In this insight we will:
- Define the fourth industrial revolution and digital transformation
- Discuss how the fourth industrial revolution and digital transformation are changing society
- Explore how cloud is central to both concepts
- Provide guidance on how your organisation can take advantage of the fourth industrial revolution and digital transformation
What is the fourth industrial revolution?
The term “fourth industrial revolution”, also known as 4IR and Industry 4.0, refers to the current period of rapid technological advancement, led by the integration of advanced technologies such as cloud computing, artificial intelligence (AI), the Internet of Things (IoT), robotics and automation.
It follows three previous historical industrial revolutions, each of which transformed the way society operated. The First Industrial Revolution started in the 1700s and was driven by the advent of water and steam mechanisation in production. This was followed by the Second Industrial Revolution, which began in the middle of the 19th century, when electricity revolutionised mass production. The Third Industrial Revolution started in the 1950s and saw the emergence of computers, digital technology and the internet – which brings us to the present day.
Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, coined the term in 2016, commenting that “like the revolutions that preceded it, the Fourth Industrial Revolution has the potential to raise global income levels and improve the quality of life for populations around the world.”
What is digital transformation?
Digital transformation refers to the integration of technology into all areas of a business, essentially changing how it operates. This can often mean walking away from long-standing processes or legacy equipment in favour of new, innovative practices. Examples of a digital transformation could include modernising legacy systems, integrating new technologies such as AI into your operations, or migrating to a cloud environment.
How has the fourth industrial revolution affected businesses
The fourth industrial revolution has fundamentally shifted digital transformation from a long-term goal to an immediate necessity. Unlike previous revolutions that evolved over decades, 4IR technologies are advancing at an exponential pace, with new capabilities emerging constantly.
Business across sectors have been impacted by the changes – cloud computing, AI, automation, and data analytics are enabling companies to streamline operations, and enhance decision-making. The public sector has also benefited from widespread digital transformation, improving the ways organisations can serve their users. These tools have opened the door to new business models and processes, from AI-driven logistics and predictive maintenance to subscription-based services and virtual-first workforces.
As billions of people use connected devices daily, organisations now operate in a global, always-on environment where speed, agility, and innovation are essential to stay competitive.
Organisations that have embraced the fourth industrial revolution have gained a measurable advantage, and those that haven’t have noticeably fallen behind.
How the cloud is central to the fourth industrial revolution and digitalisation
The cloud has played a crucial role in the fourth industrial revolution and organisations undertaking digital transformations. Revolutionary as a technology in itself, it also acts as a catalyst for wider digital transformation, allowing businesses to adapt to emerging technologies, and build their global networks.
The cloud has been central in globalisation, enabling businesses, teams and individuals across the world to connect, collaborate and scale operations, without being limited by geography.
Cloud services allow data, applications, and infrastructure to be accessed from anywhere with an internet connection, allowing organisations to serve customers internationally and expand into new markets, without the need for new physical infrastructure.
The scalability of cloud infrastructure allows businesses to meet fluctuating global demand. Rather than adding costly physical servers to on-premise infrastructure, an organisation can scale virtual resources up and down as needed to meet demands. This increased agility has opened up new opportunities for organisations, allowing them to fully take advantage of the fourth industrial revolution. Find out more about the possibilities scalability unlocks in our insight “What is cloud scalability?”.
While the fourth industrial revolution has been ongoing since the early 2010s, the covid-19 pandemic in 2020 led to a new sense of urgency for businesses to adapt to rapidly changing customer expectations and the global need for a remote workforce. Digitally transformed, agile working environments became a necessity, and cloud technologies enabled users to work remotely and collaboratively, from any location, at any time. Although many organisations have now instituted a full or partial return to office policy, remote working and a distributed workforce remain significantly more common than pre-pandemic, supported by the cloud.
Cloud infrastructure also underpins major tech trends such as IoT, big data and AI, all of which require the high-capacity, high-availability, and agility that cloud provides. Incorporating these new technologies as part of a digital transformation would not be possible without the cloud.
A recent report found that global enterprise spending on cloud infrastructure services reached 330 billion USD in 2024, a growth of 60 billion USD from the previous year (statista). This continued growth in spending demonstrates how important the cloud is to organisations worldwide.
How can you take advantage of the fourth industrial revolution and digital transformation
As the fourth industrial revolution continues, keeping up with developments is essential. A continual process of digital transformation ensures your business can take advantage of new technologies, and avoid falling behind in a rapidly developing market.
Driven by increasing access to technology, we are seeing completely new patterns of consumer behaviour. In order to meet market needs, and build and maintain a competitive advantage, it is necessary to examine the way your organisation designs and delivers products and services.
To really reap the benefits of evolving technology, steer away from traditional, linear thinking, and instead pave the way for transformative changes through a thorough digital transformation. If you are planning a digital transformation for your organisation, make sure the process runs smoothly and gives you the optimum results – read more about 3 key considerations for your digital transformation.
