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The Change in the Traditional Paradigm of Production under the Influence of Industrial Revolution 4.0

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  • Jan Rymarczyk

    (Poznan School of Banking, WSB Universities, 61-895 Poznan, Poland)

Abstract

The modern history of technical progress is relatively short, as it encompasses merely around 250 years. Within it, we can distinguish four time periods called industrial revolutions. The fourth one of these, which is currently ongoing, is characterized by such ground-breaking inventions as advanced robots, artificial intelligence, Internet of Things, 3D printing, automated guided vehicles, cloud technology, augmented reality, big data, blockchain, nanotechnology, and biotechnology. The author argues that under the influence of these inventions, industrial production is gradually becoming fully digitalized, automated, and autonomous. As a consequence, it will be carried out more speedily, flexibly, effectively, and transparently and will be more environmentally friendly. The quality of products will be higher and the costs of their manufacturing lower, and it will be strictly adjusted to the tastes of the consumers. This means that, contrary to the traditional view, represented by Porter, that companies at a given time can only use one of the basic strategies of competition, i.e., low cost, high quality, and market niche, they are able to implement production that meets all three criteria simultaneously. The emergence of the new production paradigm is stimulated by expected economic and environmental benefits as well as political, social, and natural factors, including the COVID-19 pandemic. These factors contribute to the breakdown of global supply chains, which causes a tendency to insourcing, which is conditioned by the implementation of intelligent production.

Suggested Citation

  • Jan Rymarczyk, 2022. "The Change in the Traditional Paradigm of Production under the Influence of Industrial Revolution 4.0," Businesses, MDPI, vol. 2(2), pages 1-13, April.
    • Handle: RePEc:gam:jbusin:v:2:y:2022:i:2:p:13-200:d:796482
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    References listed on IDEAS

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    1. Jason Furman & Robert Seamans, 2019. "AI and the Economy," Innovation Policy and the Economy, University of Chicago Press, vol. 19(1), pages 161-191.
    2. Chen Liu, 2017. "International Competitiveness and the Fourth Industrial Revolution," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 5(4), pages 111-133.
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    Cited by:

    1. Peace Y. L. Liu & James J. H. Liou & Sun-Weng Huang, 2023. "Exploring the Barriers to the Advancement of 3D Printing Technology," Mathematics, MDPI, vol. 11(14), pages 1-20, July.

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