It is a fact that the industrial world is in the midst of a significant revolution regarding the way products are manufactured mainly due to the digitization of the manufacturing process. The fourth industrial revolution, or simply Industry 4.0 (coined in 2011 by a German initiative of the federal government with universities and private companies), is currently occurring in manufacturing. We therefore need to take note of it and anticipate its potential impact on our developmental plans and prepare ourselves accordingly so that we are not left behind.
From the first industrial revolution in 1784, mainly driven by steam power, to mass production using electricity in the second revolution in 1879, to the third industrial revolution of computers and automation in1950, the fourth industrial revolution will further enhance automation with smart and autonomous systems mainly driven by data and machine learning. Essentially computers are being connected to communicate with one another and to ultimately make decisions with minimal human involvement. Industry 4.0 is a new industrial age in which several emerging technologies are converging to provide digital solutions.
Some of the emerging terms related to Industry 4.0 include Cloud Computing, Big Data Analytic, Cyber Physical System, 3D printing (Additive Manufacturing), Cryptocurrency (Blockchain), the Internet of Things (IoT), Artificial Intelligent (AI), Augmented Reality, among others. These will continue to grow with time as digital enterprise emerges.
In this revolution, we are going to see machines which can autonomously detect when they need spare parts, production systems which can run their own quality control during operation and anticipate potential breakdowns, smart supply chain management and, among other things, robots that can autonomously recognize and move components around. Artificial intelligence (AI) and "edge computing” are being combined to offer new smart products, new smart business processes and new business models offering huge productivity upside. The future is no longer what it used to be!
The concept of Industry 4.0 involves many technologies creating hitherto unknown synergies which will create new industrial manufacturing possibilities. There are five pieces that define Industry 4.0 at its core and when integrated together, they create capabilities which have never been possible before. These include: Smart factory, which is the seamless connection of individual production steps, from research, design, prototyping, production, distribution and client management. This will lead to an increase in productivity levels and competitiveness through a significant reduction in costs. In the near future, machinery and equipment will be able to improve processes through self-optimization where systems can autonomously adapt to production variables. For example, smart machines will manage supply chain logistics, coordinate production and global distribution. These are termed "front end technologies” consisting of smart manufacturing, smart products, smart supply chain and smart working.
The potential impact of these new technologies on economic and industrial development is unimaginable. One thing that is certain is that those countries which ignore this new wave will do so at their own peril. The challenge to developing countries and governments is the urgent recalibration of their industrial development plans and the creation of a new ecosystems which facilitate early adoption. Education and upskilling of digital skills will be key.
As Rwanda pursues its industrialisation strategy towards vision 2050 underpinned by a knowledge economy, it is critical that first, leaders both in the public and private sectors are up to speed with the above developments and develop new mind-sets of the possibilities and second, that a national task force of experts and industrialists, if not already done, be established to advise on how we can incorporate and adopt Industry 4.0 technologies especially in the manufacturing sector.
The World Economic Forum (WEF) has advised that governments must provide impetus for research, infrastructure, IT security, and education. According to the WEF, it will be important to have the right regulatory impetus from the government, in a coordinated form, across national borders. The WEF has identified four key issues which need immediate attention by governments as follows:
1. Creating an ecosystem where innovations can grow through support for application-related research and investments.
2. Establishment of an area-wide IT infrastructure and fast internet access are basic requirements. "Industry 4.0 needs, not just more bandwidth, but also very fast transfer times, combined with maximum availability.”
3. IT security is essential to the success of Industry 4.0. Digitalization and cybersecurity have to go hand in hand.
4. All levels of education have to be reoriented to the new digital developments. "Expanded skills in IT, software, programming, communications technology, IT security and data analysis will be indispensable for future industrial applications.”
The big challenge is not the technology itself, but will be how to manage the effects of the industrial revolution 4.0 and to make the most of the new opportunities it provides while ensuring that nobody is left behind. This will require a profound paradigm shift of what is possible and what is inevitably coming our way through Industry 4.0. Developing economies will have to adapt quickly, or be colonised once more, this time by advanced technologies.
In my opinion it is evident that Rwanda’s policy makers are aware of what must be done in order to move towards a knowledge based economy. For example the recent launch of Starlink is an excellent move towards broad based affordable access to the internet, a key ingredient for future economic growth and development. The private sector, especially the manufacturing sector, must obviously lead this fourth industrial revolution while eyeing the close to 800 million consumers within the region. Early adopters of the new technologies will have a serious competitive advantage within the region. The future belongs to those who seize the day!
Vince Musewe is an economist at Resource Africa Limited, Kigali.