Introduction to IR 4.

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 Introduction to IR 4.0 i

Table of Contents

Chapter Page
CHAPTER 1 INTRODUCTION TO INDUSTRIAL REVOLUTION 4.0 (IR4.0) 1
1.1 What Is Industrial Revolution 4.0? 1
1.2 History: From Industry 1.0 to Industry 4.0 2
1.3 The Nine Pillars of Industry 4.0 4
1.4 Benefit of Digitization 9

CHAPTER 2 PILLAR 1 – SUPPLY CHAIN 11

2.1 Supply Chain Management (SCM) 12
2.2 Key Component of Current Value Chain 14
2.3 How do value chains work? 16
2.4 Benefits of SCM 18
2.5 How to conduct a value chain analysis? 19

CHAPTER 3 PILLAR 2 – INDUSTRIAL INTERNET OF THINGS 20

3.1 The Internet of Things (IoT/IIoT) 20
3.2 How does IoT work? 21
3.3 Why is IoT important? 22
3.4 What are the benefits of IoT to organizations? 23
3.5 What are the pros and cons of IoT? 24
3.6 Industrial IoT Use Cases and Applications 25

CHAPTER 4 PILLAR 3 – AUTONOMOUS ROBOTS 28

4.1 What are autonomous Robots? 28
4.2 How many types of Robots? 30
4.3 Robot and Industrial Revolution 31

CHAPTER 5 PILLAR 4 – ADDITIVE MANUFACTURING 34

5.1 What is Additive Manufacturing? 34
5.2 How does it work? 36
5.3 Additive vs Subtractive Manufacturing 37
5.4 3 Types of Manufacturing - Additive, Subtractive, and Forming 39
 Introduction to IR 4.0 ii

CHAPTER 6 PILLAR 5 – HORIZONTAL AND VERTICAL INTEGRATION 41

6.1 Vertical Integration VS. Horizontal Integration in Business 41
6.2 What Is Horizontal Integration in Business? 42
6.3 What Is Vertical Integration in Business? 43
6.4 Key Differences 44

CHAPTER 7 PILLAR 6 – SIMULATION AND AUGMENTED REALITY 45

7.1 What Is Augmented Reality? 46
7.2 How does augmented reality work? 47
7.3 Why does AR need computer vision? 48
7.4 How to Take Digitalized Steps in the Analogue World 49

CHAPTER 8 PILLAR 7 – CYBER SECURITY 51

8.1 What is Cyber Security? 52
8.2 The scale of the Cyber Threat 53
8.3 Types of Cyber Threats 54
8.4 Cyber Security and The Fourth Industrial Revolution 55

CHAPTER 9 PILLAR 8 – CLOUD COMPUTING 57

9.1 What is Cloud Computing? 57
9.2 Cloud Computing Service 59
9.3 How important is the cloud? 61

CHAPTER 10 PILLAR 9 – BIG DATA ANALYSIS 63

10.1 Big Data: The Management Revolution 63
10.2 What is an Example of Big Data? 65
10.3 Types of Big Data 67
10.4 Characteristics of Big Data 70
10.5 Advantages of Big Data Processing 71
 Introduction to IR 4.0 1

- CHAPTER 1 -
INTRODUCTION TO INDUSTRIAL REVOLUTION 4.0 (IR 4.0)

Objectives:
• To understand more about Industrial Revolution 4.0
• To learn more about the history of Industrial Revolution
• To learn more about Nine Pillars of Industry 4.0
• To learn more about benefit of Digitization

1.1 What Is Industrial Revolution 4.0?

Industry 4.0 refers to a new phase in the Industrial Revolution that focuses heavily on
interconnectivity, automation, machine learning, and real-time data. Industry 4.0, which
encompasses IIoT and smart manufacturing, marries physical production and operations with
smart digital technology, machine learning, and big data to create a more holistic and better-
connected ecosystem for companies that focus on manufacturing and supply chain
management.

While every company and organization operating today is different, they all face a common
challenge—the need for connectedness and access to real-time insights across processes,
partners, products, and people. Industry 4.0 isn’t just about investing in new technology and
tools to improve manufacturing efficiency—it’s about revolutionizing the way your entire
business operates and grows.

The world of manufacturing is changing. To survive and thrive now, you have to be willing to
invest in Industry 4.0. This resource will help you get started.
 Introduction to IR 4.0 2

1.2 History: From Industry 1.0 to Industry 4.0

1st Industrial Revolution

The First Industrial Revolution began in the 18th century through the use of steam power and
mechanisation of production. What before produced threads on simple spinning wheels, the
mechanised version achieved eight times the volume in the same time. Steam power was
already known. The use of it for industrial purposes was the greatest breakthrough for
increasing human productivity. Instead of weaving looms powered by muscle, steam-engines
could be used for power. Developments such as the steamship or (some 100 years later) the
steam-powered locomotive brought about further massive changes because humans and
goods could move great distances in fewer hours.

2nd Industrial Revolution

The Second Industrial Revolution began in the 19th century through the discovery of electricity
and assembly line production. Henry Ford (1863-1947) took the idea of mass production from
a slaughterhouse in Chicago: The pigs hung from conveyor belts and each butcher performed
only a part of the task of butchering the animal. Henry Ford carried over these principles into
automobile production and drastically altered it in the process. While before one station
assembled an entire automobile, now the vehicles were produced in partial steps on the
conveyor belt - significantly faster and at lower cost.
 Introduction to IR 4.0 3

3rd Industrial Revolution

The Third Industrial Revolution began in the ’70s in the 20th century through partial automation
using memory-programmable controls and computers. Since the introduction of these
technologies, we are now able to automate an entire production process - without human
assistance. Known examples of this are robots that perform programmed sequences without
human intervention.

4th Industrial Revolution

We are currently implementing the Fourth Industrial Revolution. This is characterised by the
application of information and communication technologies to industry and is also known as
"Industry 4.0". It builds on the developments of the Third Industrial Revolution. Production
systems that already have computer technology are expanded by a network connection and
have a digital twin on the Internet so to speak. These allow communication with other facilities
and the output of information about themselves. This is the next step in production automation.
The networking of all systems leads to "cyber-physical production systems" and therefore smart
factories, in which production systems, components and people communicate via a network
and production is nearly autonomous.

When these enablers come together, Industry 4.0 has the potential to deliver some incredible
advances in factory environments. Examples include machines which can predict failures and
trigger maintenance processes autonomously or self-organized logistics which react to
unexpected changes in production.

And it has the power to change the way that people work. Industry 4.0 can pull individuals into
smarter networks, with the potential of more efficient working. The digitalization of the
manufacturing environment allows for more flexible methods of getting the right information
to the right person at the right time. The increasing use of digital devices inside factories and
out in the field means maintenance professionals can be provided with equipment
documentation and service history in a timelier manner, and at the point of use. Maintenance
professionals want to be solving problems, not wasting time trying to source the technical
information that they need.

In short, Industry 4.0 is a game-changer, across industrial settings. The digitalization of

manufacturing will change the way that goods are made and distributed, and how products
are serviced and refined. On that basis, it can truly lay claim to represent the beginning of the
fourth industrial revolution.
 Introduction to IR 4.0 4

1.3 The Nine Pillars of Industry 4.0

Industry 4.0 describes a future state of industry characterized by thorough digitization of

economic and production flows. It requires horizontal integration at every step in the
production process, in interaction with machines. In the globally interconnected world of
Industry 4.0, machines also interact with one another.

Industry 4.0 describes a future state of industry characterized by thorough digitization of

economic and production flows. It requires horizontal integration at every step in the
production process, in interaction with machines. In the globally interconnected world of
Industry 4.0, machines also interact with one another.
 Introduction to IR 4.0 5

The Boston Consulting Group has identified Industry 4.0’s nine technological pillars:

1.3.1 Autonomous Robots

Long used to tackle complex tasks, robots provide an ever-wider range of services and are
becoming more autonomous, flexible, and cooperative. They will interact with one another
and work safely with humans (the term “cobotics” is used to describe robots helping operators
perform their tasks). Eventually, they will be able to learn from humans.

1.3.2 Simulation

3D simulation of product development, material development and production processes will

become widespread. It will leverage real-time data to mirror the physical world in a virtual
model that will include machines, products, and humans. Operators will be able, for example,
to test and optimize the machine settings for the next product even before production starts,
thereby reducing machine setup times and improving quality.
 Introduction to IR 4.0 6

1.3.3 Horizontal and Vertical System Integration

Today, information systems are not fully integrated. Companies are rarely connected with their
suppliers and customers. Engineering design departments are seldom linked directly to
production within its own organization. But with Industry 4.0, the entire organization will be
interconnected, and companies will be connected with one another.

1.3.4 The Industrial Internet of Things

Few machines are currently fitted with sensors and interconnected. With the Industrial Internet
of Things, an ever-greater number of products will incorporate intelligence and be connected
using standard protocols. This will decentralize analytics and decision-making, enabling real-
time responses.
 Introduction to IR 4.0 7

1.3.5 Cybersecurity

The days of closed, unconnected operational management systems are over. Connectivity
and communication protocols are becoming the norm. Protecting information systems and
manufacturing lines from cybercrime threats is becoming a critical issue. Sophisticated identity
and machine access management systems will be used to provide secure, reliable
communications.

1.3.6 Additive Manufacturing

Companies have just begun to adopt 3D printing for prototyping and unit production. With
Industry 4.0, these technologies will be chosen for their very high performance in producing
small batches of customized products. Decentralized systems will reduce transportation and
inventory management costs.
 Introduction to IR 4.0 8

1.3.7 Augmented Reality

Augmented-reality tools are still in their infancy, but they are paving the way for new services.
For example, they will provide operators with the real-time information they need for faster
decision-making and for improving work processes.

