Quaternary Industry and the Fourth Industrial Revolution: Implications and Opportunities.
Industries are constantly evolving, adapting and improving to cater to the ever increasing demands of the consumer market. The First Industrial Revolution saw the advent of machines and factories which provided mass production, while the Second Industrial Revolution saw the rise of electricity and automation, thereby increasing the efficiency of manufacturing processes. The Third Industrial Revolution, popularly called the Digital Revolution, brought a new era of digitization and automation. The term Fourth Industrial Revolution (4IR) was coined to depict the emergence of a new phase driven by data, artificial intelligence, robotics and the internet of things (IoT). The 4IR has resulted in the quaternary industry, which refers to the knowledge-based economy that focuses on research, development, and innovation. In this article, we will explore the implications and opportunities presented by the quaternary industry and the 4IR.
Implications of the Quaternary Industry and the Fourth Industrial Revolution
The quaternary industry has been made possible by the advancements of the 4IR, which merge digital, physical, and biological systems, thereby creating smart devices and systems. With the emphasis on knowledge-based work, research and development, this new phase is gradually replacing the traditional industries. This industry requires highly specialized knowledge and skills, such as those in the STEM fields (Science, Technology, Engineering, and Mathematics). Thus, there is no doubt that the knowledge-based economy has brought with it an increased demand for highly skilled workers. This significant shift has several implications that are changing the economy, work, society and politics at large.
One of the primary benefits of the knowledge-based economy is that it will lead to significant advances in technology as research and development will be it’s driving factor. The quaternary industry has the potential to significantly impact the manufacturing, mining, and service sectors, to mention a few. In the manufacturing sector, 4IR technology such as additive manufacturing and robotics has led to time and cost-saving methods, improved efficiency, and highly scalable production. Similarly, the mining sector is also leveraging technology with autonomous trucks, drilling machines, and autonomous trains. In the service sector, technology such as chatbots and virtual assistants are providing round-the-clock customer service.
Another implication of the quaternary industry and the 4IR is the potential increase in inequality. The knowledge-based economy is likely to exacerbate the wage gap as highly skilled individuals command higher wages, while low skilled individuals are replaced by automation. Moreover, there could be limited opportunities for the low-skilled workforce, which may lead to a social and political crisis.
Opportunities for the Quaternary Industry and the Fourth Industrial Revolution
The quaternary industry and the 4IR has the potential to significantly improve economic growth and development, create new businesses, and job opportunities. Some of the opportunities that the quaternary industry and the 4IR provide include:
1. Job growth
While automation may replace some jobs, the knowledge-based economy will create new opportunities requiring highly skilled individuals. With an emphasis on STEM fields, there will be an increase in demand for engineers, data scientists, and other professionals that require specialized knowledge.
2. Improving productivity and efficiency
The 4IR brings us smart technologies that can optimize production processes, reducing waste, and create more efficient and cost-effective production methods.
3. Accessibility to the internet and digital infrastructure
The 4IR presents vast opportunities to leapfrog developing countries that can adapt and integrate into the knowledge-based economy to increase exports, job creation, and efficient management of industries. As a result, the increase in living standards and industrial growth can help decrease poverty and improve economic growth.
4. Innovation and Research
The knowledge-based economy thrives on research and innovation. With the continued research and development of smarter and more efficient technologies, there will be an opportunity for new and innovative businesses to emerge.
Conclusion
The quaternary industry and the Fourth Industrial Revolution present a host of opportunities across various sectors, including healthcare, education, and finance. The ability to merge physical, digital, and biological systems presents significant opportunities for productivity and efficiency across sectors. While the potential downside of this new phase includes increased wage inequality and limited opportunities for the low-skilled workforce, it’s imperative to leverage this new era to overcome challenges in the economy, society and technological realm. Organizations must ensure they are ready to adapt and leverage the opportunities presented by the quaternary industry and the 4IR to remain competitive and relevant now and in the future.