DJJ40132

Engineering and
Society

Chapter 2 : Engineering Challenge In

Globalization
Lecturer : Mohd Yusri Ibrahim
Industrial Revolution
Industrial Revolution 4.0

- Industry 4.0 is revolutionizing the way companies manufacture,

improve and distribute their products

- Manufacturers are integrating new technologies, including

Internet of Things (IoT), cloud computing and analytics, and AI
and machine learning into their production facilities and
throughout their operations.

- The emergence of 4IR is estimated to increase productivity by

30% across all sectors by the year 2030. This contribution will
ensure Malaysia provides better services in the future, besides
increasing the number of skilled workers and producing higher
value added products.
How Industry 4.0 Is Impacting Globalization
Globalization
▪ Technological developments, both in and outside of factories, have impacted the manufacturing
industry's globalization — the process by which businesses and other organizations develop
international influence or start operating internationally.
▪ Advances in transportation and telecommunications have had a huge impact. With increasing trade
and communication, more and more companies are extending their reach across land and sea - the
modern manufacturing supply chain is centered around globalization.
▪ Business activities, including outsourcing of logistics, facilities management, professional services
and maintenance, can all be international processes.
Industry 4.0
▪ With every major industrial and technological change, the characteristics of globalization have been
altered. Industry 4.0 shifts manufacturing away from analog and mechanical technologies and toward
all things digital.
▪ As information technology and operational technology converge, companies are beginning to find new
ways to connect. Data collected from suppliers, customers and the enterprise can be aligned with
detailed production information, which means processes can be fine-tuned in real-time.
▪ The digital and physical worlds have become irrevocably linked, with machines, systems and people
able to exchange information and automatically adjust. Industry 4.0 is not only revolutionizing
manufacturing processes but also having a powerful impact on the model of globalization, by
changing the workforce and increasing the ease of access to services.
Blurring the Boundaries
 Companies are using more complex, worldwide supply chains and data networks in their operations.
 Physical connectivity to digital links — many of which are stored in the cloud. Greater international
collaboration is more possible than ever before. Using cloud-based software, any staff member in any
geographical location can contribute to a design. This function is being increasingly offered in CAD
software, making design a more collaborative process.
 Globalization is not just improving the design process. Businesses can get the most out of their talent
pool or international supplier network using digital connectivity, as expertise can be offered remotely
and in real time.
 Cheap data storage and transfer will increase the decentralization and flexibility for businesses. This
may result in the international company of the future not needing a significant physical presence
across the globe.
International Competition
 Increased connectivity means that organizations must now be competitive on a global scale and
cannot rely on their physical location to win business. This will require companies focusing on
meeting ever-changing consumer demands. Keeping manufacturing and production flexible and
incorporating automated technologies can cut production times and allow organizations to respond
quicker, increasing competitive advantage.
 Industry 4.0 has revolutionized business operations both inside and outside the factory, increasing the
links between international organizations and driving the process of globalization forward.
The Nine
Pillars of
Industry 4.0
1. Augmented Reality
Augmented-reality tools are still in their infancy, but
they are paving the way for new services. For example,
they will provide operators with the real-time
information they need for faster decision-making and for
improving work processes.
2. Additive Manufacturing/ 3D Printing
Companies have just begun to adopt 3D printing for prototyping and
unit production. With Industry 4.0, these technologies will be chosen
for their very high performance in producing small batches
of customized products. Decentralized systems will reduce
transportation and inventory management costs.
3. Internet Of Things
Few machines are currently fitted
with sensors and interconnected.
With the Industrial Internet of Things,
an ever greater number of products
will incorporate intelligence and be
connected using standard protocols.
This will decentralize analytics and
decision-making, enabling real-time
responses.
4. Big Data
There are still massive sets of
untapped data in the
industrial world. Their
analysis will optimize
production quality, save
energy, and improve
services. Here as well, the
goal is to allow real-time
decision-making.
5. Cloud Computing
Cloud computing is the “great enabler” of digital
transformation. In the present scenario, cloud technology
goes way beyond scalability, speed cost efficiencies, and
storage. It gives the foundation for most advanced
technologies - from AI and ML to the IOT – and provide
organizations with the way to organize. The data that
power Industry 4.0 cloud computing technologies reside
in the cyber-physical systems and cloud at the core of
Industry 4.0 use the cloud to coordinate and
communicate.
6. Advanced Simulation
3D simulation of product development, material
development and production processes will become
widespread. It will leverage real-time data to mirror the
physical world in a virtual model that will include
machines, products, and humans. Operators will be able,
for example, to test and optimize the machine settings
for the next product even before production starts,
thereby reducing machine setup times and improving
quality.
7. Autonomous Robots
Long used to tackle complex tasks, robots
provide an ever wider range of services and
are becoming more autonomous, flexible,
and cooperative. They will interact with one
another and work safely with humans (the
term “cobotics” is used to describe robots
helping operators perform their tasks).
Eventually, they will be able to learn from
humans.
8. System integration
Today, information systems are not fully integrated. Companies are rarely connected with their suppliers and
customers. Engineering design departments are seldom linked directly to production within its own
organization. But with Industry 4.0, the entire organization will be interconnected, and companies will be
connected with one another.
9. Cyber Security
The days of closed,
unconnected operational
management systems are over.
Connectivity and
communication protocols are
becoming the norm. Protecting
information systems and
manufacturing lines from
cybercrime threats is becoming
a critical issue. Sophisticated
identity and machine access
management systems will be
used to provide secure, reliable
communications.
 Engineering challenge in globalization

