Table of contentsEuropean investments in Industry 4.0Industry 4.0 investments in different parts of the value chainKey success factor in Industry 4.0Improving the efficiency of resourcesEmployment and future changes in professional skillsDuring this paragraph, we will analyze Industry 4.0 from another angle, we will leave room for figures and graphs through a study carried out by the consulting firm PWC. In order to give a global vision of the level of investment in European countries and the benefits that companies expect from the adoption of Industry 4.0. This analysis aims to be just the starting point for an in-depth discussion on the challenges and future prospects for the adoption of Industry 4.0 and specific cyber-physical systems in production. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essayThe study, as we said, was carried out by PWC in 2014 with the help of other specialist companies in market research. It draws on a group of two hundred companies with the specific aim of identifying the opportunities and challenges that companies believe they face in adopting this type of technology. Regarding the method of interviews, they were carried out by telephone and face to face, but the most important thing is the fact that the objective was to give a complete overview, in terms of sales and income. In fact, the sample is composed of large companies with a huge level of sales and revenue and at the same time companies considered medium or small in order to give an overall view of the German market and to repeat it on a scale European. This is therefore not the only principle according to which the investigation was carried out; in fact, companies belong to different industry sectors, as shown in the chart below. Finally, the interviewees belong to different functions within each company in order to understand if there are different views within each company and function in relation to Industry 4.0 and what it needs to become a success and what are the benefits that can be obtained in the near future. . Another important element to take into account is the seniority of the respondents and even then the sample is a balanced mix of CEOs, managers and operational staff. European investments in Industry 4.0. The companies surveyed predict that by 2020 and beyond, they will invest a huge amount of money in Industry 4.0. Concretely, around 3.3% of revenues each year, which is equivalent to half of the expected investments in new capital considered essential for each industrial sector. Translating these percentages into numbers we can see that we are talking about 140 billion euros across the entire European Union. Thus, 25% of the companies surveyed do not consider it a priority to channel significant investments towards industry 4.0. On the other hand, a third of those surveyed see it as a significant investment challenge, as this revolution offers the opportunity to increase efficiency and ensure competitiveness. The companies we talk about see the Fourth Industrial Revolution as one of the biggest opportunities they can face. In fact, they have a higher than average level of annual investment, which exceeds exactly four percent of annual revenue. In fact, 65% of the companies surveyed do not exceed 3% because they do not believe enough in the fourth industrial revolution. The objectives of Industry 4.0 are mainly two:improving the efficiency of not only the production process and improving productivity in order to increase the volume of business for all stakeholders involved throughout the supply chain. As the table below shows, participants know that if they want to benefit from Industry 4.0, they must deploy their efforts across all functions of their business. In addition, they must pull their supplier at the beginning and end of the value chain to follow the revolution, because a producer alone cannot deploy all the advantages that Industry 4.0 can bring. Therefore, looking at the graph, we can see that companies are investing more money in all aspects of the production process by implementing cyber-physical system technology in production in order to be flexible and more efficient, while for everyone, in terms of the supply chain in which they invest. Internet of Things to track all parts and products.Industry 4.0 investments in different parts of the value chainThe study takes into consideration different industrial sectors, those which are considered of paramount importance for development future of the European Union. For each industrial sector the level of investment was calculated as a percentage of revenues achieved each year. At first glance, it is easy to understand that manufacturing and technology companies are those investing the most in Industry 4.0. But how much? Information and communications companies invest around 3.9 percent, while manufacturing companies spend an average of 3.5 percent per year. These are incredible numbers, but each industrial sector differentiates the type of investment. In fact, IT companies are looking for intelligent products and services that integrate computing power, from the manufacturing sector to the logistics sector. Manufacturing companies focus on the physical production of products and want to develop automation equipment to a higher level of independence and flexibility. This is possible by focusing on real-time data acquisition and analysis for predictive maintenance throughout the supply chain. However, the processing industry sector can be considered the end of planned investments in Industry 4.0, in fact, it is the last in relation to the sector. As a result, companies across the European Union have realized that through investments in Industry 4.0 they can grow their business with new solutions and improve customer satisfaction. Depending on the different needs of each company, we can anyway synthesize Industry 4.0 as a recipe for long-term success and companies will understand it by seeing the level of investments and efforts they put in to make it possible. Key success factor in Industry 4.0As I noticed, the main focus of my thesis in the second chapter will be on CPPS cyber-physical production systems and therefore, the main capabilities that a company has developed are acquire, manage and communicate information and data internally and externally. . For this reason, in this section we will focus on raising business data awareness. Data will be the future of any business of the future, Industry 4.0 helps manage it. In fact, through the application of the Internet of Things, sensor and RFID companies will acquire a huge amount of data from the production process and the environment around them, such as suppliers, customers