Author: Klaus Schwab
_Klaus Schwab_
Reading time: 18 minutes
Synopsis
The Fourth Industrial Revolution (2016) talks about the big changes happening in our world. New technologies like machine learning, 3D printing, and gene technology are already changing the world. These changes are much bigger than any before. Many areas are coming together, from biology to IT and material science. This is changing how we live and work forever. It is time to look closer at this revolution.
What’s in it for you: Understand today where the world is going.
When we hear “Industrial Revolution,” many of us think of steam trains, smoking factories, and noisy production lines. But that time was only the start of many big changes. These changes changed the world forever. Today, we are already in the middle of the fourth industrial revolution in history. And everything shows that it will change our lives faster, stronger, and deeper than all the changes before it.
Self-driving cars, 3D printing, machine learning, new materials, and amazing gene research… until now, these technologies grew separately. But thanks to digital technology, all these areas are now joining together. They help and speed up each other. This creates new connections that are changing all parts of life very quickly. This includes business, work, politics, and how we interact with each other. It is time to look closer at what is at stake.
Blink 1 – The big revolutions in human history
About 10,000 years ago, people took a step that changed everything. Our ancestors stopped moving around and started farming and raising animals. This change from hunting and gathering to settled farming is the first big revolution in modern human history. It is called the Neolithic Revolution.
Since then, there have been several big technology changes like it. Historians talk about three main industrial revolutions. The first happened roughly between 1760 and 1840. It was driven mainly by steam engines, mechanical factories, and the building of railways. This was the first time that machines widely replaced human muscle power. Factories grew, cities got bigger, and making things became faster and better.
The second industrial revolution began around the end of the 19th century. It continued well into the first half of the 20th century. It brought new ways of factory work, like assembly lines, electricity, and making many standard products. From then on, products could be made quickly and cheaply in very large numbers.
The third industrial revolution started in the second half of the 20th century. It is often called the digital revolution. Computer chips, computers, and later the internet changed how people live and work in just a few decades. Suddenly, information could be processed, stored, and sent around the world in seconds.
And now, in the first half of the 21st century, we are already in the middle of the fourth industrial revolution. It is mainly driven by fast and always-on mobile internet. Also, microchips are getting smaller and faster. Machine learning and AI are growing. At the same time, new technologies are appearing in areas like materials science, energy, nanotechnology, and biology.
The main difference from past changes is that many areas are now connected. For the first time, all new technologies are mixing together. The digital world, physical places, and biological things are all coming together in one global system. In the next section, we will look at how this new time works and what makes it different from past times.
Blink 2 – What makes the Fourth Industrial Revolution so special
So, the fourth industrial revolution has already begun. It is different from all past changes in three main ways. It is faster, covers more areas, and has bigger effects than all earlier industrial revolutions.
First, it is incredibly fast. Never before has technology moved so quickly. This is mainly because the world today is much more connected. Different technologies work together. They help and speed up each other. Their progress is not straight, like before, but grows very quickly. The best example is the smartphone. It has been less than 20 years since Apple launched the first iPhone in 2007. But by 2015, about two billion people worldwide owned a smartphone. And in these few years, the devices have become much more powerful and advanced.
The second special thing is how much these changes affect everything. Digital technology and automation allow companies to create the same value with far fewer workers. A good example is comparing Detroit, a former car city, with Silicon Valley. In 1990, the three biggest companies in Detroit made 250 billion dollars in sales with 1.2 million employees. In 2014, the three leading tech companies in Silicon Valley made almost the same amount, 247 billion dollars. But they needed only 137,000 employees. That is about one tenth of the workers.
But the biggest difference from past revolutions is how much it affects. Modern production is very connected. This means the current industrial revolution touches more parts of life than ever before. It goes far beyond just making technology digital. Materials science, 3D printing, nanotechnology, energy research, synthetic biology, and computer design are all joining together. They create a space for new ideas where possibilities appear that were once hard to imagine. For example, making artificial organs designed specially for individual patients.
The fourth industrial revolution is not just the next step in technology. It is changing how we live and work in a basic and deep way. And it is doing so faster, more widely, and more lastingly than ever before.
Blink 3 – New possibilities in the physical world
So far, so clear. The fourth industrial revolution is very different from all past big changes. It is time to look closer at what drives it the most.
The main drivers are the ever-increasing power of modern computers and widespread digital technology. Added to this are various physical trends. These include self-driving vehicles, 3D printing, advanced robots, and new materials.
The trend of self-driving affects not only cars but also trucks, ships, and even airplanes. This new way of moving around is only possible thanks to new technologies. These include artificial intelligence and very precise sensors. Both are key forces of the fourth industrial revolution. They are used in almost all technical areas. For example, modern sensors help drones fly more accurately and reliably. This then allows them to be used for completely new tasks. For instance, delivering medicines to crisis areas or helping farmers find out exactly how much water and food their fields need.
The second big trend is 3D printing, also called additive manufacturing. This comes from computer improvements in digital drawing programs and virtual modeling. Already today, complex parts are made by 3D printers in many industries. These range from tiny medical implants to huge blades for wind turbines.
The third trend, advanced robots, is also used in more and more areas. This includes factory work, farming, and caregiving. Modern robots no longer need to be programmed for each step. They get data from the cloud, adapt to their surroundings, and increasingly work together with people.
