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Figure 1. Main elements of Industry 4.0
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According to a recent study Industry 4.0 comprises five functional areas that have 
validity across enterprises and different sectors of industry: data collection and data 
processing, assistance systems, networking and integration, decentralization and 
service orientation, self-organization and autonomy. All of these applications are no 
dreams of the future any longer. 
However, the related potentials are used only hesitantly and by far not to their full 
extent. This is also confirmed by the authors of the above-mentioned survey. In 
particular, middle-sized companies should be made aware of the advantages associated 
with a completely self-managing production. 
The close linking of digital systems and models with objects and procedures of 
the real world via sensors, actuators, processors and software components represents a 
change of paradigm and goes far beyond everything that has so far been discussed 
under the heading of “digitalization”. The majority of these systems is still essentially 
closed and is performing predefined tasks in predefined contexts. 
Figure 2. Five functional areas of Industry 4.0
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1
“Blog: Industry 4.0 – What is so new about digitalization?”. https://www.catkin.eu/en/industrie-4-0-was-ist-so-neu-an-
der-digitalisierung  
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Prepared by the author based on information from https://en.wikipedia.org/wiki/Industry_4.0 

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Industry 4.0 will enable an increasing number of producers to be able to meet 
individual needs and to produce at short term notice and to market their products 
directly to the end-user. This will be possible because of further developed 
technologies and an increasing cross-linking in production processes. The 
configuration of new collaborative processes occurs online and fit seamlessly into 
existing chains or partner networks. This makes extensive interface projects and 
software upgrades causing downtimes redundant. In order to be successful despite 
increasing complexity and costs, logistics will have to develop from a reactive into a 
leading instance in the new value added network chains with the help of “Smart 
Logistics”. 
Digitalization is fundamentally changing the economy and our society. It drives 
entrepreneurial innovation, productivity, and regional economic growth. It also has 
implications for growth, the labor market, and political participation. And it places new 
demands on education and training - not only in the field of information and 
communication technologies. Of central interest in the future will be the question of 
how quickly digitalization penetrates German and European industry (Industry 4.0) and 
how it changes productivity, employment, and competitiveness in different companies 
and sectors. Especially from the perspective of education economics, people’s ability 
to adapt to the changing world of work through the education and training system is of 
fundamental importance. 
As the relationship between human and automated processes evolves, and we rely 
more and more on automotive technology and robotic AI systems to complete and carry 
out jobs from start to finish, enterprises must embrace these advancements if you hope 
to keep up. Failing to do so could see your company fall behind the wayside in a 
competitive market.