Content

Sinem Zeliha Dalak, Cagla Seneler, Would the Benefits Created by Industry 4.0 Via Innovations Set the Consumers Free of Planned Obsolescence? in:

Alptekin Erkollar (ed.)

Enterprise & Business Management, page 347 - 384

A Handbook for Educators, Consultants, and Practitioners

1. Edition 2020, ISBN print: 978-3-8288-4255-7, ISBN online: 978-3-8288-7230-1, https://doi.org/10.5771/9783828872301-347

Series: Enterprise & Business Management

Tectum, Baden-Baden
Bibliographic information
Sinem Zeliha Dalak, Cagla Seneler Would the Benefits Created by Industry 4.0 Via Innovations Set the Consumers Free of Planned Obsolescence? Learning Objectives Once you have mastered the materials in this chapter, you will be able to: – Discuss the enabler technologies of the fourth industrial revolution. – Understand the effects of the fourth industrial revolution and planned obsolescence on profitability. – Identify the effects of Industry 4.0 on economy, individuals, society, and government. – Explain the applications of planned obsolescence. – Understand the conveniences that the digital revolution brings to our lives. Chapter Outline While the third industrial revolution is not experienced in many countries of the world; the fact that the rich and powerful countries have undergone the fourth industrial revolution, and that the increasing inequalities between them and within the country are more important for the future of humanity. The innovations introduced by Industry 4.0 offer humanity the opportunity to move to another world, which could not have imagined until 15 years ago. The question of what these opportunities are and how they can be used to great effect by human beings are examined by many scientists and business people. In this chapter, whether the idea of making production in order to profit in the context of the wild capitalism, especially the planned obsolescence, 347 will change in the face of the innovations brought by Industry 4.0 is discussed. First of all, the terminology of Industry 4.0 is defined and nine pillars of Industry 4.0 are listed. Then, its effects on the economy, individuals, society and government are examined. Afterwards, the definition and application of planned obsolescence is presented. In the conclusion part of the chapter, the situation of whether Industry 4.0 would eliminate the negativity of planned obsolescence is discussed. Keywords Industry 4.0, Fourth Industrial Revolution; Planned Obsolescence, Digital Revolution; Technology Revolution, Nine pillars Introduction Definition and Evolution of Industry 4.0 The term Industry 4.0 was coined by the German Federal Government as a paradigm shift from centralized to decentralized smart manufacturing and production. Germany Trade and Invest (GTAI) further adds that Industry 4.0 refers to the technological evolution from embedded systems to cyber-physical systems (CPS) – technologies that bring the digital and physical worlds together to create networked world in which intelligent objects communicate and interact with one another. Industry 4.0 represents the fourth industrial revolution which we are currently experiencing, following in the footsteps of the first revolution (Industry 1.0), which happened in the 18th century and was linked to mechanical production and water/steam power; the second (Industry 2.0), took place at the beginning of the 20th century and characterized by mass production made possible by the use of electricity; the third (Industry 3.0), happened in the mid of 20th century and characterized by computers and the internet. Smart products are an inherent part of this industrial revolution. These products are embedded with sensors, identifiable components, and processors which carry information and knowledge to convey the functional guidance the cus- 1 1.1 Would the Benefits Created by Industry 4.0 Set the Consumers Free of Planned Obsolescence? 348 tomers and transmits the uses feedback to the manufacturing system (Qin et al., 2016). Main objectives in Industry 4.0 generally are automation, production or productivity improvement and process improvement, specifically are innovation and transition to new business models and revenue sources with information and services. Industry 4.0 will change the competitiveness of companies and regions, change traditional production among customers, suppliers, and producers to customized production, besides changing the relationship between human and machines and inevitably increasing efficiency and productivity on the way to its enabler technologies. The nine pillars of Industry 4.0, the enabler technologies, will transform isolated and optimized cell-type production into an interconnected autonomous production flow where the technologies can communicate and cooperate amongst and across each other (Vaidya et al., 2018). Changing the relationship between humans and machines, industry 4.0 have different meanings for different individuals. For customers, Industry 4.0 offers more customized products and services that meet their needs. On the other hand, for employees, Industry 4.0 means new training needs due to the shifting demands for workforce enabled by new technologies. Computer Integrated Manufacturing (CIM) was the most prominent concept of integration of industry. CIM system is the integration of production technology, communication and computer equipment that is installed in the organizational unit of the enterprise but it can also be observed as a mark of quantity of business partners in the observed companies (Hozdić, 2015). CIM and Industry 4.0 are mainly separated from each other in terms of human role in production environment and flexibility in production. Industry 4.0 has an important role of human worker in performing the production whereas CIM considered workerless production (Thoben et al., 2017). 1 Introduction 349 Nine Pillars of Industry 4.0 Autonomous Robots Using robots in manufacturing is not new, robots have been deployed for executing routine and repetitive tasks, requiring sophisticated programming for setup and implementation, while lacking the agility to easily adjust operations. As autonomous robots become handling more complex jobs, set up times are decreasing, they require less supervision, and they are able to work safely together with humans and learn from them. The benefits are expanding as autonomous robots become capable of working throughout the day with more stable levels of quality and productivity, performing tasks that humans cannot, should not, or do not want to do. Some benefits of autonomous robots in manufacturing as follows: – Reduced error rates – Improved safety for employees in risky jobs – Increased efficiency and productivity For example, Kiva offers robots that automate the picking and packing process at large warehouses. According to a note published by Deutsche Bank, Kiva robots have cut operating expenses of Amazon by about 20%, which is roughly $ 22 million in cost savings for each fulfillment center (Kim, 2018). – Increased revenue by customer satisfaction – Enhanced employee value through focus on strategic work instead of ordinary tasks For instance, drones are useful when managing inventory scattered across different locations because they can recognize products that are out of place and product counts. Also, drones can be flown directly up to the shelves to scan barcodes which is much more efficient than having someone riding up and down on a forklift doing the same job. Autonomous robots can vary, from robotic process automation to flying vehicles with artificial intelligence (AI), considerably in size, ability, mobility, intelligence, and cost. Autonomous robots can recognize and 2 2.1 Would the Benefits Created by Industry 4.0 Set the Consumers Free of Planned Obsolescence? 