RUMBLE co-founder Perry Lea recently scribed an in-depth analysis and recommendation for connecting industry and manufacturing through the adoption of Industry 4.0.
In his 12-page dissertation Connecting Industry and Manufacturing, Lea provides a historical analysis of the first three Industrial Revolutions and how their adoption and adaptation has helped manufacturers achieve production growth. But as he introduces Industry 4.0 to his audience, he reinforces its implementation as a quantum leap in how manufacturers will do business in the future by moving past reactionary industry.
“All of these tools of modern industry are reactionary,” writes Lea. “What is needed are systems that extend beyond reacting in a predictable manner to a set of prescribed events, to cyber-physical systems where the factory (the system) responds to observed and predicted events.”
Lea reviews the four phases outlined by the World Economic Forum, in anticipation of the macro effects of Industrial Internet of Things (IIoT), needed to achieve the benefits of fully autonomous manufacturing:
- Phase 1 – Operational Efficiencies. Taking full advantage by closing the gaps of industries not fully embracing Industry 3.0.
- Phase 2 – New Products and Services. Examining and incorporating pay-per-use models, software-based systems and monetization of data.
- Phase 3 – Outcome Economy. In this phase, manufacturers examine pay-per-outcome economies by going beyond pricing their products based on demand or operational margin alone and factoring in the value the customer places on their product into the mix.
- Phase 4 – Autonomous, Pull Economy. This is the IIoT goal – a demand-driven, globally- connected, demand-sensing and predictive system that connects what was once perceived as dumb or un-connectable into an interactive and intuitive business tool.
Lea spends the remaining pages of this white paper detailing the many benefits of a pull economy through IIoT and digital transformation and outlines six best business practices for manufacturers to consider immediately to take advantage of these benefits. He closes the document with a thought-provoking invitation on “where to go next.”
Perry Lea, co-founder of RUMBLE, is a 27-year veteran of the technology industry. He’s served as a technologist, strategist, business developer, entrepreneur, researcher, and inventor. He is the author of over 50 patents and the Amazon best-seller “The Internet of Things for Architects.” He holds three engineering degrees and a postgrad degree in electrical engineering from Columbia University.