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The Contemporary Marketing Management Glossary

Industry 4.0

Short Definition

The fourth industrial revolution characterized by the integration of digital technologies—such as artificial intelligence, the Internet of Things, robotics, and data analytics—into manufacturing and business operations.

Context

The term Industry 4.0 was first introduced in Germany in 2011 as part of a national strategic initiative to digitize manufacturing. It represents the evolution from traditional automation to smart, interconnected systems capable of autonomous decision-making and real-time adaptation. Scholars link Industry 4.0 to systems theory, digital transformation, and knowledge management, as it redefines both production and organizational intelligence.

Extended Definition

Industry 4.0 transforms industrial production into an interconnected, data-driven ecosystem that merges the physical and digital worlds.

The concept builds upon previous industrial revolutions:

  1. Industry 1.0 – mechanization powered by steam and water;

  2. Industry 2.0 – mass production enabled by electricity;

  3. Industry 3.0 – automation through electronics and IT;

  4. Industry 4.0 – digital integration through cyber-physical systems.

It leverages technologies such as:

  • Internet of Things (IoT) – connecting devices and machinery through sensors;

  • Artificial Intelligence (AI) – enabling predictive maintenance, adaptive processes, and decision automation;

  • Big Data and Analytics – converting massive datasets into operational insight;

  • Additive Manufacturing (3D printing) – supporting mass customization;

  • Robotics and Automation – improving precision, speed, and safety;

  • Cloud and Edge Computing – decentralizing data processing and control.

The ultimate goal is to create smart factories where systems communicate, learn, and optimize themselves with minimal human intervention.

However, Industry 4.0 also raises questions of ethics, employment, and sustainability, requiring enlightened management that balances efficiency with social responsibility.

In the broader context of contemporary marketing and management, Industry 4.0 enables hyper-personalization, real-time production adaptation, and customer co-creation, transforming supply chains into value networks centered on human needs and digital intelligence.

Contemporary Example

Manufacturers like Siemens, Bosch, and ABB implement Industry 4.0 principles through connected machinery, digital twins, and AI-based production analytics. For example, predictive maintenance systems analyze sensor data to anticipate equipment failures, reducing downtime and energy consumption.

See also

Part of chapter: Glossary