Industry 4.0 explained

Industry 4.0 explained

Industry 4.0 (i4.0) technologies are rapidly disrupting business models. Here’s why i4.0 matters.


Industry 4.0 (i4.0) is a collective term used around the world to describe the convergence of IoT-driven technologies, augmented decision making and advanced automation. These next-generation technologies are fundamentally transforming the traditional value chain by opening new revenue streams and driving a step change in business performance.

What makes i4.0 so disruptive is that it is the first time an industrial revolution has been predicted rather than observed, meaning that manufacturers can get ahead of the curve rather than simply reacting to unexpected disruptions.

This presents an opportunity for organizations to solve some of the major challenges they face today, such as: ‘Is my operating model fit for purpose?’ ‘How do I grow my market share?’ and ‘How do I improve productivity without increasing cost?”

Unpacking i4.0

Our experience suggests there are six key dimensions to i4.0 that every manufacturing organization must consider.

Unpacking i4.0 infographic

Time for bigger, bolder action

Unfortunately, despite the promise, our recent global benchmarking report on the current state of Industry 4.0 readiness revealed that many businesses find themselves ‘stuck’: their data- and technology-led approach has yet to deliver the promised benefits. Many have experimented with pilot projects but are now struggling to find a return on investment as they scale.

The bottom line is that the fourth industrial revolution is happening right now and it is bringing unprecedented advances in technology.

Whether it’s the Internet of Things, Artificial Intelligence, Big Data or Augmented Decision Support, it’s clear that these next generation technologies hold the potential to be truly transformative for businesses and their operations.

Do you want to learn more about i4.0? Watch our short, animated video and learn what the leaders are doing to create competitive advantage.

What is i4.0 and where should businesses start? Watch this interview with KPMG’s UK i4.0 experts to find out more.

Ready to achieve your objectives with i4.0? Contact one of our i4.0 leaders around the world to talk about your unique goals and objectives.

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