Industrial Revolution 4.0 (An online conference report)

Speaker: Ir. Dr. Harris A. Rahman Sabri

Date: 27th November 2020

It is not news that technological development is accelerating at an unprecedented rate. Now is the time of speed, when everything is expected to be instantaneous from interactions with friends to ordering food to commutation. Moore’s Law explains an empirical regularity that the number of transistors on integrated circuits doubles approximately every two years [1]. This is a strong empirical finding that further enforce the general notion that computers are getting better and better as they seep into every single nook of our lives. Recent efforts to increase interconnectivity has opened doors for information-based technologies. Data which was previously left to collect dust in databases are now looked at as a source for meaningful analysis. This huge amount of data is collectively called as Big Data; data that is so big it can only be analysed using computers to reveal hidden patterns that can be used to make informed decisions especially in the process of fabricating strategic plans.

            Experts in the engineering industry has embraced the eventual dependency on data during its imminence and grouped it under the Industrial Revolution 4.0 (IR 4.0) banner. This new stage that is added to the Industrial Revolution chain essentially encompasses the use of modern technologies such as Internet of Things (IoT) that removes the need for Internet address for things to connect with each other [2] and real-time optimization using data feed from sensors attached to machineries in the production line. The industrial revolution chain starts with IR 1.0, a phase in which mechanization was started to be integrated into factories along with the wide use of steam engines. The main industries involved were iron production, mining and metallurgy, and textile manufacturing. Proceeding this phase is IR 2.0, where internal combustion engines were introduced along with electrification of factories. One of the pioneers of production line during this era was Henry Ford, who initiates the use of “assembly line” on the 1^st of December 1913. Upon the implementation of this system, Ford Motors have managed to see an increase from 250,000 cars to 260,700 cars using far less workers. Interestingly, this idea came as an epiphany during Henry Ford’s visit to a butchering house. Prior to IR 4.0 is IR 3.0 where robotics/programmable logic controllers (PLC) permeate industries along with digital manufacturing, automation and digital machines.

 Future jobs and other impacts of IR 4.0

Jack Ma, the founder and former executive chairman of Alibaba Group chose to be sceptical on the infiltration of artificial intelligence (AI) into the job sector. He argued that a social conflict will arise if AI is given too much share in the working industry. According to him, this will happen as fewer jobs will be available for the aging workforce. Contemplating on this issue is crucial, but few can afford this luxury especially business entities that are affected by economical shifts brought about by new technologies. Failure to adapt can bring disastrous consequences. This can be seen in the case of KODAK, a photography focused company that was forced to file a $6.75 billion bankruptcy in January 2012 [3]. It was generally accepted among analysts that this happens due to the slow adoption of digital camera technology, one of the disruptive innovations in the fast-changing market back then.

            In the context of Malaysian job sector, research have found that automation do pose significant risks which vary according to skill levels. Based on a 2017 report made by Khazanah Research Institute (KRI), 54% of currently available jobs in Malaysia are at a high risk to be taken over by automation in the next one or two decades. This portion of workforce refers to semi-skilled workers such as factory workers, receptionists, telemarketers and clerks. High-low skilled workers such as repairmen, mechanics and technicians which constitutes 30% of the workforce is at medium risk. High skilled workers (16%) such as engineers, doctors and police that are estimated to be the least affected by automation. Organizations are also observed to be changing their employment criteria to suit their new business needs. Ir., Dr. Harris presented an infographic that depicts a percentage distribution of the skills sought after by organisations. A portion of 59% is taken up by hard skills i.e. teachable or technical skills. Project management ranks first at 55%, followed by statistical analysis (49%), foreign language fluency (34%), computer skills (33%) and a degree or any other academic qualifications (28%). Soft skills that are sought after by organisations are led by the ability to solve problems at 75%, followed by the ability to work in teams (70%), good verbal communication (63%), critical thinking (50%) and interpersonal skills (50%). The study also asked for feedbacks from the organisations involved on the current capability of their talents in achieving business objectives. A majority of 49% answered yes while 33% responded with a no.

            COVID-19 is arguably one of the worst pandemic humankind has ever faced. However, the occurrence of this pandemic can also be seen as a serendipity, a fortunate catastrophe that accelerates the adoption of digital means into the working lives of many. Surveys have been made to selected companies on how they strategize to adopt to the different ways of working posed by this pandemic. Based on the surveys, every single company has proceeded to accelerate the adoption of digital tools into their work such as using online video conference tools to hold meetings. 75% of the companies have started to open doors for remote working to their employees, 58.3% are actively implementing upskilling initiatives through the use of education technology providers. 33.3 % temporarily reassign their workers to different roles to fit current demand and another 33.3% started to hold upskilling or reskilling programmes for their employees. The same survey also includes a study on the kind of technological adoption introduced recently. The top three technologies identified are internet of things and connected devices (94%), big data analytics (94%) and encryption and cyber security (88%). The survey presented also provides similar findings on job changes, listing digitalization and data related jobs on top of emerging roles such as data analysts and scientists, strategic advisors and internet of things specialists. Redundant jobs listed also comprise of similar groups of workers such as data entry clerks, human resource specialists and secretaries.

Conclusion

According to Ir. Dr. Harris, Malaysia is still yet to catch up with the technologically advanced nations such as Japan, China and United States of America in terms of IR 4.0 implementation, but the transition of moving towards the central idea of IR 4.0 is already happening. He advised students to always be ready to learn new skills to ensure their relevancy in the job market. He also touched on ethical issues that must be observed by future engineers which can be divided into five: oneself, employers and clients, colleagues, profession and public. He ended his presentation by reminding us again to be ready to learn new things and to always be aware of technological developments.

 

References 

[1] H. R. Max Roser, "Exponential progress – Moore’s Law," 2020. [Online]. Available: https://ourworldindata.org/technological-progress.

[2]"Industry 4.0: the fourth industrial revolution – guide to Industrie 4.0," i-scoop, [Online]. Available: https://www.i-scoop.eu/industry-4-0/. [Accessed 30 11 2020].

[3] T. A. Nick Brown, "Kodak emerges from bankruptcy with focus on commercial printing," Reuters, 4 11 2013. [Online]. Available: https://www.reuters.com/article/us-eastmankodak-emergence/kodak-emerges-from-bankruptcy-with-focus-on-commercial-printing-idUSBRE98213220130903. [Accessed 1 12 2020].