“The COVID-19 pandemic has reinforced the relevance of Industry 4.0 as an essential strategic component of manufacturing” - Dr Alexeis Garcia-Perez, Associate Professor in Cyber Security Management, Coventry University

Dr Alexeis Garcia-Perez is an Associate Professor in Cyber Security Management at Coventry University (UK) and a Visiting Research Scholar at Georgetown University (USA). His original background in Computer Science was complemented by a PhD in Information Systems from Cranfield University, enabling an interdisciplinary perspective of Business Information Systems practice and research.  Alexeis leads the ‘Data, Organisations and Society’ research team at Coventry University’s Research Centre for Business in Society. He works with a range of organisations from the public and private sectors, helping them shape the policy and practices that support the digital transformation of businesses and society.

Here, we have him with us sharing his insights into how the Industry 4.0 is gradually creating its space and relevance in the manufacturing sector during the COVID-19 pandemic and how it is turning into an indispensable component for all the industrial sectors to combat the on-going production and operational crises. 

AlCircle: Could you please share your views on the emergence and importance of Industry 4.0?

Dr Perez: Industry 4.0 is a term used to describe the current trend of automation and data exchange in manufacturing technologies. There are different views of the concept: some experts refer to it as the introduction of intelligent automation, while others have a wider perspective of the concept, describing it as the overall digitisation of the factory and its entire supply chain.

In general, Industry 4.0 is about the combination of cyber-physical systems and the recent advances in information technologies, particularly the so-called big data infrastructures which include the Internet of Things, Cloud Computing, Artificial Intelligence, Data Analytics, and more, opening opportunities for the manufacturing sector to do more, and do it better and faster.

The use of cyber-physical production systems within the factory in itself leads to improved productivity and efficiency, enabling flexibility in how the manufacturing organisation works. When combined with those new information technologies, the concept of a smart factory emerges. The whole workflow becomes driven by the digital view of the product and by machine-to-machine communication. New forms of collaboration and decentralised control are then possible, leading to more flexible, cost effective work practices and significant changes in customer delivery.

In terms of the adoption of its principles, although most organisations in the manufacturing sector are now aware, there is still significant work to do in order for manufacturers to understand what Industry 4.0 means in practice and how to maximise the opportunities it provides while dealing with the challenges of its adoption.

AlCircle: Do you think wide adoption of Industry 4.0 in business operations would be a good solution to fight against the catastrophe of COVID-19?

Dr Perez: An accelerated process of adopting the latest technologies and their applications in manufacturing would be a significant development in the recovery from the current crisis.  

Realistically, revolutionising the manufacturing sector is a complex process and we should not expect to see new Industry 4.0 initiatives leading to immediate improvements in productivity and efficiency.

However, as countries start their recovery from the COVID-19 pandemic, working towards implementation of the principles of Industry 4.0 would indeed offer the manufacturing sector a strategic direction and immediate benefits. For example, efforts across the sector to establish new networks and faster collaborations between SMEs and businesses of all sizes and particularly with research and development institutions would drive economic recovery while establishing the foundations for Industry 4.0. Governments’ efforts to provide the foundations for implementation of Industry 4.0 (e.g. improved broadband infrastructure, new legal frameworks for cybersecurity, support for SMEs in their efforts to update the required management skills and existing technology infrastructures) would result in the creation of new jobs, supporting the recovery from the COVID-19 pandemic.

AlCircle: How do you see the future of Industry 4.0 post COVID-19?

Dr Perez: The COVID-19 pandemic has reinforced the relevance of Industry 4.0 as an essential strategic component of manufacturing.

The pandemic has had a major impact on the sector and its operations across the world. In addition to a reduced demand for industrial products as a result of slowed economic activity, many manufacturing jobs had to be put on hold as these could not be carried out remotely. These conditions have led many manufacturing organisations to start thinking proactively in their approach to managing future crises.

An increase in the use of cyber-physical production systems and the deployment of those automation technologies mentioned earlier could help, for example, reduce employees density in specific manufacturing operations for those companies vulnerable to a virus outbreak.  For others, adoption of the latest technologies could inform decisions concerning globalisation strategies, as improvements in communication within international supply chains and new principles such as digital fabrication allow for the implementation of tomorrow’s innovative solutions.

AlCircle: How impactful do you think has been the Industry 4.0 during COVID-19 crisis?

Dr Perez: Companies that had already adopted or had been involved in Industry 4.0 initiatives are likely to have been better prepared to navigate the COVID-19 crisis. From the remote operation of parts of a manufacturing plant to the use of technologies such as drones for monitoring the manufacturing processes, there are several examples of the impact of Industry 4.0 during the pandemic.  In particular, we have seen how different manufacturers have been able to use their technologies to safely produce the equipment that has enabled key services such as healthcare to continue to be delivered throughout the pandemic.

AlCircle: Do you think the adoption of Industry 4.0 will accelerate post-COVID-19?

Dr Perez: Yes, the more we learn about the COVID-19 pandemic, the more likely the manufacturing sector is to work to accelerate the adoption of Industry 4.0. One key lesson from the COVID-19 crisis is the need for society and businesses of all types to be proactive in their approach to managing all sorts of crises. The process of adopting the latest technologies and their applications in manufacturing helps not only rebuild the world economy of today but also build more resilient societies and economies for the future. Industry 4.0 helps build the platform for both faster recovery and improved resilience.

AlCircle: How do you think Industry 4.0 will change the business models post COVID-19?

Dr Perez: As digital transformation becomes a reality across the manufacturing sector, new data-driven business models will necessarily emerge to allow for monetisation of not only the manufacturing products and services but also the relevant datasets and the insights extracted from data.

Decentralised and individualised production cycles, new internet-based services, and more connections between the technologies embedded in production systems and smart production processes will radically transform value chains. This will create the need for new business models that consider the concept of a smart factory and its closer interaction with customers and a more responsive value chain as they tailor their own business models.