350 learn from their surroundings and make decisions independently. With AI and automation being more integrated into industry, problem solving and learning analytics will make robots more responsive with minimal human feedback. Facial recognition software is making leaps in detecting movements in eyebrows, eyelids, retina and lips; through these sensors, combined with audio recognition software that recognizes changes in tone, pitch, and volume, autonomous robots can detect frustration, urgency, or approval, and in turn, adjust actions to modify behavior based on live interactions (Deloitte, 2017). Big Data and Analytics Through analysis of the increased quality and quantity of data collected from technologies like IIoT, robotics, digital twins, additive manufacturing and augmented reality, real-time decision-making is supported. Without regard to the industry in which it is used, indubitably the world of devices is becoming much more connected that it becomes a source of data and information for industrial intents. By creating scenarios that are complex to imagine even today, the potential uses for data once analyzed within its definite industry of origin can be augmented when data from various fields are associated. According to Forrester’s definition, big data consists of four dimensions: – Volume is simply defined as the large data-sets consisting of terabytes, petabytes, zettabytes – Velocity is the speed of increase in big data volume and its relative accessibility – Variety is used to define the different data types, categories and associated management of a big data repository – Value is the extracting knowledge from vast amounts of structured and unstructured data without loss, for end users (Sivarajah et al., 2017). Big data analytics includes statistical algorithms, what-if analysis powered by high-performance analytics systems, and complex applications with components like predictive models, can be evaluated as advanced analytics. By using big data analytics, manufacturers are able to uncov- 2.2 2 Nine Pillars of Industry 4.0 351 er new information and identify patterns that provide improved processes, increased supply chain efficiency and identified variables that effect production. Some use cases of big data in manufacturing are as follows: – Improved processes For example, a biopharmaceutical company, used big data analytics company’s project team assessed process and identified nine parameters that had a direct impact on vaccine yield. By modifying target processes the company was able to increase vaccine production by 50 percent resulting in savings between $5 and $10 million annually (Auschitzky et al.,2018). – Enhanced Quality Assurance Using big data for predictive analytics Intel was able to significantly reduce the number of tests required for quality assurance. It resulted by saving $ 3 million in manufacturing costs for a single line of Intel Core processors (Bertolucci, 2018). – Customized Product Design Using big data analytics Tata Consultancy Services was able to analyze the behavior of repeat customers. The outcome is critical to understanding how to deliver goods in a timely and profitable manner (Burgess, 2018). – Machine Maintenance Information can constantly be collected from machines to help organizations in determining when and how intense a specific machine maintenance is required by using sensors. With big data analytics manufacturers can keep track of their machines by continuously analyzing and discover how to improve the efficiency of them. Simulation Simulation is an acceptable tool for evaluating and predicting the performance of complex probabilistic systems that are analytically intractable. Rapid growth in computing power and simulation optimization have made the usage of simulations possible to optimize the design and operations of systems precisely. However, the arrival of Indus- 2.3 Would the Benefits Created by Industry 4.0 Set the Consumers Free of Planned Obsolescence? 352 try 4.0 has brought changes to the simulation modelling. The Industry 4.0 paradigm requires modelling of manufacturing and other systems via the virtual factory concept and the use of advanced AI (cognitive) for process control, which includes autonomous adjustment to the operation systems (self-organization) (Rodič, 2017). The new simulation modelling paradigm is best inferred by the concept of digital twin. The concept of digital twin was firstly presented by Grieves at one of his presentation about PLM in 2003 (Grieves, 2014). A digital twin can be defined, fundamentally, as an evolving digital profile of the historical and current behavior of a physical object or process that helps optimize business performance (Parrott & Warshaw, 2014). Unlike traditional simulation modellings, digital twin provides connectivity and integration in a far-reaching information system, richer models that return more realistic and holistic measurements of unpredictability, and construction and modification of models data-based to the highest degree. It is in the list of Gartner’s Top 10 Strategic Technology Trends for 2019. In the context of Internet of Things (IoT), the concept of digital twin has become economical to implement. According to Thomas Kaiser, SAP Senior Vice President of IoT: “Digital twins are becoming a business imperative, covering the entire lifecycle of an asset or process and forming the foundation for connected products and services. Companies that fail to respond will be left behind.” Increased collaboration of digital twins and IoT enables data driven decision making, automated business processes, and creating new business models. For example, IoT keeps data flowing which links digital twins to real-world objects. Thus, prediction of the physical counterpart’s performance analysis, answering to changes are provided. Stara, Brazil-based tractor manufacturer used digital twins to create new business models. With the wealth of IoT sensor data, the company launched a new profitable service that provides farmers with real-time insight detailing the optimal conditions for planting crops and improving farm yield. Farmers have reduced seed use by 21% and fertilizer use by 19% through Stara’s guidance (Ohnemus, 2018). Another example of company winning with digital twin technology is Kaeser, a U.S. manufacturer of compressed air products. To date, the company has cut commodity costs by 30% and on-boarded 50% of major vendors using digital twins (Ohnemus, 2018). The company used digital twins to change from sell- 2 Nine Pillars of Industry 4.0 353 ing products to selling services. Instead of installing equipment at a customer’s site and leaving operation to the customer, Kaeser maintains the asset throughout its lifecycle and charges fees based on air consumption rather than a fixed rate. A digital twin network enables the company to monitor the condition of its equipment around the clock and measure customer air consumption. Real-time asset data helps Kaeser ensure equipment uptime and charge an accurate amount of money each billing cycle. System Integration Integration (revolutionary short value chain) and self-optimization (to improve beyond the theoretical boundaries therefore to become better as expected) are two major mechanisms on the production side (Schuh et al., 2014). Some integration examples from real life are as follows: – Vertical Integration (Kenton, 2018): Apple Inc. manufactures its custom A-series chips for its iPhones and iPads and custom touch ID fingerprint sensors. In 2015 opened a laboratory in Taiwan for developing LCD and OLED screen technologies and paid $18.2 million for a 70,000 square foot manufacturing facility in North San Jose. These investments allow Apple to move along the supply chain in a backward integration, giving it flexibility and freedom in its manufacturing capabilities. – Horizontal Integration (Tarver, 2018): – Facebook, looking to strengthen its position in the social sharing space, saw the acquisition of Instagram as an opportunity to grow its market share, reduce competition and gain access to new audiences. All of these things came to pass, resulting in a high level of synergy. – End to End Integration (Kenton, 2018): In the petroleum industry, transport and logistics companies offer customers flexible and cost-effective end-to-end services, from order planning to inventory monitoring, loading and transportation, to delivery. This includes supplying fuel and lubricants to service stations, aviation fuel to airports and bitumen to the asphalt industry. 2.4 Would the Benefits Created by Industry 4.0 Set the Consumers Free of Planned Obsolescence? 354 Companies, departments, functions, and capabilities will become more cohesive through Industry 4.0, as cross-company, universal data integration networks evolve and enable truly automated value chains (Rüßmann et al., 2018). The paradigm of Industry 4.0 is essentially outlined by three dimensions (Stock & Seliger, 2016): – Horizontal Integration across the entire value creation Describes the cross-company and company-internal intelligent cross-linking and digitalization of value creation modules throughout the value chain of a product life cycle and between value chains of adjoining product lifecycles (Stock & Seliger, 2016). – Vertical Integration and networked manufacturing systems Describes the intelligent cross-linking and digitalization within the different aggregation and hierarchical levels of a value creation module from manufacturing stations via manufacturing cells, lines, and factories, also integrating the associated value chain activities such as marketing and sales or technology development (Stock & Seliger, 2016). – End-to-End engineering across the entire product life cycle Describes the intelligent cross-linking and digitalization throughout all phases of a product life cycle: from the raw material acquisition to manufacturing system, product use, and product end of life (Stock & Seliger, 2016). The full digital integration and automation of whole manufacturing processes in the vertical and horizontal dimension implies as well an automation of communication and cooperation especially along standardized processes (Erol et al., 2016). Cybersecurity With the increased connectivity and use of standard communications protocols that come with Industry 4.0, the risk of cyber threats and cyberattacks increased dramatically. The