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Industry 4.0

Industrial revolution in the Digital Era

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What is Industry 4.0: definition and historical outline

The industrial revolution in the digital era

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"We are shifting from scale to the goal": the fourth industrial revolution is defined by this sentence and represents a radical change for companies. The attention is no longer directed towards the mass of consumers, but rather to the individual buyer, who  determines the dynamics of production with his choices.

Industry 4.0 is based on the technologies behind digital manufacturing, which must be adopted by companies in order to obtain all the advantages of this phenomenon. Let's remember, for example, digital technologies, Internet of Things (IoT), Big Data, Cloud Computing and Robotics.

The paradigm shift: new resources and opportunities

Industry 4.0 and, in particular, the Internet of Things entail important consequences and new needs in terms of resources, skills and work. On the one hand, companies increase productivity, use resources more efficiently, reduce environmental impact and lay the foundations for a better quality of life.

On the other hand, the labor market and the skills require a considerable change: the higher level of complexity leads to the loss of work for the less qualified.

In addition, the demand for broadband storage space and data security tools is increasing.

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The fields of application of Industry 4.0

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Smart factory

Industry 4.0 means change for all companies and the adoption of automated and intelligent robotic machines, able to make independent decisions interacting with the environment. The smart factory is just that: make the company intelligent with the entry of the Cyber-Phycal System in which human force is still necessary, but no longer fundamental. The result is a more efficient production process.

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Smart city

Nowadays, Industry 4.0 is also used in Smart Cities, which are based on sustainable development in order to ensure a high quality of life for their inhabitants. In this case the Internet of Things (IoT) is applied to logistics and smart mobility services (IoS), and to the use of natural resources (IoE). It is clear that Industry 4.0 is now an integral part of the phenomenon, in order to create even more effective production systems.

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Smart agriculture

Industry 4.0 also applies to precision agriculture: the automation of unrelated production activities and their integration with other internal farm processes. Precision farming and the Internet of Farming are strictly related to the Agriculture 4.0, that is, the interconnected use of multiple technologies for sustainable crops, higher production and processing quality and better working conditions.

FAQ

The term refers to the fourth industrial revolution, which changes company production through the use of wireless connections and IoT sensors. Industry 4.0 envisages the massive use of data and information in digitized and connected systems, with a view of Internet of Things.

The intelligent factory is at the heart of Industry 4.0 and is based on a connected and flexible automated system and on machines that learn the machining processes, interact with the environment and make decisions autonomously to adapt to the new production needs of companies.
This is a plan to incentivize companies' investments in technologies and increase competitiveness, strengthening finance to support Industry 4.0 and startups, but also increasing the spending of companies in research, development and innovation. This is due to a hyper-depreciation of 250%.
The term indicates the application of the latest generation technologies to agriculture, in particular Artificial Intelligence and the Internet of Things. The possible applications are different, but the goal is always to increase productivity. Furthermore, a new approach is the only way to feed an ever-growing world population.

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Enabling technologies of Industry 4.0

IoT, Cloud & Big Data

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Industry 4.0 is based on some advanced technologies, among which the most used today are:

  • IoT and IIoT: components, devices (sensors, microprocessors), software platforms, which allow objects and machinery to communicate via the Internet;
  • Cloud: technologies for the storage, processing and transmission of data but also applications and pervasive software for the control of production processes;
  • Big Data: the amount of data generated by each object and machinery that uses IoT systems and that must be organized and analyzed giving rise to Big Data Analytics.

The virtual twin

All the afore-mentioned technologies (IoT, Cloud, Big Data Analytics) collaborate in the creation of the so-called digital or virtual twin of the physical process that plays a key role in the Industry 4.0.

An advanced mathematical model allows to describe the product, the service or the process to carry out analyzes and apply strategies.

Today, the simulation with virtual twins has a key role in Industry 4.0 and allows to optimize production obtaining useful information to ensure greater efficiency (up to 20% more production) and reduce the time-to-market (up to 50%) .

