The fourth industrial revolution, also known as Industry 4.0, is transforming businesses, societies and the global economy, and leaders around the world are adopting new strategies to survive — and thrive — in this technological revolution. When it comes to the new world of work, navigating these staggering changes brings both challenges and opportunities. 

Let’s look closer at what Industry 4.0 is, then let’s explore strategies that can help you lead in these complex and rapidly changing times. 

What is Industry 4.0?

Known as Industry 4.0 or the fourth industrial revolution, this era is characterized by technology and digitization. Innovations in areas including artificial intelligence, machine learning, the Internet of Things (IoT), analytics and automation are fuelling significant change, at scales and speeds not seen before. The COVID-19 pandemic squeezed ten years of growth in e-commerce adoption into just three months in 2020, according to McKinsey.

Given the immense possibilities of smart manufacturing today, alongside the transformations brought to manufacturing by the first industrial revolution, manufacturers are often the focus of Industry 4.0. However, the profound impacts of this fourth industrial revolution reach far beyond one sector; Industry 4.0 has the potential to drastically improve the efficiency of businesses and organizations in all industries.        

This new revolution is detailed in The Fourth Industrial Revolution, a book by Klaus Schwab, founder and executive chairman of the World Economic Forum. “We stand on the brink of a technological revolution that will fundamentally alter the way we live, work and relate to one another. In its scale, scope and complexity, the transformation will be unlike anything humankind has experienced before,” Schwab writes. 

Several other industrial revolutions over the past 250+ years preceded Industry 4.0, characterized by: 

  • Mechanization (Industry 1.0) 
  • Electrification (Industry 2.0) 
  • Automation (Industry 3.0)
  • Globalization (Industry 3.5) 

How to thrive in Industry 4.0 

You’ve already faced recent shakeups to the workforce, like the rise of the gig economy and the COVID–19 pandemic. In response, perhaps you’ve embraced an agile workforce or more flexible working arrangements. Whatever you’ve done, consider it practice for Industry 4.0, which requires further shifts in strategies and structures.

People strategies matter

In an Industry 4.0 world, new technologies receive a lot of attention, but your organization will still require a significant focus on people. It’s people, after all, who will ensure businesses can adopt and deploy new technologies. People strategies are essential in this new world of work, from attracting and retaining skilled talent to embracing new methods to hold teams and company culture together.  

Already, leaders of Canadian manufacturing companies say a lack of qualified employees is their biggest challenge in implementing Industry 4.0 solutions, according to a BDC survey of 960 entrepreneurs. You can empower your current employees, BDC suggests, simply by involving them from the outset when it comes to implementing technology, including offering appropriate training for anyone who will be using the new technology. Another way you can offer meaningful support to employees as their roles and tasks change is through reskilling and upskilling strategies.    

Know what motivates your people

Scrutinize your company’s assumptions about what motivates your people. It’s likely not the same between full-time employees and contract workersGen Zers and Gen Xers or workers in different parts of the world. To address all of this, organizations can move from a one-size-fits-all model towards hyper-personalization of the worker experience. 

The emergence of such nontraditional teams may be a big adjustment, depending on the industry you’re in. In the mining sector, for example, Deloitte advises leadership in an Industry 4.0 world requires trading the traditional authoritative leadership style for one that emphasizes collaboration and influence. That style can be better suited to managing diverse teams, composed of people with different backgrounds located in varying places around the world. 

Change is the only constant

A final consideration for navigating Industry 4.0 is building your own ability to embrace change. In The Fourth Industrial Revolution book, Schwab notes that “the deluge of information available today, the velocity of disruption and the acceleration of innovation are hard to comprehend or anticipate.” A source of constant surprise, they require a leader who can continually learn, adapt and challenge their conceptual and operating models of success. 

More recently, the concept of learning to unlearn has been identified as one way to work with change effectively. In response to today’s increasingly complex technologies, it may be necessary to let go of the knowledge and habits that made you successful in the past. 

Conclusion

The fourth industrial revolution is transforming our world at a pace unlike anything we’ve experienced before. While manufacturers are often the focus of Industry 4.0, the impacts of this new world will be felt by businesses and organizations in all industries. Navigating these staggering changes — and the accompanying challenges and opportunities — requires new leadership strategies. 

Leading your organization to the new future of work requires a significant focus on people. As businesses struggle to find qualified employees, consider reskilling and upskilling strategies. Retaining workers, meanwhile, requires knowing what motivates them, and recognizing why hyper-personalization of the worker experience matters. On a personal level, building your ability to embrace continuous change — including learning to unlearn — can help you keep up with Industry 4.0’s unexpected and disruptive innovations. Together, these strategies can help you, your business and your people thrive in this new world.