1.3.8 Big data and Analytics

There are still massive sets of untapped data in the industrial world. Their analysis will optimize
production quality, save energy, and improve services. Here as well, the goal is to allow real-
time decision-making.
 Introduction to IR 4.0 9

1.4 Benefit of Digitization

Digital transformation is the process by which companies reorganize their strategies and
working methods, with the aim of obtaining greater benefits thanks to customer experience
optimization, process digitization and the dynamic implementation of technology.

Consumers digitize much faster than businesses. That is why a digitally transformed organization
obtains more benefits than companies that continue with the traditional business model.
Therefore, it is essential to know the current situation your company is in and, thus, approach
the process in the most effective and efficient way possible.

Advantages of Business Digital Transformation

The success of a digital transformation project generates a series of advantages for the
company that should be considered:

• Improved productivity
Thanks to process automation, employees carry out their tasks in a much more agile,
autonomous and efficient way. Also, they can monitor the status of their projects in real
time and manage time appropriately.

• Time and cost reduction

The improvement of labour productivity leads to great savings in time and costs in all
departments of the organization. In addition, with the implementation of new business
solutions, production times are reduced, the margin of error decreases and business
competitiveness increases.

• Improved internal and external communication

Achieving digital transformation in an organization has a direct impact on communication
between employees and customers, since the same communication channels are used
and accessibility is improved for both parties.

• Increased analytical capacity

Opting for digital transformation facilitates the analysis of the data of all company
departments. Thanks to the implementation of new data collection systems, work is
managed better and, due to greater business insight, the correct decisions can be made
at all times.
 Introduction to IR 4.0 10

• Creation of new business opportunities

By re-establishing the business model, previously inaccessible business structures are
created. In this way, new doors are opened to market products or services, regardless of
the customer’s location.

• Expansion of geographical borders

Digitizing the company helps to internationalize the products or services offered,
generating important benefits such as increased turnover, reduced risk of crisis and
increased competitiveness.

• Extends the life of the company

The use of new technologies and specialized software such as Aura Quantic, ensures that
the company is kept up to date with everything that happens and the consequences it
has on users. Therefore, the organization’s life cycle is lengthened and the brand is
consolidated.

• Decentralization of work and continuous training

With digitization, employees can work from anywhere, increasing team mobility and
making work-life balance achievable. This, in addition to continuous training on new
technologies, will give employees a positive experience in the company.
 Introduction to IR 4.0 11

- CHAPTER 2 -
PILLAR 1 – SUPPLY CHAIN

Objectives:
• To understand more about Supply Chain Management (SCM)
• To learn more about key component of current value chain
• To learn more about benefit of SCM
• To learn more about value chain analysis

"Supply Chain 4.0 - the application of the Internet of Things, the use of advanced robotics, and
the application of advanced analytics of big data in supply chain management: place
sensors in everything, create networks everywhere, automate anything, and analyse
everything to significantly improve performance and customer satisfaction".

Over the last thirty years, logistics has undergone a tremendous change: from a purely
operational function that reported to sales or manufacturing and focused on ensuring the
supply of production lines and the delivery to customers, to an independent supply chain
management function that in some companies is already being led by a CSO - the Chief
Supply Chain Officer. The focus of the supply chain management function has shifted to
advanced planning processes, such as analytical demand planning or integrated S&OP,
which have become established business processes in many companies, while operational
logistics has often been outsourced to third-party LSPs. The supply chain function ensures
integrated operations from customers to suppliers.
 Introduction to IR 4.0 12

2.1 Supply Chain Management (SCM)

Industry 4.0 creates a disruption and requires companies to rethink the way they design their
supply chain. Several technologies have emerged that are altering traditional ways of working.
On top of this, mega trends and customer expectations change the game. Besides the need
to adapt, supply chains also have the opportunity to reach the next horizon of operational
effectiveness, to leverage emerging digital supply chain business models, and to transform the
company into a digital supply chain.

Several mega trends have a heavy influence on supply chain management: there is a
continuing growth of the rural areas worldwide, with wealth shifting into regions that have not
been served before. Pressure to reduce carbon emissions as well as regulations of traffic for
socioeconomic reasons add to the challenges that logistics are facing. But changing
demographics also lead to reduced labour availability as well as increasing ergonomic
requirements that arise as the workforce age increases.

At the same time customer expectations are growing: the online trend of the last years has led
to increasing service expectations combined with a much stronger granularization of orders.
There is also a very definite trend towards further individualization and customization that drives
the strong growth of and constant changes in the SKU portfolio. The online-enabled
transparency and easy access to a multitude of options regarding where to shop and what to
buy drives the competition of supply chains.
 Introduction to IR 4.0 13

To build on these trends and cope with the changed requirements, supply chains need to
become much faster, more granular, and much more precise.

Vision of the future state

The digitization of the supply chain enables companies to address the new requirements of
the customers, the challenges on the supply side as well as the remaining expectations in
efficiency improvement. Digitization brings about a Supply Chain 4.0, which will be:

• Faster
New approaches of product distribution reduce the delivery time of high runners to few
hours. The basis for these services is built by advanced forecasting approaches, e.g.,
predictive analytics of internal (e.g., demand) and external (e.g., market trends,
weather, school vacation, construction indices) data as well as machine status data
for spare-parts demand, and provides a much more precise forecast of customer
demand. Forecasts are not carried out on a monthly basis, but weekly, and for the very
fast-moving products even every day. In the future we will see "predictive shipping," for
which Amazon holds a patent - products are shipped before the customer places an
order. The customer order is later on matched with a shipment that is already in the
logistics network (being transported towards the customer region) and the shipment is
rerouted to the exact customer destination.
 Introduction to IR 4.0 14

• More flexible
Ad hoc and real-time planning allows a flexible reaction to changing demand or
supply situations. Planning cycles and frozen periods are minimized and planning
becomes a continuous process that is able to react dynamically to changing
requirements or constraints (e.g., real-time production capacity feedback from
machines). Once the products are sent, increased flexibility in the delivery processes
allows customers to reroute shipments to the most convenient destination.

New business models, such as Supply Chain as a Service for supply chain planning functions or
transport management, increase the flexibility in the supply chain organization. Supply chain
can be bought as a service and paid for on a by-usage basis instead of having the resources
and capabilities in-house. The specialization and focus of service providers allow them to
create economies of scale as well as economies of scope and also attractive outsourcing
opportunities.

2.2 Key Component of Current Value Chain

A value chain is a concept describing the full chain of a business's activities in the creation of
a product or service -- from the initial reception of materials all the way through its delivery to
market, and everything in between.

The value chain framework is made up of five primary activities -- inbound operations,
operations, outbound logistics, marketing and sales, service -- and four secondary activities --
procurement and purchasing, human resource management, technological development
and company infrastructure.

A value chain analysis is when a business identifies its primary and secondary activities and sub
activities, and evaluates the efficiency of each point. A value chain analysis can reveal
linkages, dependencies and other patterns in the value chain.
 Introduction to IR 4.0 15

The value chain concept was first described in 1985 by Harvard Business School professor
Michael Porter, in his book Competitive Advantage: Creating and Sustaining Superior
Performance.
 Introduction to IR 4.0 16

2.3 How do value chains work?

The value chain framework helps organizations identify and group their own business functions
into primary and secondary activities.

Analysing these value chain activities, sub activities and the relationships between them helps
organizations understand them as a system of interrelated functions. Then, organizations can
individually analyse each to assess whether the output of each activity or sub activity can be
improved -- relative to the cost, time and effort they require.

When an organization applies the value chain concept to its own activities, it is called a value
chain analysis.

Primary Activities
Primary activities contribute to a product or service's physical creation, sale, maintenance and
support. These activities include the following:
• Inbound operations. The internal handling and management of resources coming from
outside sources -- such as external vendors and other supply chain sources. These
outside resources flowing in are called "inputs" and may include raw materials.
• Operations. Activities and processes that transform inputs into "outputs" -- the product
or service being sold by the business that flow out to customers. These "outputs" are the
core products that can be sold for a higher price than the cost of materials and
production to create a profit.
• Outbound logistics. The delivery of outputs to customers. Processes involve systems for
storage, collection and distribution to customers. This includes managing a company's
internal systems and external systems from customer organizations.
• Marketing and sales. Activities such as advertising and brand-building, which seek to
increase visibility, reach a marketing audience and communicate why a consumer
should purchase a product or service.
• Service. Activities such as customer service and product support, which reinforce a
long-term relationship with the customers who have purchased a product or service.

As management issues and inefficiencies are relatively easy to identify here, well-managed
primary activities are often the source of a business's cost advantage. This means the business
can produce a product or service at a lower cost than its competitors.
 Introduction to IR 4.0 17

Secondary Activities
The following secondary activities support the various primary activities:
• Procurement and purchasing. Finding new external vendors, maintaining vendor
relationships, and negotiating prices and other activities related to bringing in the
necessary materials and resources used to build a product or service.
• Human resource management. The management of human capital. This includes
functions such as hiring, training, building and maintaining an organizational culture;
and maintaining positive employee relationships.
• Technology development. Activities such as research and development, IT
management and cybersecurity that build and maintain an organization's use of
technology.
• Company infrastructure. Necessary company activities such as legal, general
management, administrative, accounting, finance, public relations and quality
assurance.
 Introduction to IR 4.0 18

2.4 Benefits of SCM

The value chain framework helps organizations understand and evaluate sources of positive
and negative cost efficiency. Conducting a value chain analysis can help businesses in the
following ways:
• Support decisions for various business activities.
• Diagnose points of ineffectiveness for corrective action.
• Understand linkages and dependencies between different activities and areas in the
business. For example, issues in human resources management and technology can
permeate nearly all business activities.
• Optimize activities to maximize output and minimize organizational expenses.
• Potentially create a cost advantage over competitors.
• Understand core competencies and areas of improvement.

