*1.1. Overview of Industrial Revolutions Through a Social Lens*

Technological progress has been the engine of the development of human society since the dawn of civilization. Over time, the concerns of the scholars in economics have evolved in parallel with the evolution of technology. So far, this evolution has been marked by four major leaps, known as industrial revolutions, generated by major inventions. These inventions are the steam engine, then electricity, digitalization, and using information technology, culminating in the significant advances made in the Information and Communications Technologies (ICT) field at the end of the 20th century, together with the advent and mass generalization of the Internet, which led to the fourth industrial revolution.

In the field of manufacturing, the focus has shifted from increased production to increased productivity, then to automation, reaching connectivity, through the use of cyber-physical systems in production processes.

In the social field, the first industrial revolution (Industry 1.0) determined the evolution from the mercantile city, which grew based on the exchange of goods and products obtained from agriculture, to the industrial city, which grew based on increased productivity [1]. This transformation laid the foundations of the modern world, and by changing the social structure of human capital, the primordial importance of agriculture in the economic and social life has been taken over by industry. According to Frey and Osborne [2], people had a fear of technological unemployment. For this reason, several hundred years passed between the first knitting machine invented in 1589 by William Lee and the first industrial revolution. Moreover, this revolution led to the replacement of workers' skills by simplifying their tasks [3]. The workers took over the role of supervision, regulation, and control of the machines [4,5]. The second industrial revolution (Industry 2.0) brought the transition from the industrial city to the planned city. In the planned city, the new type of worker was exempted from the productive processes that involved gross physical labor, which has been replaced by social and security services, mechanical equipment, and total automation. The third industrial revolution (Industry 3.0) caused a transition from the planned city to the fragmented city, where industries were increasingly moving away from the markets, thus changing the economic systems and methods of production. In the fragmented city, a new economic-social order was born, separating, even more, the housing from the workplace, consumers, urban life, and research and innovation institutions. The fourth industrial revolution (Industry 4.0) brought about the transition from the fragmented city to the smart city [6]. At this current stage, the economic-social transformations do not have their roots in discovering a new form of energy, but they are based on the latest technological phenomenon—digitalization. The technology has made possible new products and services that have generated significant transformations in both personal and professional life, emphasizing the interaction between machines and people.

Tay, S. I. et al. have presented Industry 4.0 as a global change for each part of the company, through digitalization and automation, as well as through the manufacturing processes [7]. The concept of Industry 4.0 was easily and quickly accepted by the big international companies that already used techniques for the continuous improvement of the quality of processes and products and had high standards for research and development, to increase their competitiveness in the market [8]. The means of adopting this concept are self-optimization, self-knowledge, and self-personalization in the industry. In this way, workers communicate with computers rather than operate them, according to Tay, S. I. et al. [7].

#### *1.2. Industry 4.0 in Definitions*

Introduced in 2011 at the Exhibition in Hanover [9], the concept of Industry 4.0 has aroused the interest not only of producers but also of researchers. Thus, Kagermann et al. considered that the implementation of the concept of Industry 4.0 in the production sector implies the use to the maximum capacity of the power of communications technology and innovative inventions to stimulate the development of production technologies [10]. Quin et al. stated that Industry 4.0 could ensure the real development of companies by generating a reliable production environment. An important role is played by the intelligent data collection and interpretation, the correct decision making, and their timely implementation as a result of using the most advanced technologies, which allows faster data collection and interpretation procedures [11]. Schumacher et al. emphasized the network of advanced technologies in the value chain. Services, automation, robotics, artificial intelligence, the Internet of Things (IoT), and additive manufacturing are the elements that will reshape businesses in different industries. The new wave of transformations in production systems will blur the boundaries between the real world and virtual reality, causing the phenomenon of Cyber-Physical Production Systems (CPPS) [12]. In the Industry 4.0 scenario, the Cyber-Physical System contributes to the decentralization of the operational decision-making process by introducing autonomous machines, creating a modular structured intelligent factory [13]. Industry 4.0 aims to build open and intelligent manufacturing platforms for the application of information in industrial networks, bringing innovation in business models [14,15]. A smart manufacturing system needs more autonomy and sociality capabilities, as key factors of self-organized systems. Several features of Industry 4.0, namely, physical, digital, and biological worlds [16], significantly contribute to the improvement of the industrial environment, generating positive effects on governments' economies and development plans. Schwab emphasized that Industry 4.0 is one of the most important leaps in the global industry and economy [15]. Wang et al. have highlighted that Industry 4.0 makes full use of emerging technologies and rapid development of machines and tools to meet global challenges by improving industrial processes. The central concept of Industry 4.0 is the use of advanced information technology to implement IoT by integrating engineering knowledge [16]. The effects are on the production, consisting of increasing the speed of the processes, improving the efficiency of the production systems, and reducing the number of problems and the downtime, which ultimately leads to cost savings [17,18]. The results appear on the finished product, which has a higher level of quality and is more comfortable and cheaper to use and maintain. The concept of Industry 4.0 is an opportunity for development and competitiveness improvement [19]. Wyrwicka et al. have shown that moving to Industry 4.0 is an advantage to stay competitive in any industry. In this sense, modern machines and tools, which use sophisticated software and network sensors, can be used to plan, predict, adjust, and control business results, to lead to optimization of the value chain [20]. The result is a more dynamic production flow [21]. On the other hand, a significant negative effect is a disruption in job markets [22]. The complex and integrated development of science and technology corresponding to the stage of industry 4.0 will not only redesign commerce, culture, and society, but also our biology and ethics [23].

