How Industry 4.0 is Driving the Merging of Manufacturing and IT

Andy Kendall | Strategy

Article Published: 27th February 2024

Industry 4.0 is Driving the Merging of Manufacturing and IT Andy Kendall - Account Director

Industry 4.0: Where We Are Now

We’ve been tracking Industry 4.0 closely over the last few years and it is becoming evident that we are now at a stage where IT and manufacturing are becoming ever more closely intertwined, with the exciting prospect of the very latest technology, including AI, big data, analytics, robotics, and so on, paving the way for truly remarkable changes in the industrial landscape.

The current state of Industry 4.0 has mainly been characterised by the use of digital technology, with increasingly powerful computing power, robots and communication technologies that are automating and improving industrial processes.  Alongside this, the Internet of Things (IoT) has been enabling devices to share and analyse data to build interconnected networks and bring insights into processes and improve the supply chain.  Industry 4.0 is revolutionising how industries operate and collaborate and transforming traditional processes with the integration of these cutting-edge technologies.

The convergence of manufacturing, smart technologies and data-driven decision-making, is already making its mark by optimising workflows, enabling predictive maintenance, and fostering adaptive systems.  Industry 4.0’s impact also extends beyond the factory floor, influencing supply chains, logistics, and collaborative networks. The seamless flow of information across the value chain has enhanced coordination, agility, and driven collaborative innovation.

As Industry 4.0 continues to evolve, its transformative effects are expected to deepen even more, influencing the future of work, skills requirements, and economic structures, marking a crucial time in the history of manufacturing and information technology integration.

The Convergence of Manufacturing and IT

The union of manufacturing and information technology is reshaping the industrial landscape.  Gone are the days of treating manufacturing and IT as distinct entities – now they are seamlessly integrated, marking a paradigm shift towards efficiency and innovation.

In the Business-to-Business (B2B) sector, manufacturing organisations are actively embracing IT solutions, rapidly adopting technologies like artificial intelligence, the Internet of Things (IoT), big data analytics, and automation, to transform their production processes.

At the same time, IT companies in the B2B sector are expanding their influence into the manufacturing space.  No longer confined to providing software or hardware solutions, they are leveraging specialised skills in data analysis, cybersecurity, network connectivity, cloud and edge computing, along with software development to optimise production line processes, ensure stringent quality control measures and enhance supply chain management.

This convergence between manufacturing organisations and IT companies is telling of a broader trend and a profound shift in the collaborative dynamics between these sectors. where IT companies are actively contributing to and shaping the operational landscape of manufacturing.

IT and Manufacturing Integration in Modern Industry

The collaborative efforts between manufacturing and technology have reshaped traditional manufacturing models with the merging of IT and manufacturing delivering smart factories, adaptive systems and AI:

  • Smart factories are characterised by interconnected machinery and systems operating in real time. Under the umbrella of Industry 4.0, these smart factories not only improve production processes, predict maintenance needs, and minimise downtime but also serve as a testament to the convergence of physical and digital systems.
  • The integration fostered by Industry 4.0 goes beyond task automation; it is about establishing adaptive systems that possess the capability to learn, evolve, and self-adjust. These adaptive systems, a core outcome of Industry 4.0 principles, play a crucial role in driving efficiency and innovation within manufacturing processes.
  • The incorporation of artificial intelligence (AI) into the framework of Industry 4.0 amplifies the capabilities of smart factories. AI assists advanced data analysis, pattern recognition, and decision-making, contributing significantly to the overall efficiency and innovation witnessed in modern manufacturing.

Industry 4.0 serves as the orchestrator that brings together various systems, both physical and digital, to create a cohesive and intelligent manufacturing environment. The interconnected machinery and systems, guided by the principles of Industry 4.0, work together to not only automate processes but also to continuously adapt to changing demands and optimise operations.

An interesting LinkedIn article titled ‘Looking for Industry 4.0 Trends in 2023’ focuses on the mutual integration of manufacturing and cutting-edge advancements like IoT, 3D printing, 5G, adaptive AI, and smart manufacturing. It defines how these innovations are reshaping industrial processes, optimising energy usage, enhancing efficiency, and revolutionising business operations. The piece offers a holistic view, showcasing the transformative potential of these technologies across various sectors (not just manufacturing), driving home the importance of strategic adaptation for businesses aiming to thrive in this era of rapid technological evolution.

Industry 4.0 and Beyond

Intelligent data and analytics – At the core of Industry 4.0 lies a commitment to leveraging data, marking a pivotal shift in manufacturing models. The collaboration between manufacturing and IT, as facilitated by Industry 4.0, amplifies this emphasis, enabling the efficient collection, analysis, and utilisation of generated data from the manufacturing processes. Insights derived from this data not only inform decision-making but also empower predictive maintenance, personalised production approaches, and agile responses to dynamic market demands.

Increased efficiency and product customisation – Industry 4.0 is expected to play an ongoing role in steering industries toward increased efficiency, waste reduction, heightened product customisation capabilities, and accelerated innovation. The integration of complex technologies demands a skilled workforce capable of comprehending and harnessing these advancements, pointing towards a future where workforce adaptation and upskilling become integral components of sustained success.

Human augmentation, extended reality and advanced robotics – Technologies, such as virtual reality, wearables and exoskeletons are already able to enhance human capabilities, within research and development, full-scale production and post-production processes.  The next industrial revolution, “Industry 5.0” looks towards complementing Industry 4.0 with collaborative robots and smart machines which work alongside people to improve wellbeing.  Autonomous robots are already able to optimise workflow and free up time for the human workforce to concentrate on non-repetitive or high-value tasks.

The convergence of manufacturing and IT, while laden with challenges such as security concerns and the necessity for constant upskilling, holds immense potential benefits. As Industry 4.0 persists in shaping the future, the integration promises a transformative journey where the boundaries between the physical and digital domains blur. This journey forecasts a future where manufacturing not only meets the demands of today but also envisions and creates limitless possibilities.

Promoting Your Industry 4.0 Investments

Many manufacturers are already benefiting from taking an Industry 4.0 strategy, leveraging artificial intelligence (AI), machine learning (ML), the Internet of Things (IoT) and automation.  And in a study by MPI Group, 61% of manufacturers say that they have increased profitability while 61% have indicated that Industry 4.0  is a competitive differentiator.

Manufacturers must communicate the advantages of Industry 4.0 investments to their customers. By showcasing the enhanced efficiency, quality and customisation capabilities, manufacturers can strengthen their value proposition.

Customers are increasingly seeking suppliers who embrace cutting-edge technology to deliver innovative solutions and meet evolving demands. By highlighting how Industry 4.0 practices enhance product quality, reduce lead times, and offer greater flexibility, manufacturers can not only attract new customers but also retain existing ones.

Learn more about promoting Industry 4.0 investments and how Motion can help >


The collaboration between manufacturing and IT, driven by the principles of Industry 4.0, is bringing about the promise of a more interconnected, efficient and responsive industrial network. Intelligent data is propelling manufacturing into the future with the adoption of predictive maintenance, personalised production, and agile responses to market demands. While there are challenges and concerns such as security and workforce adaptation, Industry 4.0 emerges as a guiding force, towards increased efficiency, waste reduction, customisation capabilities, and accelerated innovation.