A value chain analysis can offer important benefits; however, when emphasizing granular
process details in a value chain, it's important to still give proper attention to an organization's
broader strategy.
 Introduction to IR 4.0 19

2.5 How to conduct a value chain analysis?

A value chain analysis is a process that helps organizations understand points in their value
chain, as well as relationships between these different points. Conducting a value chain
analysis helps a company identify factors that create or hinder cost efficiency in its business
model.

When undergoing a value chain analysis, businesses should regard the framework as a starting
point rather than a complete start-to-finish process.
Here are some steps that companies can take to understand their value chains:
• Break each primary and secondary activity down into sub activities. Organizations can
then analyse each function on a more granular level, to compare the financial return
of each function to the time, effort and cost required.
• Look for connections between sub activities. Often, the inefficiency of one activity or
sub activity is linked to another. For example, an ill-advised HR hire can create issues
that permeate into many different sub activities. Technology and inbound operations
can also have rippling effects throughout a company's value chain.
• Diagnose areas of improvement. Consider trends and patterns in the different sub
activities and connections between sub activities, and evaluate for potential
improvement opportunities in those particular points in the value chain.
 Introduction to IR 4.0 20

- CHAPTER 3 -
PILLAR 2 – INDUSTRIAL INTERNET OF THINGS

Objectives:
• To understand more Internet of Things (IoT)
• To learn about the important of IoT
• To understand the benefits of IoT to organizations
• To learn about the pros and cons of IoT
• To understand the Industrial IoT Use Cases and Applications

3.1 The Internet of Things (IoT/IIoT)

The internet of things, or IoT, is a system of interrelated computing devices, mechanical and
digital machines, objects, animals or people that are provided with unique identifiers (UIDs)
and the ability to transfer data over a network without requiring human-to-human or human-
to-computer interaction.

A thing in the internet of things can be a person with a heart monitor implant, a farm animal
with a biochip transponder, an automobile that has built-in sensors to alert the driver when tire
pressure is low or any other natural or man-made object that can be assigned an Internet
Protocol (IP) address and is able to transfer data over a network.
Increasingly, organizations in a variety of industries are using IoT to operate more efficiently,
better understand customers to deliver enhanced customer service, improve decision-making
and increase the value of the business.
 Introduction to IR 4.0 21

3.2 How does IoT work?

An IoT ecosystem consists of web-enabled smart devices that use embedded systems, such as
processors, sensors and communication hardware, to collect, send and act on data they
acquire from their environments. IoT devices share the sensor data they collect by connecting
to an IoT gateway or other edge device where data is either sent to the cloud to be analysed
or analysed locally. Sometimes, these devices communicate with other related devices and
act on the information they get from one another. The devices do most of the work without
human intervention, although people can interact with the devices -- for instance, to set them
up, give them instructions or access the data.

The connectivity, networking and communication protocols used with these web-enabled
devices largely depend on the specific IoT applications deployed.

IoT can also make use of artificial intelligence (AI) and machine learning to aid in making data
collecting processes easier and more dynamic.
 Introduction to IR 4.0 22

3.3 Why is IoT important?

The internet of things helps people live and work smarter, as well as gain complete control over
their lives. In addition to offering smart devices to automate homes, IoT is essential to business.
IoT provides businesses with a real-time look into how their systems really work, delivering
insights into everything from the performance of machines to supply chain and logistics
operations.

IoT enables companies to automate processes and reduce labour costs. It also cuts down on
waste and improves service delivery, making it less expensive to manufacture and deliver
goods, as well as offering transparency into customer transactions.

As such, IoT is one of the most important technologies of everyday life, and it will continue to
pick up steam as more businesses realize the potential of connected devices to keep them
competitive.
 Introduction to IR 4.0 23

3.4 What are the benefits of IoT to organizations?

The internet of things offers several benefits to organizations. Some benefits are industry-
specific, and some are applicable across multiple industries. Some of the common benefits of
IoT enable businesses to:
• Monitor their overall business processes;
• Improve the customer experience (CX);
• Save time and money;
• Enhance employee productivity;
• Integrate and adapt business models;
• Make better business decisions; and
• Generate more revenue.

IoT encourages companies to rethink the ways they approach their businesses and gives them
the tools to improve their business strategies.

Generally, IoT is most abundant in manufacturing, transportation and utility organizations,

making use of sensors and other IoT devices; however, it has also found use cases for
organizations within the agriculture, infrastructure and home automation industries, leading
some organizations toward digital transformation.

IoT can benefit farmers in agriculture by making their job easier. Sensors can collect data on
rainfall, humidity, temperature and soil content, as well as other factors, that would help
automate farming techniques.

The ability to monitor operations surrounding infrastructure is also a factor that IoT can help
with. Sensors, for example, could be used to monitor events or changes within structural
buildings, bridges and other infrastructure. This brings benefits with it, such as cost saving, saved
time, quality-of-life workflow changes and paperless workflow.

A home automation business can utilize IoT to monitor and manipulate mechanical and
electrical systems in a building. On a broader scale, smart cities can help citizens reduce waste
and energy consumption.
 Introduction to IR 4.0 24

3.5 What are the pros and cons of IoT?

Some of the advantages of IoT include the following:
• Ability to access information from anywhere at any time on any device;
• Improved communication between connected electronic devices;
• Transferring data packets over a connected network saving time and money; and
• Automating tasks helping to improve the quality of a business's services and reducing
the need for human intervention.

Some disadvantages of IoT include the following:

• As the number of connected devices increases and more information is shared
between devices, the potential that a hacker could steal confidential information also
increases.
• Enterprises may eventually have to deal with massive numbers -- maybe even millions
-- of IoT devices, and collecting and managing the data from all those devices will be
challenging.
• If there's a bug in the system, it's likely that every connected device will become
corrupted.
• Since there's no international standard of compatibility for IoT, it's difficult for devices
from different manufacturers to communicate with each other.
 Introduction to IR 4.0 25

3.6 Industrial IoT Use Cases and Applications

Broadly speaking, the Industrial Internet of Things, also known as Industrial IoT or IIoT, is the
application of instrumentation, connected sensors, and other devices to machinery and
processes in industrial settings.

According to the BCG, 50% of IoT spending will be driven by discrete manufacturing,
transportation and logistics, and utilities by 2020.

But what drives the adoption of IoT in manufacturing? After all, companies don’t have IoT
problems – they have business problems.

According to IDC, the leading use case for IoT in manufacturing is manufacturing operations.
In 2016, this accounted for $102.5 billion out of $178 billion in total spending.

In this chapter, we’ll go over eight specific business use cases and applications in
manufacturing operations, production asset management, and field services that are driving
the adoption of Industrial IoT in manufacturing.
 Introduction to IR 4.0 26

i. Production Visibility
Industrial IoT can connect machines, tools, and sensors on the shop floor to give
process engineers and managers much-needed visibility into production. For example,
organizations can automatically track parts as they move through assemblies using
sensors such as RFID and break beams. Furthermore, by connecting with the tools the
operators use to perform their jobs and with the machines involved in the production,
Industrial IoT applications can give supervisors and plant managers a real-time view of
their teams’ yield. This level of visibility can be used by organizations to identify
bottlenecks, find the root cause of problems, and improve at a faster rate.

ii. Higher operator productivity

Industrial IoT can increase the productivity of the manufacturing workforce in several
ways. Let’s start with the operators. Using IIoT enabled tools, operators can go through
workflows faster without compromising quality. For example, pick-to-light devices can
help operators find the piece they need much more quickly and thus reduce their
cycle time. Likewise, using IoT-enabled tools such as torque drivers can speed up work
by automatically adjusting the tool’s settings according to the operation they should
be doing.

iii. Faster improvement cycles

Operators aren’t the only ones who benefit from IIoT. Process engineers (as well as
manufacturing engineers, quality engineers, and in general all frontline engineers in the
operation) benefit as well. Without IoT, operation engineers must manually collect,
aggregate, and analyse data. An IoT-enabled operation, on the other hand, gives
them the ability to automate data collection so they have more time to spend
improving processes.

iv. Reduce the cost of quality management systems

Quality management systems (QMS) are hard to implement and maintain. Industrial IoT
can help reduce the costs associated with them by automating and streamlining the
process control plan. Using sensors, organizations can automatically check variables
that are critical to quality, thus reducing the time and resources dedicated to the QMS.
Rather than manually performing quality inspections, they can use IoT sensors to
streamline the process.
 Introduction to IR 4.0 27

v. Improve quality through continuous monitoring

Environmental sensors can continuously monitor conditions critical to quality and alert
management when quality thresholds are crossed. For example, in a pharmaceutical
operation, the temperature can be critical to quality. By using IoT-connected
temperature and humidity sensors, managers can monitor those variables and be
instantly alerted if they go outside the expected parameters.

