Discussions on Industry 4.0 and the unavoidable prophecies continue to baffle us. Given its transformational scope, technological intricacies, and depth in meaning, the puzzling nature of the case should be perfectly normal. However, the philosophy and meaning need to be understood satisfactorily, starting with the IoT, to mitigate risk and influence it to a greater degree in the future of humanity as a whole. [1]
A factual evolution means the species that we are undergoing is at the core of a revolution we are currently experiencing. Because the solutions that come out in response to the new needs provoked by the coverage of the previous experiences and the new technological developments triggered them lead to new meanings, new perspectives, and the emergence of new business models in terms of the business world, people and life as a whole. All of these are candidates for crumbling the lifestyles and ways of doing business, the way we work, think, and execute that the traditional business world and people are used to, so they are right to be surprised and falter.
We are not unfamiliar with the notion of IoT; we have used it in various means, sizes, and shapes; we are no strangers to the Internet; we have been collecting, processing, and reporting data for years. What then is different here now? With the differentiation of IoT in terms of quality, number, and the diversification and expansion of the source of the collected data, we are discovering relationships between various real-time objects that we were not aware of and new business model opportunities that surface. We are moving from a centralized form of information and data to decentralized in shape and measure.
Basically, IoT is made available to decision-makers due to real-time, holistic, and predictive analysis of data collected from billions of detectors or leads to direct use through triggers. With the help of the Internet, the ubiquitous, miraculous, cheap, and pervasive communication channels and the possibilities of transaction and storage in cloud systems and real-time big data processing (AI) lead to discovering the unexplored, making the impossible possible, uncovering hidden business opportunities.
This situation, which is explained with the phrase ‘Internetization’ of the industry, is compared with the ‘electrification’ of the industry a century ago. Although electricity was first applied there, it was not limited to only industry. So likewise, IoT will not be limited to industry only. IoT’s health, financial systems, transportation, energy sector, transmission, logistics, distribution, agriculture, smart city, buildings, and homes will be an area of use in the framework that continues in perpetuity. Here, rather than the physical properties of the number and variety of objects connected to the internet, the exploration of hidden value in these devices on the net and in the data to be collected comes to the fore.
The definition of “Internet of Services” IoS, is still hidden and newly revealed. This is also called the ‘Outcome Economy.’ Instead of buying machinery and providing a service, business models that envisage receiving services and producing new services with added value and selling them hourly, by the meter, or by liters are becoming more common. For example, airlines prefer to rent planes instead of owning them and lease instead of owning aircraft engines, and leave all their maintenance and repair works to specialist companies and units. They serve their passengers with the added value they place on top of these services. In other words, they become airline companies that do not have a kind of aircraft.[2] The trick here is that physical assets change hands and applications aiming to collect data with IoTs connected to all these devices, and real-time data analysis, provide better service to aircraft and engine maintenance and repair, high efficiency, low cost, that is, better It provides service with its fast and cheaper motor. Here, the balance between hardware and service on ROI will be proportional to the importance of the value generated from the service and the size of the return, or it will tend to be at an acceptable level for the service. Therefore, the operating costs of the business model will be acceptable or even negligible due to widespread and inexpensive communication and computer facilities.
For these reasons, the costs of waiting until the last minute for organizations whose industries are vulnerable to devastating attacks are high and likely to have devastating consequences. With Industry 4.0, disruptive changes will occur not in Communication Technologies but in industries that depend on them. Today, this is true for every industry. In other words, before saying Industry 4.0 does not concern us, it is necessary to make a good assessment and deep delve into its meaning for us and our industries.
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Notes:
[1] Richard Soley, Chairman, and CEO, Object Management Group — www.omg.org
[2] suggested as “treat your assets as liabilities,” on page 77, in the book “Killer Applications” by Larry Downes & Chunka Mui, 1998.
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