Understanding the Fourth Industrial Revolution

 
 
 
Understanding the Fourth Industrial Revolution

Preamble

The fourth industrial revolution represents a fundamental change in the way we live, work, and relate to one another. Extraordinary advances in technology are merging the physical, digital, and biological worlds in ways that create huge promise and potential. This blog presents the concept of the fourth industrial revolution and its effects on the modern world.

Research Questions

  1. What is the fourth industrial revolution?

  2. What is the potential impact of the fourth industrial revolution?

  3. What are its effects on the modern world?

Introduction

The first industrial revolution used water and steam to mechanize production. The second used electric power to create mass production, while the third focused on electronics and information technology to automate production. The fourth industrial revolution builds on the third by blurring out lines between the physical, digital, and biological spheres. There are three reasons which make this new transformation being characterised as fourth, and not just an extension of the third industrial revolution, velocity, scope, and systems impact. The breadth and depth of these changes can be seen in the transformation of entire systems of production, management, and governance. The possibilities created by billions of people connected through mobile devices, with unprecedented processing power, storage capacity, and access to knowledge, are unlimited. Therefore, it is vital to understand the concepts that make up the fourth industrial revolution and its impacts on the modern world.

The Fourth Industrial Revolution

Different technologies are emerging and affecting our lives in ways that indicate that a new era of the industrial revolution has started that builds and extend the impact of digitization. The fourth industrial revolution can be defined as the introduction of “cyber-physical systems” involving entirely new capabilities for people and machines. The concept revolves around embedding technology within human societies and even human bodies. Some parts of the world have even yet to experience the benefits of the second and third industrial revolutions, but recent advancements in technology have the ability to leapfrog older ones. More people in the world have access to mobile phones than basic sanitation. Also, the complexity of these technologies makes many aspects of this revolution threatening and problematic for the unfamiliar audience. Therefore, it should be remembered that all industrial revolutions are ultimately driven by the individual and collective choice of people. It is not just a matter of researchers, inventors, and designers developing technologies, but investors, consumers, regulators, and citizens who adopt these technologies in daily life are also important.

Potential Impact of the Fourth Industrial Revolution

The world is new at experiencing this phase of the fourth industrial revolution, which means that it is impossible to know the precise impact of these technologies on different groups. One of the major areas of concern is inequality, security, and identity. The richest one percent of the world’s population now owns half of all household wealth (Oxfam, 2016). Researchers emphasize the fact that unequal societies are more violent, have a higher number of people in prisons, and experience greater levels of mental illness. People often gain a lot from industrial revolutions as prices of products fall and quality increases, but these benefits fail to contribute materially to broad-based economic growth. Increasing inequality doesn’t just affect productivity, it also creates security concerns for both citizens and states. In a hyperconnected world with rising inequality, increased fragmentation, segregation, and social unrest create conditions for violent extremism and security threats enabled by power shifting to non-state actors. Lastly, the fourth industrial revolution will also impact individuals and members of communities. But expanded connectivity does not necessarily lead to expanded or more diverse worldviews. The fourth industrial revolution is the first where tools of technology can become literally embedded within us and even purposefully change who we are at the genetic level. (WEF, 2016)

Challenges and Opportunities

The fourth industrial revolution has the potential to raise global levels and improve the quality of life for populations around the world. Access to these benefits has been, to date, only available to those who can afford access to the digital world. Technology is continuously adding new products to people’s lives which enhance efficiency and pleasure. In the future, technological innovation will also lead to a significant shift in the supply chain industry, with long-term gains in efficiency and productivity. Transportation and communication costs will drop massively, the cost of trade will diminish, new markets will grow that drive economic growth. At the same time, there is a chance of increased and greater inequality, particularly in the disruption of the labour market. It is also possible that the displacement of workers by technology will result in a net increase in safe and rewarding jobs. The providers of intellectual and physical capital are poised to become the largest beneficiaries of innovation and this can lead to a wealth gap between those dependent on capital versus labour. Technology is also one of the reasons why incomes have stagnated, or even decreased. The result is a market with high demand and low ends. Lastly, discontent can also be fueled by the pervasiveness of digital technologies and the dynamics of information sharing.

Conclusion

The fourth industrial revolution builds on the foundations laid by previous revolutions in the industrial age. The velocity, scope, and systems impact of this age is increasingly blurring out the lines between the physical, digital, and biological spheres. All industrial revolutions are ultimately driven by the individual and collective choice of people. It is not just a matter of researchers, inventors, and designers developing technologies, but investors, consumers, regulators, and citizens who adopt these technologies in daily life are also important.

Key Takeaways

  1. The fourth industrial revolution builds on the third by blurring outlines between the physical, digital, and biological spheres.

  2. The possibilities created by billions of people connected through mobile devices, with unprecedented processing power, storage capacity, and access to knowledge, are unlimited.

  3. The fourth industrial revolution can be defined as the introduction of “cyber-physical systems” involving entirely new capabilities for people and machines. The concept revolves around embedding technology within human societies and even human bodies.

  4. It is not just a matter of researchers, inventors, and designers developing technologies, but investors, consumers, regulators, and citizens who adopt these technologies in daily life are also important.

  5. The richest one per cent of the world’s population now owns half of all household wealth. Researchers emphasize the fact that unequal societies are more violent, have a higher number of people in prisons, and experience greater levels of mental illness.

  6. The fourth industrial revolution has the potential to raise global levels and improve the quality of life for populations around the world.

  7. In the future, technological innovation will also lead to significant shift in the supply-chain industry, with long-term gains in efficiency and productivity.

Bibliography

Oxfam. (2016). AN ECONOMY FOR THE 1%: How privilege and power in the economy drive extreme inequality and how this can be stopped.

WEF. (2016). What is the fourth industrial revolution? Retrieved from World Economic Forum: https://www.weforum.org/agenda/2016/01/what-is-the-fourth-industrial-revolution/

 

 

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IMARAT Institute of Policy Studies

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