 

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The main advantages of the Industry 4.0 technologies

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Advanced control

In the smart factories as well as in the case of smart cities and smart farms it is fundamental to analyze and have an overview of the situation and only the cloud and the IoT technologies, which constantly communicate machinery and management software, can meet this need . Data management is made possible by an accurate Big Data Management activity.

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Better decisions

The role and value of Big Data and other technologies is mainly given by the possibility of making better decisions and improving the strategic management process of economic decisions that characterize the daily activity of every company, from the SME to the multinational. Precisely the data represent today the most important entrepreneurial information assets and allow to increase effectiveness and efficiency.

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Cost reduction

Industry 4.0 technologies allow companies to reduce costs. With cloud computing, IT infrastructures can be accessed remotely by eliminating staff costs, as well as purchasing and maintaining hardware. IoT sensors, on the other hand, allow constructing predictive models and signaling machines anomalies and failures based on real-time estimates or historical information, avoiding machine downtime.

FAQ

Switching to Industry 4.0 and adopting cloud computing allows TCO optimization, rapid provisioning of resources, control of IT infrastructure costs, dynamic use of resources, easy adaptation to Green IT and data protection regulations, and have access to advanced IT skills. All of this increases the company's innovation rate, improving productivity.

In Industry 4.0 the common denominator of the whole process is the data, capable of connecting all the company's resources. We are witnessing today the renewal of traditional IT with the introduction of an advanced Big Data Analysis that redefines and remodels the data management infrastructures, allowing a simpler and faster analysis and access to all users.

This technology combines today's essential technologies such as Industrial IoT or IIoT and CPS systems with Manufacturing Data Management solutions that use the cloud to create Manufacturing-as-a-Service (MaaS) production. In this way, companies transform production into a service rather than a process and in the future we will have virtual establishments close to the target consumer.

Talking about IoT also means talking about artificial intelligence applied to the world of connected objects and concepts such as Cognitive and Machine Learning. For example, in the manufacturing industry 4.0 it will be possible to create a digital twin of physical products, to be used for the prototyping and testing phases. An important advantage in terms of time and resources, but the possibilities of use are truly endless.

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Storage and data management

Cloud Computing

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The real protagonist of Industry 4.0 is cloud computing, which allows companies to abandon manual processes of virtual machine provisioning, saving time and money. Among the advantages that a cloud system can bring to the company we point out the flexibility, the absence of costs for hardware, collaboration, security and data protection and sustainability.

Among the systems available today to all Italian SMEs, we mention Red Cloud, created to guide the digital transformation of your company by offering advanced system skills, a modern data center and open-source software.

Big Data Management

We have seen how the technologies on which the new Industry 4.0 is based generate a huge amount of data, the so-called Big Data, which must be stored and managed appropriately to ensure the success of the company.

Today, we prefer to use the time series DB, i.e. special databases optimized for time series: these are measurements and events tracked, sub-sampled and aggregated over time and include sensor data, performance monitoring, server metrics and more.
An important evolution that must involve the infrastructure of each company.

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The main requirements for optimal data management

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Monitor & Track

Each successful IoT project is based on a perfect monitoring and tracking of machine data, but also on the logistics operations of the company, thanks to the use of special sensors for visual monitoring. It is a solution offered by InfluxDB, which offers companies and their customers incredible features for optimal data management.
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Analytics

Thanks to IoT sensors it is possible to have access to historical data to obtain insights and information to be applied to the current situation, with an important competitive advantage for companies. Doing IoT analysis means, in Industry 4.0, you have access to predictive maintenance, traffic routing, churn management reduction, better water conservation and so on.
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Action & Control

The sensors allow to generate data that the most advanced companies want to manage in real time and without any human interaction. For example, if the loss of a pump is signaled, it is possible to turn off the machine automatically or change a wind turbine if the wind changes. This is a data management that brings immediate commercial benefits.

