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The historical evolution of the Digital Transformation of European economies.

The historical evolution of the Digital Transformation of European economies.

The Digital Transformation of companies is not something innovative, but rather the result of a process that began 3 centuries ago. Throughout history, it has been demonstrated that all those economies that have been able to adapt to the changes dictated by new technologies have survived the changes comfortably. A clear example of this can be found in Germany, a highly industrialized country specialized in the production of manufactured goods. Its economy has not only weathered the economic crisis that affected half the world over the last 10 years, but has also continued to grow sustainably during the crisis.

Germany is a clear example of how countries with more industrialized - and modern - economies survive recessions better than the economies of those states linked to the service sector. But what are the keys to successfully implementing an Industry 4.0-based economy?

  • The first step, according to Zemsania Group's experts, is that professionals do not perceive the changes as a threat to their employment status. And, therefore, be open to new possibilities and work environments that imply a cultural and methodological change.
  • From a corporate point of view, the company must be flexible and have the business vision to invest in renovation. of skills and services.

Digital Transformation in 4 major revolutions

In order to better understand what each of the above revolutions has meant for the Digital Transformation that we are currently experiencing, we at Zemsania Group would like to make a small historical review since the 18th century. Shall we start?

  • Industry 1.0The first step of the Digital Transformation we know today (with robots, AI, Big Data or connected devices) was taken back in the 18th century, with the beginning of the mechanization of work. The first steam engines appeared in 1776., The first industrial revolution brought with it the first employment crises in history, which resulted in the first employment crises in the world's history, which led to a significant increase in the productivity of factories and the speed of product distribution, thanks to the steamship and the steam train. This first industrial revolution brought with it the first employment crises in history, which gave rise to the emergence of the so-called social classes. Thanks to the formation of these groups, which shared interests and social status, the first workers' revolts and important ideologies that persist to this day.. As, for example, Communism.
  • Industry 2.0Unlike the first, this second step towards the Digital Transformation we know today was marked by different aspects. The most important one, perhaps, was the one that initiated Henry Ford with large-scale assembly lines inside factories.. This fact was a real revolution, since it made it possible to work in a chain at low cost. In addition to this factor, which was perhaps the most important, we must also take into account others such as the industrial use of electricity; the progress in the creation and improvement of new materials (such as high-grade steel) or the work specialization were also other aspects that contributed their grain of sand to the Digital Transformation we know today.
  • Industry 3.0The previous digital and industrial revolution to the one we are now living in can be located on the 70's of the last century. It was then that the big computer and software companies that we know today made their first appearances in the market. Intel, for example, thanks to its processor, which, together with the digital control processes in the machines that were beginning to be installed, achieved a increased intelligence and productivity in industrial plants. Another factor to take into account is the energy crisiss that hit the world's major economies.
  • Industry 4.0The Digital Transformation of the world economy is a mixture of different factors that converge simultaneously. On the one hand, it cannot be understood without the previous steps of previous revolutions. On the other hand, since the 2000s, a set of realities have begun to emerge that make this era unique in the history of mankind. These factors are explained below.

Factors that make Industry 4.0 a unique moment in history

Industry 4.0 has revolutionized any past and present paradigm, as new technologies (such as AI, Big Data or Machine Learning) have revolutionized any previous concept. Those factors are:

  • The user experienceThe products are increasingly adapted to the needs of customers.
  • GlobalizationThe existing global connection is an unprecedented milestone in the history of mankind, a fact that is also a factor to be taken into account when understanding the Digital Transformation.
  • The emergence of global financial markets is also a consequence of globalization and has a decisive influence on the functioning of the economy.
  • Aging labor force: making it difficult for professionals to be flexible in understanding and implementing new technologies.
  • SustainabilityAlong with the natural evolution of industrial plants comes the need to protect the environment. This has led to research into energy efficiency or the responsible use of natural resources in manufacturing.
  • Population growth and middle classIn China, for example, the middle class has emerged in recent years and has begun to demand products on a large scale. Such as, for example, low-cost cars.
  • Information societyThis is another characteristic of Digital Transformation, the ability to create information and have it reach any corner of the world quickly.
  • UrbanizationThe economic crisis: people migrate to large cities to find work and, at the same time, factories and large companies flee the major economies to relocate and reduce production costs.

The current economies, therefore, need flexible systems that can evolve quickly and efficiently, The future, if we continue on the same path as in recent years, is AI and also the total interconnection between machines, products, infrastructure and consumers. The future, if we continue on the same path as in recent years, is AI and also the total interconnection between machines, products, infrastructure and consumers. But the evolution is so rapid and intense that this paradigm could change at any moment. Are we ready for it?

At Zemsania Group we are experts in Digital Transformation and we want to help you evolve with technology.