Four Phases Of Industry Revolution: Industry 4.0
There are four phases of the industrial revolution namely 1.0, 2.0, 3.0 and 4.0. 1.0 is the very first phase in which the mechanical production of machines powered by water and streams were first introduced. The process of first phase started in the end of 18th century. Mass productions of line powered by electric energy were introduced in the beginning of 20th century which is 2.0. The beginning of 70th century was third phase of the industrial revolution which is 3.0. This brought forth the rise of electronics, telecommunications and of course computers. This was helpful to achieve further automation of manufacturing. Currently, we are undergoing the fourth phase of revolution which is based on cyber-physical systems. The fourth phase is also known as industry 4.0.
Industry 4.0 consists of six elements. Firstly, Robotic process automation (RPA) is the use of software with artificial intelligence and machine learning. It has the ability to handle high volume repeatable tasks by human beings. RPA is becoming a primary focus in the accounting world. RPA eliminated and started taking care of the repeatable routine done by accountants. Secondly, blockchain technologies. This can be defined as distributor ledger technology. In the conventional method, only accountants have access to centralized information. Therefore, accountants need to give information to the stakeholders who need it. However, in blockchain technology, information such as cost and stock would be saved in a shared ledger. It is accessible for all parties. Stakeholders have access only to the portion of the ledger that contains records. For sure, there would be public and private key authentic users in order to have secure information. Thirdly, we have machine learning. Machine learning takes artificial intelligence to an advanced stage where it does from coding to guessing and imitating human behavior. The software learns the result of the task performed and how a human may react in order to fasten the task in the future. Artificial intelligence is a wide branch of information technology dedicated to the development of intelligent machines that carry out task that usually involve human intelligence. Artificial intelligence changes an accountant’s role of a typical bookkeeper to an advisor role. Big data analytics is the process of examining large data sets containing a variety of data types. Big data analytics may help accountants see the bigger picture by forecasting trends in customer behavior, detecting red flags of fraud and anticipating economic growth. It is one of the important factors for companies to consider, in providing steady business over their competitors. Finally, a cloud-based solution is a platform to make data and software accessible online at any time, from anywhere by any device. Nowadays, accounting software are mostly cloud-based solutions as the information can be accessible by the key people in the organization.