Industrial Revolution 4.0: The digitalization trend in businesses

The 4th Industrial Revolution has disrupted the structure of industries worldwide, heralding a transformation of production, management, and governance systems.

According to Gartner, the 4th Industrial Revolution originates from the concept of “Industrie 4.0” in a 2013 report by the German government. “Industrie 4.0” connects embedded systems and smart manufacturing facilities to create a digital convergence between Industry, Business, and internal functions and processes.

The 4th Industrial Revolution is rapidly replacing manual labor

The 4th Industrial Revolution brings enormous changes in production, business, and marketing, especially since the advent of business software, robotic arms, and artificial intelligence for Vietnamese enterprises.

What do businesses gain from applying technology to their production processes?

Successfully applying technology to optimize the production process, from monitoring raw material areas to harvesting, transportation, and processing. It even includes weather forecasting to plan harvests.

For example, Lam Son Sugar Company has undergone a clear and significant change. To operate during each harvest season, the company needs about 1,000 transport vehicles. Thanks to digitalization along with supporting devices and applications, the company has replaced the labor of 40 accountants with an artificial intelligence management system.

In a recent report, the International Labour Organization pointed out that a large proportion of workers in the textile and footwear industries are at risk of losing their jobs due to automation: 64% in Indonesia, 86% in Vietnam, and 88% in Cambodia. This paints a picture of a precarious future for labor in the region.

Even specialized personnel and highly skilled technical workers can be completely replaced when new technology is applied to work processes.

The 4th Industrial Revolution’s impact on other professions

Other professions such as lawyers, journalists, and consultants are also beginning to feel the pressure from the rapid changes in technology. Data is collected and analyzed to provide accurate, real-time advice. Reports are extracted at the exact moment a manager needs them. And information spreads rapidly across social media.

Mr. Truong Gia Binh, Chairman of FPT Corporation, has repeatedly emphasized to businesses and the press the opportunities that go hand-in-hand with the challenges of the 4th Industrial Revolution. In the ongoing global digital transformation, digitalization is an unstoppable trend.

What happens when businesses do not embrace the 4th Industrial Revolution?

The 4th Industrial Revolution brings opportunities not only for large corporations but also for small and medium-sized enterprises, and even startups.

Instead, the pressure is also immense. There is the risk of job loss for workers, and also the collapse of businesses and corporations if they fail to recognize the issue.

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According to Doanh nhan Sai Gon