Industrial production is nowadays driven by global competation and the need for fast adaptation of production to the ever-changing market requests. These requirements can be met only by radical advances in current manufacturing technology. Industry 4.0 is a promising approach based on integration of the business and manufacturing processes, as well as integration of all actors in the company's value chain (suppliers and customers). Technical aspects of these requirements are addressed by the application of the generic concepts of Cyber-Physical System and industrial Internet of Things to the industrial production system. The Industry 4.0 "execution system" is therefore based on the connections of CPS building blocks. These blocks are embedded system with decentralized control and advanced connectivity that are collecting and exchanging real time information with the goal of identifying, location, tracking, monitoring and optimizing the production processes. Furthermore, an extensive software support base on decentralized and adapted versions of Manufacturing Execution System and Enterprise Resource Planning is needed for a seamless integration of manufacturing and business processes. The third important aspect is handling of a big amount of the data collected from the processes, machines and produts. Typically the data is stored in a cloud storage. This data requires extensive analytics that lead from the "raw" data  to the useful information and finally to the concreate actions that support an adaptive  and continuously self-optimizing industrial production process. Due to the importartance of this transition for the position of the country in a global market, some government led initiatives were introduced all around the world to support the transition. Industry 4.0 as the first such initiative and inspiration for other initiatives,comes from Germany.


the four industrial revolutions

phases of earlier 3 industrial revolution

  • INDUSTRY 1.0 (1760-1840)
    This included going from manual production to the use steam powered engines and water as a sources of power. This helped agriculture greatly and the term "factory" become a litter popular. One of the industries that benefited a lot from such charges is the textile industry, and was the first to adopt such methods.


  • INDUSTRY 2.0 (1870-1914)
    Introduced pre existing systems such as telegraphs and railroads into industries. Perhaps the defining characteristic of that period was the introduction of mass production as a primary means to production in general. The electrification of factories contributed hugely to production rates. The mass production of steel helped introduce railways into the system, which consequently contributed to mass production. Innovations in chemistry ,such as the invention of the synthetic dye,also mark such period as chemistry was in rather primitive state then.


  • INDUSTRY 3.0(1950-1970)
    Manufacturers began experiencing a shift that put less emphasis on analog  and mechinical technology and more on digital technology and automation software.

the four industrial revolution ,or industry 4.0

A fourth industrial revolution has emered,known as Industry 4.0. Industry 4.0 takes the emphasis on digital technology from recent decaded to a whole new level with the help of interconnectivity  through the Internet of Things, access a real data, and the introduction Cyber Physical System. Industry 4.0 offers a more comprehensive, interlinked, and holistic approach to manufacturing. It connects pysical with digital, and allow for better collaboration and access across department, partners, vendor, product and people. Industry 4.0 empower business owner to better control and understand every aspect of thier operation and allows them to leverage instant data to boost productivity, improve processes and drive growth.



Cyber-Physical System (CPS) is a system of collaborating computational elements controlling physical entities. CPS are physical and engineered systems whose operations are monitored, coordinated, controlled and integrated by a computing and communication core. They allow us to add capabilities to physical systems by merging computing and communication with physical processes. The development  of such  a system consists of three phases:

  • Identification: Unique identification is essential in manufacturing. This is the very basic language by which a machine can communicate. RFID (Radio-frequency identification) is a great example of that. RFID uses an electromagnetic field to identify a certain tag that is often attached to an object. Although such technology has been around since 1999, it still serves as a great example of how Industry 4.0 operated initially.


  • The Integration of Sensors and Actuator: This is essential for a machine to operate. The integration of sensors and actuators simply means that a certain machine’s movement can be controlled and that it can sense changes in the environment. However, even with the integration of sensors and actuators, their use was limited and does not allow them to communicate with each other.


  • The Development of Sensors and Actuators: Such development allowed machines to store and analyze data. A CPS now is equipped with multiple sensors and actuators that can be networked for the exchange of information.
  • Enhanced productivity through optimization and automation

  • Real-time data for a real-time supply chain in a real-time economy

  • Higher business continuity through advanced maintenance and monitoring possibilities

  • Better quality products: real-time monitoring, IoT-enabled quality improvement and robots

  • Better working conditions and sustainability

  • Personalization and customization for the ‘new’ consumer

  • Improved agility

  • The development of innovative capabilities and new revenue models  

  • Interoperability: the ability of cyber-physical systems (i.e. work piece carriers, assembly stations and products), humans and Smart Factories to connect and communicate with each other via the Internet of Things and the Internet of Services

  • Virtualization: a virtual copy of the Smart Factory which is created by linking sensor data (from monitoring physical processes) with virtual plant models and simulation models

  • Decentralization: the ability of cyber-physical systems within Smart Factories to make decisions on their own

  • Real-Time Capability: the capability to collect and analyze data and provide the insights immediately

  • Service Orientation: offering of services (of cyber-physical systems, humans and Smart Factories) via the Internet of Services

  • Modularity: flexible adaptation of Smart Factories for changing requirements of individual modules

It is easy to see that in today’s world each and every electronic device is more likely to be connected to either another device, or to the internet. With the huge development and diversity in electronic and smart devices, obtaining more and more of them creates complexities and undermines the utility of each added device. Smart phones, tablets, laptops, TVs or even watches are becoming more and more interconnected, but the more you buy, the added value of the last device becomes unrecognizable. The Internet of Services aims at creating a wrapper that simplifies all connected devices to make the most out of them by simplifying the process. It is the customer’s gateway to the manufacturer.


The Internet of Things is what enables objects and machines such as mobile phones and sensors to “communicate” with each other as well as human beings to work out solutions. The integration of such technology allows objects to work and solve problems independently. Of course, this is not entirely true as human beings are also allowed to intervene. Therefore, the (IoT) can be defined as a network in which CPS cooperate with each other through unique addressing schemas.





Industry 4.0 is driven by the convergence of technologies, including:

  • The industrial internet of things (IIoT) and the widespread use of sensors.

  • Big data and analytics.

  • Artificial intelligence (AI) and machine learning.

  • LPWANs for machine-to-machine (M2M) and Internet of Things (IoT) networks.

  • IT/OT convergence.

  • Touch and voice interfaces and augmented reality (AR) systems.

  • Advanced robotics.

  • Additive manufacturing.

smart factory

Smart factories are a key feature of Industry 4.0. A smart factory adopts a so called Calm-System. A calm system  is a system that is able to deal with both the physical world as well as the virtual. Such systems are called "background system" and in a way operate behind the scene. A calm system is aware of the surrounding environment and the objects around it. Its also can be fed with soft information regarding the object being manufactured such as drawings and models.