risk is expanding while connection is increasing day by day. It is estimated that 20.8 billion IoT devices will be deployed around the world by 2020 (Gartner.com, 2018). Many of these devices may be used in manufacturing facilities and production lines, but many others are expected to be in the market- 2.5 2 Nine Pillars of Industry 4.0 355 place where customers, whether B2B or B2C, can purchase and use them (Waslo et al., 2017). As a result, it is crucial for companies operating in Industry 4.0 to focus on security. Developing a fully integrated strategic approach to cyberattacks is fundamental to manufacturing value chains as they unite operational technology (OT) and information technology (IT) (Waslo et al., 2017). According to the study conducted by Deloitte and MAPI (the study was informed by 35 executive interviews and 225 survey responses collected) about cyber risk in advanced manufacturing the six key themes and what manufacturers should do (Huelsman et al., 2016): – Executive and board level engagement Set up a senior management-level committee with board member representation dedicated to issue cyber risk. Set up escalation criteria to include board members and review cyber breach incident management framework. – Talent and human capital Set up a cross-functional team of key stakeholders in the cyber program, including IT, OT, R&D, Finance, and Risk. Perform regular internal phishing tests as an assessment and tool of awareness to help employees better identify these attacks when they occur. Implement threat, behavior and audience-based, concise learning programs with active user engagement to maximize attention and retention. – Intellectual property Extensive data protection strategy, executive support, and investment of time, talent, and funding is required to protect sensitive data. Organizations may also need to make some strategic business decisions based on the risk tolerance. – Industrial control system Create an inventory of connected devices including industrial control systems that are attached to those network segments. Organize a cross-functional security team that includes representatives from global information security, engineering, and operations. – Connected products Would the Benefits Created by Industry 4.0 Set the Consumers Free of Planned Obsolescence? 356 Before releasing, make sure accessing the value-added for new connected product functionality. Sustain an open line of communication with legal. Determine if cyber threat monitoring and simulations or resiliency exercises are comprehensive enough to cover top cyber risks. – Industrial ecosystem For third-party cyber risk management up front in key contacts requirements defining. Augmenting monitoring and assurance activity over third parties could considerably reduce cyber risks. Progressively shifting from focus on cost to a focus on value of the drivers for third-party alliance. The Industrial Internet of Things (IIoT) The Industrial Internet of Things (IIoT), also known as Industrial Internet, is the network of a multitude of industrial devices connected by communication technologies that result in systems that can monitor, collect, exchange, analyze, and deliver valuable new insights, which can help drive smarter, faster business decisions for industrial companies (Ge.com, 2018). The Internet of Things (IoT) means a worldwide network of interconnected and uniform addressed objects that communicate via standard protocols (Hozdić, 2015). The term IIoT is often encountered in the manufacturing industries, referring to the industrial subset of the IoT. It also goes beyond machine-to-machine since it not only focuses on connections between machines but also includes human interfaces (Lueth, 2015). While IoT and IIoT have many technologies in common, like the cloud, sensors, connectivity, machineto-machine communications and data analytics, they are separated according to their purposes. Manufacturers worldwide are connecting their machines to the cloud and developing their own IIoT to scratch the surface of untapped potential, which promises exponential growth and enormous scalability for their business. For instance, Airbus has integrated sensors to tools and machines on the shop-floor and has given wearable technology to workers, including industrial smart glasses, designed to reduce errors and support safety in the workstation. In one process, known as cabin-seat making, the wearables en- 2.6 2 Nine Pillars of Industry 4.0 357 abled a 500% improvement (Accenture.com, 2018) in productivity while nearly eliminating errors. While cloud computing is a major enabler of industrial transformation, edge computing is rapidly becoming a key part of the IIoT equation to accelerate digital transformation (Ge.com, 2018). Edge computing refers to a computing infrastructure that exits close to the source of data. The role of edge computing is packing more compute, storage, and analytic power to consume and act on the data at the machine location which is remarkably valuable to industrial organizations. For example, Intel CEO Brian Krzanich, estimates that autonomous cars, with hundreds of on-vehicle sensors, will generate and consume 40TB of data for every eight hours of driving. Because the sensing, thinking, and acting attributes of edge computing in this case must be done in real-time with the lowest latency to ensure safe operation for passengers and the public, it is unsafe and impractical to send that big amount of data to the cloud. The terms IIoT and Industry 4.0 are mostly used alternatively. Despite referring to identical applications and technologies these two terms have different meanings. First of all, Industry 4.0 is associated with governmental and institutional initiatives involving academic world, private businesses and the German Federal Government. Second, Industry 4.0 is mainly focused on the manufacturing sector, whereas the IIoT is much more focused on giving acceleration and empowering the approval of technologies connected to the internet over industries. Third and the last one is, that Industry 4.0 is not only about the connection of data management and assets but also the entire value chain digitization. The Cloud Industry 4.0 increased the need of implementation of cloud solutions since many of technologies that form the foundation of Industry 4.0, like digital twin, IIoT and big data analytics, require data sharing across companies, sites, and machines. With compute, storage and networking capabilities, cloud offers an environment to adopt new technologies. Based on service model cloud can be categorized as: 2.7 Would the Benefits Created by Industry 4.0 Set the Consumers Free of Planned Obsolescence? 358 Software as a Service (SaaS) is a model which allows the clients to use and rent the applications without installing and executing it on their computer (Bokhari et al., 2018). Platform as a Service (PaaS) delivers the services in the form of development tools, framework, architecture, programs, and Integrated Development Environments (IDE) (Singh et al., 2016). Infrastructure as a Service (IaaS) provides computing resources such as processing or storage which can be obtained as a service (Patidar et al., 2012). Anything as a Service (XaaS) is a service model that may be anything or everything as a service like Security as a Service, Communication as a Service, or Database as a Service and so on (Kumari & Kaur, 2018). Based on a deployment models, cloud can be classified as: – Public Cloud: Allows the general public to access the system and services offered by an enterprise provider (Saikia & Devi, n.d.). – Private Cloud: The cloud resources and services can be accessed or used inside an organization without the restrictions of network bandwidth, security exposures, and legal requirements that using public cloud services across open, public networks might entail (Rimal et al., 2009). – Hybrid Cloud is a composition of two or more clouds (private, community, or public) allowing data and applications to be shared between them while preserving their separate identities (Savu, 2011). – Community Cloud is the cloud infrastructure that shared by several organizations and supports a specific community that has communal concerns (Zissis & Lekkas, 2012). Based on recommendations from the National Institute of Standards and Technology (NIST), an ideal cloud should have five characteristics: on-demand self-service, broad network access, resource pooling, rapid elasticity, and measured service. Industries can use the cloud platform to run their applications, optimize their business processes, and yet gain visibility into the data and analytics that inform their next actionable insight. Some of the advantages provided to the cloud manufacturers are: 2 Nine Pillars of Industry 4.0 359 – Agility Cloud based systems are making it easier for manufacturers to keep up with new developments than traditional systems. They also offer the potential to increase adoption rates across sellers and customization is easier with them. – Security According to The Cloud for Manufacturing