THE DIGITAL REVOLUTION AND

IMPLICATIONS OF INDUSTRY 4.0

______________________________________________________________
Name: Kimberley Mjwara
Student Number: 19011213
Course: BA Honours – Strategic Brand Communication
Subject: RESM8419p
Lecturer: Alec Bozas
Supervisor: Simon Granger
Assignment: Final Research Dissertation
Date: 25 October 2019
_______________________________________________________

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 DECLARATION

I hereby declare that the Research Report submitted for BA Honours in Brand
Management degree to The Independent Institute of Education is my own work and has
not previously been submitted to another University for Higher Education Institution for
degree purposes.

___K.T.M________________

Signed: Kimberley Mjwara

24 October 2019

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 ABSTRACT

The 4th Industrial Revolution is ultimately an era of cyber-physical systems powered by

the breakthroughs in nanotechnology providing a performance boost a adding a new
functionality to the internet of things, biotechnology, virtual reality, robotics, artificial
intelligence. Industry 4.0 is significant as it will change and affect how organizations
operate and communicate to its stakeholders. The purpose of this study is to investigate
the impact of technology and digitization on brand business models and ultimately the
overall marketing industry. Specific focus has been given to the web 4.0 paradigm. This
research will also assess how brands now communicate to their consumers using digital
innovations as well consumer responses. Ultimately this study aims to evaluate the
effectiveness and compatibility of brands, social media, and technology in today’s Fourth
Industrial Revolution.

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 ACKNOWLEDGEMENTS

I would like to thank everybody who made this research study possible. Firstly, I would
like to thank God for giving me the opportunity to continue my studies into my Honours
year and for providing the resources not only financially but mentally and academically as
well.

Secondly I would like to Thank my research lecturer and Advisor, Alec Bozaz (Lecturer)
and Simon Granger (Supervisor) for their continuous support and critical but helpful
feedback.

Lastly, I would like to thank my lovely Mother, Queen Mjwara who pushed me to helped
me through this challenging year. Thank you, mom for your unwavering support and love
throughout all my academic years, I cannot wait to give you the world. I’d also like to thank
my aunt, Sthe Mjwara for her encouragement and love throughout this year. I adore you
both immensely.

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TABLE OF CONTENTS

1. CHAPTER ONE: INTRODUCTION 8

1.1. Introduction 8
1.2. Rationale 9
1.3. Research questions 9
1.4. Problem Statement 10
1.5. Research goal 10
1.6. Objectives 10

2. CHAPTER TWO: LITERATURE REVIEW 11

2.1. Introduction 11
2.2. Digitization 11
2.3. Artificial Intelligence 12
2.4. Virtual Reality 13
2.5. Internet of Things 14
2.6. Information Systems 17
2.7. Big Data 18

3. CHAPTER THREE: RESEARCH METHODOLOGY 21

3.1. Introduction 21
3.2. Research paradigm 22
3.3. Population 23
3.4. Sampling 24
3.5. Research plan/methodology 25
3.6. Data Analysis 26
3.7. Validity 27
3.8. Anticipated Contribution 28
3.9. Ethical considerations 28

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4. CHAPTER FOUR: RESEARCH FINDINGS AND DISCUSSION 29
4.1. Introduction 29
4.2. Presentation and discussion of findings 29
4.3. Demographics of respondents 29
4.4. Results and Discussion of 4th Industrial Revolution 32
4.5. Concluding remarks 38

5. CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS 42

5.1. Introduction 42
5.2. OBJECTIVE ONE 42
5.2.1. Findings from Literature 42
5.2.2. Findings from Research 43
5.2.3. Conclusion 43
5.2.4. Recommendations 43
5.3. OBJECTIVE TWO 44
5.3.1. Findings from Literature 44
5.3.2. Findings from Research 44
5.3.3. Conclusion 44
5.3.4. Recommendations 45
5.4. OBJECTIVE THREE 45
5.4.1. Findings from Literature 45
5.4.2. Findings from Research 45
5.4.3. Conclusion 46
5.4.4. Recommendations 46
5.5. OBJECTIVE FOUR 46
5.5.1. Findings from Literature 46
5.5.2. Findings from Research 47
5.5.3. Conclusion 47
5.5.4. Recommendations 47
5.6. Concluding remarks 48