vi. Increase machine utilization

Industrial IoT enables organizations to connect their machines to the internet. This
capability lets organizations not only monitor their machines but also measure
important KPIs such as overall equipment effectiveness (OEE) and overall process
effectiveness (OPE) in real-time. Tracking these metrics lets organizations identify and
fix causes of unplanned downtime, provide preventive maintenance to their
equipment, and thus increase machine utilization throughout the operation. In fact, a
recent McKinsey article reported that sensor data used to predict equipment failure in
a manufacturing environment can reduce maintenance costs by as much as 40
percent and cut unplanned downtime in half.

vii. Better facility management

Leveraging sensors in manufacturing facilities can improve their management and
therefore reduce the operational costs of a factory. For example, using sensors such as
RFID tags to monitor facilities, organizations can gain insights to help them optimize
space usage. Another way in which IoT-enabled sensors can help organizations better
manage their facilities is by ensuring environmental variables such as temperature,
humidity, or others, stay within the prescribed range. Lastly, organizations can conserve
energy, reduce costs, and increase operational efficiency by using sensors to monitor
machinery and ensure they are operating within their prescribed working environment.

viii. Supply chain optimization

IoT enabled sensors to permit monitoring of events across a supply chain, providing
access to real-time information by tracking inputs, equipment, and products. RFID tags
and other sensors can be used to track inventory as it moves around the supply chain.
This provides organizations visibility into inventories and more realistic timelines for
material availability, work in progress, and so on. Using this data, organizations can
identify interdependencies, map material flow, and track manufacturing cycle times.
This data helps organizations predict issues. It also reduces inventory and potentially
reduces capital requirements.
 Introduction to IR 4.0 28

- CHAPTER 4 -
PILLAR 3 – AUTONOMOUS ROBOTS

Objectives:
• To understand more about Autonomous Robots
• To learn more about Robots types
• To learn more about Robot and Industrial Revolution
• To learn about the pros and cons of IoT
• To understand the Industrial IoT Use Cases and Applications

4.1 What are autonomous Robots?

Autonomous robots can learn their environments and work without breaks. They can use
infrared or ultrasound sensors to help increase their precision and accuracy. Depending on
your production needs, there is an exact or customized solution for you through RobotWorx.

Autonomous robots have the ability to gain information about their environments, and work
for an extended period of time without human intervention. Examples of these robots range
from autonomous helicopters to robot vacuum cleaners. These self-reliant robots can move
themselves throughout the operation without human assistance, and are able to avoid
situations that are harmful to themselves or people and property. Autonomous robots are also
likely to adapt to changing surroundings.
 Introduction to IR 4.0 29

Simpler autonomous robots use infrared or ultrasound sensors to see obstacles, allowing them
to navigate around the obstacles without human control. More advanced robots use stereo
vision to see their environments; cameras give them depth perception, and software allows
them to locate and classify objects in real time.

Autonomous robots are helpful in busy environments, like a hospital. Instead of employees
leaving their posts, an autonomous robot can deliver lab results and patient samples
expeditiously. Without traditional guidance, these robots can navigate the hospital hallways,
and can even find alternate routes when another is blocked. They will stop at pick-up points,
and collect samples to bring to the lab.

DARPA, the Defense Advanced Research Projects Agency, is a division of the US Defense
Department with the mission to create technological surprise for our enemies. This organization
represents the cutting edge of military and disaster relief technology, and after developing
autonomous vehicles, they are focused on creating autonomous robots that are capable of
performing complex tasks in dangerous environments.

Another place autonomous robots are useful is in our natural environment. In 2013, researchers
at Virginia Tech developed an autonomous robotic jellyfish with the intent of one day
conducting undersea military surveillance or monitoring the environment. The 5 foot 7 inch
jellyfish has a long duration and range of operation.

While major robotics companies like FANUC, ABB, KUKA, Universal Robots, and Motoman all
offer autonomous robots, the Robotarium X Zoo houses 45 autonomous robots powered by
photo-voltaic energy. This “first zoo for artificial life” provides an ideal environment for robotic
development.

As emerging technologies become more prominent, the relationship between humans and
robots is evolving. Autonomous robots have the ability to replace humans, such as a cognitive
virtual assistant acting as an automated customer representative. Autonomous robots even
have the ability to understand the emotion in a human’s voice. These trends towards robotic
involvement in industry processes will allow companies to improve productivity and customer
experience, and gain a competitive advantage.
 Introduction to IR 4.0 30

4.2 How many types of Robots?

Mechanical bots come in all shapes and sizes to efficiently carry out the task for which they
are designed. All robots vary in design, functionality and degree of autonomy. From the 0.2
millimetre-long “RoboBee” to the 200-meter-long robotic shipping vessel “Vindskip,” robots are
emerging to carry out tasks that humans simply can’t. Generally, there are five types of robots:

i. Pre-Programmed Robots
Pre-programmed robots operate in a controlled environment where they do simple,
monotonous tasks. An example of a pre-programmed robot would be a mechanical
arm on an automotive assembly line. The arm serves one function — to weld a door
on, to insert a certain part into the engine, etc. — and its job is to perform that task
longer, faster and more efficiently than a human.

ii. Humanoid Robots

Humanoid robots are robots that look like and/or mimic human behaviour. These robots
usually perform human-like activities (like running, jumping and carrying objects), and
are sometimes designed to look like us, even having human faces and expressions. Two
of the most prominent examples of humanoid robots are Hanson Robotics’ Sophia (in
the video above) and Boston Dynamics’ Atlas.

iii. Autonomous Robots

Autonomous robots operate independently of human operators. These robots are
usually designed to carry out tasks in open environments that do not require human
supervision. They are quite unique because they use sensors to perceive the world
around them, and then employ decision-making structures (usually a computer) to
take the optimal next step based on their data and mission. An example of an
autonomous robot would be the Roomba vacuum cleaner, which uses sensors to roam
freely throughout a home.

iv. Teleoperated Robots

Teleoperated robots are semi-autonomous bots that use a wireless network to enable
human control from a safe distance. These robots usually work in extreme geographical
conditions, weather, circumstances, etc. Examples of teleoperated robots are the
human-controlled submarines used to fix underwater pipe leaks during the BP oil spill or
drones used to detect landmines on a battlefield.
 Introduction to IR 4.0 31

v. Augmenting Robots
Augmenting robots either enhance current human capabilities or replace the
capabilities a human may have lost. The field of robotics for human augmentation is a
field where science fiction could become reality very soon, with bots that have the
ability to redefine the definition of humanity by making humans faster and stronger.
Some examples of current augmenting robots are robotic prosthetic limbs or
exoskeletons used to lift hefty weights.

4.3 Robot and Industrial Revolution

As the global manufacturing industry enters its fourth revolution, innovations such as robotics,
automation and artificial intelligence (AI) are set to take over.

The number of active industrial robots worldwide is increasing by approximately 14% year on
year, and automation continues to create new types of robots with improved utility and
function.

Factories of the future will likely feature robots and humans working side-by-side to meet
consumer demand—a new world which business owners should be prepared for.
 Introduction to IR 4.0 32

What is industry 4.0?

It’s important to gain an understanding of what is meant by ‘the fourth revolution’, or ‘industry
4.0’.

The human race has collectively experienced three industrial revolutions since the 1800s; each
revolution has been characterized by an exciting new technology that improved
manufacturing and processes for the better. The steam engine, the assembly line, and the
computer have each been the catalyst for prior revolutions.

Industry 4.0 refers to the current industrial revolution that we find ourselves in, led by the
evolution of robotics, automation, and the internet of things (IoT). Industry 4.0 heralds an age
of ‘smart’ systems and digital integration; the name was coined in 2011, and the associated
movement is sending ripples through almost every industry around the globe.

Let’s explore some of the ways in which Emerging Industry 4.0 Technologies can positively
affect manufacturing and supply chains.

• Robotics can improve productivity

Based on current projections, AI is expected to have the ability to increase labour
productivity by up to 40% by 2035. Although some may see robotics and AI as tools to
replace human workers, the International Federation of Robotics believes that less than
10% of jobs could be fully automated; robots are generally designed to take on
repetitive tasks and allow workers to focus on more intensive duties. A major benefit of
automation in large manufacturing operations is that some tasks could effectively be
completed 24/7, thereby boosting production output without any additional labour
costs. Effective robotic completion of some tasks could be especially useful to small
business owners. Small businesses generally cannot hire as large a workforce as
manufacturing giants; automation may help to level the playing field. In recent surveys,
57% of employers indicated an interest in boosting performance and productivity
through automation and robotics. Some research has shown that increased use of AI
in the workplace may actually create new job positions, allowing employers to hire
more staff in the future.
 Introduction to IR 4.0 33

• Automation can lower overhead costs

Although the initial cost of automated software or robots may be significant, the return
on investment can be swift. Business owners might find that some roles are no longer
required once AI is being utilized, saving costs immediately. As an example, some
restaurant industry leaders are utilizing delivery robots, which reduces their need for
human workers. With fewer employees taking part in hazardous work activities,
businesses could also save on health and safety costs, with fewer injuries or time off
work for their staff. Many robots require only a small amount of space to operate, and
can safely work alongside humans on assembly lines. The potential reduction in
required space means that companies could also downsize to cheaper workplaces
and factories. According to recent surveys, 24% of employers are currently considering
automating some roles in order to reduce operating costs.

