"Do you believe that little people live in the radio?" – asked Mika Antić a long time ago. Today we might ask ourselves: Do you believe that there are factories where people do not work? They already exist, and the day will come when classic factories will become a rarity and then disappear altogether.
Author: Sergej Kešelj
The essence of Industry 4.0 is the realization of this goal– a vision that seemed like science fiction a little over a decade ago, and today shapes factories, cities and entire economies. It's a world where manufacturing speaks through sensors and data, where digital twins make it possible to test real-world scenarios in advance, and where artificial intelligence makes decisions faster and better than humans. A world in which a factory is not just a series of connected machines served by humans, but a system for autonomous production.
Technological development and digital transformation
When the concept of Industry 4.0 was first presented at the Hannover Messe in 2011, it was more of a vision than an indication of a potential reality. Today, nearly a decade and a half later, we can clearly identify the technologies that have transformed that vision into concrete systems, smart factories, and new business models.
The Internet of Things (IoT): The IoT Talking
Factory is perhaps the most recognizable pillar of Industry 4.0. Sensors placed on machines, conveyors and tools enable real-time data collection. This gives a complete picture of the state of production – from temperature and energy consumption to performance and failures.
In practice, this means that the factory "speaks" – sends data, warns of risks and enables predictive maintenance.
Big Data and Analytics: From the Sea of Data to Smart Decisions
Without analytics, IoT would be just an endless stream of data. Real value comes from analysis: pattern recognition, failure prediction, process optimization. Big Data technologies, along with advanced statistics and machine learning algorithms, make it possible for data to become a competitive advantage.
Artificial intelligence (AI): the brain of the
factory While the IoT collects data and analytics processes it, artificial intelligence makes decisions. AI algorithms can optimize production lines, adjust parameters in real-time, or plan procurement and logistics based on anticipated demand.
In this way, the factory no longer only reacts to events – it anticipates them and prepares for them in advance.
Cloud and edge computing: power in the cloud and close to machines
A digital factory requires enormous processing power. Cloud computing allows complex models and analyses to run in the cloud, while edge computing allows data to be processed on-site – where it is created. This combination brings speed, flexibility and safety.
One of the most spectacular technologies of Industry 4.0 are digital twins – virtual models of physical systems. Every machine, production line, and even an entire factory can have its own digital counterpart. They make it possible to test changes and simulate "what if" scenarios – without stopping actual production.
Cybersecurity: the invisible shield of the factory
As factories become connected and digital, the door is opening to cyber risks. Security issues – from sensor protection to data encryption to real-time attack detection – are becoming just as important as the physical protection of machines.
Examples from global practice
What does all this look like in practice?
Two important projects have marked my understanding of Industry 4.0.
The first event took place near Stuttgart in 2018. Then, during a visit to my business partners, I received an invitation to visit their new factory. The number of employees in the plant was – zero! It was a factory that produced tools for other factories, and which was fully automated at the time.
Most of the group's employees, in fact, are engaged in the development of digital solutions that they sell with their tools, creating added value to the business. Finally, one of the company's significant sources of income came from licenses for an online service through which customers could get real data from factories around the world – about the quality of tools in real working conditions.
Another important moment came when a large service company from Germany invited us to participate in a project to digitize more than 130 factories of a global food manufacturer. The goal is to achieve the highest level of digital maturity for all plants by 2030, with the ability to control all factories from a central location, while only maintenance teams work in the plants themselves. The initiative was launched in 2020, and this ten-year program is now halfway through. Concrete solutions are already in production in a number of factories, and the experience gained is easily applied to improvements to existing as well as new projects.
The study "Industry 4.0 in Serbia – state of development" from 2022 indicates that Serbia is in the initial stages of adopting the Industry 4.0 model, and that one of the key challenges is the readiness of small and medium-sized enterprises to implement technologies such as IoT, CPS and AI
The size and complexity of this endeavor shows that our organizations can also contribute to global digital transformation initiatives. Such experiences have great potential and can be transferred to the regional market.
An example of digitalization of production in Serbia
Competition in the industry is becoming more and more challenging, it is difficult to keep up with global competition, but domestic production also has a chance to optimize its factories through digitization and automation.
During the pandemic, when trade fairs and conferences in Europe were suspended, we turned our attention to events in the region. Then we had the opportunity to visit a factory in Serbia with specific requirements. Their production is based on small batches that are always different, which makes it difficult to use standard software solutions. That's why they decided to develop their own digital platform.
The solution allows them to digitize their business and accurately calculate how much it costs per minute to produce any product. Every operation, from offer to delivery, is managed in the information system. Result? Investing in the system has proven to be profitable after the first year of use, and today the platform brings significant savings even after several years of operation. If it weren't for this investment, most of the business would still be done manually, with the additional involvement of people in administrative tasks.
This example shows that digitalization does not necessarily mean buying a ready-made solution – each production has its own specific needs, and the technology for developing digital solutions is more accessible than ever before in history.
Further digitalization in Serbia
The situation on the domestic market is challenging, but this is exactly where the chance for progress lies. A fast-paced economy often forces companies to focus only on meeting the current needs of customers, while promotions are left for "another time". And we all have the same time – it's just a matter of priorities.
Industry 4.0 is no longer just a vision of the future – it is a reality in which factories operate almost autonomously, collect data, learn from their mistakes, predict failures and make decisions faster and more accurately
The European Union is strongly focusing on Industry 4.0 and smart factories, while the region and Serbia are still mostly just introducing ERP and MES systems. No major investment is expected in the coming period unless new systemic solutions are found. This may seem daunting, but it actually means that there is a huge amount of room and potential for growth.
If domestic IT companies transfer their experiences from cooperation with global partners, and local production recognizes this potential, it is possible to create a strong synergy that will improve entire sectors.
Looking ahead
We can keep up with the game that has been imposed on us and develop more slowly than we need to – but this means further compromising competitiveness. And we can also follow the example of a domestic factory that invested in its own digital solution and thus provided a clear advantage.
A revolution in the field of artificial intelligence can be a new opportunity. Remember that there is no company that is your competitor that has been ahead of the curve in the use of this new technology for decades. Everyone is at the beginning. This is how this technological innovation is transformed into an opportunity to catch the first wave of change.
And, finally, why not start with something concrete?
For example, you can check your organization's level of digital maturity by filling out a simple questionnaire by visiting dmm.icodefactory.com's website.
It's completely free, takes 15 minutes, and can be a great place to start with something specific.