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The Journal of International Scientific Researches
2022, 7(3)
Abstract
Since the publication of the term "Industry 4.0" in 2011, the digital
transformation required by Industry 4.0 has immediately attracted the
attention of industrialists and governments around the world. Majority of
the countries around the world are dealing with the difficulty of producing
more goods from limited and consumed natural resources to meet the ever-
increasing consumer demand worldwide with the first industrial revolution
in the 18th century due to environmental and vital issues. Therefore, the
sustainability impacts of Industry 4.0 and the way it contributes to
sustainable economic, environmental and social development are getting
more and more attention. Nowadays, Industry 4.0 is about digitalization in
all industrial and consumer markets, from smart production systems to all
distribution channels. Industry 4.0 digital transformation involves the
digitization and integration of the entire value chain of the product life cycle.
Industry 4.0 is a technological concept that contributes to the sustainability
of businesses in today's conditions. Industry 4.0 changes the organization,
business models, products, supply chain and strategies of companies.
Industry 4.0 enables businesses to be more agile and flexible by integrating
people, machines and data. Nowadays, countries such as Germany, the
United States of America, India, China, Japan, the United Kingdom and
Brazil have been developing policies for the implementation of Industry 4.0.
However, the adequacy and implementation of Industry 4.0 technologies can
be difficult for both industry representatives and countries. In this research,
the advantages and barriers in implementing of Industry 4.0 were expressed.
In addition, Industry 4.0 and its main features have been explained.
Öz
2011 yılında "Endüstri 4.0" teriminin yayınlanmasından bu yana,
Endüstri 4.0'ın gerektirdiği dijital dönüşüm, tüm dünyada sanayici ve
hükümetlerin dikkatini hemen çekmiştir. Dünyadaki ülkelerin çoğunluğu,
çevresel ve hayati sorunlar nedeniyle 18. yüzyılda ilk sanayi devrimi ile dünya çapında giderek artan tüketici talebini
karşılamak için sınırlı ve tüketilen doğal kaynaklardan daha fazla mal üretmenin zorluğu ile uğraşmaktadır. Bu nedenle,
Endüstri 4.0'ın sürdürülebilirlik üzerindeki etkileri ve sürdürülebilir ekonomik, çevresel ve sosyal kalkınmaya nasıl
katkıda bulunduğu giderek daha fazla ilgi görmektedir. Günümüzde Endüstri 4.0, akıllı üretim sistemlerinden tüm
dağıtım kanallarına kadar tüm endüstriyel ve tüketici pazarlarında dijitalleşme ile ilgilidir. Endüstri 4.0 dijital
dönüşümü, ürün yaşam döngüsünün tüm değer zincirinin dijitalleştirilmesini ve entegrasyonunu içermektedir.
Endüstri 4.0, günümüz koşullarında işletmelerin sürdürülebilirliğine katkıda bulunan teknolojik bir kavramdır. Endüstri
4.0, şirketlerin organizasyonunu, iş modellerini, ürünlerini, tedarik zincirini ve stratejilerini değiştirmektedir. Endüstri
4.0, insanları, makineleri ve verileri entegre ederek işletmelerin daha çevik ve esnek olmasını sağlar. Son zamanlarda
Almanya, Amerika Birleşik Devletleri, Hindistan, Çin, Japonya, Birleşik Krallık ve Brezilya gibi ülkeler Endüstri 4.0'ın
uygulanması için politikalar geliştiriyorlar. Bununla birlikte, Endüstri 4.0 teknolojilerinin yeterliliği ve uygulanması
hem endüstri temsilcileri hem de ülkeler için zor olabilir. Bu çalışmada, Endüstri 4.0'ın uygulanmasındaki avantajlar ve
engeller ifade edilmiştir. Ayrıca Endüstri 4.0 ve temel özellikleri açıklanmaya çalışılmıştır.
