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According to the German Klaus Schwab, director and founder of the World Economic Forum and creator of the concept of the 4th Industrial Revolution or Industry 4.0, we are living in a transitory and decisive moment for the global scenario: a time in which not only industry and commerce, but all economic, social, and geopolitical aspects are transforming rapidly and overwhelmingly. It is not possible to specify an exact date for the beginning of this period, since we are still going through it, but we can draw a timeline that brought us here. To do this, we need to understand what characterizes an industrial revolution and why we are seeing this phenomenon happen. ALSO READ: • Learn everything about Computer Vision
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What is an industrial revolution?
Revolutions, by definition, are abrupt and profound changes that impact some aspect of society. They can be political, economic, social, or industrial. Each of the three industrial revolutions that have already occurred marked eras and transformed the course of history. But what makes a historical moment fit to be considered revolutionary? Primarily, the speed and degree of impact that the changes cause in society. Furthermore, the 4th Industrial Revolution is not characterized by the quantity or novelty of technological innovations themselves, but by the direction towards new ways of acting and living. Nanotechnology, Big Data, Machine Learning, Internet of Things, neurotechnologies, robots, artificial intelligence, biotechnology, computer vision, drones, and 3D printers are already in full use by global industries and companies, actively interfering in consumers' daily lives. For example, supermarkets and restaurants without humans working are already a reality; hotels where the receptionist is a robot; artificial intelligences solving problems in call centers; facial recognition by smartphones; algorithms and software capable of analyzing and interpreting an image... The numbers resulting from these innovations are impressive: according to consultancy firm Accenture, Industry 4.0 could add 14.2 billion dollars to the global economy over the next 15 years. The effects of this phenomenon will profoundly impact society on a global scale, directly and deeply affecting labor relations, the economy, politics, legislation, and will even spark more complex and philosophical discussions, such as ethical limits, privacy, and security.
How did we get here?
The first industrial revolution occurred at a time when production was exclusively artisanal, manual, and, above all, slow. Between 1760 and 1830, manufacturing became mechanized, thanks to the use of contraptions powered by coal, steam, and iron. Products were made on a larger scale, at lower costs, and much faster, leading England, the pioneer and stage of this first revolution, to the position of the main world power of the time. The second Industrial Revolution came not long after, in the mid-1850s, with the emergence of electrical equipment, developments in the chemical and petroleum industries, and mass manufacturing. Industries grew and went from sheds to large industrial complexes, with larger machines capable of executing tasks repeatedly. This period is heavily marked by rural exodus, and the urban population grew significantly, forming the first megalopolises. The third Industrial Revolution, closer to our reality, exploded after World War II, with the development of electro-electronic artifacts and the emergence of computers and robotics. With this, humanity was able to go beyond the limits of the planet and physics up to that point, manipulating atoms and creating nuclear reagents; mapping outer space and even landing robots on distant planets. Each of these revolutions changed the world as humanity knew it until then, and the next one will change it even more. Cinema and literature have already presented us with various dystopian situations that may represent what the future will be like, both the optimistic versions of flying cars and interplanetary travel and the pessimistic ones where the environment is totally devastated and robots and machines have rebelled against humans. It is natural for humans to distrust the unknown, but both projections, apocalyptic or progressive, are still very far from reality. So, what can we say so far about this fourth Industrial Revolution?
The revolution of work
At the time of the first industrial revolution, back in the 18th century, job categories were limited to performing a trade: shoemaker, carpenter, blacksmith, scribe, farmer… In any case, one had to be practically an artisan, as raw materials were shaped directly by the worker's hands. Following the change in the mode of production, it was necessary to change the mode of work. New jobs emerged because, now, people were needed to operate the machines, replenish the furnaces, and clean and maintain parts and tools. And manual and artisanal production was not extinguished; it merely changed its character and had to refine itself to continue being valued. The context of Industry 4.0 may seem frightening, as it presents us with the model of the smart industry (fully automated). "What will become of our jobs?" is a common thought when job positions are being filled by cyber-physical systems—that is, systems that combine machines with digital processes, capable of performing repetitive tasks as well as making decisions and cooperating with humans. Despite the initial alarm, this is the key word that needs to be emphasized: cooperation. Indeed, many professions and jobs have been and are being automated, as machines perform repetitive and mechanical tasks better and faster. However, they are not capable of finding creative solutions and ways out of complex situations. Despite imminent advances in the configuration and programming of artificial intelligences that simulate the functioning of the human brain and reasoning, the complete replacement of the human intellectual workforce is still far from an achievable reality (and may not even be possible!). These will be the main skills valued by the job market in 2020, according to a report by the World Economic Forum, indicating that the directions of work will value much more how much the professional can add to the work, rather than focusing on a task to be performed. In the same way that an 18th-century artisan could not imagine it possible to reach the neighboring city by flying, and in the same way that a photographer in the 70s could not imagine it possible to store thousands of images and data on a microchip, our entire reality and way of looking at life is being transformed. Some jobs will disappear, while others that cannot even be imagined yet will emerge and become common.
Present x Future of the 4th industrial revolution
The 4th Industrial Revolution is in full swing (pun intended!). We all live with some (or several) of its fruits: innovations that emerged to, quite literally, revolutionize the way we relate to technology, nature, and the world around us. Speaking in a business context, this ranges from the small entrepreneur who uses a smartphone to organize all aspects of their business to the multinational giants, which can invest more heavily in software that monitors and counts entire production lines, for example. In all sectors of the economy, improvements and solutions are emerging that benefit both the rural producer and the CEO of a large company. The indicators show we have much to gain from the consequences of this Industrial Revolution. The expectation is an improvement in quality of life indices globally and even an increase in life expectancy, since scientific discoveries and advances are being applied directly to fundamental areas, such as: • Health (more precise and automated care and diagnostics, use of auxiliary robots in surgical procedures, smart triages),
• Environment (identification of wildfire outbreaks, deforestation areas, toxic waste leaks in the ocean, and monitoring of preservation areas)
• Public safety (facial recognition of suspects, drone monitoring, license plate reading).
With all of this, we do not need to fear the future. In essence, all technologies arise from the natural tendency of human beings to seek to reduce their physical effort (the first tools used by Neanderthals already proved this indication) and all the inventions and refinements that have emerged since then have established human beings as the dominant species. Humans always seek to save time and facilitate the execution of a task, first to ensure their own survival in a hostile natural environment and, subsequently, to provide more time and quality of life. On the horizon, we see promising paths toward improvements in people's lives. Industry 4.0 came to pave this path and make it possible and (most importantly!) accessible to all.
Fabio Caraça
Fábio Caraça is the Chief Growth Officer at Pix Force. He leads Pix Force's transformation into a scalable SaaS operation, combining strategic vision, culture, and high-impact execution.