FAQ

Companies that access the new Industry 4.0 technologies and adopt a time series DB can gain significant benefits. Among these:

  • high performance in writing and reading;
  • the data itself defines the database schema;
  • there are advanced monitoring and alarming functions.

With the amount of data generated by IoT systems and the need for real-time analysis and management, relying on a time series DB in place of a relational database is the best solution.

Today the Internet of Things has created thousands of connections among thousands of sensors and this complexity generates a large amount of data in real time. Knowing how to manage them correctly allows companies to perform predictive maintenance on machinery, but also have updated information to make strategic decisions or carry out certain activities.

Companies that want to enter Industry 4.0 must be able to rely on a data center able to manage large amounts of data in real time, the so-called Big Data, and have a consistent processing capacity. Today the data center is the true enabler of Industry 4.0 and must be designed to face the challenges that this revolution poses to companies, but also to ensure data security.
An IoT approach allows companies to manage the real time data and follow immediate actions to improve the quality of the production process, the products and reduce the downtime of industrial plants. Naturally, these data must be transferred to modern data centers, both on premise and in the cloud, and be managed in real time to make strategic decisions in the shortest possible time.

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IoT gateways and IIoT sensors

The importance of IoT gateways and their use

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IoT Gateways are one of the critical components of the Internet of Things and are hardware devices or virtual software codes that connect an IoT Sensor Network and a Cloud server. Their importance is given by the fact that they facilitate compatibility with the IoT network, supporting various protocols such as Bluetooth, Wifi, Zwave and Zigbee. IoT sensors are IP-based and the IoT Gateway ensures connectivity with cloud servers, making the various devices available online.

IIoT: the role of the Internet of Things in Industry 4.0

Manufacturing companies and manufacturers use the IIoT, or the Industrial Internet of Things, to improve factory efficiency, prevent machinery breakdowns and downtime. In fact, these sensors allow to make a predictive analysis of the machines and allow to reduce costs, improve uptime, speed up operations and create products of superior quality.

The result for companies is a greater speed of production lines, thanks to the IoT and IIoT technologies.

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The main IoT tools in Industry 4.0

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Sensors

IoT sensors are truly intelligent and can communicate with both other sensors and remote computers, allowing companies to manage the huge amount of data generated or Big Data. Their application is really wide ranging from automotive systems to industrial control, from health assistance to oil exploration and more to detect and transmit data at low cost.

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Chatbot

The use of chatbots and intelligent assistants in the manufacturing and manufacturing context is an important innovation, since through these software it is possible to simulate human behavior. In the field of Industry 4.0, chatbots are virtual assistants of production operators and use the data obtained from IoT sensors to guide the operators' choices in assistance and maintenance.
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AR & VR

The AR allows to improve the maintenance of industrial machinery and receive remote assistance on the basis of analytical and predictive data generated by the same machinery with the advantage of reducing the costs of assistance and error rates, but above all with the improvement of the quality of the interventions . Thanks to virtual reality (VR) the operator can view the planning data from the user's point of view, reducing errors to a minimum.

FAQ

Choosing to implement augmented reality solutions in the company means being able to immediately gain important advantages in terms of efficiency, business productivity, cost reduction and the possibility of error, analysis of Big Data, thanks to integration with existing cloud structures. In addition, the instructions in AR support the operator in extraordinary or routine activities.
The best solution is to navigate on IoT platforms that include advanced statistics to visualize possible machine problems, diagnose them and predict them in order to avoid downtime. As with any other platform, the business objectives that you want to achieve with Industry 4.0 must be carefully assessed.
The most used word in Industry 4.0 is IoT or the Internet of Things, intelligent and connected objects, which generate data to optimize business production processes. There is also talk of IIoT (Industrial Internet of Things) or IoT devices designed exclusively to be applied in production processes, connecting the machinery, checking the state of health of the same and the time of industrial production.
The most advanced chatbots include advanced machine learning functions and can work as "employees" checking machine parameters, communicating with maintenance personnel, sending messages via chat in case of malfunctions, but also evaluating the quality of products and possible recall of a production lot.