Introduction
The introduction of smart technologies into the production environment has revealed industry
4.0 as the fourth industrial revolution. Industry 4.0 represents a business environment where
Yusuf Ersoy
Doç. Dr., Muş Alparslan Üniversitesi,
ersoy_yusuf@hotmail.com, Muş, Türkiye
Orcid No: https://orcid.org/
0000-0002-
0106-1695
Article Type / Makale Türü
Research Article / Araştırma Makalesi
Anahtar Kelimeler
Yapay Zeka, Büyük Veri Analitiği, Endüstri
4.0, Nesnelerin İnterneti, Siber-Fiziksel Sistem
Keywords
Artificial Intelligence, Big Data Analytics,
Industry 4.0, Internet of Things, Cyber-
Physical System
JEL Codes: M11, O30, Q55
Acklowledgements
This study has been extensively derived from
the paper "Main features of Industry 4.0 and
advantages and barriers to implementing
Industry 4.0" held in the Middle-East
Conference on Contemporary Sciences IV
November 1-3, 2020 Beirut, Lebanon.
Submitted:
27 / 05 / 2022
Accepted:
19 / 09 / 2022
The Advantages and Barries in Implementing of Industry
4.0 and Key Features of Industry 4.0
Endüstri 4.0'ın Uygulanmasındaki Avantajlar ve Engeller ve Endüstri 4.0'ın
Temel Özellikleri
Ersoy, Y. (2022). The advantages and barriers in ımplementing of ındustry 4.0 and key features of ındustry 4.0. The Journal
of International Scientific Researches, 7(3), 207-214.
- 208 -
machines, devices, employees and corporate systems are connected through cyber-physical systems
and the internet. Technologies that provide Industry 4.0 significantly improve the quality of
products and services provided by firms with autonomous and dynamic production. These
technological innovations have made sustainable performance a key feature in smart factories by
ensuring the efficient use of resources (Fatorachian & Kazemi, 2020).
Industry 4.0 is a new paradigm that is deeply changing human-machine interaction in the
manufacturing / production environment. Industry 4.0 is a new production concept that aims to
integrate industrial automation and new production technologies to improve working conditions,
increase productivity and quality (Nardo, Forino & Murino, 2020). Firms can develop with Industry
4.0, their agility and profitability by improving the connectivity of machines, products, supply
chains and customers, and using the systems' increased decision-making capabilities. It is likely to
achieve operational performance levels previously unattainable with the use of the Internet of
Things, cyber-physical systems and cloud computing, (Rosin et al., 2020).
The statement "Industry 4.0" was first used at the Hannover Fair in 2011. Later, the term Industry
4.0 was adopted by the German government in 2013 as a strategic attempt to revolutionize the
manufacturing industry. Recently, there is a growing interest in Industry 4.0 due to the numerous
benefits it provides to production organizations. (Raj et al., 2020). As can be seen from this increasing
interest, it is possible to find many research on Industry 4.0 in the literature (Oztemel & Gursev,
2020; Osterrieder, Budde & Friedli, 2020; Gulot et al., 2020). Industry 4.0 is defined as the fourth
industrial revolution (Silveira et al., 2021). Industry 4.0 and the other 3 industrial revolutions can be
seen in Figure 1.
Figure 1. Stages of the four industrial revolutions
Source: Anderl, 2014
Industry 4.0 is about highly advanced automation and digitization operations and the use of
information technologies and electronics in services and production. Industry 4.0 enables factories
to be made more flexible, intelligent and dynamic by equipping the manufacturing environment
with autonomous systems and sensors. Industry 4.0 ensures that value-added integration is realized
vertically and horizontally during the production step. The manufacturing process in Industry 4.0
requires more microchips, sensors and autonomous systems due to the rapid development of
technologies (Lu, 2017). The integration framework that expresses the interoperability of Industry
4.0 with digital technologies such as machine, human, sensor and automation can be seen in figure
2.
Ersoy, Y. (2022). The advantages and barriers in ımplementing of ındustry 4.0 and key features of ındustry 4.0. The Journal
of International Scientific Researches, 7(3), 207-214.
- 209 -
Figure 2. Integration framework of Industry 4.0
Source: Lu, 2017
The technologies underlying the Industry 4.0 concept are aimed at reducing costs, increasing
flexibility, increasing speed and improving quality (Olsen & Tomlin, 2020). The digitization
principle of Industry 4.0 and the sensor data obtained from the physical environment offers very
important opportunities for optimization of production processes. The use of industrial robotics,
automation and additive manufacturing for the development of the modularity principle of Industry
4.0 facilitates an agile, flexible and decentralized production environment that effectively adapts to
constantly changing customer needs (Ghobakhloo, 2020).