report by Microsoft and Invensys (2014), cloud-based system using manufacturers do not need to grant suppliers direct access to their internal network. You can preserve your internal systems while improving your collaboration with suppliers. – Saving Again according to The Cloud for Manufacturing, cloud-based manufacturing solutions can reduce up to 54% of the costs relating to IT infrastructure, maintenance and lifecycle for both new and existing operational or process improvement projects. – Scalability With cloud computing, it is possible to customize your technologies depending on your needs. Based on the bandwidth demands, cloud capacity is easy to scale up or down. Additive Manufacturing Additive Manufacturing (AM) is the process of joining materials to make objects from 3D model data, usually layer by layer. Although the terms 3D Printing and Rapid Prototyping are casually used to discuss additive manufacturing, each process is actually a subset of additive manufacturing (GE Additive, 2018). The International Organization for Standardization (ISO)/American Society for Testing and Materials (ASTM) 52900:2015 standard classify standard, AM processes into seven categories (Additive Manufacturing: Strategic Research Agenda, 2014): Material Jetting (MJ): A print head moves back and forth on x-, y-, and z- axes to create 3D object. Binder Jetting (BJ): Similar to MJ, except that the print head lays down alternate layers of powdered material and a liquid binder. 2.8 Would the Benefits Created by Industry 4.0 Set the Consumers Free of Planned Obsolescence? 360 Material Extrusion (ME): Material is selectively pushed out through a nozzle or orifice Directed Energy Deposition (DED): Focused thermal energy melts materials during deposition. Powder Bed Fusion (PBF): Thermal energy fuses a small region of the powder bed of the build material. Sheet Lamination (SL): Sheets or foils of materials are bounded Vat Photopolymerization (VP): Liquid polymer in a vat is lightcured With Industry 4.0, AM technologies like 3D Printing will be widely used to produce smaller batches of customized products that offer construction advantages, such as complex, lightweight design. According to Additive Manufacturing: Strategic Research Agenda (2014) Summary of some potential benefits of AM is as follows (Tofail et al., 2018): – Reduction of waste production – Direct conversion of components or shapes to physical parts – Without additional manufacturing or tooling cost, generating parts with greater customization. – Ability to design for function rather than for manufacture – Reduction in overall manufacturing and production development time leading to quicker transfer to market – Production of lightweight structures enabled by flexible manufacturing – With minimal to no additional processing, ability to direct production of a component to their final (net) or near final (near net) shape. – Smaller operational foot-print towards manufacturing – Great scalability – Rather than projection-based manufacturing, on-demand manufacturing is provided. While the focus was mostly on the consumer side, there is an example that will show 3D printing’s potential in industry. MIT have created 3D Printed graphene which is lighter than air and 10 times stronger than steel also only one atom thick (Mearian, 2017). If it can be enlarged, it could help to lightweight products such as aircraft, cars and filtration 2 Nine Pillars of Industry 4.0 361 devices, saving huge amounts of fuel, costs and carbon emissions (Scott, 2017). Augmented Reality Augmented Reality (AR) is the technology that extends our physical world by adding digital information onto it. Unlike Virtual Reality (VR), AR does not create totally artificial environments to replace real with a virtual one. By adding sounds, videos, graphics, AR appears in the view of an existing environment. AR can be displayed on devices like screens, handheld devices, glasses, mobile phones, head-mounted displays involving technologies like SLAM (Simultaneous Localization and Mapping), depth tracking (briefly a sensor data calculating the distance to objects), and the following components: – Cameras and sensors: Sending data collection of user interactions for processing. – Processing: Measurement of speed, angle, direction, orientation in space and so on. This requires a CPU, a GPU, flash memory, RAM, Bluetooth/Wi-Fi, a GPS, etc. – Projection: Viewing of digital content (result of processing) onto a surface. – Reflection: To perform a proper image alignment some AR devices have mirrors to assist human eyes to view virtual images. AR can help manufacturers provide visual, real-time information to the right person at the right place and right time. Also, this technology will lead to reduction in defects introduced during service and maintenance, and the time spent on training of new employees (Kadir, 2017). Some real-life examples on usage of AR technologies in industry: – The Vuzix M2000AR displays content from a connected device over a video stream of real-world content, which could be perfect for managers or employees who need to access technical data or repair procedures while in fields (Neagle, 2013). – IBM’s Augmented Reality Shopping Assistant scans shelves at retail stores and provides product information, reviews, offers and suggestions of other items customers might like. 2.9 Would the Benefits Created by Industry 4.0 Set the Consumers Free of Planned Obsolescence? 362 – Retailer IKEA has found that 14 percent of its customers end up taking home furniture which turns out to be the wrong size for its intended location. Therefor IKEA uses augmented reality on its catalogues to give a virtual preview of furniture in a room. – NGrain’s augmented reality app is a good investment for businesses that need to train employees on industrial equipment. Viewing a piece of equipment through an iOS device, 3D/2D graphical overlays walk the user through the steps, creating a learn by doing training experience. Positive and Negative Effects of Innovations Brought by Industry 4.0 The fourth industrial revolution deeply affects all sectors and causes significant changes. These changes can be counted as the emergence of new business lines, the deterioration of traditional institutions, production, consumption, transportation, education, health and shipment. In addition to this there are notable changes in the social fields, business life, communication habits, information and entertainment style. These changes created by the technological revolution naturally force governments and institutions to change. The complexity and interdependence of this rapid and intense change in human history; all social classes of the global community, companies, governments, academics, non-governmental organizations required to work together and find the least common denominator. Thus, it has created a collective future which reflects common target and worth. The desire to create a collective future will be effective in destroying the consequences of the fourth industrial revolution because of the basics and global nature of revolution of technology’s effects on economies, people and different commercial and industrial sectors of countries worldwide. The extent and scope of the change created by the fourth industrial revolution considerably effects the speed, development and spread of innovation. Today the companies such as Uber and Alibaba which are in the limelight were not that popular until a few years ago. Smart phones and completely autonomous cars were only dreams in 2000s. Thanks to the technology revolution, activities such as calling a cab, buying a product, rendering payment, watching a movie or listening to music can be 3 3 Positive and Negative Effects of Innovations Brought by Industry 4.0 363 made remotely. Similarly, smart phone, internet and many applications like this enable us to be more productive by making our life easier. Despite these developments on behalf of consumers, negative results are observed in the production and business world. The automatization which came with digitalization helps us so that we make more money with less work. The reason for this is to get the marginal cost towards zero in digitalized companies. At the beginning of the 21st century, there was a substantial decrease in the rate of labor in the gross national product of developed countries. In the economy of developing countries, the introduction of innovations brought by the technological revolution will cause companies to move towards replacing the labor force with capital. This situation shows the importance of analyzing the positive or negative effects of the fourth industrial revolution on our lives as it will cause millions of workers to become unemployed. In order to help understand these impacts, Klaus Schwab, the President of the World Economic Forum in Davos Klosters, wrote a book, which lasted for 3 months, with a very broad participation, in order to serve as a catalyst for their discussions and partnerships at the 2016 annual meeting to deal with the fourth industrial revolution. The president thought that with his book, he can create means to exchange ideas on using 4th Industrial Revolution for everyone’s benefit in Annual New Champions Meeting in Tianjin, China by convincing the partners to reach a consensus on a regulation to lean onto and hence throw disciplinary light on research, technology and commercialization studies in June 2016. We have to go deeper into the relation and ties to understand the benefits of Industry 4.0 Technology Revolution. If the progress in the technology of sensors, AI and such had not been staged, cars, trucks, drones, planes, ships and other machines would and could not have reached their current status. Namely, when drones are used together with data processing techniques, they will enable the agricultural means to use fertilizers and irrigation with higher efficiency. Due to the development of new age sensors, robots are now used not only in restricted areas but also all agricultural aspects, nursing and rehabilitating humans, house care and many other areas. In the earlier phases, they had to be programmed by specialized people but nowadays we can get software and all other information via the cloud system and hence link to other robotics networks. This, naturally, gives alarm for Would the Benefits Created by Industry 4.0 Set the Consumers Free of Planned Obsolescence? 