4IR’s connectedness changes everything
THE Fourth Industrial Revolution (4IR) is characterised by exponential changes to the way we live, work and relate to one another due to the adoption of cyber-physical systems and the Internet of Things (IoT).
As we implement smart technologies in factories and workplaces, connected machines will interact, visualise the entire production chain and make decisions autonomously.
Previous industrial revolutions liberated humankind from animal power, made mass production possible and brought digital capabilities to billions.
The 4IR is, however, fundamentally different. It is characterised by a range of new technologies that are fusing the physical, digital and biological worlds, impacting all disciplines, economies and industries, even challenging ideas about what it means to be human.
The principle of 4IR is that entire value chains are interconnected by autonomous systems created by intelligent networks of machines and data.
Cloud computing is a key feature of this revolution. The rapid rate of change has necessitated a re-evaluation of corporate structure and workplace business practices and leadership.
At its core, 4IR strives to reduce the need for human labour, and leaders are grappling with how this changes business dynamics, strategies and their own roles. The effects of this revolution and the paramount importance of the right leadership style during this time cannot be underestimated.
The resulting shifts and disruptions mean we live in a time of great promise and great peril. The world has the potential to connect billions more people to digital networks, dramatically improve the efficiency of organisations and manage assets in ways that can help regenerate the natural environment, potentially undoing the damage of previous industrial revolutions.
In The Fourth Industrial Revolution,
Klaus Schwab, chairperson of the World Economic Forum, describes the enormous potential for the technologies of the 4IR and the possible risks, and how it has introduced a new economy and new globalisation that require innovative forms of governance to protect the public good.
The human condition, he says, is in the hands of leaders from business, government, civil society and academia and its future well-being depends on their timely adaptation.
In particular, Schwab calls for leaders and citizens to “together shape a future that works for all by putting people first, empowering them and constantly reminding ourselves that all of these new technologies are first and foremost tools made by people, for people.”
He also has grave concerns that these organisations might be unable to adapt and that governments could fail to employ and regulate new technologies to capture their benefits.
The results could be devastating. Power could shift and this could create important new security concerns where inequality may grow and societies could become more fragmented.
Leaders across production value chains have the opportunity to drive transformation by elevating and enabling their workforces. The path forward involves adopting key leadership behaviours. Crucial to this are new partnerships among businesses, governments, educational institutions, labour, and social partners.