What is Industry 4.0

Industry 4.0 is the fourth wave of industrial revolution whereby business processes are managed with data-driven scientific methods, enabled by technologies such as Internet of Things (IoT),  Big Data and Machine-to-Machine Communications (M2M).

With the help of a new system architecture, in which all manufacturing equipment will have seperate internet addresses, all the data that is generated at each instant will be gathered, processed according to user-defined formulas and algorithms using “Big Data Analytics” and reshaped into “Useful Information” for line managers. In the end, autonomous manufacturing processes will be created utilizing rule-based scenarios to build a “Smart Manufacturing” environment.

In order the catch the Industry 4.0 wave that offers revolutionary changes and unprecedented possibilities, the following systems and structures have to be in place;

– Data generating points

-A communication infrastructure to transmit data

Big Data software that processes data and creates automated reports

-A network that facilitates M2M communications

A lot of effort is being put into the development of products, standards and application practices globally. However, there are no clearly defined pathways to realize Industry 4.0 as yet. Companies need to craft necessary strategies in line with their vision and new business models that will rise through these new horizons.

ODYA Teknoloji is channeling its expertise in IT and manufacturing to help you formulate your specific roadmap and offering to become your solution partner on your way to realizing your vision.

Managers and responsible personnel are charged with tracking and keeping under control hundreds of parameters continuously on the production floor. Numerous data points generate thousands of data sets each moment…

Manufacturing facilities are literally floating on an Ocean of Data. Analyzing all this data, making comparisons with past data and reshaping them into “Useful Information” for future insights are virtually impossible by manual book-keeping and merely checking these occasionally. Navigating our way in this Ocean of Data strictly requires Big Data Analytics software. By implementing the Industry 4.0 Vision, it is now possible to analyze thousand of data sets and craft them into instantaneous, personalized, scalable, media-independent, meaningful and automated reports.

Big Data, is the collective name given to mathematical analysis and modelling techniques which utilize user defined performance criteria and algorithms to found the basis for data-driven scientific management. Main pillars for Big Data started to be shaped in the 1990’s under the Management Information Systems umbrella. First tier applications were a modern version of the Materials Resources Planning (MRP) software; they generally came to be called Enterprise Resource Planning (ERP). As we approached the next decade, techniques like Data Mining and Business Analytics started to emerge as Decision Support Systems (DSS) that gave new insights into business processes through specialized business applications.

Some examples for these business applications are;

CRM : Customer Relationship Management – Currently an indispensable tool used across all sectors, this application aggregates sales statistics and customer demographics to offer personalized value-added products and services, makes forecasts about future customer expectations, integrate innovation into new product development processes, enhance customer loyalty and increase brand awareness.

PLM : Product Lifecycle Management – Especially useful for manufacturing companies, this application stores all functional documents related to products; from CAD drawings to production, testing, maintenance and quality documents. It leverages cross-correlations, offers a single-point access and teamwork environment to multi-disciplinary teams across the organization.

These business support processes that evolved with data-centric scientific management principles now make possible an integrated structure where all functions relating to production and corporate business units can be consolidated in a single framework. With Industry 4.0, Big Data Analytics Software will unlock whole new opportunities for corporations…


In the Integrated Facility, all the data belonging to all processes are gathered in a single database, reshaped into “Useful Information”  using Big Data Analytics to achieve total “Process Integration”. Overall Equipment Effectiveness (OEE) and Resource Usage Effectiveness are maximized. Proper Decision Support Systems are made available to managers to minimize Operational Costs.

The right information is served at the right time to the right people.

Industry 4.0 aims for an integrated business infrastructure where all elements of the organization from the simplest of components on the production floor towards machines, processes, production lines and facilities, up to the network of factories are unified on an unbroken line.

All data related to the plant floor is pooled in a single warehouse and analyzed in a holistic approach to create useful Business Applications.

Internet of Things (IoT) goes one step further than connected cellphones, desktop and tablet computers of today and claims a new Information Network Vision whereby every physical thing in our physical environment will be connected to the Internet.