Last but not least, new and better materials are also driving the current revolution. These new building and working materials are lighter, stronger, more flexible, and easier to recycle. Some can even clean or repair themselves. A good example is the nanomaterial graphene. It is 200 times stronger than steel. And it is a million times thinner than a human hair. It is also very good at conducting heat and electricity.
But the fourth industrial revolution is not just about machines and materials. Some of its biggest effects are much harder to see.
Blink 4 – The digital and biological world
You have probably heard of the Internet of Things, or IoT. The “Internet of Things” means connecting physical and digital things. Physical devices – from smartphones to home appliances and even entire factories – are linked to each other and to people who use them. This is made possible by very modern sensors and transmitters. They collect and send data in real time.
A common example is shipping. Today, packages often have sensors or radio-frequency identification technology. This means their location can be tracked all the time. Business models like Uber or Airbnb work in a similar way. Here, physical things like cars, rooms, or homes are connected on digital platforms with people who want to use them. So, the Internet of Things is a perfect example of digital and physical worlds coming together.
But the fourth industrial revolution even reaches deep into biology. Especially in gene technology, big advances are happening now. These were impossible just a few decades ago. To compare: The international Human Genome Project took 13 years and billions of dollars to unlock the human genetic code. Today, a full genetic code can be read in a few hours for less than a thousand euros. Here too, the key is the fast growth of computer power. With digital models, researchers can test and see changes in genes. They do not need difficult lab tests for this.
In fact, the old idea of “precision medicine” is getting closer. Doctors and researchers might soon be able to fully understand the genetic make-up of a tumor. Then, they could create very specific treatments. These treatments would be made exactly for that single genetic change.
And that is not all. Gene technology might soon allow us to “design” plants, animals, or even human embryos with specific features. What used to be science fiction is becoming more possible. Of course, this raises huge questions about right and wrong and how to control it. But the technology is either here or will be soon.
Blink 5 – Automation also brings new chances
So, the fourth industrial revolution is already changing the economy. But what exactly is happening? What changes do we need to prepare for?
The first big effect is huge economic growth. Automation, digital technology, and all the new technologies described are raising productivity worldwide to a new level. Many experts think the world economy is still struggling from the 2008 financial crisis. But Klaus Schwab believes we are already in the middle of a technology boom. This boom will slowly lead to real economic growth.
A good sign of this is the energy sector. Digital control systems, powerful storage technologies, and cheaper sensors make it more and more profitable to invest in green energy. And the more profitable these technologies become, the less green companies rely on government help. This makes them more competitive, boosts the whole economy, and helps reduce the effects of climate change.
Of course, all this technology progress also has downsides. Especially in the job market, we can see destructive effects. Many tasks that people used to do are now done by machines. Jobs like telephone operator or bookkeeper are already disappearing. And more jobs will follow. Assistants and specialists in law and tax offices, or real estate agents, might also face big changes soon.
But this is only one side of the story. The same technology boom that makes some jobs unnecessary also creates completely new opportunities. History shows that automation also causes what are called capitalization effects. More productivity leads to more wealth. This then creates new industries, business models, and jobs.
It would be too simple to say that technology change is a fight between humans and machines. We humans are very good at adapting. So we should not be afraid of all these changes. Instead, we must use our energy to help those affected by automation. We can do this through further training, retraining, and helping them start new careers. And we must learn to use technology in a way that truly makes our lives easier.
Blink 6 – How all this affects politics
Ideally, you now have a better understanding of the fourth industrial revolution. It is time to put this change into a bigger political picture. Because technology change does not only change companies and job markets. It also affects how governments work.
New technologies often strongly change old, central power structures. Freedom of speech is the best example. Thanks to digital technology, private people and companies can now publish their opinions with a few taps. They can share them on global platforms in seconds. They can connect and organize their protest against political problems. This has real effects in the physical world. The example of WikiLeaks shows that even small groups can challenge entire countries.
On the other hand, governments can also use new technologies to limit the growing influence of people. For example, through advanced surveillance systems or by looking at lots of personal data. No matter this power struggle, government bodies must change and find new ways to communicate. In the past, authorities could quietly check new rules, change them, and then make them law in all industries. But today, new technologies sometimes appear in just a few months. And digital media judges how well politicians are doing their job in real time.
Governments must work more closely with citizens and private companies. E-governance, which means digital public services and participation, is just one example of how governments can become faster and closer to the people.
It is clear: The fourth industrial revolution forces political systems to act faster, work together more, and be more innovative. The future of government bodies will look very different from their past.
Conclusion
That was our Blink on The Fourth Industrial Revolution by Klaus Schwab. We heard that…
…we are already in the middle of the fourth big industrial revolution in history. It is very different from the three before it. It moves incredibly fast, has global effects, and deeply impacts almost all parts of life. Digital, physical, and biological technologies are joining together. This creates a wave of innovation that is changing business, work, political processes, and even how we see ourselves as humans. This deep change brings new chances and challenges. What this means for our future depends on how actively and responsibly we help shape these changes.
Source: https://www.blinkist.com/https://www.blinkist.com/de/books/die-vierte-industrielle-revolution-de