364 future ethical and psychological relations between humans and robots. This is an area full of risks. As a result of the progress covered in digital applications, internet platforms and technologies which bind humans and things provided us notable efficiencies. Life is made easier in contemporary times because smaller, cheaper and more intelligent sensors are used in houses, city life, clothes, accessories during manufacturing processes. Another example to Show the step digital evolution has reached is blockchain. Blockchain is a ledger used for and by cashiers which are programmable, cryptography safe and reliable technology and its most popular application is bitcoin concept which we call as digital money. Uber, Alibaba and Airbnb companies can be named as examples of digital evolution (Schwab, 2016). Uber, the biggest taxi company, does not have a single vehicle owned by it. The world’s biggest retail company Alibaba does not keep any level of inventory and again, the world’s biggest accommodation company Airbnb does not own any facility. The company named above get in contact with their customers via digital platforms and provide service. Innovations in genetic science present extraordinary progress. Human Genome Project, which was completed in 10 years with a budget of 2.7 billion dollars states the genome series of a human being in 1 hour for a price of 1.000 dollars (Wetterstrand, 2015). Since this Project may cause producing babies upon order in the future, it is bound to produce medical, ethical and psychological problems. Klaus Schwab provided strong financial support to the programs run by the countries which would enable new horizons and innovative technical applications and by doing this planned to incited both business and Academic environments. In addition to this, he also states that countries should take steps to direct and organize collaborations of state and private sectors to enable knowledge and human capital to be used for the benefits of human race. He advocates this argument by putting forward the inefficiency of Carnegie Mellon University research works and hence jeopardizing the contract they signed with the state and other companies after Uber Technologies transferred 40 researchers working for the university’s robotics laboratory (Ramsey & MacMillan, 2015). 3 Positive and Negative Effects of Innovations Brought by Industry 4.0 365 Companies and Overall Economy One of the essential elements of Technology Revolution is raising and improving talents and thus making the benefits of the companies for the better out of Industry 4.0 which are open to change and progress. The human factor to be employed for this purpose should believe and have the cultural bases for innovation, open to education and training, quick in reaching right decisions and invest in themselves fort the better. What happens to companies lacking this culture may be seen by glancing at S&P 500 list and see that average life-span of such companies decreased from 60 to 18 years (Knight, 2014). To prolong the life-span of companies; they have to make use of global digital platforms in the right way and improve marketing, research and development, sales and distribution abilities by throwing more attention to speed up these services, improve their product quality and prices. Companies which feel strong currently because of their end of the year figures are bound to realize that the advantages they have by then will not and cannot sustain their power for long. They will either accept and apply the innovations brought by technology revolution and follow the line or develop new business means in their adjacent marketing environment or seek for new business areas in other sectors. All these show that companies are forced to question and analyze their existing management procedures and naturally the managers themselves and seek for new business methods and models. This requires continuous innovation. Number one factor which brings selling means to a product is correct analysis of customer requirements. Data collection is of utmost importance for this. Information sharing gets more important every day and to acquire this, data sharing is more important than investing in real estates. Colossal amounts of data and hence information acquired by big data on personal tendencies, sectoral direction, life-styles and personal behaviors of the community create highly important sources for product development projects. Efforts to make best out of these data inevitably push decision makers to continuous personal improvement and get into self-critics and thus be wide open for new developments. Contribution of digital revolution to growth of the companies did not affect growth of global economy. Global economic growth of 5% 3.1 Would the Benefits Created by Industry 4.0 Set the Consumers Free of Planned Obsolescence? 366 till 2008, the year economic crisis commenced; decreased to 3.5% which is below the amount of post-war times. (Schwab, 2016) The striking aspect of global development is the stagnation of manufacturing. The dramatic result of this decrease was the moderation of manufacturing speed. Global productivity rate in labor and in total factors did not react positively to the progress made in technology and the exponential increase in innovation. The most important indications of long-term growth and higher life standards is productivity rate remained the same against the fact of progress made in technology and investments in innovations and there is still no satisfactory explanation to this contrast. In this context, should we agree with the techno pessimism which states that the end of the positive contributions of Industry 4.0 have long been past and hence their positive effect on productivity? Another factor which corroborates this point of view is what we see in unemployment rates. Debates on the effect of technology progress on employment had started during Industry 3.0. Economist John Maynard Keynes in 1931 pointed out “Due to our discovery of means of economizing the use of labor outrunning the pace at which we can find new uses for labor” (Keynes, 1931). This view point was not proved right at those times, but when we consider the infiltration depth, width and speed of Industry 4.0; plus the help provided by digital revolution, the risk of unemployment of cashiers, book-keepers and telephone operators has increasing supporters today. People opposing this view state that the rate of labor in USA Agriculture was 90% at the beginning of the century, but only 2% currently (Schwab, 2016) and that this decrease covered distance quite smoothly with minimum social deficiency and caused wide spread unemployment and that effects of Industry 4.0 would decrease in time and stabilize in the future like its predecessor. In addition to all of these; since technology revolution will increase the demand on new products and services, there will be new business areas and new employment demand for them which would decrease the negative effect it. The studies on the effects caused by technology revolution show that the distance covered has got negative effects on labor force. According to the report produced by USA Economic Growth Office; innovations on information technologies and productivity raised by Industry 4.0 technologies use existing labor force by modifying the character and employment areas instead of pro- 3 Positive and Negative Effects of Innovations Brought by Industry 4.0 367 ducing new products which would require more labor force. Economist Carl Benedict Frey and machine expert Michael Osborne realized a research in 2013 on 702 different lines of profession to being subject to automation showed that 47% of total employment in USA is under risk