Impact of Digitalization, Innovation, and Artificial Intelligence on Industry Growth

AND ARTIFICIAL INTELLIGENCE ON INDUSTRY GROWTH (FIGURE 10.8)

Digitalization, innovation, and artificial intelligence act as drivers of industrial and economic growth. At the production and operational levels, a large majority use smart sensors and artificial intelligence, and the use of more advanced technologies can lead to industrial growth.

Digitalization, innovation, and artificial intelligence in the production processes have a very positive impact on both the growth of the industry and the economy. These elements act as a catalyst for the production and manufacturing industries and have the ability to do their best in a complex environment also. Apart from this, industrial development will be able to generate more income and employment for the common people, which helps in economic growth and prosperity by reducing unemployment and also raises the standard of living of the individuals. Thus, understanding the strategic potential of innovation and digitalization and the use of artificial intelligence are decisive factors in establishing a sustainable business model.

Transform into a digital enterprise, (https://www.pwc.com/rnl/en/publica- tions/industry-40-survey/blueprint-digital-success.htrnl.)

FIGURE 10.8 Transform into a digital enterprise, (https://www.pwc.com/rnl/en/publica- tions/industry-40-survey/blueprint-digital-success.htrnl.)

Issues and Challenges in Industry 4.0

Innovation, digitalization, and the use of artificial intelligence have made the industry sophisticated and efficient, but apart from this, there are also some concerns and confrontations that occur during the implementation of digitalization and artificial intelligence to make Industry 4.0 much better than the existing one.

The new innovative industry requires more autonomy, but today, the business industry is having a lack of these autonomies and capabilities.

Digital and innovative technologies require a high-bandwidth network because they have to do the heavy work and transfer a high volume of data as various nodes. But, the main concern is that the availability of high bandwidth and superspeed networks is one of the major challenges to the current industry.

Other concerns are also to ensure high quality and integrity of the data that are recorded during the production cycle, and sometimes under some unfavorable circumstances, it is not much possible to incorporate diverse data repositories with different nodes.

With the increased digitalization and use of Internet connectivity in Industry 4.0, the privacy and security of significant data are also needed to protect from the cybersecurity threats that are increasing radically.

Actively plan an ecosystem approach, (https://www.pwc.com/rnl/en/publica- tions/industry-40-survey/blueprint-digital-success.html.)

FIGURE 10.9 Actively plan an ecosystem approach, (https://www.pwc.com/rnl/en/publica- tions/industry-40-survey/blueprint-digital-success.html.)

The setup of Industry 4.0 requires a huge cost and investment, due to which most industrialists do not take initiatives to set up Industry 4.0. The requirement of a huge amount of investment for implementing Industry 4.0 seems not feasible for MSMEs also.

Summary and Outlook

The current digitalization, innovation, and artificial intelligence age brought so many new prospects and opportunities for manufacturing industries that help to achieve the target of transforming the business model into Industry 4.0. Now, in the current dynamic business environment, rapid digital processes will lead to an increase in the profit ratio of industries. Digitalization and innovation are considered as one of the important drivers of growth and expansion of the business. In the past few years, it has seemed that digitalization and artificial intelligence have experienced revolutionary technological progress. Digitalization, innovation, and the use of artificial intelligence in industries drive economic growth, productivity, and sustainable development. Communication, interactions, processes, and information flow have also been optimized, and hence, the cost of production is decreased, which results in financial benefits to the producers.

This leads to the conclusion that digitalization, innovation, and artificial intelligence in terms of industrial growth and development for strategic action are most important for industrial and economic growth, respectively.

Conclusion

Digital transformation, innovation, and artificial intelligence can be seen as an emerging issue in the current business environment. It is argued that integration and upgradation of technologies, such as big data, AI, IoT, IIoT, 3D, smart sensors, cloud computing, and associated analytics, cybersecurity, advanced robotics systems, social media, and automation.

The main purpose of innovation and artificial intelligence is to redesign the business organization and transform the industry into Industry 4.0. Through the introduction of innovative and digital technologies for achieving benefits such as improved productivity minimize cost reductions and innovation. Innovation, digital transformation, and artificial intelligence are affecting not only the manufacturing industry but also other sectors of the economy, such as automobile, health, and education.

Bibliography

Agrawal, R. “Technologies for handling big data.” Handbook of Research on Big Data Clustering and Machine Learning, edited by F. P. Garcia Marquez, IGI Global, Hershey, PA. 2020. 34-49.

Bleicher, J., & Stanley, H. (2016). Digitization as a catalyst for business model innovation a three-step approach to facilitating economic success. Journal of Business Management, 12, 62-71.

Jalota, C., & Agrawal, R. “Analysis of educational data mining using classification.” 2019 International Conference on Machine Learning, Big Data, Cloud and Parallel Computing (COMITCon). IEEE. 2019.

Pathak, S., & Agrawal, R. (2019) “Design of knowledge-based analytical model for organizational excellence.” International Journal of Knowledge-Based Organizations (IJKBO), 9(1): 12-25.

Pessl, E., Sorko, S. R., & Mayer, B. (2017). Roadmap industry 4.0—Implementation guidelines for enterprises. International Journal of Science, Technology, and Society, 5(6), 193-202.

Remes, J., Mischke. J., & Krishnan, M. (2018). Solving the productivity puzzle: The role of demand and the promise of digitization. International Productivity Monitor, 35, 28-51. Vaidya, S., Ambad, P., & Bhosle, S. (2018). Industry 4.0—A glimpse. Procedia Manufacturing, 20, 233-238.

Weblinks

https://www.etmm-online.com/industry-40-clearly-explained-definition-benefits-and-topics-

a-835529/

https://www.myforesight.my/ 2018/02/27/characteristics-of-industry-4-0/ https://www.pwc.com/ml/en/publications/industry-40-survey/blueprint-digital-success.html

 
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