Responding to the Fourth Industrial Revolution

The Fourth Industrial Revolution is considered as a new era due to the vastness of its development and the great impact of its technologies.

It refers to an evolving environment in which disruptive technologies such as the Internet of Things (IOT), Artificial Intelligence (AI) and Virtual Reality (VR) are changing the way we live and interact with one another on a personal level, between businesses and with government.

In the Fourth Industrial Revolution, an agile regulatory framework is key. We need to rise to the challenge as this will enable the country to compete effectively and ensure that businesses continue to perceive Malta as a leading innovative economic hub with a first-class, flexible and effective governance framework.

It is only through closer collaboration between innovators and the private sector that policy-makers will edge closer towards agility.

Industry has responded to the challenge to address the Fourth Revolution by various mechanisms, such as the further implementation of technology, efficient ways of doing business, addressing credit facilities, dealing with banks and investing in Research & Development. A considerable investment in the workforce is necessary by training, introducing additional flexible measures and collaborating with educational institutions.

Malta is already embarking on simplification processes for businesses, making it always easier to get assistance from one place regarding various matters, access to funding, business advice and more. There are, however, areas into which we need to put more effort and embark on more initiatives to respond to the change that is taking place.

Let us take a look at our educational institutions and what they offer. We need to ensure that enough programmes are available and that more students are prepared to make the most of these opportunities. Although education is an end in itself, the actual link with our various industries is key. It is essential, especially when attempting to answer the question which industries do we need to be here to stay as they are the most knowledge-based and most sustainable, rather than the most profitable.

This leads to the process to better understand how other structures are responding to the needs of customers, or users, of the Fourth Industrial Revolution. A traditional approach to regulation may hamper innovation and growth and will prove to be insufficient in the new realities as a result of the fourth industrial revolution.

Traditional education is being replaced by online learning, videos and virtual reality, which can play a big role in delivering education for example. This will definitively have an impact on the manner in which tuition needs to be carried out. on which, as a country, we heavily depend. Our human resources have to be trained to respond to all the change that are happening – particularly in the light of the use of robots and the setting up of sensors in an internet-of-things environment, as well as the use and interpretation of geospatial data, and come up with innovative ideas enhancing innovative and entrepreneurial skills.

Such emerging new realities will continue to give rise to new governance systems. It is high time that we had an active and focused debate with clear objectives to update governance for the new world in order to reap the potential benefits with the least possible casualties.

Whole industries are being redefined by innovative business models that are founded on personalised, location-based, on-demand services. The regulatory structures in this new reality must evolve from the traditional benchmarks that are time-consuming and that shackle the rate at which products and services are deployed, in order to cater for a more engaging and demanding audience in the information age.

We need to respond to the realities of the fourth industrial revolution and we must act fast.