing is a new way to store data and host systems. Instead of on-premise data centres, companies ‘rent’ remote servers to store, manage and process data.

Cognitive Computing

With complex algorithms, computers can simulate human decision making automatically. Cognitive technology allows systems to self-learn with more data, recognizing patterns, and natural language processing.

Smart Industry

To build a sustainable, scalable enterprise in today’s business environment, you need to use tools that help you streamline tasks, boost productivity and collaboration, and leverage data in real time. Industry 4.0 solutions from EnergyBots can put you on the right track. Connect to know more.

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