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 6. REFERENCES 49
7. APPENDIX A CONSUMER INTERVIEW 54
8. APPENDIX B ORGANISATION INTERVIEW 56
9. APPENDIX C TOYOTA TRANSCRIPT 57

10. LIST OF TABLES

Table 3.1. Data Collection Methods 25

11. LIST OF FIGURES

Figure 4.1. The age of online respondents 31

Figure 4.2. The internet access of respondents 32

Figure 4.3. Consumer knowledge about 4th Industrial revolution 33

Figure 4.4. Consumer perception on brand engagement 34

Figure 4.5. Most popular social media for brand engagement 35

Figure 4.6. Consumer awareness about data hacking 36

Figure 4.7. Fourth Industrial Revolution Sectors 37

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 1. CHAPTER ONE: INTRODUCTION

1.1. Introduction

This chapter shall expand on the research methodology and the paradigms associated
with the research. The population and sample are also considered as they form part of
the design research instrument, the preliminary study, data collection and analysis as well
as the ethical considerations and limitations that may come unfold throughout the data
collection process. The world wide web, despite being 30 years old is still regarded as a
relatively new medium. This study shall review and discuss how the digital revolution has
changed consumer interaction and how the evolution of the world wide web, mainly
Industry 4.0. will impact and disrupt the marketing industry. This literature review shall
ultimately explore the impact of technology, particularly web 4.0 and how brands have
adopted this new paradigm into their business model.

The 4th Industrial Revolution is ultimately an era of cyber-physical systems powered by

the breakthroughs in nanotechnology providing a performance boost a adding a new
functionality to the internet of things, biotechnology, virtual reality, robotics, artificial
intelligence. Industry 4.0 is significant as it will change and affect how organizations
operate and communicate to its stakeholders. For the marketing industry this ultimately
means preparing the business and the industry at large to adapt to the new digital sphere
by acquainting itself with the new digital frameworks that will accompany by web 4.0 and
its various systems.

1.1. Rationale

Over the past 10 years brands have adopted a more digital approach in their marketing
and branding strategy. As a result, the communication between consumers and brands
has changed. The purpose of this study is to investigate the impact of technology and
digitization on brand business models and ultimately the overall marketing industry.
Specific focus has been given to the web 4.0 paradigm. This research will also assess

8
how brands now communicate to their consumers using digital innovations as well
consumer responses. Ultimately this study aims to evaluate the effectiveness and
compatibility of brands, social media, and technology in today’s Fourth Industrial
Revolution.

1.2. Problem Statement

Due to the digital disruption, brands today use means of social media and various
technological innovations to communicate with their stakeholders. This is significant as
this type of communication allows for interactive, instantaneous and responsive
communication between brands and their stakeholders. This is also relevant, as the
development of the internet has allowed consumers to become content producers,
ultimately giving the consumers a voice to dictate how a brand should operate.

THIS RESEARCH SHALL EXAMINE THE DIGITAL REVOLUTION AND the

IMPLICATIONS INDUSTRY 4.O, PATICULARLY LOOKING AT HOW BRANDS USE
TECHNOLOGY TO COMMUNICATE TO THEIR CONSUMERS.

1.3. RESEARCH Questions:

In order to assess the implications of Industry 4.0 the following questions should be
answered through the study:

1. What is the current digital climate/influence of brands?

2. Is digitization and web 4.0 an effective marketing strategy for brands?

3. How will web 4.0 impact consumer interaction between brands and its
stakeholders?

4. What are consequences of adopting or not adopting to the new digital revolution?

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1.4. Research goal

Whilst considering the internet of things and digital goldrush, Ocampo (2016:108),
proposes a new-age generation, ultimately referred to as ‘Generation Z or Post-
Millennials. The purpose of this research study is to ultimately determine how the 4 th
Industrial Revolution will impact already existing marketing organizations and how it will
ultimately affect their communication with their stakeholders. Generation Z are
characterized as individuals that are born around the years 1995-2012. These individuals
are significant as they are identified as digital natives because they are proficient and
competent at navigating cyber technology from an early age, in other words, digitally
adept. This is relevant to the current study as the aim of this study is to asses how
business firms need to change or adapt their business models in order to effectively
communicate to the above-mentioned market.

