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Industry 4.0 should start from understanding the concept

Industry 4.0 should start from understanding the concept

Tuesday 23, 06 2020
Vietnam is developing the National Strategy on the fourth industrial revolution (Industry 4.0) by 2030, aiming to proactively and effectively utilize the opportunities of this industrial revolution to accelerate the process of renewing the growth model and restructuring the economy. However, how to effectively take advantage of opportunities is not an easy task.

So far no one has known what day the Industry 1.0 started and Industry 3.0 ended, as each scientific and technological revolution has no beginning nor a stop. The introduction of a national industry strategy 4.0 should also be based on this “non-stop” characteristic.

The “great leap” lesson

In the mid-20th century, due to the vague understanding of "industrialization and modernization," since the late 1950s, China has launched a "Great Leap Forward" plan in which tens of millions of farmers are mobilized into producing iron and steel in the garden style.

The government encouraged the construction of small steel kilns in each commune, using scrap iron, pots, pans, pans, and various types of metal furnaces for the kiln to achieve its goal that after 15 years China would have the steel output surpassing that of the UK. It was one of a world-class disaster without understanding the concept of industrializing a country.

Short-term plans or creating corridors

The same goes for Industry 4.0. Once you do not fully understand the concept, you will fall into a 5-10-year plan with impressive words and numbers, including the high percentage of economic growth (GDP), no different from China wanting to surpass the UK in steel production with "communal" furnaces.

Today there is no disaster leading to starvation such as "Great Leap Forward", but the risk of economic collapse due to wrong technology investments is real. Industry 4.0 related to a combination of some breakthrough innovations in digital technology is now ripe for application such as robots, artificial intelligence (AI), intelligent sensors, cloud computing, Internet of Things (IoT), data and data analysis, 3D printing, biotechnology, physics, smartphones with shared applications, and the global value supply chain.

These disruptive technologies seem to be unrelated, but once connected they become a powerful tool. Just a smartphone with a Grab-style car finder makes tens of millions of dollars a day for a company due to the ability to interact, connect, share, pay, extremely convenient for users.

Newspapers, conferences, and policymakers talk a lot about Industry 4.0, but not everyone understands the meaning of what they say and write. The most frightening is that the people who design and make implementation still do not fully understand the concept of industrial planning 4.0 for the company, for a locality or a country.

Industry 4.0 should start from understanding the concept

Small steps for a big plan

There are a few small steps for a company to change to 4.0.

The company's digital ability is the most important because Industry 4.0 is related to digitalization. Digital transformation has a profound impact on the company, affecting its strategy, talent, business model, and even how it is organized in the context of industry 4.0.

Regarding a firm specialized in carving stone art, the digital conversion is very small, but when there is a large number of customers, the purposeful search for buyers and ads into groups of people in need requires the understanding of data processing, analysis, and production strategy. Not to mention due to competition, finding skilled workers 4.0 is also an important factor.

Deloitte explores big companies for interesting results. 94% of respondents see digital transformation as the company's most important strategic goal, but only 64% see the new profitability of digital conversion.

They understand that it is important, yet they fail to realize the level of importance, resulting in their confusion when strategizing for a new 4.0 industry while operating the old “machine”. Another paradox in the supply chain between existing services and new industrial-style digital service 4.0, or finding new skilled people while having to keep good old people, is another barrier.

It takes time to plan, but there are some key steps

  1. You need to set up a 4.0 strategy from the beginning, self-assess your number ability, where you are and where you are going, and set a goal to close that gap, as well as prioritize what's important to the company and align with the overall strategy;

  2. You must keep on testing. It is necessary to have a pilot project to ensure success, as failure is the mother of success. Having success in testing is easy to persuade leadership and investment. This phase requires cooperation with external experts, experience exchange and learning;

  3. Identifying the knowledge and skills needed for 4.0 is also important. Based on the test, it is possible to know what skills the company needs to achieve its goal.

  4. Data processing is the key to Industry 4.0. One of the top 10 most attractive and expensive professions in the world is data processing experts. Going to apply 4.0 without knowing what the data is would be like forcing farmers to produce steel in their yard.

  5. Do not be afraid to make your dream come true. If you are skilled, knowledgeable, capable of handling data, solidly tested, backed by management, managed, and communicated about change, success can be at hand.


Vietnam Economy

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