Schumacher et al. [12] synthesize the concept of Industry 4.0 as a mix of advanced technologies, which use the internet widely to support certain technologies. They use embedded systems, for integrating and combining intelligent machines with human actors, in manufacturing processes that require new types of technical data and generate high agility value chains.

Summarizing, the above definitions, several advantages of the industrial revolution 4.0 can be identified, namely: increasing economic efficiency, increasing labor productivity, flexibility and intelligence, reducing manufacturing costs, and increasing returns on investments. Regarding the increase of economic efficiency, it is noteworthy to modify the relation between human capital and ethnic capital, which is now automated. With less social capital and more technical capital, companies make decisions faster. The automation of the technical capital has resulted in high quality products and services. Increased labor productivity is primarily obtained since the downtime of the production lines has decreased, with decisions now being made automatically or semi-automatically. Production is monitored, and it is much easier to introduce new products on the manufacturing line and create opportunities for a single manufacturing operation. The production is flexible, and the factory is intelligent. Lower manufacturing costs and increased profitability result from the introduction of advanced technologies. Manufacturing costs will decrease significantly but over time. Initially, the investment costs of their implementation will be quite high, but they will be amortized over time. The benefits to the industry and the potential return on investments are what matter.

There are disadvantages to the Industrial 4.0 Revolution. The reduction of creativity can occur due to the automation of machines and the disappearance of human capital from the production technology. Human capital can generate controversy with its creativity, while devices are optimized, set up, and programmed to perform, despite the errors that may occur [23]. Increasing the unemployment rate, at least in some areas, can be another negative effect. Between the degree of production automation and the unemployment rate, there is a directly proportional relationship: the higher the degree of production automation, the higher the unemployment rate [23]. The automation of manufacturing technologies, and job computerization have dislocated much of the human capital, causing a new reconfiguration of it. On the other hand, however, the latest technologies will lead to the creation of new jobs, and there will be new production areas. The impact on environmental protection is also significant. Specific technologies and equipment that are incorporated in the production facilities of Industry 4.0 have a substantial effect on the environment. As a negative effect, data security breaches may occur. Internet of Things is an interrelational system of artificial intelligence, and companies are

still working to fill the gaps in its security. The complexity of the tasks reduces its abilities. Although the production technologies of Industry 4.0 lead to an increase in product quality, they have not yet been able to solve the problem of sophisticated production. Human capital is currently the only type capable of carrying out complex, customized production tasks. Training with employees is required for new technologies. Apart from the maintenance provided to the production technologies of Industry 4.0, human capital must be trained in order to implement, operate, and maintain the automated systems properly and to ensure their continuous operation. The time frame for implementing Industry 4.0 is relatively large and requires efforts throughout industry. Initial costs are high.

#### *1.3. Human Capital in the Industry 4.0 stage*

The implementation of new technologies affects both employees operating in industries as well as organizations. The problem of the competence framework implies a three-dimensional approach, involving the level of the enterprise management, the fields of the production process and the types of competences [24]. According to Gan and Yusof, six types of effective Human Resources practices play essential roles in organizations, namely, knowledge management, HR policy making, training, recruiting, a reward system, and job design. They could improve the performance of organizations by equipping the workforce with up-to-date skills [25]. There is a need to identify the organizational strategies and their responses in adapting to the substitution of human workers by using robot and automation in this stage [26]. The Industry 4.0 Revolution is characterized by the decisive role of the efficiency of organizing the exchange of information. The structure of the technological mode of production has changed from the model: information + knowledge + innovation, corresponding to the knowledge economy, to the model: human intelligence + new information technologies + information + innovations, in the Industry 4.0 era. In this stage, the creativity of an individual, and the formation of human capital are the qualitative basis of the good. In the Industry 4.0 stage, it is necessary to adapt the education system to the new development requirements of the society; under these new conditions, only the knowledge gained will contribute to the development of Industry 4.0 and its safe development [27,28]. For Industry 4.0, depending on the industrial sector, specific skills and human tasks may be different from others, due to the divergence of processes. Some changes in terms of abilities and tasks have been observed [29]. Therefore, human capital will have significant participation in the work and will undergo a redirection of jobs and learning [30].

In the Industry 4.0 era, people are involved in the entire production system: as system designers, as workers, and as customers of manufactured goods. The requirements and needs of each individual involved in the process should be included in the system communicating needs and requirements amongst everyone involved [31].

#### *1.4. Marketing in the Industry 4.0 stage*

As the role of information and communication technologies in the purchasing process grows steadily, customer expectations also increase, forcing traders to react quickly to market movements [32,33]. Since the beginning of the Industry 4.0 era, researchers have predicted dramatic changes in the way of interaction between consumers and retailers, driven by the global use of new technologies and the imminent emergence of new efficient retail business models [34]. The integration of technology and the Internet has led to the emergence of connected customers [35]. They inform but also purchase, using a wide range of devices, such as smartphones, tablets, and laptops. This change has generated changes in the organization of marketing departments, which need to work integrated with IT and technology departments to expand consumer access to content. To remain competitive, marketers need to integrate these new devices into marketing campaigns and gain skills in using technology [36]. The use of technologies is becoming a source of key competencies and capabilities, generating sustainable competitive advantages for organizations. The use of ICT in business has also raised issues related to cybersecurity. With the emergence and spread of social networks and the use of mobile devices and related technologies, consumers are becoming more and more connected to each

other and to organizations. In this new era of Industry 4.0, business models, in general, and marketing strategies, in particular, need specific innovation. Organizations and managers are looking for new ways to market products more efficiently, in an increasingly competitive environment [37].
