Fourth Industrial Revolution: Tomorrow is Gone!

1. Fourth Industrial Revolution: Tomorrow is Gone! Professor George Ioannou, Athens U of Economics & Business Director, Management Science Laboratory

2. Industrial Revolutions

3. Industry 4.0 is a name for the current trend of automation and data exchange in manufacturing technologies • It includes cyber-physical systems, the Internet of Things, cloud computing and cognitive computing • Industry 4.0 is commonly referred to as the fourth industrial revolution (4IR) • Industry 4.0 creates what has been called a "smart factory" • Within the modular structured smart factories, cyber-physical systems monitor physical processes, create a virtual copy of the physical world and make decentralized decisions • Over the Internet of Things, cyber-physical systems communicate and cooperate with each other and with humans in real time, and via cloud computing, both internal and cross-organizational services are offered and used by participants of the value chain Industry 4.0 & 4IR Definitions

4. Value Drivers and Practical Levers (Source: McKinsey & Company)

5. Enabling Technologies (Source: BCG)

6. One of the biggest worldwide survey about Industry 4.0 by PWC • Over 2,000 participants • 9 major industrial sectors • 26 countries Global Trends & Perspectives (Source: PWC Global Industry 4.0 Survey)

7. Annual digital investments: $907 billion • Cost and efficiency gains: $421 billion per year • Industrial companies expect 3.6% p.a. in cost reductions over the next five years, driven by internal improvements and by working more closely across value chains • Also 2.9% p.a. in increased revenues by digitizing products and services, developing new digital offerings • Digital revenue gains: $493 billion per year • 55% of the investments expect a payback within two years • 72% of the respondents anticipates high level of digitization on 2020 (33% on 2015) Global Trends & Perspectives – The Findings

8. Facilitation of fundamental improvements in industrial processes involved in manufacturing, engineering, material purchasing/usage, supply chain and life cycle management, predictive maintenance and real-time management • Smart factories employ a novel approach to production • Smart products are uniquely identifiable, can be located at all times, know their own history, current status and alternative routes to achieving their target state • Embedded manufacturing systems are vertically networked with business processes within factories and enterprises and horizontally connected to dispersed value networks that can be managed in real time from the moment an order is placed right through to outbound logistics • Both products and systems enable and require end-to-end engineering across the entire value chain Expected Benefits

9. Enhanced Productivity • Potential to connect billions of resources to digital networks, dramatically improving the efficiency of organizations and even manage assets in ways that can help regenerate the natural environment, potentially undoing the damage of previous industrial revolutions (Professor Klaus Schwab, Founder and Executive Chairman of the World Economic Forum) • Higher Flexibility • Strong customization of products under the conditions of highly flexible (mass-) production • Absolute Quality • Machines can predict failures and trigger maintenance processes autonomously • Unprecedented Speed • Self-organized logistics can react to unexpected changes in production Expected Benefits

10. The Industry 4.0 market is projected to reach $214B by 2023 (source: Homeland Security Research, Washington DC, 2018) • Implementation of Industry 4.0 will result in 150 million job losses by 2022 (source: Jim Yong Kim, President of World Bank, 2018) • 800 million workers will be replaced by machines by 2030, i.e. 20% of today's global workforce (source: Daily Mail, 2017) • 38% of US jobs will lost to robots by 2030 (source: Daily Mail, 2017) Forecasts: Economic and Employment Figures

11. Forecasts: What about Jobs?

12. Economy Outlook

13. System Initiative Shaping the Future of Digital Economy and Society

14. Readiness for the Future of Production, 2018 • Developed in collaboration with A.T. Kearney • Analyses and presents the results of the Readiness for the Future of Production Assessment • Measures how well positioned 100 countries and economies -across all geographies and stages of development - are to shape and benefit from the changing nature of production through the adoption of emerging technology • Serves as a new benchmarking and diagnostic tool to catalyze multi-stakeholder dialogue, shape joint actions and inform the development of modern industrial strategies World Economic Forum Survey

15. World Economic Forum Survey

16. Where does Greece Stand?

17. Where does Greece Stand?

18. Where does Greece Stand (Source: World Economic Forum)?

19. The earliest themes of artificial intelligence, robots, and self-moving objects appear in the work of ancient Greek poets Hesiod and Homer (between 750 and 650 BCE) • The story of Talos, which Hesiod first mentioned around 700 BCE, offers one of the earliest conceptions of a robot • The myth describes Talos as a giant bronze man that Hephaestus, the Greek god of invention and blacksmithing, built • Zeus commissioned Talos to protect the island of Crete from invaders, marching around the island three times every day and hurling boulders at approaching enemy ships • Talos had a tube running from his head to one of his feet that carried a life source of the gods called ichor. • The Argonauts (third century BCE) reached Crete and Medea defeated Talos by removing the bolt at his ankle, letting ichor flow out • The earliest forecasting computer was the Antikythera mechanism is an ancient Greek analogue device used to predict astronomical positions and eclipses for calendar and astrological purposes decades in advance. • The mechanism could also be used to track the four-year cycle of athletic games which was similar to an Olympiad, the cycle of the ancient Olympic Games Robots in Ancient Greece