in the next 10 to 20-year time (Frey & Osborne, 2013). It also showed that employment will increase in high salary information jobs and innovative products and also in low-salary manual tasks but will decrease in great scale in medium salary jobs of routine, monotone and repeating processes. Managers and Employees Industry 4.0 brings considerable changes in relations between the managers and employees. Employees can obtain knowledge because of means provided by digital revolution and increase their communication abilities while the managers, especially state bureaucrats must be cautious in using their authority. The reason for his is that people can come together easier due to digital revolution and can put up non-governmental organizations (NGO) and by these institutions can affect the political power in great scale. Level of power reached by the employees to affect the decisions is considerably higher than before and consequently the decision makers should accept that the managing power does not flourish from the state only but also from non-governmental players and thus should build their new managing system on transparency and accountability basis. Moises Naím (2013) said “In 21st Century, achieving power is easier than using it and it is quite easy to lose”. We can deduce out of this citation that micro-power sources can restrict power of macro-power sources by the means provided by the digital revolution and the people in power may lose their potential easily. While decision makers try to adapt themselves to the new and high-speed changing medium; the employees should create political instruments in order to contribute to the decision which are bound to effect themselves. Employees have been struggling to restrict the managing power on them since Magna Carta, 1215; and the fruits of this struggle will reach its summit by this way. The techno-optimist view is summarized in here but techno-pessimists put forward that the man- 3.2 Would the Benefits Created by Industry 4.0 Set the Consumers Free of Planned Obsolescence? 368 aging class may increase their auditing and controlling power on the working class by the potential provided to them through digital revolution. Countries, Regions, Cities and Transnational Relations The unlimited effects of the digital revolution require re-adaptation of cities, regions, countries and transnational relations. It is understood that USA and Western Europe will assume the locomotive power in this adaptation process, just like they did in the other industrial revolutions. However, this time also China, Russia, India and Japan will make significant contributions. The fact that whether the innovations came along with the Industry 4.0 will create further and more efficient collaboration within or among the countries shall be determinant for societies of having a better future. For this reason, countries and regions that can achieve to provide common norms in economy’s efficient sectors such as 5G communication, IoT or digital health shall be able to increase their welfare levels the through the economic and financial benefits they will gain. On the other hand, countries creating their own norms, blocking the foreign competitions and limiting the foreign technology transfers in order to provide benefits for their own local producers shall fall behind with regards to increasing their social welfare due to the risk of being unable to utilize properly the benefits brought by the digital economy. In summary, the companies from countries which internalize the technological revolution by carrying out regulations facilitating innovations are becoming a center of attraction vis-a-vis the best talents in other countries. Thus, they will accomplish an increase in competitive power, just like as in the creativity factor, by easily incorporating them into their own companies. Considering the fact that the companies in question are not from economically strong countries, it is easily understood that they will take control of even a bigger portion of the world’s and venture capital. The more effects of the digital revolution on the global economy increase, the more the significance of presence of a reliable internet infrastructure increases in terms of economic development. Reliable internet is important for countries not only for their domestic transactions but also the 3.3 3 Positive and Negative Effects of Innovations Brought by Industry 4.0 369 transnational transactions. Just like it got easier to access data through internet, big data provided enormous increase in the storage capacities. In this case, ensuring security of the personal data and company’s internal information is essential. Such a security can be accomplished by countries through gathering together and creating data rights and data protection norms. Furthermore, countries had to add a new unit called the command of cyber security into their armed forces in order to ensure the security because the countries now are using also cyberattacks to harm their enemies in addition to the classical ground and naval attacks or the air strikes. These cyberattacks sometimes target the public institutions or private companies, as well as the security units. However, ironically, these cyberattacks created a new employment area. Creation of cyber security units by the companies, just like the countries, for their own security is another line of work brought by this fourth industrial revolution. The importance of cities has significantly increased in 20th century since the population density has escalated with the industrialization. Today, more than half of the world populations is living in the cities. The accessing opportunities within the cities to the information and communication technologies which are most important bases for the fourth industrial revolution affecting the competitive power shall definitely have an impact on development of the countries and regions. Therefore, as the methods and infrastructure required for creation, collection, transfer and usage of data are developed further, a number of additional skills, such as tracking epidemics, finding efficient solutions for natural disasters, easy access by the poor to the financial opportunities and public services, and understanding immigration patterns of the sensitive populations, which will contribute to development of cities will be gained (World Economic Forum, 2015). Thus cities that became center of attraction shall make great contributions to the welfare levels of the relevant countries and regions. The biggest threat for the cities which cannot keep up with the innovations brought by the technological revolution shall be the negative effect that will be created by being helpless in the face of enormous competitive power advantage created by innovation power of the competitive power they have in terms of labor and intense production of goods and services. This may cause a serious destruction especially for developing countries and regions. Would the Benefits Created by Industry 4.0 Set the Consumers Free of Planned Obsolescence? 370 Individual and the Society According to sociologist Manuel Castells, professor of communication and society: In all moments of major technological change, people, companies, and institutions feel the depth of the change, but they are often overwhelmed by it, out of sheer ignorance of its effects (Castells, 2014). This opinion reveals the problem of harmonization between the conventional values and values brought by the modernity. If such a harmonization is not ensured, then the tension especially between societies under deep influence of religious beliefs and values and the societies focusing more on the secular values will escalate more. Today, the main reason for the radical groups becoming so strong on a global scale is the increase of this tension. Today, starting a business in the digital economy with a less capital became possible since the robots and algorithms, which are among the innovations brought by the technological revolution, substantially replaced human beings in the production process. When the digital economy highlights efficiency of the most skilled people who are few in numbers, this will prevent the lowskilled people from benefiting from industry 4.0’s advantages and increase the inequality at the same time. The researches made show that more than half of the world’s wealth is being controlled today the richest 1% of the global population, while the other half of the global population altogether possess less than 1% of the global wealth (Credit Suisse, 2015); and the average income of the richest 10% of the population in OECD countries is approximately 9 times of the income of the poorest 10% (OECD, 2011). These facts are very important as they show us the level of inequality in the world. The study made among the OECD countries reveals that the technology is blocking income of the majority of the population also in the high-income countries, therefore such inequality is seen also in these high income countries. The high availability, low costs and geographically