IoT concepts are practically in use today related to Smart Cities, Smart Grid, Smart Home Area Networks (HAN), Autonomous Driving and continues to penetrate into our lives with successful applications. However, industrial applications have been limited in use until now.

The applications of IoT in manufacturing will be through Wireless Sensor Networks (WSN), as is the case with above mentioned areas. IoT (software) and WSN (hardware) merger will give rise to Cyber Physical Systems for manufacturing industries. Machine-to-Machine Communication (M2M) techniques will enable things to be connected, specific production tasks will be carried out automatically via decisions taken by these things that perform user-defined rules and algorithms. Best Practices that are shaped through manufacturing intelligence will bring about decision automation and the right manufacturing actions specific to certain situations will be executed consistently.

Communication technologies, infrastructures and protocols that will be implemented by component manufacturers have not been determined yet; different technologies are currently in competition. Industry-wide acceptance of certain technologies are expected to solidify until 2020, after which we will start to see the highest level of Industry 4.0 come to life in the form of Cyber Physical Systems.

IoT and conventional internet will differ in some fundamental ways :

-The number of connected devices in the IoT space will be much higher than current internet devices. In addition to all the data generation points identified in the envisioned framework, all finished goods will be things to be tracked in their useful lifecycle, thanks to embedded sensors.

-Data transfer will be intermittent and individual data packages will be smaller in IoT.

-Latency – the transfer delay time, will be more tolerable in IoT. Data points will exchange information not in milliseconds but in predefined intervals.

-Communication protocols and IoT infrastructures like Zigbee, Sigfox, InGenu, LoRa, Bluetooth Low E, RFID are currently under development, testing and demo phases globally. Energy consumption, energy harvesting capability, battery life, data transfer rate, unit costs and ubiquity will play a major role in the selection and adoption of such technologies by the industry.

Industry 4.0 is expected to have a far-reaching effect over many sectors and the global economy in general. 50 billion devices will be connected to the Internet in 2020 and Trillions of dollars’ worth of economic value added will be created through efficiency increases and cost reductions in 20 years.

Tüsiad, the largest industrial body representing the manufacturing sector in Turkey, issued a report in collaboration with Boston Consulting Group in March of 2016.

“Industry 4.0 as a Necessity for Turkey’s Global Competitiveness : A Perspective on Economic Development ” highlights some key facts :

  • Structural Problems haunting Turkey’s manufacturing industry for many years are still at play,
  • Export sectors’ import dependency is currently at 62{1fcbfdd082b6db98d07c0b68b57fc7f8cb99c03099e4885148bbd1d89bd4a427} and growing,
  • High-tech products occupy only 4{1fcbfdd082b6db98d07c0b68b57fc7f8cb99c03099e4885148bbd1d89bd4a427} in our exports. This ratio is currently between 10-25{1fcbfdd082b6db98d07c0b68b57fc7f8cb99c03099e4885148bbd1d89bd4a427} in EU countries,
  • EU holds 50{1fcbfdd082b6db98d07c0b68b57fc7f8cb99c03099e4885148bbd1d89bd4a427} share in our exports. Turkey has between 2–23{1fcbfdd082b6db98d07c0b68b57fc7f8cb99c03099e4885148bbd1d89bd4a427} low labour cost advantage against EU countries, but this margin will narrow down via Industry 4.0 applications,
  • Industry 4.0 in Germany is forecasted to bring about 5-8{1fcbfdd082b6db98d07c0b68b57fc7f8cb99c03099e4885148bbd1d89bd4a427} labour cost reduction, € 90-150 billion revenue through more efficiency, € 300 billion GDP and 6{1fcbfdd082b6db98d07c0b68b57fc7f8cb99c03099e4885148bbd1d89bd4a427} new employment increases with a total of 250 billion investment in the course of 10 years,
  • Turkey can achieve TL 200 billion GDP and 4-7{1fcbfdd082b6db98d07c0b68b57fc7f8cb99c03099e4885148bbd1d89bd4a427} total productivity increases through TL 15 billion investment in Industry 4.0 in 10 years,
  • Industry 4.0 is a necessity in order to manufacture value-added competitive products.