- Globalization is a term used to describe the increasing trend towards

internationally integrated markets and global connection. Besides,
globalization is also defined as a process of interaction and
integration among the people, companies, and governments of
different nations (The Levin Institute, 2017).
- This process is driven by international trade and investment and it is
aided by information technology. Therefore, globalization will make
national boundaries less important in terms of political, cultural,
technology, financial, environmental, and national security issues.
Types of globalization:
The following list is a list of the significant types of
globalization:

▪ Political Globalization - to the diplomatic negotiations

between nation-states. It includes the standardization of
global rules around trade, criminality, and the rule of
law.

▪ Social Globalization - Also known as sociological

globalization, social globalization refers to the
integration of our societies.

▪ Economic Globalization - to the ways corporations do

business as multinational organizations nowadays.

▪ Technological Globalization - to the spread of

technology around the world.
 Types of globalization:

▪ Financial Globalization - to the ease at which money can be spread around the world.

▪ Cultural Globalization - to the spread and mixing of cultures around the world.

▪ Ecological Globalization - to the idea that the world needs to be considered one interconnected
ecosystem.

▪ Geographical Globalization - to the idea that the world is no longer seen as groups of distinct nations as
much as it once was.
Globalization Positive Effects
1. The Spread of Technology and Innovation
Many countries around the world remain constantly connected, so knowledge and technological advances
travel quickly.

2. Lower Costs for Products

Globalization allows companies to find lower-cost ways to produce their products. It also increases global
competition, which drives prices down and creates a larger variety of choices for consumers.

3. Higher Standards of Living

Developing nations experience an improved standard of living.

4. Access to New Markets

Businesses gain a great deal from globalization, including new customers and diverse revenue streams.
Companies interested in these benefits look for flexible and innovative ways to grow their business
overseas.

5. Access to New Talent

In addition to new markets, globalization allows companies to find new, specialized talent that is not
available in their current market.

6. Access to New Cultures

Globalization makes it easier than ever to access foreign culture, including food, movies, music, and art .
Globalization Negative Effects
1. Possible monopolization of multi-national companies
Large enterprises from developed countries may move into smaller developing nations and take over
the market. Their specialization and efficiency in providing a particular good or service may mean
that local producers in a developing country are knocked out of the market;

2. Structural unemployment
If a country is no longer competitive in the production of a particular good, this may mean that its
production rapidly moves offshore, and workers are left unemployed.

3. Inter-dependence
Individual countries become dependent on other nations for their supply chains. If there is a
disruption to this chain, they may no longer be able to produce the good themselves

4. Damages the environment

The transport of goods and people among nations generates greenhouse gas and all the negative
effects it has on the environment.

5. Damages cultural identities

Critics of globalization decry the decimation of unique cultural identities and languages that comes
with the international movement of businesses and people.

6. Increases the likelihood of pandemics

Increased travel, critics say, has the potential to increase the risk of pandemics.
Handle challenges of globalization and the new economy

1. International recruiting - A common challenge global leaders

face when going global is international recruiting

2. Managing employee immigration - Immigration laws change

often, and in some countries, it is extremely difficult to secure
visas for employees who are foreign nationals.

3. Incurring tariffs and export fees - For companies looking to sell

products abroad, getting those items overseas can be expensive,
depending on the market.

4. Foreign worker exploitation - Lower costs do benefit many

consumers, but it also creates tough competition that leads
some companies to search for cheap labor sources.

5. Loss of cultural identity - While globalization has made foreign

countries easier to access, it has also begun to meld unique
societies together