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System Integration

Integrate new data with existing systems

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Today, IoT sensors available on the market allow complete integration with data and processes already existing in the company such as ERP systems, which contain information on inventory and customer demand, MES systems or production execution, but also PLM for the creation of smart labels and with product quality systems.

The integration of these worlds allows companies to increase operational efficiency by becoming more flexible and responsive and offering customized solutions to customers.

Machine-machine dialogue but also machine-man

The previous tools work only thanks to ERP, MES, PLM and the other tools work only thanks to the application integration with an Enterprise Bus Service (ESB), ie a software infrastructure able to transfer data between the various company systems and manage them. . The result is a better and complete automation of business processes to obtain real-time information on processes, as well as coordination, messaging and other services. The ESB can be imagined as a backbone on which application components and corporate software services travel.

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Focus

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Middleware

Middleware refers to a connection software that connects services and environments for the development of distributed applications. In this way, different entities (processes, objects, etc.) residing on different computers can interact with each other, even in the case of different communication protocols, operating systems and local system architectures. Today, Middleware is the technological basis of all the integration of business applications, allows better storage, management and recovery of data.

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Open Technologies

Open Technologies, including 3D scanners, allow us to reconstruct the digital model in three dimensions of each real object and are today at the base of Industry 4.0, revolutionizing the production of many companies. In particular, they can improve the efficiency of production processes and, when combined with quality control software, can improve product monitoring during and at the end of the production cycle. Finally, 3D scanners can be robotised and inserted into production lines for automated control.

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Automation

The concept of industrial automation and Industry 4.0 go hand in hand as the goal of companies is to gain full control of an industrial machine thanks to robotics. The perfect man-machine integration leads to better management of energy, IT and material flows. The technologies available today make it possible to use data in the best way, centralizing them and enhancing them to 100% to obtain important advantages in terms of quality, time saving and production efficiency.

FAQ

At present 80% of robots are used in the automotive, electronics, metal and chemical sectors, but are already studying machine-machine and human-machine dialogue projects in health, transport and even in the art world. The future trend is the CoBots, collaborative robots that work with men to advance Industry 4.0 thanks to advanced technology.
Today, talking about M2M in Industry 4.0 means using a set of algorithms and procedures that are based on integrated systems, capable of autonomously carrying out complex operations and transferring data between the various devices without any human intervention. In the industrial field, remote communication between the machines makes production and the entire operating cycle more efficient.
Introducing robotics into the company brings several benefits: it improves production, makes it faster and reduces waste. All this means lower costs and increased turnover for the company that uses the Industry 4.0 model. Who fears that the fourth industrial revolution will lead to job losses is good to remember that intelligent machines will work on communication with man and the worker of the future will only have to retrain.
Thanks to PLM you can create, manage, disseminate and use the data and information necessary to complete the life cycle of a product without being dispersed. Today it is a necessity for SMEs who want to access the Industry 4.0 model and to manage data in an intelligent way, but above all to follow the products even outside the factories.

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Data analysis in Industry 4.0

Data Analytics

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Big Data and Data Analytics represent the main resource for all the companies that have decided to invest in Industry 4.0. Knowing how to analyze and manage the data generated by IoT platforms will mean for every company that operates in the manufacturing sector millions of euros in savings, and above all, improved efficiency, effectiveness, productivity and quality of the products offered. Making use of Data Analytics means knowing how to use innovative tools such as ML or IA to analyze the data and the figure of the Data Scientist will be increasingly important.

Data Visualization

 Data Visualization helps to see information as a whole, but above all make it clear and usable by everyone in the company in a visual form, that can be a chart, a list, a map or an infographic.

Making data visualization means knowing how to analyze data and allows you to experiment with different industrial scenarios: this is why there is a growing diffusion of data visualization tools, available in various forms on the basis of company needs to be satisfied.

