The Demands of Fourth Industrial Revolution-The Panagora Blog

 

Fourth Industrial Revolution (4IR) – Demands Innovative Thinking and New Skills!

“We cannot solve a problem by using the same kind of thinking we used when we created them!”, said  Albert Einstein.

An interesting quote from the genius but is all the more relevant today where organizations face challenges owing to ‘disruptive innovations’ and technological advancements.  But, a change in mindset by understanding the new wave will probably create new opportunities and open up new markets in order to extend their business operations across geographical boundaries through collaborations. Every organization wants to achieve efficiency, better productivity, reduction in cost, profitability and increased market share. Achieving all these is not possible in a digitally-driven global economy today as the skillsets and competencies required of every human element contributing to the organizational success starting from top bosses to lower level employees warrant upscaling and significant improvements. Modern day technology, inventions and innovations have brought about a lot of transformations thanks to the 4IR where the world today is witnessing fundamental changes in the way products are manufactured, transported, delivered and consumed. One should swim along with the tide before it becomes too late.

4IR, the Key Driver of Change Throws New Challenges but Offers Innumerable Opportunities on Your Way!

The term, ‘Fourth Industrial Revolution’ coined by Prof. Klaus Schwab, a former Professor at Harvard University, Founder & Executive Chairman, World Economic Forum (WEF) asserts that 4IR will affect the very essence of our human experience. More specifically, Prof. Klaus argues that this revolution has the capability to change the way human beings work, consume and the way they think. This new revolution is blurring the lines between the physical, digital and biological spheres, he argues. Evidently, the extensive use of Artificial Intelligence (AI), Autonomous Vehicles, Augmented Reality, Internet of Things (IoT), Cyber-physical Systems, Cloud Manufacturing, Additive Manufacturing, Simulations, Big Data, System Integration and a host of other advancements have thrown up new challenges to the workforce but at the same time opens up new opportunities, as well.  He further cautions that this high-tech revolution will alter the labour mark with machines replacing human labour currently present at work as Artificial Intelligence (AI) based business models which works under high-speed networks and interfaces have accelerated the production process still with accuracy and efficiency. The result is that machines will gradually replace human-beings from work places necessitating re-orientation of skills to be gainfully employed in this age of digital transformation.

Adidas, Amazon, Tesla and Foxconn Experiments have resulted in ‘Smart Factories’

In 2015, Adidas had opened up a heavily automated manufacturing facility called, Speedfactory, in Ansbach, Germany where a pair of shoes was produced applying 3-D printing, robotic arms and computerized knitting in matter of hours. In the normal course, these products are manufactured in China, India, Vietnam and other far-off locations by workers at a relatively lower cost. Although the factory in Germany is closed now, Adidas has ambitious plans to open up such factories in USA and other locations in the near future. In the same way, earlier in May 2019, Amazon has introduced ‘packing robots’ replacing employees as a part of their automation process. The Wrap Machine, according to Amazon, has the capability to pack four to six times higher than human labourers. This new technology, it has been stated, while increasing safety and efficiency, reduces delivery time and cost in the long run. A little over 30000 robots have been employed by the company for replacing repetitive jobs which will be automated in a timely manner. Cambridge Industries Group (CIG), a leading company in China with 3000 employees is planning to replace two-thirds of its workforce. This move, according to the company, results in energy efficiency, as robots can work with needle-precise accuracy in utter darkness. Again, such initiatives reduce the presence of human elements in an organizational setting. Tesla’s Giga Factory in Nevada will have 100% automation with a very minimal involvement of human beings at work. With a little over 1000 Soft Bank Pepper robots introduced by Nestle are not only selling coffee pods but answer customer queries, as well. Further, over 60000 employees have been replaced by Foxconn, the leading Chinese company in its mission to automate repetitive jobs. A report published from Africa states that a little closer to 6 million jobs are at risk owing to automation and the 4IR and advises youth to improve their knowledge according to the emerging trends with appropriate technical skills and competencies. Waiters in hotels get replaced by robots even in smaller cities, according to news reports. The concept today is ‘Smart Factories’ but not ‘Brick & Mortar’ manufacturing lines under the supervision of human beings. The underlying message is that one should catch up with the changing paradigms and prepare the system, processes and employees to take the transformations, head on.

Thinking ‘Outside the Box’ Pays Rich Dividends!

Understandably, to succeed in digitally-driven economies where involvement of human beings at work is slowly fading away, the skillsets required are different and every organization should re-orient themselves and think ‘outside the box’ to enhance profitability and improve the ‘market share’. Leadership plays a crucial role at this critical juncture as the risk and opportunities widely differ from each business and sectors. For instance, five million jobs will be created by the 4IR according to the finding of a new report, ‘The Future of Jobs’, published by the World Economic Forum.

Right Eco-system, Skill-orientation and Continuous Education brings about Efficiency!

Establishments where repetitive jobs are performed need to rethink the way their business operations and processes are being carried out as robots invade such places with no rest, no over-time allowance but with greater accuracy in completing jobs. Warehouse people, production line people, vehicle drivers, call centre employees, clerical and accounting jobs, white-collar jobs, office and administrative jobs will be severely affected, argue experts. According to World Economic Forum (WEF), 7.1 million jobs will be affected in the immediate future. However, 2.1 million new jobs with high-profile technical skills and capabilities will be created in the future, it is stated. This necessitates creating the right eco-system, skill-orientation to the current employees and future jobseekers as their current skillsets and knowledge are becoming obsolete and redundant. The report further argues that healthcare, energy, financial services and investment advisory segments will be affected while media, entertainment, professional services and communication technologies will create new employment opportunities in the near future.

Universities and Colleges should Prepare their Graduates ‘Industry-Ready’

In a nutshell, one should hone the skillsets to thrive and succeed in this new wave visibly grasping the changing landscape with the advent of technology and automation. The power of internet and digital transformations have to be harnessed in a significant manner. Universities, colleges and higher educational institutions have added responsibilities to ensure that what they teach in their campuses are clearly aligned with the requirements of the business world in order to prepare their graduates, ‘industry ready’. As mentioned earlier, change in our mindset and honing the skillsets according to the changing landscape is the need of the hour.