• Smart technology can reduce human error

Human error is a factor that every business must plan for, and time and energy are both
spent rectifying the issues when they occur. Particularly when it comes to highly
repetitive or mathematical tasks, automation could handle these with a far lower
margin of error than human workers. As automation can be expensive to implement,
it’s critical that entrepreneurs take stock of their end-to-end processes, and decide
where they can receive the biggest impact from AI. If your business has significant
invoicing operations with a small error margin, this may be a good place to start. If you
have an assembly line where small screws are often left out of the finished product, a
robot could complete this task effectively for you.
 Introduction to IR 4.0 34

- CHAPTER 5 -
PILLAR 4 – ADDITIVE MANUFACTURING

Objectives:
• To understand more about Additive Manufacturing
• To learn more about Additive vs Subtractive Manufacturing
• To learn more about 3 Types of Manufacturing
• To learn about the pros and cons of IoT
• To understand the Industrial IoT Use Cases and Applications

5.1 What is Additive Manufacturing?

Additive manufacturing is a specific 3D printing process. This process builds parts layer by layer
by depositing material according to digital 3D design data. The term “3D printing” is
increasingly used as a synonym for additive manufacturing. However, “additive
manufacturing” better reflects the professional manufacturing process that differs significantly
from conventional, subtractive manufacturing methods. For example, instead of milling a
workpiece from a solid block, additive manufacturing builds the part up layer by layer from
material supplied as a fine powder. Various metals, plastics and composite materials can be
used.
 Introduction to IR 4.0 35

Additive manufacturing is relevant in many areas and for numerous industries. Whether used
for building visual and functional prototypes or small and medium series - and increasingly for
series production. This method offers convincing advantages conventional methods cannot
achieve.

Product development and market entry can be significantly accelerated, agile product
customization and functional integration can be achieved more quickly and at a lower cost.
In this way, additive manufacturing gives large OEM manufacturers from a wide variety of
industries the opportunity to differentiate themselves on the market in terms of customer
benefits, cost reduction potential and sustainability targets.
 Introduction to IR 4.0 36

5.2 How Does a 3D printer with Additive Manufacturing

Technology work?

The Additive Manufacturing Process in Detail

First, a thin layer of the powder material is added to a building platform. There, a powerful laser
beam melts the powder precisely at certain points specified by the computer-generated
design data. Next, the construction platform is lowered and another layer of powder is added.
The material is melted once again, which connects it to the layer below at the specified points.
The additive technique was invented more than 30 years ago. EOS has continuously
developed and perfected the process and materials since the company's founding.

The term “additive manufacturing” references technologies that grow three-dimensional

objects one superfine layer at a time. Each successive layer bonds to the preceding layer of
melted or partially melted material. Objects are digitally defined by computer-aided-design
(CAD) software that is used to create .stl files that essentially "slice" the object into ultra-thin
layers. This information guides the path of a nozzle or print head as it precisely deposits material
upon the preceding layer. Or, a laser or electron beam selectively melts or partially melts in a
bed of powdered material. As materials cool or are cured, they fuse together to form a three-
dimensional object.

GE Additive specializes in developing Powder Bed Fusion (PBF) machines for the additive
manufacturing of metal parts. The three processes GE offers with in the PBF category,
recognized by the American Society for Testing and Materials (ASTM), include: Direct Metal
Laser Melting (DMLM), Electron Beam Melting (EBM), Binder Jetting.

In all of GE Additive’s machines the process involves the spreading of the metal powder layer
by layer and uses either a laser or electron beam to melt and fuse powder together to create
a part. The process repeats until the entire part is created. Loose or unfused powder is removed
during post processing and is recycled for the next build.
 Introduction to IR 4.0 37

5.3 Additive vs Subtractive Manufacturing

Additive processes can include 3D printing, layered manufacturing, or direct digital

manufacturing. The printing machine deposits material based on a CAD model programmed
into the software layer by layer until the product is complete. This application is often used for
small, intricate designs.

While some subtractive manufacturing may use manual labour, it’s most often applied at scale
with controlled machining. The equipment is guided by Computer Numerical Control (CNC).
Like Additive Manufacturing, CNC Machining requires a digital model. This approach is most
often used for larger products where quality and speed are crucial.

Here are the key takeaways to consider:

• Additive Manufacturing:
o Doesn’t require oversight or extensive employee training
o Intricate shapes or hollow objects are easy to create
o More cost-effective
o Less wasted material
o Surface finishes will require an extra step in post-production
o Better suited for smaller products, especially plastics parts
o Finished products have a less reliable quality
o Often slower production, especially with larger products
 Introduction to IR 4.0 38

• Subtractive Manufacturing:
o Requires a trained operator to control the machinery and oversee production
o Can easily create a variety of finishes
o Suited for creating large objects, especially from metal
o Faster production
o Finish products more reliably
o More wasted materials
o Generally, more expensive than additive processes
o It’s more difficult to mill intricate shapes and undercuts
 Introduction to IR 4.0 39

5.4 3 Types of Manufacturing - Additive, Subtractive, and Forming

Most of us identify manufacturing processes by the equipment used. But manufacturing is also
identified in a broader sense, by the way, the manufacturing is being accomplished. A single
way a product is produced can be done by a variety of machines and tools.

This lesson will describe three types, or ways, of manufacturing a product; additive, subtractive,
and forming.

i. What is Additive Manufacturing?

Think of an artist painting a bear on a canvas. What is the process being used to make
the picture of the bear? Paint is being added to the canvas to make the form of the
bear. Actually, a variety of colors of paint are being added on top of each other to
give the illusion of the different parts and features of the bear. So painting is an
"additive" process of creating art.
3D printing is an additive process of manufacturing. That is why it is referred to as
additive manufacturing. Material is built up layer by layer until the complete part is
made.

Some additive processes use a liquid material, others use material in a powder form. A
variety of materials, both plastic, and metal are available to provide the unique
attributes needed to satisfy the engineering requirements of the part.
 Introduction to IR 4.0 40

Advantages of additive manufacturing over others are the speed, low labour cost,
customization ability, and the ability to make highly complex geometric designs.

Disadvantages include the less-competitive cost of high-volume production runs and

limited accuracy and tolerances.

ii. What is Subtractive Manufacturing?

Now think of an artist who is a woodcarver. How do they form a bear out of wood?
They start out with a block or log, of wood. Then they take a tool, which is sometimes a
chainsaw, and remove, or "subtract", wood until they have the form of a bear.

CNC machining is a prominent process of subtractive manufacturing. A product starts

out as a block of material large enough to make the part. Through a milling process,
cutting tools remove material from the block until the finished part is made.

iii. What is Forming Manufacturing?

Now suppose a toy company wanted to make a collection of little forest animals for
kids to play with. The high volume of toy bears needed would be best made through
a forming process. A mold with the design of a bear would be filled with liquid plastic,
rubbery material. Once cooled, the mold is opened and the toy bear removed.

Injection molding is a way to manufacture goods using the formative process. A mold
is made in the form of the part needed. Melted plastic is forced into the cavity of the
mold. The material cools and hardens and takes on the form of the mold's design. Then
the newly formed part is removed and the mold refilled.
 Introduction to IR 4.0 41

- CHAPTER 6 -
PILLAR 5 – HORIZONTAL AND VERTICAL INTEGRATION

Objectives:
• To understand more about vertical integration vs. Horizontal integration in
business
• To learn about the differences between horizontal integration and vertical
integration

6.1 Vertical Integration VS. Horizontal Integration in Business

Vertical integration occurs between two firms that operate at different stages of the supply
chain. It helps the organizations to achieve synergy with self-sufficiency. Horizontal Integration,
on the other hand, materializes between two firms that have similar operations in terms of
production and product level.

It helps the organizations to achieve synergy, but not with self-sufficiency to operate alone in
the value chain. There have been different opinions and debates on the differences and
similarities between vertical integration and horizontal integration in business. That’s why we’ve
composed this informative guide to help you know the differences as well as the similarities of
these two terms in the world of business.
 Introduction to IR 4.0 42

6.2 What Is Horizontal Integration in Business?

Horizontal integration is a type of business development strategy where a company or an
organization decides to acquire the same type of products at the same level of marketing or
production process in a merger. When a company decides to take up another company at
the same level of the value chain or from the same business line to lessen competition in the
market, it is said to be a horizontal integration.

Take, for instance, when a biscuit company acquires its rival biscuit-making company to
benefit from economies of scale, expand geographically, and increase the market share, it is
called horizontal integration. Some of the best examples of horizontal integration include
Disney merging with Pixar, Porsche merging with Volkswagen, and Quaker Oats with Snapple.
In 2006, Walt Disney Company acquired Pixar Animation Studios for $7.4 billion. They acquired
this company to diversity their services and to achieve growth in their operational size and
economies of scale due to increased production levels. This helps Disney in spanning its reach
to a larger market with a larger customer base.
 Introduction to IR 4.0 43

6.3 What Is Vertical Integration in Business?

Vertical integration is a type of business expansion strategy where a company takes complete
control of different stages of the supply chain to gain control over the entire market industry.
You know we said earlier that horizontal integration is the combination between competitors
in the industry, vertical integration, on the other hand, refers to an upstream-downstream or
buy-sell relationship between companies.