If the spread of Industry 4.0 is not geographically homogeneous, economically and socially
disadvantaged countries will be negatively affected. As a result of this situation, the gap between
developed and developing countries will gradually increase (Bonilla et al., 2018). It is very important
to state the advantages and barriers in the application of Industry 4.0 to eliminate this gap between
countries and to distribute Industry 4.0 homogeneously. In this study, the advantages of Industry
4.0 and the barriers in its implementation have been tried to be explained.
1. Key Features of Industry 4.0
Industry 4.0 can be expressed as a combination of various emerging concepts and new
technologies such as big data, smart sensors, robotics, cloud computing, machine learning,
augmented reality, artificial intelligence and Internet of Things. Advanced technologies included in
Industry 4.0 enable the restructuring of all production systems by converting centralized and analog
workflows into decentralized and digital manufacturing operations (Raj et al., 2020). Industry 4.0 is
a revolution that allows communication between people and machines using automated systems
such as cloud computing, cyber-physical systems and Internet of Things and etc. (Nardo, Forino &
Murino, 2020).
The basic elements of Industry 4.0 can be expressed as cloud computing, cyber-physical system,
internet of things, augmented reality, 3D printers, artificial intelligence and machine learning,
Ersoy, Y. (2022). The advantages and barriers in ımplementing of ındustry 4.0 and key features of ındustry 4.0. The Journal
of International Scientific Researches, 7(3), 207-214.
- 210 -
simulation, big data analytics and autonomous robots (Soylu, 2018; Şekkeli & Bakan, 2018; Jena,
Mishra & Moharana, 2019; Olsen & Tomlin, 2020; Shafiq, Sanin & Szczerbicki, 2020; Ghadge et al.,
2020; Tehci & Ersoy, 2020). The main components of Industry 4.0 were given below.
Cyber-Physical System: Cyber-physical systems are referred to as converter technologies for
controlling systems interconnected between physical presences and calculation capabilities. In
current industrial applications, cyber-physical systems are integrated with production, logistics and
services, enabling today's factories to be transformed into an Industry 4.0 factory with considerable
economical potential (Lee, Bagheri & Kao, 2015: 18).
Internet of Things: Recently, the development of wireless technologies has led to the emergence
of a new paradigm called the Internet of Things. Internet of Things is applied in many areas such as
healthcare, smart building, logistics and the environment. Thanks to the Internet of Things,
businesses have the opportunity to collect and analyze very different and large amounts of data that
they can use to develop their industrial performance. (Khan et al., 2020).
Three-Dimensional Printers (Additive Manufacturing): Additive manufacturing is expressed as
combining materials in three-dimensional printers in the form of layers to produce objects from
three-dimensional data. It is also defined as three-dimensional production, additive production,
additive processes, additive techniques, additive layer production, layer production and free-form
production (Fraizer, 2014).
Cloud Computing: Cloud computing technologies provide computing, storage services and
networking in whole facilities in the Internet of Things system. Private cloud service models are not
a viable option for small and medium-sized businesses, as setting up data centers and hiring
technical crew requires high expenditure. However, large and multinational companies prefer
private cloud computing technologies to ensure security, safety information privacy, deal with
industrial information theft and gain a competitive advantage. (Khan et al., 2020).
Augmented Reality: Augmented Reality (AR) technologies assist industrial personnel during
complex processes such as complex industrial products, assembly/disassembly of machines, and
mission-critical systems. AR technologies enable the monitoring of workers and machines during
operations and instant changes or notifications to minimize errors (Khan et al., 2020). Industrial
augmented reality is one of the fundamental elements of industrial digitization concepts that
superimpose digital information and connect employees with the physical world (Masood & Egger,
2020).
Artificial Intelligence and Machine Learning: Artificial intelligence and machine learning are a
technological revolution for companies in different sectors. Together with artificial intelligence
machine learning techniques, it enables the automation of a production process that increases
productivity, efficiency, optimizes production cost and reduces errors (Balamurugan et al., 2019).
Today, the development of machine learning as a branch of artificial intelligence is now quite fast.
Recently, the use of machine learning has become widespread in areas such as intelligent
manufacturing, medical science, pharmacology, agriculture, archeology and so on (Cioffi et al.,
2020).
