This chapter aims to describe a research work in a real context, focusing on small industries and why they must become more digital, in order to create new and innovative business models and remain competitive in a post-COVID-19 scenario. It also aims to present the challenges small industries will face as a result of the digital revolution ahead, why they should reinvent their business models to be more prepared in the future, and why they should use the pandemic scenario as a lever to make this change faster and more agile. A qualitative methodology is used based on document analysis of use-case information collected from KFactory, a technological consulting startup that works with small industries and helps them identify opportunities and benefits in adopting Industry 4.0. The authors hope that the KFactory case study can contribute to a better understanding of how industries can benefit from technology to improve their production methods, adapt to a post-pandemic scenario, and engage in the new digital revolution.
TopManufacturing History
Producing various objects is old as mankind. Basically, every product realized by individuals or groups can be assimilated with a basic manufacturing process. During times, humans managed to manufacture objects for their own usage or for commercial purposes, into small workshops and using basic tools.
A first major shift came during the First Industrial Revolution (Industry 1.0) in the 18th century where, instead of items being produced by basic means, processes were invented and allowed items to be produced by machines. This began in England in mid-18th century, then finally reached the United States by the end of the 18th century. The First Industrial Revolution marked a shift from an agrarian and handicraft economy to one dominated by machinery and significantly impacted industries like mining, textiles, glass and agriculture (Schwab, 2016), mainly by combining cheap and abundant energy with equally cheap and abundant raw materials (Harari, 2011).
The dramatic reduction of material cost and production time impacted several industries including the textile industry. Prior to this period, textiles were mainly made in people’s homes and merchants would provide the basic equipment and materials needed. This meant workers would make their own schedules, which made it difficult to regulate. Inventions as the steam engine, the spinning wheel, and the water wheel changed the face of manufacturing and set its path to an innovation that is present in our days.
Because the demand was greater than the supply, one major downside of those times it was the pressure on the lower working class. Until 1833, almost no standards existed for workers, which meant long hours and dangerous working conditions, especially for children. This led to the 1833 Factory Act, which placed restrictions on the working hours of children and set standards to protect workers (UK Parliament, 2021).