There are two major forms of vertical integration. This includes forward and backward
integration. Forward integration involves the company taking complete control and ownership
of its distributors or customers, while backward integration involves a company taking control
and ownership over its suppliers or the production of its own product line. One of the reasons
why vertical integration is more preferable is that it helps to lower the risk a firm will have to
face in the industry.
 Introduction to IR 4.0 44

6.4 Key Differences

1. Vertical integration occurs between two firms that operate at different stages of the
supply chain. It helps the organizations to achieve synergy with self-sufficiency.
2. Horizontal Integration, on the other hand, materializes between two firms that have
similar operations in terms of production and product level. It helps the organizations
to achieve synergy, but not with self-sufficiency to operate alone in the value chain.
3. Vertical integration is a type of business expansion strategy where a company takes
complete control of different stages of the supply chain to gain control over the entire
market industry.
4. Horizontal integration, on the other hand, is a type of business development strategy
where a company or an organization decide to acquire the same type of products at
the same level of marketing or production process in a merger.
5. Heinz and Kraft Foods meagre is a typical example of horizontal integration since they
both produce processed food for their customer base.
6. A marketplace like Amazon is an example of vertical integration. It acts as a
marketplace for buyers and sellers and also manufactures and owns its own products
and services, as well as its own distribution channel.
 Introduction to IR 4.0 45

- CHAPTER 7 -
PILLAR 6 – SIMULATION AND AUGMENTED REALITY

Objectives:
• To understand more about augmented reality
• To learn more about how does augmented reality work
• To learn more about how to take digitalized steps in the analogue world

Augmented reality continues to develop and become more pervasive among a wide range
of applications. Since its conception, marketers and technology firms have had to battle the
perception that augmented reality is little more than a marketing tool. However, there is
evidence that consumers are beginning to derive tangible benefits from this functionality and
expect it as part of their purchasing process.

For example, some early adopters in the retail sector have developed technologies that are
designed to enhance the consumer shopping experience. By incorporating augmented
reality into catalogue apps, stores let consumers visualize how different products would look
like in different environments. For furniture, shoppers point the camera at the appropriate room
and the product appears in the foreground.
 Introduction to IR 4.0 46

7.1 What Is Augmented Reality?

Augmented reality (AR) is an enhanced version of the real physical world that is achieved
through the use of digital visual elements, sound, or other sensory stimuli delivered via
technology. It is a growing trend among companies involved in mobile computing and
business applications in particular.

Amid the rise of data collection and analysis, one of augmented reality’s primary goals is to
highlight specific features of the physical world, increase understanding of those features, and
derive smart and accessible insight that can be applied to real-world applications. Such big
data can help inform companies' decision-making and gain insight into consumer spending
habits, among others.

Key Takeaways
• Augmented reality (AR) involves overlaying visual, auditory, or other sensory
information onto the world in order to enhance one's experience.
• Retailers and other companies can use augmented reality to promote products or
services, launch novel marketing campaigns, and collect unique user data.
• Unlike virtual reality, which creates its own cyber environment, augmented reality adds
to the existing world as it is.
 Introduction to IR 4.0 47

7.2 How does augmented reality work?

So now that you know the meaning of AR, how does it work? First, computer vision understands
what is in the world around the user from the content of the camera feed. This allows it to show
digital content relevant to what the user is looking at. This digital content is then displayed in a
realistic way, so that it looks part of the real world - this is called rendering. Before breaking this
down into more detail, let’s use a concrete example to make this clearer. Consider playing an
augmented reality board game using a real cereal box as the physical support like in the figure
below.

First, computer vision processes the raw image from the camera, and recognizes the cereal
box. This triggers the game. The rendering module augments the original frame with the AR
game making sure it precisely overlaps with the cereal box. For this it uses the 3D position and
orientation of the box determined by computer vision. Since augmented reality is live, all the
above has to happen every time a new frame comes from the camera. Most modern phones
work at 30 frames per second, which gives us only 30 milliseconds to do all this. In many cases
the AR feed you see through the camera is delayed by roughly 50 ms to allow all this to
happen, but our brain does not notice!
 Introduction to IR 4.0 48

7.3 Why does AR need computer vision?

While our brain is extremely good at understanding images, this remains a very difficult problem
for computers. There is a whole branch of Computer Science dedicated to it called computer
vision. Augmented reality requires understanding the world around the user in terms of both
semantics and 3D geometry. Semantics answers the “what?” question, for example
recognizing the cereal box, or that there is a face in the image.

Geometry answers the “where?” question, and infers where the cereal box or the face are in
the 3D world, and which way they are facing. Without geometry, AR content cannot be
displayed at the right place and angle, which is essential to make it feel part of the physical
world. Often, we need to develop new techniques for each domain. For example, computer
vision methods that work for a cereal box are quite different from those used for a face.

Semantics and geometry of the world

Traditionally, computer vision techniques used for understanding these two aspects are quite
different. On the semantics side we have seen much progress thanks to Deep Learning, which
typically figures out what is in an image without worrying about its 3D geometry. On its own, it
enables basic forms of AR. For example, whenever computer vision recognizes an object we
could display relevant information floating on the screen, but it will not look anchored to the
physical object.
 Introduction to IR 4.0 49

7.4 How to Take Digitalized Steps in the Analogue World

AR designers made huge strides in the 2010s—a decade full of invaluable AR lessons and
examples while the required sensors became cheaper. Pokémon GO is noteworthy, a GPS-
oriented app that “inserts” Pokémon characters into users’ environments so users can find and
capture them on device screens. Google’s AR stickers are another prime example; users drop
realistic images into their camera shots. Users find AR particularly appealing for its
entertainment value. Still, AR’s mainstream future appears assured across a wide range of
applications, including education inside museums. With AR applications, you can bring
experiences closer to users in their own environments through designs that are more directly
engaging, personalized and—indeed—fun.

How to Take Digitalized Steps in the Analogue World

You have numerous design considerations, namely:
1. Safety
Remember users’ real-world contexts; don’t distract/mislead them into danger.
2. Overkill
Beware of drowning users’ senses with meaningless data; keep experiences
contextualized.
3. Environment
Unlike desktop experiences, AR happens anywhere. So, aim primarily for users’ contexts
regarding whether they’re outdoors/indoors and moving/static. Whatever their setting,
users expect pleasurable, user-friendly experiences. AR UX’s Rob Manson stipulates user
scenarios:
a. Public—interacting with software, using the entire body
b. Personal—using smartphones in public spaces
c. Intimate—sitting, using a desktop
d. Private—using a wearable
 Introduction to IR 4.0 50

4. Comfort
Make comfortable designs to prevent physical strains and reduce cognitive load.

5. Security
AR data is rich; so, design to ensure users’ data is secure.
 Introduction to IR 4.0 51

- CHAPTER 8 -
PILLAR 7 – CYBER SECURITY

Objectives:
• To understand more about cyber security
• To learn more about how does augmented reality work
• To learn more about the scale and types of the cyber threat
• To learn more about cyber security and the fourth industrial revolution

Cyber Security as a Prerequisite for The Industry 4.0

How important is cyber security for the Industry 4.0? With the principles of efficiency and
connectivity of the fourth industrial revolution, a different side of the coin rises: the danger of
cyber-attacks.

Ideally, the Industry 4.0 requires a completely interconnected reality, but this same
characteristic uncovers an unexpected vulnerability. Because with connectivity, the effect
and impact of eventual attacks grow as well.
 Introduction to IR 4.0 52

8.1 What is Cyber Security?

Cyber security is the practice of defending computers, servers, mobile devices, electronic
systems, networks, and data from malicious attacks. It's also known as information technology
security or electronic information security. The term applies in a variety of contexts, from
business to mobile computing, and can be divided into a few common categories.

• Network security is the practice of securing a computer network from intruders, whether
targeted attackers or opportunistic malware.
• Application security focuses on keeping software and devices free of threats. A
compromised application could provide access to the data its designed to protect.
Successful security begins in the design stage, well before a program or device is
deployed.
• Information security protects the integrity and privacy of data, both in storage and in
transit.
• Operational security includes the processes and decisions for handling and protecting
data assets. The permissions users have when accessing a network and the procedures
that determine how and where data may be stored or shared all fall under this
umbrella.
• Disaster recovery and business continuity define how an organization responds to a
cyber-security incident or any other event that causes the loss of operations or data.
Disaster recovery policies dictate how the organization restores its operations and
information to return to the same operating capacity as before the event. Business
continuity is the plan the organization falls back on while trying to operate without
certain resources.
 Introduction to IR 4.0 53

• End-user education addresses the most unpredictable cyber-security factor: people.

Anyone can accidentally introduce a virus to an otherwise secure system by failing to
follow good security practices. Teaching users to delete suspicious email attachments,
not plug in unidentified USB drives, and various other important lessons is vital for the
security of any organization.

8.2 The scale of the Cyber Threat

The global cyber threat continues to evolve at a rapid pace, with a rising number of data
breaches each year. A report by RiskBased Security revealed that a shocking 7.9 billion records
have been exposed by data breaches in the first nine months of 2019 alone. This figure is more
than double (112%) the number of records exposed in the same period in 2018.

Medical services, retailers and public entities experienced the most breaches, with malicious
criminals responsible for most incidents. Some of these sectors are more appealing to
cybercriminals because they collect financial and medical data, but all businesses that use
networks can be targeted for customer data, corporate espionage, or customer attacks.

With the scale of the cyber threat set to continue to rise, the International Data Corporation
predicts that worldwide spending on cyber-security solutions will reach a massive $133.7 billion
by 2022. Governments across the globe have responded to the rising cyber threat with
guidance to help organizations implement effective cyber-security practices.

In the U.S., the National Institute of Standards and Technology (NIST) has created a cyber-
security framework. To combat the proliferation of malicious code and aid in early detection,
the framework recommends continuous, real-time monitoring of all electronic resources.

The importance of system monitoring is echoed in the “10 steps to cyber security”, guidance
provided by the U.K. government’s National Cyber Security Centre. In Australia, The Australian
Cyber Security Centre (ACSC) regularly publishes guidance on how organizations can counter
the latest cyber-security threats.
 Introduction to IR 4.0 54

8.3 Types of Cyber Threats

The threats countered by cyber-security are three-fold:
i. Cybercrime includes single actors or groups targeting systems for financial gain or to
cause disruption.
ii. Cyber-attack often involves politically motivated information gathering.
iii. Cyberterrorism is intended to undermine electronic systems to cause panic or fear.