neutral aspects of digital media also enable greater interaction across social media, economic, cultural, political, religious and ideological boundaries (Schwab, 2016). This finding shall enable the digitalization users, especially those socially and physically isolated people, to communicate with people thinking in a similar way with them without time and distance limitations. This way, it will also provide an opportunity to contribute to the 3.4 3 Positive and Negative Effects of Innovations Brought by Industry 4.0 371 creation of the democratic society by giving these societies formed to have an impact on the decision taking processes. The power of the digital media is also open vulnerable against and open to the malicious use by the non-state actors, especially the terror organizations. The highly efficient use of social media by ISIS to recruit soldiers into its organization is the most dramatic example of this evil-minded use. Furthermore, creation of monitoring and surveillance tools by the governments in many countries through using their economic power, which includes putting in place laws that are aiming to suppress and limit actions and freedoms of individuals groups and non-governmental organizations by means of gathering various technologies together shows us that they are trying to eliminate the democratic power of the digital media. The most superior level that the democratic systems could reach until now is the parliamentary system which applies representative democracy. Digital revolution can make great contribution to the direct democracy which used to be applied in the City-States of the Ancient Greece. However, the fact that in the Ancient Greece only the aristocrats had the right to participate in the decision-making process while the slaves were deprived of such right cause the system to be defined as semi-direct democracy. Whereas today, it can be possible to take decisions by enabling citizens to participate in referendums through digital channels and use their direct votes instead of resorting to the representation system. The fact that the election results in USA are declared within a very short period of time, which is only 30 minutes, is providing humanity an opportunity that is very hard to imagine for carrying out the direct democracy. The various innovations brought by the industry 4.0, such as biotechnology and AI, has significant changes also on our identities as individuals which are forming our thoughts and habits like our right to privacy and development of consumption, working and relaxation patterns or our skills and abilities. Incredible discoveries such as extending lifetimes, designed babies, deletion of memories from the brain can create positive but also negative effects at the same time. Stephan Hawking and his scientist friends, Stuart Russell, Max Tegmark and Frank Wilczek (2014), state that the short-term effect of AI will depend on who is controlling it while the long-term effect of the AI will depend on whether it is controllable or not; this statement is very im- Would the Benefits Created by Industry 4.0 Set the Consumers Free of Planned Obsolescence? 372 portant for indicating the danger we are facing. Another interesting research conducted by MIT’s Sherry Turkle shows us the dangers we are facing in terms of human relations. According to this study, 44% of the teenagers remain constantly online while doing sports and when in company with their friends or family. This factor designates that, due to the elimination of face-to-face interaction, these teenagers consumed by the social media will face great hardships in future while listening to each other, making eye contact and reading body language. Overview of Planned Obsolescence Definition and History of Planned Obsolescence In industrial design and economics planning or designing a product with an artificially limited useful life, so that it will become obsolete (out of date or no longer functional) after a certain period of time is a policy named planned obsolescence (Bulow, 1986). Some other symbolic definitions of planned obsolescence: According to Stewart (1959), planned obsolescence indicates the practice of holding back product improvements from the market until sales of existing models decline, then employing just enough improvements in new models to induce consumers to turn in their old models. It also suggests a heavy reliance on superficial product changes, styling, or prestige selling appeals to induce consumers to buy a new model before the old model is worn out. It is the execution of a policy of producing products with an unnecessarily short functional life so as to require premature replacement (Kuppelwieser et al., 2018). Packard (1960), elaborated planned obsolescence as obsolescence of function, obsolescence of quality, and obsolescence of desirability in his book of “The Waste Makers”. According to White (1969), planned obsolescence is the creation in people's minds of the belief that the economic usefulness of a product has declined well before any actual physical decline (Kuppelwieser et al., 2018). The production of goods which are less durable than would arise out of production by perfectly competitive industries (Swan, 1972). Many products are designed to have uneco- 4 4.1 4 Overview of Planned Obsolescence 373 nomically short lives, with the intention of forcing consumers to repurchase too frequently (Fishman et al., 1993). The behavior of a firm that underinvests in durability from a social-welfare standpoint (Waldman, 1996). Monopolist’s choice for an inefficiently short life for first-period products (Utaka, 2000). Brooks Stevens (1954), who coined the phrase planned obsolescence, defined planned obsolescence as instilling in the buyer the desire to own something a little newer, a little better, a little sooner than is necessary (Adamson & Stevens, 2003). Obsolescence occurs when products become “out of use” or “out of date” (Cooper, 2004). Planned obsolescence represents continuous product development promotes shorter durables replacement and disposal cycles with troublesome environmental consequences (Guiltinan, 2008). Strausz (2009) proposed planned obsolescence as an incentive device that benefits consumers. The strategy of shortening a product’s lifespan is called planned obsolescence (Rivera & Lallmahomed, 2016). Perceived obsolescence is where the users or customers of a product are persuaded to replace a functional product and/or its component because it is seen to be no longer fashionable or suitable (Amankwah-Amoah, 2017). Profit maximization by shortening the replacement cycle is the motive for planned obsolescence (Bidgoli, 2010). The additional sales revenue provided by planned obsolescence creates more than counterbalances the additional costs of research and development, and counterbalances the opportunity costs of reusing an existing product line, considered by producers following this strategy. However, this is a risky policy for competitive industries since consumers may decide to buy from competitors instead when they realized this strategy. In spite of this, some companies persist with keeping up with this policy. The first documented case of planned obsolescence is the light bulb. In 1920s lifespan of a light bulbs was 2500 h (Rivera & Lallmahomed, 2016). While technology made it possible to produce more durable light bulbs, Phoebus cartel (1924–1939) formed by companies such as Osram, Phillips, General Electric, and others to control light bulbs market by limiting the lifespan of light bulbs to 1000 h (Kessler & Brendel, 2016). In 1920s, thanks to Henry Ford automobile market reached saturation. Head of General Motors Alfred P. Sloan Jr. saw an opportunity in this inertia and suggested annual model-year design changes to convince the car owners to buy a new car each year, and Would the Benefits Created by Industry 4.0 Set the Consumers Free of Planned Obsolescence? 374 named the strategy as dynamic obsolescence (Grattan, 2016). During the Great Depression, planned obsolescence was presented among the scenarios of resolving crisis. As a result, companies put artificial expiry dates on products in order to encourage consumers to buy more or renew their products (Kuppelwieser et al., 2018). In a paper named Ending the Depression Through Planned Obsolescence (London, 1932) “Furniture and clothing and other commodities should have a span of life, just as humans have,” is written. “They should be retired, and replaced by fresh merchandise. It should be the duty of the State as the regulator of business to see that the system functions smoothly.” During the 1950s to the 1960s, nylon stockings for women had a big success since they were sturdy and resistant (Rivera & Lallmahomed, 2016). Based on the fact that they were long lasting, nylon stockings were modified to tear more easily so that they had to be replaced. Even today nylon stockings do not last more than three or four uses. Seed industry is affected by planned obsolescence of plant breeding. Since plant varieties are easy to reproduce and multiply, and genetic characteristics are heritable, enabling a seed to replicate itself, producers of genetic information face a problem in inducing farmers into regular replacement purchases (Rangnekar, 2002). As a result, the durability of varieties reduced to force farmers buy seeds for every season. Types of Planned Obsolescence In order to obsolete products in a planned way, there are couple of techniques developed by manufacturers and marketers. According to Packard’s definition of planned obsolescence, there are three main ways that products can be made obsolescent. They are obsolescence of function, obsolescence of quality and obsolescence of desirability. However, the process of obsolescence is not limited to these methods. Social, cultural, technological and political factors (such as technology innovation; variation in customer demands; change in existing legislation; social pressures; advancement of knowledge; inflation of currency; civil unrest or conflict of interests; etc.) can also drive obsolescence (Butt et al., 2015). 