1.5. Objectives

The purpose of this study is to investigate the impact of technology and digitization on
brand business models and ultimately the overall marketing industry. Specific focus has
been given to the web 4.0 paradigm. This research will also assess how brands now
communicate to their consumers using digital innovations as well consumer responses.
Ultimately this study aims to evaluate the effectiveness and compatibility of brands, social
media, and technology in today’s Fourth Industrial Revolution.

This research aims to achieve the following OBJECTIVES:

• Explore Uses of industry 4.0

• Review how Industry 4.0 impacts organizations and their business models
• Evaluate how consumers make use of digital platforms to communicate with
organizations
• Consider ethical implications for Industry 4.0

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 2. CHAPTER TWO: LITERATURE REVIEW

2.1. Introduction

In this Chapter the theoretical frameworks that are appropriate to this study will be
expanded on by various authors and showcased in reverence to Industry 4.0 and the
impact it will have on the marketing industry. These frameworks include the following:
Digitalization, Artificial Intelligence, Virtual Reality, Internet of Things, Information
Systems and Big Data. These frameworks were found to be applicable literature as they
develop on the technological and systematic implications that web 4.0 will have on
organizations in the marketing Industry.

2.2. Digitalization

“Digitalization is the use of digital technologies to change a business model and provide
new revenue and value-producing opportunities; it is the process of moving to a digital
business.” (Gray and Rumpe, 2015: 1319). Digitalization ultimately represents the
amalgamation of multiple and various technologies into all aspects of daily life that can
be digitized. A few recent examples of digitalization include smart homes, e-healthcare,
smart mobility, e-governments and smart cities. In the face of a digital revolution,
national and regional governments are increasingly defining digitalization as a strategic
priority and consideration and areas a result encouraging and promoting various
initiatives to foster digital transformation of science, industry, and society. (Legner,
Eymann, Hess, Matt, Bohmann, Drews, Madache, Urnach, and Ahlemen, 2017: 302)

Digitalization has been a progressively explored topic for information systems research
for many years. However, the current surge of digitalization is different: it is driven by
us (Legner, et al, 2017: 303). ‘Us’ referring to society at large and ultimately translating
to the consumer. As a result, users, consumers, and citizens, expect, up-to-date and
advanced digital services and products. These heightened expectations put pressure
on industry leaders in commercial and public organizations to constantly create

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 opportunities for disruptive start-ups (Legner, et al, 2017: 303). Despite the rapidly
growing research interest in digital innovation, it is still at an infancy stage. The effect
and influence of digitalization has however affected everything from personal
relationships inflated by social media and their services, to other relationships such as
how citizens interact with support services in e-government. (Gray and Rumpe, 2015:
1319)

Digitalization will also affect how businesses operate and ultimately introduce new
business models for organizations. Businesses will be forced to integrate and move
towards a more digitally adept business model in order to effectively communicate to its
stakeholders. Whilst some see it as a means to finally solve efficiency, convenience and
quality problems, others apprise and criticise it as “the rise of the robots” for the massive
unemployment that will follow in the wake of artificial intelligence. (Plesne, Justesen,
and Glerup, 2018:1178)

2.3. Artificial Intelligence

Artificial Intelligence (AI) is the simulation of human intelligence processes like learning,
reasoning, and self-correction by machines, including computer systems (Upadhyay
and Khandelwal, 2019). The idea of machines operating like human beings began to
be the center of scientist’s mind and whether if it is possible to make machines have the
same ability to think and learn by itself was introduced by the mathematician Alan
Turing. Alan Turing was able to put his hypotheses and questions into actions by testing
whether “machines can think”? (Alsedrah, 2017). Recent examples of AI include Apples
‘Siri’ and Samsungs ‘Galaxy’ were consumers ask their devices relevant questions such
as weather temperature to general knowledge questions that could be found on the
internet.

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 Some experts predict that we are 20-50 years away from an AI monotonous society,
where machines capable of recursive self-learning will surpass human intellectual
capacity and control. AI machines that match and surpass human intelligence may be
seen as leading to positive technological advances, as it could eradicate aging and
widespread diseases as well as enhance and advance future space travel. (Gadanidis,
2017: 134).

