If you are interested in technology, the "4th Industrial Revolution" is probably the term you've already heard multiple times. The 4th Industrial Revolution is a generalizing concept used to describe an industrial revolution connected with currently widespread mutual use of automation, data exchange, data processing, and manufacturing techniques.
Symbols of the previous industrial revolutions encountered by humanity are respectively: steam engine, light bulb, and a computer. Some people perceive current changes just as a part of the 3rd Industrial Revolution; however, Klaus Schwab disagrees with that. This German engineer and economist - best known as the founder and executive chairman of the World Economic Forum – decided to explain the 4th Industrial Revolution.
So, why is it considered a different industrial revolution?
Klaus Schwab mentions three main aspects that let us treat it as a different process than the previous revolution: speed, width & depth, and the impact on systems. Unlike previous industrial revolutions, the current one is progressing at an exponential, non-linear pace. Each new technology almost instantly gives rise to even newer, more efficient ones. Moreover, the ongoing use of digital opportunities combined with new technologies leads to unprecedented paradigms in economics, business, society, and the lives of individuals, "changing not only what we do, but also who we are." (source: "The Fourth Industrial Revolution, Klaus Schwab, 2016) Finally, the 4th Industrial Revolution entirely transforms the systems and influences all aspects of our lives.
Megatrends
We can distinguish three main types of megatrends that make up the 4th Industrial Revolution's driving force: physical, digital, and biological ones. In the first group, we can find self-driving vehicles, 3D prints, and advanced robotization. The second one consists of the Internet of Things, blockchain, and digital platforms, meanwhile, the third one mostly focuses on genetic engineering.
A chance or a threat?
Despite the technological background - without which we couldn't even talk about this chapter in the history of humanity – the 4th Industrial Revolution is about way more than just technology-driven change. The World Economic Forum states that "it is an opportunity to help everyone." They advocate that real chances appear when we look beyond technology and find ways to help the most people by making progress.
Numerous visions of the 4th Industrial Revolution project it as a process leading to the creation of smart factories. In those places, cyber-physical systems would control production, making decentralized decisions, and communicating with each other.
This vision of robotization could, at least in the beginning, lead to severe problems in the labor market and significant unemployment levels. Unlike the previous revolutions, this one could consume more jobs than it may create. Additionally, this could put a substantial part of society in trouble since the jobs at the highest risk of extinction in the face of robotization are the physical ones, requiring performing repetitive activities. However, this topic is discussed by economists trying to find a proper solution for that issue.
Why is the 4th Industrial Revolution particularly important now?
In his latest podcast, professor Klaus Schwab voiced his outlooks on the possible effects that the pandemic can have on our lives: "A new world could emerge, the contours of which it is incumbent on us to re-imagine and to re-draw." Okay, but what can be the tool that we can use to do that? Yes, you guessed it right – the 4th Industrial Revolution.
Pandemic has brought significant growth in sectors backed by technology – e-grocery, internet banking, non-cash payments, or telemedicine compose several examples of this phenomenon.
Some economists have already started introducing people to the topic of the so-called "Low Touch Economy" via their articles or lectures. This term refers to various ways in which businesses across the globe had to adapt functioning due to the Covid-19. They achieved that mostly by strict policies, like low-touch interactions, limited gatherings, and travel restrictions. That leaves a brand-new space for newer and more efficient technologies people can use to live a more comfortable life while socially distancing. And that brings us back to the technological advancements of the 4th Industrial Revolution.
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