Autonomous Robots: In our age, robotic technology is used in different fields such as
production, transportation, e-commerce and health. Nowadays, these robots have finally begun to
interact with each other, work harmoniously and safely with operators, and provide support to
operators. In the future, these robots are expected to be more economical and have more capabilities
and features than currently used models. (Ghadge et al., 2020).
Big Data Analytics: Big data analytics are technologies and techniques used to extract unknown
and valid information from a variety of applications to analyze large-scale and complex data. For
this reason, big data analytics includes an ecosystem of complex, interconnected and multi-layered
high-capacity networks, users, applications, and services required to store, visualize, process and
deliver results from different data sources to target applications (Chalmeta & Santos-deLeon, 2020).
Simulation: Simulation is widely used in business models to model the real working
environment in a virtual ecosystem using available real-time data. Data collected and processed
from big data and cloud systems can be used in a virtual model to analyze whole feasible situations
Ersoy, Y. (2022). The advantages and barriers in ımplementing of ındustry 4.0 and key features of ındustry 4.0. The Journal
of International Scientific Researches, 7(3), 207-214.
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related to the development, research and production of the product. Businesses can see the risks,
setup times, costs that may occur in business processes, and make improvements for future
operations and services with the help of simulation (Ghadge et al., 2020).
2. Advantages and Barries in The Application of Industry 4.0
2.1. Advantages of Industry 4.0 in Its Implementation
Industry 4.0 has a great advantage in speed up production with higher output and lower cost.
It creates a smart factory environment with smart production, smart energy, smart engineering and
smart transportation. Industry 4.0 aims to develop and upgrade production technologies by
integrating the physical systems of the factory with cyber-physical systems, Internet of Things and
cloud computing. The integrated framework helps to monitor human, machine, material movement
and similar parameters and processes through real-time communication and enables smart
conclusions (Jena, Mishra & Moharana, 2019).
It is possible to classify the opportunities of Industry 4.0 under six main headings. These are;
production flexibility arising during the production of small batches, greater output capacity, speed
of serial prototypes, higher product quality and less production rejection, lower setup costs and less
error and machine downtimes, and improvement of customers' view of the product (Büchi Cugno
& Castagnoli, 2020).
Modgil et al., (2020) have determined the advantages of Industry 4.0 in their studies. These are;
innovation, effective globalization, optimum use of resources, seamless product flow, efficient
continuous real-time monitoring, efficient energy consumption, autonomous control, greater
flexibility to meet high-end last-minute changes, for every step in cloud storage safe and reliable
backup system, detailed end-to-end product transparency in real-time. Mian et al., (2020) have stated
the advantages of industry 4.0 as higher productivity, accelerated enterprise growth, better control
and streamlining of processes, greater flexibility, sustainability development.
Some researchers acknowledge that Industry 4.0 can provide some opportunities for social and
environmental sustainability beyond economic advantages (Stock & Seliger, 2016; Kiel et al., 2017;
Brozzi et al., 2020). Brozzi et al. (2020) have investigated the advantages of Industry 4.0 applications
in terms of sustainability. In the study, using a questionnaire, it has been investigated to what extent
manufacturing companies consider Industry 4.0 as an advantage in terms of environmental and
social sustainability? According to the results of the research, the advantages in implementing
Industry 4.0 were; reduction of errors, management of logistics, time savings, lower physical stress
of partners, reduction of costs, reduction of workforce, sustainability (lower environmental impact).
As a result of the study, the evaluation of economic opportunities was superior to environmental
and social opportunities.
2.2. Barriers of Industry 4.0 in Its Implementation
On the other side, the many advantages of Industry 4.0 technologies, there are some obstacles
in their application. Barriers in the implementation of Industry 4.0 can be classified as lack of
management support, financial constraints, resistance to change, legal problems, lack of expertise,
lack of government policy and support, insufficient research and development practices, lack of
infrastructure, lack of digital culture, poor quality data (Ghadge et al., 2020: 674).