So, how do malicious actors gain control of computer systems? Here are some common
methods used to threaten cyber-security:

Malware
Malware means malicious software. One of the most common cyber threats, malware is
software that a cybercriminal or hacker has created to disrupt or damage a legitimate user’s
computer. Often spread via an unsolicited email attachment or legitimate-looking download,
malware may be used by cybercriminals to make money or in politically motivated cyber-
attacks.

There are a number of different types of malware, including:

• Virus: A self-replicating program that attaches itself to clean file and spreads
throughout a computer system, infecting files with malicious code.
• Trojans: A type of malware that is disguised as legitimate software. Cybercriminals trick
users into uploading Trojans onto their computer where they cause damage or collect
data.
• Spyware: A program that secretly records what a user does, so that cybercriminals can
make use of this information. For example, spyware could capture credit card details.
• Ransomware: Malware which locks down a user’s files and data, with the threat of
erasing it unless a ransom is paid.
• Adware: Advertising software which can be used to spread malware.
• Botnets: Networks of malware infected computers which cybercriminals use to perform
tasks online without the user’s permission.

SQL injection
An SQL (structured language query) injection is a type of cyber-attack used to take control of
and steal data from a database. Cybercriminals exploit vulnerabilities in data-driven
applications to insert malicious code into a databased via a malicious SQL statement. This
gives them access to the sensitive information contained in the database.
 Introduction to IR 4.0 55

Phishing
Phishing is when cybercriminals target victims with emails that appear to be from a legitimate
company asking for sensitive information. Phishing attacks are often used to dupe people into
handing over credit card data and other personal information.

Man-in-the-middle attack
A man-in-the-middle attack is a type of cyber threat where a cybercriminal intercepts
communication between two individuals in order to steal data. For example, on an unsecure
WiFi network, an attacker could intercept data being passed from the victim’s device and the
network.

Denial-of-service attack
A denial-of-service attack is where cybercriminals prevent a computer system from fulfilling
legitimate requests by overwhelming the networks and servers with traffic. This renders the
system unusable, preventing an organization from carrying out vital functions.

8.4 Cyber Security and The Fourth Industrial Revolution

The concept of the Fourth Industrial Revolution can be traced back to early initiatives such as
the totally integrated automation (TIA) concept advanced by Siemens in 1996. The
advancement of this concept into its modern form has created wonders of manufacturing, BA
and IT, but it has also created technologically defined and even individualized cyber
landscapes vulnerable to specifically designed attacks.

Fourth IR environments are technical worlds of features that enable such things as the
provisioning of servers, initiating production via a command-and-control node, the rapid
instantiation and use of encrypted data vaults and containers, and adoption of open-source
code.

Manufacturing execution systems (MES) are among the key technical elements of OT and BA
in these facilities. MESs are functionally highly sophisticated logic layers utilizing cloud and on-
prem-based data vaults to specify production or machine procedural steps. They also function
as a component of the interface between the operator and the firm’s physical processes. A
principal vulnerability is that these systems often have API access to the firm’s enterprise
resource planning (ERP) system.
 Introduction to IR 4.0 56

MESs mirror purer CPS as they can be both open or closed systems, often with feedback loops
and built-in intelligence. It is here that the impact of a system compromise can be most
impactful as attackers can effectively affect segments or all the firm’s manufacturing
capabilities.

It is important to note the “tipping point” concept about a cyberattack. Simply stated, to
obtain the desired outcomes, a bad actor need not “bring down” the entire system but only
the components necessary to force the desired outcome — i.e., paying a ransom.

How the Attack Landscape Is Evolving

Among the most enticing targets for actors and nation-states are the advanced and highly
integrated technical environments of embedded devices and connected networks. Fourth
Industrial Revolution firms can be characterized as having deployed large numbers of industry-
grade embedded Internet of Things (IoT) devices and CPS.

This unmistakable shift toward dense technical ecosystems is indeed creating its intended
benefits, but it has also created new attack vectors. Multisector attacks cantered on ML are
now commonplace and include newly seen integrity attacks, advanced remote and indirect
compromise attacks.

Upon gaining entry to the firm’s systems, bad actors will move laterally, often compromising
the entire IT and OT system — with devastating results. Actors have specifically targeted
programmable manufacturing machines and MES as critical nodes of the overall ecosystem.
Hackers have also taken notice of the human-computer interfaces (HCI) that are central to
operations with vulnerabilities that are often poorly understood by their owners. Adversarial
machine learning (AML) is also being leveraged by actors to breach networks in the form of
integrity attacks designed to confuse and corrupt the ML being employed by the firm.
 Introduction to IR 4.0 57

- CHAPTER 9 -
PILLAR 8 – CLOUD COMPUTING

Objectives:
• To understand more about cloud computing
• To learn more about cloud computing service
• To learn more about the important of cloud
• To learn more about Cyber Security and The Fourth Industrial Revolution

9.1 What is Cloud Computing?

Cloud computing is on-demand access, via the internet, to computing resources—
applications, servers (physical servers and virtual servers), data storage, development tools,
networking capabilities, and more—hosted at a remote data centre managed by a cloud
services provider (or CSP). The CSP makes these resources available for a monthly subscription
fee or bills them according to usage.

Compared to traditional on-premises IT, and depending on the cloud services you select,
cloud computing helps do the following:

• Lower IT costs
Cloud lets you offload some or most of the costs and effort of purchasing, installing,
configuring, and managing your own on-premises infrastructure.

• Improve agility and time-to-value

With cloud, your organization can start using enterprise applications in minutes, instead
of waiting weeks or months for IT to respond to a request, purchase and configure
supporting hardware, and install software. Cloud also lets you empower certain users—
specifically developers and data scientists—to help themselves to software and
support infrastructure.

• Scale more easily and cost-effectively

Cloud provides elasticity—instead of purchasing excess capacity that sits unused
during slow periods, you can scale capacity up and down in response to spikes and
dips in traffic. You can also take advantage of your cloud provider’s global network to
spread your applications closer to users around the world.
 Introduction to IR 4.0 58

The term ‘cloud computing’ also refers to the technology that makes cloud work. This includes
some form of virtualized IT infrastructure—servers, operating system software, networking, and
other infrastructure that’s abstracted, using special software, so that it can be pooled and
divided irrespective of physical hardware boundaries. For example, a single hardware server
can be divided into multiple virtual servers.

Virtualization enables cloud providers to make maximum use of their data centre resources.
Not surprisingly, many corporations have adopted the cloud delivery model for their on-
premises infrastructure so they can realize maximum utilization and cost savings vs. traditional
IT infrastructure and offer the same self-service and agility to their end-users.

If you use a computer or mobile device at home or at work, you almost certainly use some
form of cloud computing every day, whether it’s a cloud application like Google Gmail or
Salesforce, streaming media like Netflix, or cloud file storage like Dropbox. According to a
recent survey, 92% of organizations use cloud today (link resides outside IBM), and most of
them plan to use it more within the next year.
 Introduction to IR 4.0 59

9.2 Cloud Computing Services

IaaS (Infrastructure-as-a-Service), PaaS (Platform-as-a-Service), and SaaS (Software-as-a-
Service) are the three most common models of cloud services, and it’s not uncommon for an
organization to use all three. However, there is often confusion among the three and what’s
included with each:

• SaaS (Software-as-a-Service)
o SaaS—also known as cloud-based software or cloud applications—is
application software that’s hosted in the cloud and that you access and use
via a web browser, a dedicated desktop client, or an API that integrates with
your desktop or mobile operating system. In most cases, SaaS users pay a
monthly or annual subscription fee; some may offer ‘pay-as-you-go’ pricing
based on your actual usage.
o In addition to the cost savings, time-to-value, and scalability benefits of cloud,
SaaS offers the following:
o Automatic upgrades: With SaaS, you take advantage of new features as soon
as the provider adds them, without having to orchestrate an on-premises
upgrade.
o SaaS is the primary delivery model for most commercial software today—there
are hundreds of thousands of SaaS solutions available, from the most focused
industry and departmental applications, to powerful enterprise software
database and AI (artificial intelligence) software.

• PaaS (Platform-as-a-Service)
o PaaS provides software developers with on-demand platform—hardware,
complete software stack, infrastructure, and even development tools—for
running, developing, and managing applications without the cost, complexity,
and inflexibility of maintaining that platform on-premises.
o With PaaS, the cloud provider hosts everything—servers, networks, storage,
operating system software, middleware, databases—at their data centre.
Developers simply pick from a menu to ‘spin up’ servers and environments they
need to run, build, test, deploy, maintain, update, and scale applications.
o Today, PaaS is often built around containers, a virtualized compute model one
step removed from virtual servers. Containers virtualize the operating system,
enabling developers to package the application with only the operating
system services it needs to run on any platform, without modification and
without need for middleware.
 Introduction to IR 4.0 60

o Red Hat OpenShift is a popular PaaS built around Docker containers and
Kubernetes, an open source container orchestration solution that automates
deployment, scaling, load balancing, and more for container-based
applications.

