Industry 4.0 is more than just a flashy catchphrase. A confluence of trends and technologies promises to reshape the way things are made.

The fourth industrial revolution

Merging the real world and cyberspace, huge volumes of data forming the basis for accurate production decisions, companies growing together digitally, products and production in digital dialogue: that’s Industry 4.0, also referred to as the fourth industrial revolution, and similarly momentous today as the steam engine was 250 years ago.

Facts & figures

  30 - 40 percent

Can increase resource efficiency in manufacturing by industry 4.0

  400 Million Euro

To invest federal government and German industry in the development of industry 4.0

Why to Industry 4.0

To capture the potential, manufacturers can consider three moves.

  • Primarily, companies can gather more information and make better use of it.
  • An oil-exploration company collected more than 30,000 pieces of data from each of its drilling rigs—yet 99 percent of that data was lost due to problems of data transmission, storage, and architecture.
  • The executives we surveyed said that correcting these data inefficiencies should improve productivity by about 25 percent.

With production data now available for the asking, executives rightly wonder about how to begin.

  • Which data would be most beneficial?
  • Which data leakages are causing the most pain?
  • Which technologies would deliver the biggest return on investment for a company, given its unique circumstances?
  • To sort through the choices, manufacturing leaders can use a “digital compass” (exhibit). The compass consists of eight basic value drivers and 26 practical Industry 4.0 levers. Cross-functional discussions that will help companies find the levers that are best suited to solve their particular problems.

Industry 4.0 layers

The digital compass helps companies find tools to match their business needs


Smart energy consumption

Intelligent lots

Real time yeild optimization

Asset Utilization  

Routing flexibility

Remote monitoring and control

Augmented reality for MRO


Human Robot collaboration

Remote monitoring and control

Digital performance management

Automation of knowledge work


In situ 3-D printing

Real time supply chain optimization

Batch size


Digital quality management

Advanced process control

Statistical process control

Supply/Demand match  

Data-driven design to value

Data-driven demand prediction

Time to market  

Rapid experimentation and simulation

Customer co-creation/open innovation

Concurrent engineering


Predictive maintenance

Remote maintenance

Virtually guided selfservice

Industry 4.0 – our strategies & best practises