Artificial Intelligence is significant as it will present consumers with many pros and cons.
Some of the advantages that AI will offer include reliability, cost- effectiveness, complex
problem-solving and decoding, data protection and ultimately the ability to make
decisions. Another great example of AI is referred to as “reinforcement learning”.
Reinforcement Learning refers to the testing of a product or services’ success and
failure rate in real life in order to increase the reliability of applications (Alsedrah, 2017:
3). Although AI will present organizations and consumers with great opportunities, there
are also some threats which need to be considered. Artificial Intelligence will
undoubtedly revolutionize the communication of consumers and organizations,
scientists are however predicting that due to the huge dependency on AI, it could result
in the extinction of humanity. Scientists also argue that AI will result in a huge
unemployment rate across the globe due to humans being replaced by machinery.
Since machines are learning and doing thigs more efficiently and effectively in a timely
manner, this could be the reason of our extinction. (Alsedrah, 2017: 4)

2.4. Virtual Reality

Virtual reality (VR) can be described as an interactive computer-generated experience

that takes place within a controlled and simulated and environment. It integrates mainly
audio and visual response, whilst also including other types of sensory experience. The
simulated environment is meant to provide participants with a real-life version or
experience of a certain environment or context. Technological advancements such as

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 augmented and virtual reality have impacted and influenced the way people experience
their surroundings. (Hyungsoo Jung and Dieck, 2017: 140)

Virtual Reality is significant and relevant in today’s marketing climate because it plays
a role of value co-creation by giving consumers the opportunity to customize their brand
experiences by making them palpable. Technology has had a huge impact on the
management and marketing of products and places. Due to the hike of social media
epidemic, customers expect to play a role and have a voice in the service and product
creation process. Thus, virtual reality gives consumers an opportunity to have an active
role in the development process, which in turn adds value to their overall brand
experience. (Hyungsoo Jung and Dieck, 2017: 147)

Relevant examples of virtual reality in today’s marketing climate include 3D printing and
augmented reality. Augmented reality applications and 3D printing devices can be
considered ideal technologies for collaborative design, as content can be regularly
updated based on customer feedback, insights, ultimately providing organisations with
their consumers likes and dislikes. These 3D technologies enable customers to
examine products as if they were physical objects, Kaminski said. Moreover, the
technology offers views that are difficult to offer even in real life. An example of this
would be a customer wearing an oculus headset to get a 360-degree view of a room,
whilst experiencing sight and sound sensory environments. This is a revolutionary
framework for the 4th Industrial revolution as businesses could use virtual reality as a
form of prototyping before launching a physical device or service.

2.5. Internet of things

Internet of things (IOT) refers to an emerging megatrend in technology. It is

characterized by its worldwide foundation and infrastructure for the automatic
information society, enabling advanced services by integrating human and machinery

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(Shin & Park, 2017:77). Simply put, IoT ultimately refers to the incorporation and
converging of various industries, therefore creating a bridge between previously
unrelated industries.

IoT is said to represent a major shift in the history of the internet as connections move
beyond devices and begin to power billions of everyday devices. This is due to the fact
that objects have the ability to communicate regardless of their position in space
(Andersson and Mattsson, 2015: 89). IoT presents organisation with new opportunities
to connect their activities, practices resources and drivers in their business networks.
In the expeditiously evolving interconnected society, everyone, everything and
everywhere will be connected in real time. This includes smart devices, broadband
networks and cloud-based services that will further enhance networking and
connections among consumers and enterprises within society in at large. IoT opens
opportunities for development of new resource constellations in which objects interact
and affect the behaviour and attributes of each other without direct human interference
(Andersson and Mattsson, 2015: 90). An example of this would be automotive industry,
which has already adapted itself this revolution. Consumers have entered an era where
vehicles are able to understand who is inside them and how to connect them to what
they consider important (Wirelessweek.com, 2013). Say for example you are on your
way to a meeting; your car could have access to your calendar and provide you with the
best route to take. Or if the traffic is congested and your car has access to you phone,
it might send a text on your behalf to notify the other party that you will be late.

Within the 4th Industrial Revolution, IoT new technology, such as sensors and network
technology, are changing company processes and consumer interactions. Using
innovative strategies and consumer customization operations, organisations are
creating entirely new business models (Andersson and Mattsson, 2015: 90). Broadband
Internet has become more widely accessible throughout the world. The cost of
connecting to the internet is decreasing, and more gadgets, devices and machines are
being designed with Wi-Fi capabilities and sensors built into them. This has resulted in

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overall technology costs decreasing, with the increase of smartphone penetration is
skyrocketing. All of these factors ultimately resulting in a "perfect storm" for the IoT
(Forbes, 2019).