• IaaS (Infrastructure-as-a-Service)
o IaaS provides on-demand access to fundamental computing resources–
physical and virtual servers, networking, and storage—over the internet on a
pay-as-you-go basis. IaaS enables end users to scale and shrink resources on
an as-needed basis, reducing the need for high, up-front capital expenditures
or unnecessary on-premises or ‘owned’ infrastructure and for overbuying
resources to accommodate periodic spikes in usage.
o In contrast to SaaS and PaaS (and even newer PaaS computing models such
as containers and serverless), IaaS provides the users with the lowest-level
control of computing resources in the cloud.
o IaaS was the most popular cloud computing model when it emerged in the
early 2010s. While it remains the cloud model for many types of workloads, use
of SaaS and PaaS is growing at a much faster rate.
 Introduction to IR 4.0 61

9.3 How important is the cloud?

Building the infrastructure to support cloud computing now accounts for a significant chunk of
all IT spending, while spending on traditional, in-house IT slides as computing workloads
continue to move to the cloud, whether that is public cloud services offered by vendors or
private clouds built by enterprises themselves.

Indeed, it's increasingly clear that when it comes to enterprise computing platforms, like it or
not, the cloud has won.

Tech analyst Gartner predicts that as much as half of spending across application software,
infrastructure software, business process services and system infrastructure markets will have
shifted to the cloud by 2025, up from 41% in 2022. It estimates that almost two-thirds of spending
on application software will be via cloud computing, up from 57.7% in 2022.

That's a shift that only gained momentum in 2020 and 2021 as businesses accelerated their
digital transformation plans during the pandemic. The lockdowns throughout the pandemic
showed companies how important it was to be able to access their computing infrastructure,
applications and data from wherever their staff were working – and not just from an office.
Gartner said that demand for integration capabilities, agile work processes and composable
architecture will drive the continued shift to the cloud.

The scale of cloud spending continues to rise. For the full year 2021, tech analyst IDC expects
cloud infrastructure spending to have grown 8.3% compared to 2020 to $71.8 billion, while non-
cloud infrastructure is expected to grow just 1.9% to $58.4 billion. Long term, the analyst expects
 Introduction to IR 4.0 62

spending on compute and storage cloud infrastructure to see a compound annual growth
rate of 12.4% over the 2020-2025 period, reaching $118.8 billion in 2025, and it will account for
67.0% of total compute and storage infrastructure spend. Spending on non-cloud infrastructure
will be relatively flat in comparison and reach $58.6 billion in 2025.

All predictions around cloud-computing spending are pointing in the same direction, even if
the details are slightly different. The momentum they are describing is the same: tech analyst
Canalys reports that worldwide cloud infrastructure services expenditure topped $50 billion in
a quarter for the first time in Q4 2021. For the full year, it has cloud infrastructure services
spending growing 35% to $191.7 billion.

Canalys argues that there is already a new growth opportunity for cloud on the horizon, in the
form of augmented and virtual reality and the metaverse. "This will be a significant driver for
both cloud services spend and infrastructure deployment over the next decade.
 Introduction to IR 4.0 63

- CHAPTER 10 -
PILLAR 9 – BIG DATA ANALYSIS

Objectives:
• To understand more about big data
• To learn more about types of big data
• To learn more about the important of cloud
• To learn more about characteristics of big data
• To learn more about advantages of big data processing
•

10.1 Big Data: The Management Revolution

There’s much wisdom in that saying, which has been attributed to both W. Edwards Deming
and Peter Drucker, and it explains why the recent explosion of digital data is so important.
Simply put, because of big data, managers can measure, and hence know, radically more
about their businesses, and directly translate that knowledge into improved decision making
and performance.

Consider retailing. Booksellers in physical stores could always track which books sold and which
did not. If they had a loyalty program, they could tie some of those purchases to individual
customers. And that was about it. Once shopping moved online, though, the understanding
of customers increased dramatically. Online retailers could track not only what customers
bought, but also what else they looked at; how they navigated through the site; how much
they were influenced by promotions, reviews, and page layouts; and similarities across
individuals and groups. Before long, they developed algorithms to predict what books
individual customers would like to read next—algorithms that performed better every time the
customer responded to or ignored a recommendation. Traditional retailers simply couldn’t
access this kind of information, let alone act on it in a timely manner. It’s no wonder that
Amazon has put so many brick-and-mortar bookstores out of business.

The familiarity of the Amazon story almost masks its power. We expect companies that were
born digital to accomplish things that business executives could only dream of a generation
ago. But in fact, the use of big data has the potential to transform traditional businesses as
well. It may offer them even greater opportunities for competitive advantage (online
businesses have always known that they were competing on how well they understood their
data).
 Introduction to IR 4.0 64

As we’ll discuss in more detail, the big data of this revolution is far more powerful than the
analytics that were used in the past. We can measure and therefore manage more precisely
than ever before. We can make better predictions and smarter decisions. We can target
more-effective interventions, and can do so in areas that so far have been dominated by gut
and intuition rather than by data and rigor.

As the tools and philosophies of big data spread, they will change long-standing ideas about
the value of experience, the nature of expertise, and the practice of management. Smart
leaders across industries will see using big data for what it is: a management revolution. But as
with any other major change in business, the challenges of becoming a big data–enabled
organization can be enormous and require hands-on—or in some cases hands-off—
leadership. Nevertheless, it’s a transition that executives need to engage with today.
 Introduction to IR 4.0 65

10.2 What is an Example of Big Data?

Following are some of the Big Data examples-

The New York Stock Exchange is an example of Big Data that generates about one terabyte
of new trade data per day.

Social Media. The statistic shows that 500+terabytes of new data get ingested into the
databases of social media site Facebook, every day. This data is mainly generated in terms of
photo and video uploads, message exchanges, putting comments etc.
 Introduction to IR 4.0 66

A single Jet engine can generate 10+terabytes of data in 30 minutes of flight time. With many
thousand flights per day, generation of data reaches up to many Petabytes.
 Introduction to IR 4.0 67

10.3 Types of Big Data

Following are the types of Big Data:
• Structured
• Unstructured
• Semi-structured

10.3.1 Structured
Any data that can be stored, accessed and processed in the form of fixed format is termed
as a ‘structured’ data. Over the period of time, talent in computer science has achieved
greater success in developing techniques for working with such kind of data (where the format
is well known in advance) and also deriving value out of it. However, nowadays, we are
foreseeing issues when a size of such data grows to a huge extent, typical sizes are being in
the rage of multiple zettabytes.

Looking at these figures one can easily understand why the name Big Data is given and
imagine the challenges involved in its storage and processing.

Examples of Structured Data

An ‘Employee’ table in a database is an example of Structured Data.
 Introduction to IR 4.0 68

10.3.2 Unstructured
Any data with unknown form or the structure is classified as unstructured data. In addition to
the size being huge, un-structured data poses multiple challenges in terms of its processing for
deriving value out of it. A typical example of unstructured data is a heterogeneous data
source containing a combination of simple text files, images, videos etc. Now day
organizations have wealth of data available with them but unfortunately, they don’t know
how to derive value out of it since this data is in its raw form or unstructured format.

Examples of Un-structured Data

The output returned by ‘Google Search’
 Introduction to IR 4.0 69

10.3.3 Semi-structured
Semi-structured data can contain both the forms of data. We can see semi-structured data
as a structured in form but it is actually not defined with e.g. a table definition in relational
DBMS. Example of semi-structured data is a data represented in an XML file.
Examples of Semi-structured Data

Personal data stored in an XML file-

Please note that web application data, which is unstructured, consists of log files, transaction
history files etc. OLTP systems are built to work with structured data wherein data is stored in
relations (tables).
 Introduction to IR 4.0 70

10.4 Characteristics of Big Data

Big data can be described by the following characteristics:
• Volume
• Variety
• Velocity
• Variability

(i) Volume
The name Big Data itself is related to a size which is enormous. Size of data plays a
very crucial role in determining value out of data. Also, whether a particular data
can actually be considered as a Big Data or not, is dependent upon the volume of
data. Hence, ‘Volume’ is one characteristic which needs to be considered while
dealing with Big Data solutions.

(ii) Variety
The next aspect of Big Data is its variety.
Variety refers to heterogeneous sources and the nature of data, both structured
and unstructured. During earlier days, spreadsheets and databases were the only
sources of data considered by most of the applications. Nowadays, data in the
form of emails, photos, videos, monitoring devices, PDFs, audio, etc. are also being
considered in the analysis applications. This variety of unstructured data poses
certain issues for storage, mining and analysing data.

(iii) Velocity
The term ‘velocity’ refers to the speed of generation of data. How fast the data is
generated and processed to meet the demands, determines real potential in the
data.
Big Data Velocity deals with the speed at which data flows in from sources like
business processes, application logs, networks, and social media sites, sensors,
Mobile devices, etc. The flow of data is massive and continuous.

(iv) Variability
This refers to the inconsistency which can be shown by the data at times, thus
hampering the process of being able to handle and manage the data effectively.
 Introduction to IR 4.0 71

10.5 Advantages of Big Data Processing

Here are the advantages of Big Data:

• Ability to process Big Data in DBMS brings in multiple benefits, such as-
o Businesses can utilize outside intelligence while taking decisions

• Access to social data from search engines and sites like Facebook, twitter is enabling
organizations to fine tune their business strategies.
o Improved customer service

• Traditional customer feedback systems are getting replaced by new systems designed
with Big Data technologies. In these new systems, Big Data and natural language
processing technologies are being used to read and evaluate consumer responses.

o Early identification of risk to the product/services, if any

o Better operational efficiency

• Big Data technologies can be used for creating a staging area or landing zone for new
data before identifying what data should be moved to the data warehouse. In
addition, such integration of Big Data technologies and data warehouse helps an
organization to offload infrequently accessed data.