 

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Focus

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Machine Learning

Innovations in machine learning and the development of new analytical tools have found wide application in Industry 4.0, to effectively manage Big Data generated by IoT sensors and, more generally, by the Internet of Things. The most interesting application in the industrial field is undoubtedly the maintenance and predictive analysis, for the detection of anomalies in real time.

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A.I.

Artificial intelligence is a further element at the base of the Industry 4.0 model and the internal change of companies. It is a technology that allows machines and robots to connect and communicate with each other, learning from the situations that are created in the production processes of companies. This change leads to lower costs and greater efficiency for the entire manufacturing sector, but not only.

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Dashboards

Dashboards allow companies working with Industry 4.0 technologies to use advanced ways to make complex decisions based on Big Data generated by IoT sensors. All metrics (descriptive, diagnostic and predictive) can thus be managed strategically by the company, allowing to optimize resources, costs and productivity. Using dashboards and dashboards can improve information availability and decision-making quality.

FAQ

The Industry 4.0 model is of fundamental importance for a company that wants to be competitive in the market, but to talk about Machine Learning in the SME still today faces four main challenges:

  • select the algorithms;
  • select the right data;
  • analyze the data;
  • label the data.
Today the growth of Big Data generated by IoT sensors has changed the type of data collected and managed by company information systems. Having advanced data analytics tools means increasing the security and application performance in the company, developing better products, increasing efficiency and reducing risks thanks to preventive maintenance.
Machines capable of reproducing the human mind are at the basis of Artificial Intelligence (AI) in Industry 4.0. Precisely this technology is the basis of Machine Learning and the development of chatbots and virtual assistants, able to communicate with production workers, reporting malfunctions or answering simple questions. To date, AI is used above all in the automotive and retail sectors.
With the current data driven economy, all companies must know how to go beyond data analysis and be able to rely on data, scientists capable of adopting modern data visualization tools to see the relationships between data, as well as having statistics, machine learning and data communication skills. Corporate investments in Big Data are constantly growing, but we need a professional figure who knows how to use data to grow the company.

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The headline and subheader tells us what you're offering, and the form header closes the deal. Over here you can explain why your offer is so great it's worth filling out a form for.

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The headline and subheader tells us what you're offering, and the form header closes the deal. Over here you can explain why your offer is so great it's worth filling out a form for.

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The headline and subheader tells us what you're offering, and the form header closes the deal. Over here you can explain why your offer is so great it's worth filling out a form for.

Hyper and super-amortization: Italian tax incentives

Tax incentives for the Italian Industry 4.0

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The Industry 4.0 project was enriched by the Manovra 2019, with incentives for cloud computing and the confirmation of hyper-depreciation. In short, the 140% increase in the deductibility of fees for services and software used in the cloud is established, while hyper-depreciation introduces different rates based on the investment ceiling. The 140% incentive for intangible assets is also confirmed. Finally, the voucher for the Innovation Manager was introduced to support the digital transformation processes according to the provisions of the Piano Nazionale Impresa 4.0.

Super and hyper-amortization in 2019

The Italian Balance Sheet Regulation (DDL) 2019 introduced the extension for investments in new capital and intangible assets, capable of supporting the technological innovation of Italian companies on the basis of the Industry 4.0 model. In detail, hyper-depreciation extends to 31 December 2020, while the 130% super amortization will end on 30 June 2019.

The objective is to boost the innovation of Italian companies and investments in plant and machinery, to get the new model off the ground of Industry 4.0.

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Focus on Industry 4.0 italian tax incentives

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Super amortization

The companies that buy a new instrumental good from the Manovra 2019, and pay it 100 can deduct 130. The subsidy is provided for capital goods, for long-term use and for the production process of the subject concerned and must be new. For those who purchased such assets by December 31, 2018, the super amortization lasts until June 30, 2019.

