THE FOURTH INDUSTRIAL REVOLUTION by Klaus Schwab

THE FOURTH INDUSTRIAL REVOLUTION (2017) by Klaus Schwab, World Economic Forum, Switzerland, p 172

There is no doubt about the speed of change that has accelerated in last few decades due to technology interventions.  It has affected our thinking so much so that we are not able to predict the future even for next one decade.  Last three hundred years have transformed the world in its demography, geography, economics and politics.  Europe and Americas have dominated the scene till the 20th century and it is presumed that this century belongs to Asia.

In these changing times and trials Klaus Schwab (famously known for founding World Economic Forum) brings out this book out of his experiences and interactions to advocate the case for fourth industrial revolution which is going to be dominated by technology at a different level.  The term Fourth Industrial Revolution or 4IR is in currency for last few years and has attracted the academia, practitioners and policy makers to get prepared and respond to this revolution in order to stay relevant.  The book argues the exponential nature of change with the disruption created by technology in all kinds of market, industry and services.

The evolution of industry over the last few centuries has demonstrated transformations in business, industry, market, society and polity.  The inventions and explorations have made life easier and comfortable.  Railways facilitated movements and transportation, electricity brought light to human life and internet opened unthinkable opportunities which culminated into ubiquitous market spaces.  The algorithms and binaries have redefined the way search engines operate and researches are conducted.  It has revolutionized thinking, expectations and experiences.  Last few centuries and decades also witnessed marketable knowledge creation affecting development of new disciplines of study.

Klaus Schwab informs that there are going to be four main physical manifestations of the technological megatrends, viz., autonomous vehicles, 3D printing, advanced robotics, and new materials.  The way research is being conducted and availability of physical space is reducing, nano technology shall change the way manufacturing happen in future and products are developed.  The tipping points that are expected by 2025 are just terrific – 91.2 per cent of the respondents feeling that 10 per cent of people shall be wearing clothes connected to the internet; around 90 per cent of the respondents feeling that there would be around 1 trillion sensors connected to the internet; more than 80 per cent of the respondents feel that 90 per cent population shall be using smart phones; around half of the respondents felt that there would be AI (Artificial Intelligence) machine on a corporate board of directors; etc.  These are not vague estimations or wild imagination, this is how things are expected to shape in the 4IR domain and all stakeholders needs to get prepared for this time.

Technology shall impact growth and GDP as demand shall accelerate and so would production.  Nature of job in future shall change as automation shall take away traditional jobs and new opportunities and jobs shall get created in the domain of new technologies. As highlighted in the book, occupations like telemarketing, tax preparers, insurance appraisers, legal secretaries, real stake brokers etc shall be more prone to automation as compared to mental health, choreographers, psychologists, counselors, HR managers, sales managers, CEOs, etc.

Because digital technology knows no borders, there are many questions that come to mind when considering the geographic impact of technology and the impact of geography on technology. What will define the roles that countries, regions and cities play in the fourth industrial revolution? Will Western Europe and the US lead the transformation, as they did the previous industrial revolutions? Which countries will be able to leapfrog? Will there 71 be greater and more effective collaboration for the bettering of society, or will we see increased fragmentation not only within countries but also across countries? In a world where goods and services can be produced almost everywhere, and where much of the demand for low-skilled and low-wage work is overtaken by automation, will those who can afford it congregate in countries with strong institutions and proven quality of life? (p 74) 

The whole ecosystem of interactions, interventions, governance, employment, ethics, delivery, citizenship, and society is expected to witness paradigm shift beyond imagination. Some of it would be gradual so may not surprise much, some of it would also be abrupt and shall steal away human creativity beyond imaginarium.

The way forwards as briefed by Klaus Schwab for disruption by nurturing and applying four different types of intelligence, viz., contextual (the mind); emotional (the heart); inspired (the soul); and physical (the body).  Certainly these are important and they need to be looked at from the perspective of a caution as well.  The deep shifts as given in the appendix of the book provide an insight into the expected future in 4IR environment.  There are 23 shifts that are narrated with their respective positives and negatives. 

1. Implantable Technologies; 2. Our Digital Presence; 3. Vision as the New Interface; 4. Wearable Internet; 5. Ubiquitous Computing; 6. A Supercomputer in Your Pocket; 7. Storage for All; 8. The Internet of and for Things; 9. The Connected Home; 10. Smart Cities; 11. Big Data for Decisions; 12. Driverless Cars; 13. Artificial Intelligence and Decision-Making; 14. AI and White-Collar Jobs; 15. Robotics and Services; 16. Bitcoin and the Blockchain; 17. The Sharing Economy; 18. Governments and the Blockchain; 19. 3D Printing and Manufacturing; 20. 3D Printing and Human Health; 21. 3D Printing and Consumer Products; 22. Designer Beings; and 23. Neurotechnologies,

It is a fascinating story based on facts and figures, experiences and experiments, observations and studies which opens the eyes of the reader for embracing technology driven future.  Technology and time shall certainly influence the nature of instant gratification which would not be a good sign for human well-being.  But that is the price humans shall have to pay by succumbing.  What to say, we all have inherent desire to survive. The book is a must read for the young students of today and teachers of tomorrow so that they are able to see the future and develop an appropriate appetite.  Only time shall tell us how it is distributed and digested.