4.2 4 Overview of Planned Obsolescence 375 Obsolescence of Function An existing product becomes outmoded when a product is introduced that performs the function better (Packard, 1960). Obsolescence of functions is a strategy of shortening the product lifetime before it is released to the market, by manufacturing a product less durable than could have been manufactured or manufacturing a product with a specific technology rather than with another rapidly available technology that would have made the product more durable (Orbach, 2004). Fragile batteries and the ability to easily get damaged are the results of the short life span of smart phones and some other electronic devices. Before 1990s, most households were filled with bulky, heavy tube televisions, entertainment centers, as a result, were constructed to accommodate their weight and size (Kenton, 2018). Today, most households are filled with sleek, lightweight flat-screen televisions, rendering the old entertainment centers functionally obsolete (Kenton, 2018). Obsolescence of Quality When it is planned, a product breaks down or wears out at a given time, usually not too distant (Packard, 1960). The light bulb is a good example of this type. The famous Centennial Bulb is still burning in its 117th year of illumination. In addition, this light bulb is being watched with a security camera and several cameras have been obsolete during the time it burned. Manufacturers sometimes make replacement parts either unavailable or so expensive that it makes the product uneconomic to repair. By making replacement parts unavailable or so expensive that repairing the product becomes uneconomic, manufacturers force customers to buy a new device. Sealed batteries, for example, make for a thinner product than one that can be upgraded or fixed, while tamper-proof screws can be safer (Khaleeli, 2015). Obsolescence of Desirability In this situation a product that is still sounds in terms of quality or performance becomes worn out in our minds because a styling or other change makes it seem less desirable (Packard, 1960). The General Motors example is well suited for this type of obsolescence. Once the pub- 4.2.1 4.2.2 4.2.3 Would the Benefits Created by Industry 4.0 Set the Consumers Free of Planned Obsolescence? 376 lic is persuaded that the style is important element, obsolescence in the mind simply become created by shifting to another style. Thus, this type of obsolescence is also called psychological obsolescence. Industries as fast as fashion are ideal for leading the way in planned obsolescence of desirability. Smart phones can be counted as the product of that kind of industries. For example, Samsung and Apple respectively launch the new versions of their mobile phones every year in the spring and late summer. Conclusions Will the capitalists give up the planned obsolescence – which is being applied today by the companies with a collective agreement despite the fact that it was not enacted by the government, and which aims to make more profit by targeting to shorten the life cycles of the goods – against the innovations brought by Industry 4.0? The digital revolution has made significant contributions to companies in collecting and analyzing data so that they can develop more customized products. At the production stage, technologies such as 3D printers, robots and AI, which have been used by Industry 4.0, have brought the production phase to a new level. This situation caused the decrease in production costs and quality, and also caused a decrease in the sales prices of the products. For instance, in the light of the information above, let us look at the situation of a product at the market whose price went down with Industry 4.0. Does the fact that the production has been accelerated and therefore the price of the product has been decreased, and that the product may be found in greater amounts and cheaper than the demand of the people, will this increase the profit expected by the producer? Naturally, the producer's expectation of a profit increase is not realized in market economy conditions. Because, the producer, who sell products with planned obsolescence, can sell more product with for less money under the favor of the benefits came with brought by Industry 4.0; would make a gain in the short term. Even though it had helped to make a gain in the short term, the producer would lose money in the long term. As it is explained above, economic growth has lost 5 5 Conclusions 377 its positive effect on productivity after a certain period of time. This negative effect occurred even in a situation where the capitalists did not give up the planned obsolescence. As technology pessimists stated; it is a complete dream to wait for the capitalists to abandon the planned obsolescence by themselves, as it will increase inequality between countries as well as between people. In such a case, the prevention of planned obsolescence remains to be regulated by the authorities. In a world ruled by capitalism, when the effects of the capitalist class on government are considered, such an event does is not seem possible. Considering the American writer Edward Abbey’s words “Growth for the sake of growth is the ideology of the cancer cell.”, the idea that the technological innovations introduced by Industry 4.0 bring prosperity to a small minority, not to the whole” of humanity gains importance. 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Key Terms Autonomous Robots Big Data Analytics Simulation System Integration Cybersecurity Industrial Internet of Things (IIoT) The Cloud Additive Manufacturing Augmented Reality Innovation Planned Obsolescence Industry 4.0 Key Terms 383 Questions for Further Study Which business segments in a company can undergone the most and the least transformation as part of Industry 4.0? How can supply chain management benefit from Digital Twin? What measures can be taken against firms and manufacturers which are found to be engaged with planned obsolescence? What are the future impacts of Industry 4.0 on logistics management? Exercises Please describe the benefits of each pillar of Industry 4.0 and their effects on profitability. Please compare and contrast the types of planned obsolescence and identify their effects on economy. Which segment of society can benefit from innovations introduced by Industry 4.0? Why?. Further Reading Hofmann, E. and Rüsch, M. (2017). 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Abstract

Organizations have always been dependent on communication, information, technology and their management. The development of information technology has sped up the importance of management information systems, which is an emerging discipline combining various aspects of informatics, information technology, and business management. Understanding the impact of information on today’s organizations requires technological and managerial views, which are both offered by management information systems.

Business management is not only about generating greater returns and using new technologies for developing businesses to reach future goals. Business management also means generating better revenue performance if plans are diligently followed.

It is part of business management to have an ear to the ground of global economic trends, changing environmental conditions and preferences, as well as the behavior of value chain partners. While, until now, business management and management information systems are mostly treated as independent fields, this publication takes an interest in the cooperation of the two. Its contributions focus on both research areas and practical approaches, in turn showing novelties in the area of enterprise and business management.

Main topics covered in this book are technology management, software engineering, knowledge management, innovation management and social media management.

This book adopts an international view, combines theory and practice, and is authored for researchers, lecturers, students as well as consultants and practitioners.