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Hyper amortization

On the other hand, hyper-amortization was reconfirmed with the aim of facilitating the recovery of the industrial sector. The rates provided for are three and the value of over-amortization reaches 270% for investments of up to 2.5 million euro, while it is reduced by the lower amounts. The aim is also to allow SMEs to enter the technological modernization perspective envisaged by the Industry 4.0 model.

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National Plan

The measures of hyper-amortization and super-amortization fall within the Piano Nazionale Industria 4.0, which aims to offer all companies the opportunity to enter the fourth industrial revolution and seize the many opportunities it offers. Industry 4.0 guidelines are technological neutrality, horizontal and non-sectoral action and intervention on enabling factors.

FAQ

The website of the Ministro dello Sviluppo clearly explains that each company has the possibility to present several applications for subsidies to various banks and financial intermediaries, provided that these are different investments and that the total amount for the individual company does not exceed 2 million of Euro.

Unfortunately, servers are not Enabling Technologies of Industry 4.0, unless its replacement is part of a larger project of digitization and business innovation. To date, only systems that help identification, traceability and monitoring, as stated in the information documents, are subject to hyper-depreciation.


Unfortunately, the incentives on depreciation refer to the purchase of assets, but it is possible to access the specific facilities linked to the internal Research & Development activity related to Industry 4.0. In particular, there is a tax credit for business expenses in research, development and innovation and the rate of internal spending rises to 50%.
Companies investing in assets worth more than 500 thousand euros must complete the demand for over-amortization with a technical appraisal, which demonstrates that the asset belongs to the subsidized category and verifies the interconnection requirements between the machine and the production management system, or supply network.

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The headline and subheader tells us what you're offering, and the form header closes the deal. Over here you can explain why your offer is so great it's worth filling out a form for.

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The headline and subheader tells us what you're offering, and the form header closes the deal. Over here you can explain why your offer is so great it's worth filling out a form for.

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A clear and bold header

The headline and subheader tells us what you're offering, and the form header closes the deal. Over here you can explain why your offer is so great it's worth filling out a form for.

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A clear and bold header

The headline and subheader tells us what you're offering, and the form header closes the deal. Over here you can explain why your offer is so great it's worth filling out a form for.

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A clear and bold header

The headline and subheader tells us what you're offering, and the form header closes the deal. Over here you can explain why your offer is so great it's worth filling out a form for.

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There are many variations of passages of Lorem Ipsum available, but the majority have suffered alteration in some form, by injected humour, or randomised words which don't look even slightly believable. If you are going to use a passage of Lorem Ipsum, you need to be sure there isn't anything embarrassing hidden in the middle of text. All the Lorem Ipsum generators on the Internet tend to repeat predefined chunks as necessary, making this the first true generator on the Internet.
There are many variations of passages of Lorem Ipsum available, but the majority have suffered alteration in some form, by injected humour, or randomised words which don't look even slightly believable. If you are going to use a passage of Lorem Ipsum, you need to be sure there isn't anything embarrassing hidden in the middle of text. All the Lorem Ipsum generators on the Internet tend to repeat predefined chunks as necessary, making this the first true generator on the Internet.
There are many variations of passages of Lorem Ipsum available, but the majority have suffered alteration in some form, by injected humour, or randomised words which don't look even slightly believable. If you are going to use a passage of Lorem Ipsum, you need to be sure there isn't anything embarrassing hidden in the middle of text. All the Lorem Ipsum generators on the Internet tend to repeat predefined chunks as necessary, making this the first true generator on the Internet.

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A clear and bold header

The headline and subheader tells us what you're offering, and the form header closes the deal. Over here you can explain why your offer is so great it's worth filling out a form for.

A clear and bold header

The headline and subheader tells us what you're offering, and the form header closes the deal. Over here you can explain why your offer is so great it's worth filling out a form for.

A clear and bold header

The headline and subheader tells us what you're offering, and the form header closes the deal. Over here you can explain why your offer is so great it's worth filling out a form for.

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