Raj et al., (2020) have examined the barriers to the application of Industry 4.0 technologies in the
production industry within the framework of both developed and developing economies. In the
study, 15 barriers have been evaluated using Gray Relational Analysis (GRA) and DEMATEL
methods. Barriers used in the research; high capital in Industry 4.0 application, lack of certainty
about economic benefit, risk of a security breach, difficulty in value chain integration, irregularity,
low-quality level of the desired technology, disruption in the existing business, lack of standards,
regulations and certification forms, lack of infrastructure, difficulties in ensuring data quality, lack
of digital skills, in-house digital culture and lack of training, ineffective change management,
resistance to change and resource scarcity, as well as the absence of a digital strategy. As a result of
Ersoy, Y. (2022). The advantages and barriers in ımplementing of ındustry 4.0 and key features of ındustry 4.0. The Journal
of International Scientific Researches, 7(3), 207-214.
- 212 -
the study, "lack of a digital strategy as well as resource scarcity" emerges as the most important
barrier in both developed and developing economies.
Da Silva et al., (2020) have expressed the barriers of Industry 4.0 in its implementation. These
were; lack of government regulations and policies, the weak technological infrastructure of firms,
confusion of technologies, lack of specialized and diversified suppliers, poor organizational
management, lack of knowledge from a multidisciplinary perspective, lack of methodological
processes for the adoption of the Industry 4.0 concept, firms and suppliers understanding of
potential benefits and cooperation between organizations, internal resistance to organizational
changes, lack of qualified workforce, new skills and training needs, financial uncertainties regarding
return on investment, lack of financial infrastructure, data security.
Kumar, Singh & Kumar (2021) have definied some of the barriers in the application of Industry
4.0 as short-term corporate goals, insufficient legislation and controls, lack of skilled workforce, lack
of awareness of Industry 4.0, lack of waste management and ineffective performance framework. In
the study, 15 barriers have been evaluated using Analytic Hierarchy Process (AHP) and Elimination
and Choice Expressing Reality (ELECTRE) methods. According to the results of the study, lack of
funding for Industry 4.0 and insufficient strategy for integration of Industry 4.0 and circular
economy have been determined as the main barriers.
3. Results and Discussion
According to the results of the study, the important advantages of Industry 4.0 in its application
are; production flexibility, efficiency, quality improvement, smooth product flow, optimum use of
resources, reduction of cost and errors, sustainability development, accelerated enterprise growth,
time-saving, innovation and improvement in customer satisfaction. The most important barriers of
Industry 4.0 are; legal problems, insufficient research and development practices, lack of
infrastructure, lack of digital culture, resource scarcity, lack of government regulations and policies,
poor quality data, the weak technological infrastructure of companies, poor organizational
management, internal resistance to organizational changes, lack of qualified workforce, new skills
and training needs, financial uncertainties regarding the return on investment, lack of financial
infrastructure, data security, lack of funding, insufficient strategy for integration of Industry 4.0 and
circular economy, lack of waste management, lack of awareness of Industry 4.0.
Developed and developing countries must make more effort to facilitate the applicability of
Industry 4.0. When evaluated from this perspective, it is understood that companies should use new
technologies together with Industry 4.0 to be successful in the sector. On the one hand, enterprises
should develop strategies to meet the needs of qualified personnel in the technological components
of Industry 4.0 such as cloud computing, artificial intelligence, machine learning. Moreover, it is
understood that the integration of information, machine, human and technology is of great
importance for the successful application of Industry 4.0.
Conclusion
Today, the many businesses want to apply technological and organizational innovation.
Technological developments such as the Internet of Things, machine learning, simulation and cloud
computing enable solutions for customer needs. The development of the industry is a process of
complexity and agility integrated between man and machine. Industry 4.0 technologies ensure the
improvement of product quality. In addition to the convenience, it provides in the application,
Industry 4.0 brings several important difficulties to companies in terms of technological,
organizational and management. Determining the advantages and barriers of Industry 4.0 in its
implementation is very important for the sustainability of enterprises in the global competitive
environment.
It is thought that this study will contribute to those who will conduct research on this subject
and to the companies and organizations in the future. This study can serve as a guide for businesses
to prepare for the barriers of Industry 4.0 in its implementation. Examination of barriers of Industry
4.0 in its implementation such as lack of financial infrastructure and lack of digital culture can be
Ersoy, Y. (2022). The advantages and barriers in ımplementing of ındustry 4.0 and key features of ındustry 4.0. The Journal
of International Scientific Researches, 7(3), 207-214.
- 213 -
considered as another research subject in the future. Determining the importance levels of the
barriers of Industry 4.0 in its implementation by using multi-criteria decision-making methods may
be another research subject to be in the future.
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