The Industrial Revolution, which brought about major changes in the way people live and work around the world, began in England in the late 18th century, was followed by the Second and Third Industrial Revolutions, and is currently in the midst of the Fourth Industrial Revolution…
These technologies, such as AI, Big Data, robots, biotechnology, and IoT, are at the heart of the Fourth Industrial Revolution and will dramatically change the industrial structure.
In this article, we will explain what the Fourth Industrial Revolution is, the background to its occurrence, and its impact on society, economy, and lifestyle.
What is the fourth industrial revolution?
The “Fourth Industrial Revolution” refers to the innovations brought about by the use of cutting-edge technologies such as IoT and AI. It is believed that the combination of different technologies and the creation of new products, services, and business models will lead to major changes in social and economic systems.
Industries include “primary industries” such as agriculture, forestry, and fishing, “secondary industries” such as manufacturing and construction, and “tertiary industries” such as services, communications, retail, finance, and insurance.
“Quaternary industry” is a relatively new industry that does not fall under the definition of the industrial classification above, and mainly includes information and communication, medical and educational services. Some industries are difficult to classify, and there are cases where industries that were previously classified as tiered industries have been reclassified as quartile industries due to technological innovation.
Quaternary industry is an industry that focuses on technological development, so it does not involve high consumption of materials or energy.
Compared to previous industrial revolutions, the pace of technological innovation is much faster, and the combination of multiple technologies creates synergistic effects that affect society as a whole.
” ” Industry 4.0″ is a term cognate to the fourth industrial revolution. “ Germany was the first country in the world to declare the spreads of IoT as a public program, and this has led to an increased focus on the fourth industrial revolution, especially in developed countries these meanings are slightly different from the fourth industrial revolution used in Japan, they are synonymous in that they promote automation through digitization and computerization.
Background of the Fourth Industrial Revolution
The record of the Industrial Revolution begins with the creation of the ministry and the appearance of the steam engine in England in the late 18th century, which revolutionized product technology.
The fourth industrial revolution is considered to be an extension of the industrial revolutions that mankind has experienced so far, and there are many reasons for its occurrence.
First, technological innovation has accelerated significantly. Technological innovations such as AI, robots, IoT, and big data are advancing rapidly, and by combining these technologies, we can now create even more power.
And the globalization of the world economy has developed. Companies faced intense international competition, and the country needed to promote technological innovation to maintain its competitiveness.
In addition, declining birth rates and growing population, environmental problems, and poverty problems are becoming more serious, consumer needs are diversifying, and society’s mindset to actively use new technologies is changingIsis in the scene.
The fourth industrial revolution has many possibilities to solve these problems, achieve economic development, and improve the quality of life.
What will change with the fourth industrial revolution?
The Fourth Industrial Revolution is expected to dramatically change society and life as everything becomes connected to the Internet and technology continues to evolve. We will introduce the key changes that result from new value creation from three perspectives.
Changes in Employment and Work Environment
The fourth industrial revolution will change the industrial structure and bring changes in employment. It is said that skills previously considered indispensable in the market will become redundant, and some jobs will disappear due to the use of AI. As automation advances in the manufacturing industry, AI will be able to replace simple labor such as factory line work. Unmanned cash registers, unmanned stores, and restaurants where robots serve customers and serve food have already appeared.
On the other hand, communication, hospitality, and specialized skills that are difficult for AI and computers will remain in demand, and this demand will continue to grow. Along with this, it is expected that employment will focus on skills rather than seniority.
Additionally, the work environment has changed significantly due to the advancement of information and communication technology. The need for an office is reduced, and people can now choose to work without traveling, such as remote work or nomadic work. You can work regardless of where you live, and an increasing number of people are choosing to move to rural areas or live in two places.
More flexible and diverse work styles are emerging, such as flextime, project methods that bring together experts as needed, and cloud services that bring together human resources online, and this trend is likely to continue.
Changes in economic activity
The fourth industrial revolution, where everything is connected to the internet, will have different effects on economic activity.
While traditionally products were delivered to consumers through various stages such as material supply, manufacturing, wholesale, delivery, and retail sales, the new products and services created by the Fourth Industrial Revolution are now produced and distributed in various ways.
There are more opportunities for economic activity, and online shopping and subscription services allow people to easily enjoy shopping and entertainment from the comfort of their own homes. While ICT is being used in the manufacturing sector to increase efficiency, reduce costs, and manage products, in the financial sector, online transactions, remittances, and blockchains using smartphones, such as in China, have emerged.
In the future, all sectors will become more online, and economic activities will be possible without location restrictions.
The industrial structure is also changing due to the use of Big Data. Instead of traditional uniform mass production and mass sales, there is a need to provide personalized services. While some industries are growing rapidly, it is predicted that some industries will decline due to more fragmented consumer consumption trends.
Lifestyle changes
The fourth industrial revolution will completely change our daily lives. With the introduction of IoT and artificial intelligence in electrical appliances, the technology of using smartphones to remotely operate household appliances has already been implemented.
The functionality of robot vacuum cleaners has also improved greatly, allowing them to do housework more efficiently and with less strain.
Health management using wearable devices is also becoming increasingly popular. Health management requires understanding the current situation and constantly measuring physiological data, but the advantage of wearable devices is that they can be worn at all times and automatically collect data.
Measuring and analyzing your physical activity, heart rate and calorie consumption daily can help you prevent lifestyle diseases and manage stress.
In the future, more lifestyle changes are expected, such as the widespread use of home robots and driverless cars.
Future challenges of the Fourth Industrial Revolution
Several challenges have been identified in the fourth industrial revolution.
The first concern is the delay in digitalization. In recent years, digital technology has developed so rapidly that companies and employees are said to be unable to keep up.
While there are concerns that this will reduce competitiveness and productivity, it is important to leverage Japan’s advanced technology and product strengths to create new business models and expand into global markets.
The impact on employment is also an important issue. As artificial intelligence and robots replace the workforce, employment is likely to decline in some industries, and there are concerns that this will have a negative impact on unskilled workers in particular.
Whether people have access to the internet or digital technology or are skilled in using the latest technology can increase new social inequalities and wage inequalities.
In addition, in a society that uses digital technology, the risk of confidential and personal information being exposed through cyberattacks is increasing. To prepare for this, the rapid introduction of digital technology and the development of human resources, as well as well-implemented security measures, are important.
It is important for society as a whole that not only the government but also companies, unions, and educational institutions respond appropriately to these challenges and create a future that can cope with the fourth industrial revolution.
Summary
The “Fourth Industrial Revolution” refers to innovation in the manufacturing industry through the use of IoT and artificial intelligence.
The Fourth Industrial Revolution has been driven by advances in technological innovation and globalization, worsening social problems, and diversifying consumer needs. The Fourth Industrial Revolution will bring major changes to employment, the work environment, economic activities, and lifestyles.