Industry worldwide is waking up to the importance of internet integration, big data, and ever-faster processing. All of these innovations are shaking up standardized production and distribution techniques. Intangibles (software and processing) and tangibles (production assets) combine to form “cyber-physical systems” (CPS). CPS is a German-coined concept of software that is embedded in hardware and the two use adaptive logic transmitted through the internet. Stretching this notion from a single device through production, design, and distribution produces a network of devices tied up in a holistic CPS.
Table 1 – Comparison of Industrie 4.0 and the Industrial Internet Consortium
Source(s): MAPI Foundation
A fast pace of innovation is instilling some fear among market participants—the fear of being left behind the competition. The title of a recent open letter by the CEO of Axel Springer, a publishing house, to the executive chairman of Google exemplifies it well: “Why we fear Google.” He might as well be saying that many companies fear the technological change that arises from new digital applications. Aside from disrupting the marketplace, what these technologies have in common is that they concentrate minds around the need to learn and adapt to the challenges posed by the new status quo. There is no escaping it.
Source: Mapi Foundation, mapi.net; Featured image: www.i2cat.net