Asim Tewari, Professor, Center for Machine Intelligence and Data Science (C-MInDS) and G.K. Devarajulu Chair Professor, Department of Mechanical Engineering, IIT Bombay
Digital transformation is radically reshaping our world. The pace of technological advancements in the field of artificial intelligence has outpaced any technology in the history of mankind. If we don’t know what we don’t know, then it is impossible to imagine and plan a future. This requires an understanding of the foundational technologies and an appreciation for the latest advancements that are fuelling this Digital Transformation. Agile data-driven AI provides an aid and roadmap to develop a digital strategy for an organisation. An ability to manoeuvre and manage the ever- changing landscape and business uncertainty. But more fundamentally, the leaders have to learn to reimagine a fundamental shift in the traditional business model and to a data-driven AI-based business model.
Previously, humanity has seen three major transformative shifts known as the industrial revolutions. Starting from steam-powered industry to electrical machines to computer control sensor-based manufacturing. The current Digital Transformation is manifesting itself as the fourth industrial revolution. This is also known as Industry 4.0 and is currently in its early stages of industrial adaptation. The main difference between the previous industrial revolution (Industry 3.0) and Industry 4.0 is not the presence of sensors, controllers, actuators, or computer algorithms (as these existed in Industry 3.0 as well) but the incorporation of artificial intelligence (AI) that can learn and adapt independently. By integrating AI, machines gain intelligence and become more capable of accomplishing tasks effectively.
The purpose of Industry 4.0 varies depending on the goals and objectives pursued. For instance, in many nations in Europe, automation is considered a crucial aspect of Industry 4.0. This is because there is a declining workforce, with old workers retiring and new not wanting to join manufacturing. Thus, automation is necessary to maintain output levels. However, in India, Industry 4.0 does not necessarily require automation due to the need to generate employment opportunities for the masses. Here Industry 4.0 can as well empower the existing workforce by leveraging these technologies. As a result, industries that predominantly operate manually (Industry 2.0) or automatically/semi-automatically (Industry 3.0) can still be transformed into Industry 4.0.
One major misconception regarding the application of Industry 4.0 is the belief that it solely pertains to the manufacturing sector. In reality, it encompasses a range of industries, including hospitality (referred to as Hotel 4.0) and healthcare providers (known as Hospital 4.0), among others.
Realising the complete potential of Industry 4.0 involves the creation of digital twins, which can be developed for any product or process. Digital twins are not limited to being mere dashboards, health monitoring systems, or process optimization systems. Instead, it encompasses all of these functionalities and more. Essentially, Digital Twin represents the physical asset in the virtual world, which is a self-contained, autonomous, intelligent virtual entity with two-way connectivity with the physical asset. The digital twins can range in size and complexity from individual units or products to entire cities. At the most fundamental level, a digital twin can represent the smallest indivisible unit of Industry 4.0. However, a collection of many digital twins making a factory is itself a digital twin for the entire factory.
A Digital Twin for an entire organisation (all the departments, processes, and assets) would enable it to leverage the power of digital transformation using artificial intelligence for both tactical and strategic activities. Therefore, it is imperative for every organisation to create a comprehensive road map for this digital transformation, traversing from digitization to digitalization.
As artificial intelligence is evolving rapidly, startups have a unique advantage with their inherent flexibility to become significant contributors in implementing Industry 4.0 and driving digital transformation. Consequently, experts predict that the coming decade will witness a surge in young companies specialising in Industry 4.0 and artificial intelligence, reminiscent of the Y2K phenomenon observed in the IT industry at the beginning of this century.