andall stakeholders. As a result, companies often do not use and operate them in a structured and efficient way. Turning to the study, it is possible to see that for half of all companies surveyed, being able to use and exploit data is considered a priority. The sectors most involved in this capacity are surely electronics and IT companies. This is due to the enormous amount of data these sectors produce about the nature of the products and services they produce. However, the idea is widely shared that the ability to store, analyze and use data will be a key success factor in the future. In fact, 90% of the companies surveyed think that this is a very important thing, even in sectors where this is surely the case. it is not the main priority. So far, we've focused on the importance of data but haven't thought about how the business uses it. Through process analysis, analysts are able to collect information about how the process is going, after which the data will be elaborated and solutions to adjust the process will be taken. Take into consideration the case of an automobile equipment manufacturer which will be studied in depth in the third chapter. The company is able to completely monitor the production process using sensors and RFID. The main objective of data collection and processing is to improve the quality and reliability of the final product. By doing so, product or part defects will be detected at an early stage, thereby reducing instances of defective product delivery, thereby reducing complaints and costs. Additionally, the use of data increases transparency and puts companies in a position to make the right decision at the right time. undoubtedly throughout the value chain, from suppliers to customers. This is the basis for improving resource efficiency in terms of money and materials, in addition it is possible to increase productivity and finally customer satisfaction by shipping the right product to the right customer without defects. Industry 4.0 and in particular IOT and Big Data are capable of changing the economic model of companies. In fact, many processing companies thanks to these technologies are today able to solve important optimization problems. IOT provides extensive information about market demand, factory carrying capacity and material resource level. This way, the factory is able to determine which product should be produced and in what quantity based on the priority of customer orders. The final goal is to create a system capable of simulating reality in seconds in order to give the best solution. to each problem, it is the task of cyber-physical system and data processing, while IOT through sensors and especially RFID provide real-time data in order to monitor the entire value creation process. However, from the chart below, we can get a clear view of the state that companies with data analytics capabilities are in. Many businesses are able to track things with RFID, but many lack the ability to analyze and use the information in real time, which is unfortunately the key to success. Furthermore, some do not have access to it at the intra-company level. Improving Resource Efficiency Since the birth of industry, the goal has been to produce even greater quantities of products or services with fewer and fewer energy and material resources. Industry 4.0 is part of thismanagement by ensuring process efficiency. By 2020, surveyed companies expect incredible quantitative and qualitative benefits from the planned investment. The study asks surveyed companies what their expectations are in the future, they predict an improvement in resource efficiency of around 18 percent by the end of 2020 in each industrial sector analyzed, which can translate into 3 .6% per year. That is why the companies were exact during the interview, saying that digitalization will be the main pillar of the revolution and that they expect savings through a dynamic and flexible production process, reduction of product defects and thus a rationalization of the entire value chain. Concretely, technologies enable process transparency to improve the utilization of machines and systems, for example by optimizing batch sizes. Greater connectivity with all components of the organization makes it possible to structure and rationalize areas of work producing productivity gains. The end goal is intelligent use of data analysis for integrated control purposes to reduce the reject rate in production processes. Finally, we can conclude that on average, from 2015 to 2020, there will be an increase in efficiency equal to 17.9% and a reduction in costs of almost 14%. During the investigation, the benefits are divided into cost reduction and increased efficiency. For the first, companies are positively optimistic, announcing that smart factories will provide savings compared to normal effort of an amount equal to 2.6%. Therefore, as I revealed, cost savings do not come solely from the efforts of one company, but rather from the cooperation and exchange of data and information between companies. In fact, annual savings of 2.6% are possible only if each partner in the value chain does their part in reducing costs within their company and collaborates with interested parties. Thus, we can conclude that quantitative advantages are considered an important step to start a glorious future characterized by sustainable competitiveness. The graph above shows that companies have high expectations of the qualitative benefits that Industry 4.0 is able to deliver. The most important aspect is better planning and control of the production process and it's all about the exchange of data and materials throughout the supply chain. Additionally, they emphasize flexibility and greater customer satisfaction, which are considered of paramount importance. Planning and control can be considered from two different points of view. The former focuses on the integration of all partners along the value chain, while vertical integration is a starting point for greater flexibility and reduced time-to-market. Vertical and horizontal optimization leads to better product quality and customer satisfaction because customers have products available faster, with improved computing power and root traceability. However, many companies expect medium or low improvement in quality. This can be considered a mistake because, for example, companies in the automotive and electronics industries move their quality control to the beginning of the production process, along with their suppliers. They take all the data upstream in order to take control of the entire value chain by minimizing defects or instances of reduced quality. In this way, companies.