Since the invention of the steam engine, humanity has witnessed four industrial revolutions that have transformed the way we live and work. The latest revolution, known as the Fourth Industrial Revolution or I40, has been driven by advancements in technology and has the potential to significantly impact industries and economies globally. In this blog post, we will explore the advantages and challenges of I40 in the Turkish white goods industry, which is one of Turkey's leading sectors with a high level of digital maturity.
The Emergence of the Fourth Industrial Revolution
The Fourth Industrial Revolution, or I40, emerged as a response to the European debt crisis. Developed countries, facing competition from developing countries with cheap labor, decided to focus on automation to regain their competitive advantage. They moved their production back from developing countries and embraced technological advancements to drive productivity and efficiency. This shift towards automation and digitalization in manufacturing processes is what defines the Fourth Industrial Revolution.
Understanding I40
There is no universally accepted definition of I40. However, it generally refers to the integration of various technologies to improve the productivity, quality, and responsiveness of production systems. It encompasses concepts such as automation, Internet of Things (IoT), cyber-physical production systems, and digital technologies in enterprise and industrial management systems. I40 is characterized by network connections, unstable operating conditions, and the advancement of new technologies.
Advantages of I40 in the Turkish White Goods Industry
The transition to I40 offers numerous advantages for the Turkish white goods industry. Through the integration of modern technologies, companies can achieve higher productivity, resource efficiency, and quality. The use of data and information enables greater effectiveness and productivity. Other advantages include increased competitiveness, innovation, sustainability, flexibility, and responsiveness. While employment benefits are frequently mentioned in the literature, they are not among the most recurring advantages in the industry.
Challenges of I40 in the Turkish White Goods Industry
The adoption of I40 in the Turkish white goods industry presents several challenges. Financial resources and investment, employee qualification and training, technical and processual challenges, and organizational transformation and leadership are the most commonly mentioned difficulties. SMEs in the industry face financial challenges due to the high investment requirements of I40. Employee qualifications and technical challenges also pose obstacles to successful implementation. Strategic challenges, cooperation, cybersecurity, and competition are mentioned less frequently but may become more critical as the industry matures in I40 practices.
Comparing Advantages and Challenges in the Literature and the Industry
There is a significant overlap between the advantages and challenges mentioned in the literature and those identified by managers in the Turkish white goods industry. However, there are also some differences. For example, innovation is highlighted as a critical advantage in the literature but is not considered as important in the industry. On the other hand, financial benefits are mentioned as an advantage by managers, while it is not frequently discussed in the literature. These findings suggest that the white goods industry is still in the transition phase to I40 and has yet to fully realize the potential benefits and tackle the challenges.
Conclusion
The Fourth Industrial Revolution, or I40, presents both advantages and challenges for the Turkish white goods industry. While the industry has already made significant progress in terms of digital maturity, there is still room for improvement. By leveraging the advantages of I40, such as increased productivity, quality, and sustainability, the industry can further enhance its competitiveness in the global market. However, challenges related to financial resources, employee qualifications, and technical capabilities must be addressed to ensure a successful transition to I40. Future studies should involve other stakeholders and explore the I40 journey in other sectors of Turkey to provide a comprehensive understanding of the benefits and challenges.
Reference
Şimşek Demirba? K.; Y?ld?r?m N. (2023). Getting the measure of the fourth industrial revolution: advantages and challenges of Industry 4.0 in the Turkish white goods industry. Central European Management Journal, 31(1), 82-101, DOI: 10.1108/CEMJ-03-2021-0026.