This McKinsey article explains that Industry 4.0, also known as the Fourth Industrial Revolution (4IR), is the ongoing digitization of the manufacturing sector, driven by disruptive technologies like advanced analytics, connectivity, automation, and robotics.
It builds on the Third Industrial Revolution (1950s–2000s), which introduced computers and the internet, and is powered by cyber-physical systems—intelligent computers that integrate physical and digital processes.
Key technologies include cloud computing, IoT, blockchain, and sensors, enabling data-driven operations across the value chain.
4IR
Starting in the mid-2010s, 4IR has transformed global business by enhancing efficiency, productivity, and sustainability. A 2019 McKinsey survey found 68% of companies viewed it as a strategic priority, with 70% piloting or deploying related technologies. However, by 2020, 74% of firms were stuck in “pilot purgatory,” testing but not scaling these technologies.
The Global Lighthouse Network (GLN), launched in 2018 by the World Economic Forum and McKinsey, highlights manufacturing sites (“lighthouses”) that successfully implement 4IR technologies at scale, achieving over 80% of the value from use cases. These sites serve as benchmarks, unlike digital factories, which are testing grounds. Benefits include efficient supply chains, reduced waste, and improved productivity, with 60% of lighthouses prioritizing sustainability (e.g., lower emissions and waste).
The COVID-19 pandemic accelerated 4IR adoption, as 94% of surveyed firms said these technologies kept operations running, and 56% deemed them critical for crisis response. The article emphasizes that scaling 4IR technologies is key to avoiding pilot purgatory and unlocking transformative potential for businesses and stakeholders.
Orange and Shabodi: Shaping the Future of Industry 4.0
Manufacturers use specialized Industry 4.0 applications for computer vision, industrial control, and process automation that need suitable networks to operate autonomously and intelligently. If they lack network awareness, it can lead to resource competition and bottlenecks, disrupting essential manufacturing processes.
This challenge can be addressed by enabling manufacturers to easily integrate Network APIs from the 5G private or public network into third-party Industry 4.0 solutions. Orange and Shabodi have partnered to create this additional value by bridging advanced network capabilities, orchestration with network aware applications.