This is significant as it gives businesses an opportunity to modify and update their

already existing business models in order to adapt to the digital climate of the 4 th
Industrial Revolution. One method business can achieve this, is by using the Network
processes for service innovation model.

Figure 1. Network Processes for service innovation.

Source adopted from Andersson and Mattsson, 2015. The Network Processed for
service innovation model.

This aforementioned model ultimately describes a process by which service business

can use in order to achieve digital innovation. Business networks are fundamentally
open systems. However, connectivity in the universal network are typically not evenly
distributed. This is due to the fact that some actors, activities, practices, drivers and
resources are more actively connected to each other than others are. Connectivity and
interdependence between networks can change all the time, this is caused by various
process that include: globalization, mergers and acquisitions, technical and market
convergence, internet and electronic trade, and the bundling of services. These

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 processed are important as they represent the processes of overlapping between
networks (Mattsson, 1998; Andersson, 2002; Hertz, 1998). The Overlapping within the
networks ultimately changes the network structure and thus allows for new innovations
and positions within the service, by changing the conditions of the original network
coordination (Mattsson, 1998: 245).

2.6. Information Systems

In order for companies to integrate their systems and devices to create a universal
network, they will need to update their Information systems. According to (Zwass, 2019)
an Information system can be defined as an “integrated set of components for collecting,
storing, and processing data and for providing information, knowledge, and digital
products”. It is ultimately a software that helps businesses organize and analyse data.
Information systems are pertinent because business firms and other organizations
depend on information systems to execute, implement and manage their operations,
whilst interacting with their stakeholders such as customers and suppliers, to ultimately
compete in the marketplace (Zwass, 2019). Attempting to merge systems across
functional or departmental boundaries is often complicated. This is due to the lack of
coherence about who has the power to make decisions between higher management
and IT specialists, thus leading to difficulties in selecting options for the correct
information system requirements. (Karababas and Cather, 1994: 4)

Information systems are particularly significant for the 4th Industrial marketing Industry
because they give organisations competitive advantage. This is because information’s
systems can better service delivery performance for organisations whilst giving
feedback on how to measure its performance. There are many organisations that are
built entirely around information systems. Examples of these include eBay, a huge
auction marketplace; Amazon, an e-commerce hub and supplier of cloud computing
services; Alibaba, a business-to-business e-marketplace; and Google, a search engine
company that acquires most of its profits and revenue from keyword advertising on

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 Internet searches (Zwass, 2019). As information systems enable a variety of human
activities, they peg way a profound influence over society. These systems not only
accelerate the pace of daily activities, but also enable people to create and maintain
new and often more-rewarding long-lasting relationships, by changing the type of
products bought, that ultimately influences the essence of work (Zwass, 2019).

Information systems have 5 different components that are the following: Hardware,
Software, Databases, Network and Procedures (Zanderbergen, 2019).

• Hardware: refers to computer-based information systems that utilise physical

computer hardware, such as processors, monitors, keyboard and printers.

• Software: refers to the programs that are used to arrange, process and analyse
data.

• Databases: refer to information systems that work with data that organized into
tables and portfolios and documents.

• Network: refers to the various elements and components that are connected to
each other within a particular ecosystem. These are especially important if many
different people in an organization use the same information system.

• Procedures: refers to how specific data is processed and analysed in order to get
algorithms and answers for which the information system is designed.

2.7. Big Data

Digital transformation is a current megatrend. Consequently, large amounts of data are

generated in what is known as datafication (Ylijoki and Porras, 2018: 4). Big data
ultimately refers to a process that is used uncover the insights and meaning of the
traditional underlying data. Data that is unstructured or time sensitive or simply very
large cannot be processed by relational database engines (Technopedia, 2019). Data
in its raw structure has no value. In order for data to be valuable it needs to be

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processed. This is where big data comes in, this type of data requires a different
processing approach also known as datafication. Datafication describes the analysis of
representations of our lives captured through data. Although datafication is seen as a
form of insight, it could also possible lead to several implications. Among them are
inevitably increasing demand of information technology (IT), i.e. hardware and software
investments that are required to process the data, and the fact that companies
increasingly utilize information (Ylijoki and Porras, 2018:7).

Big data subsequently challenges IT to constantly develop new technology devices that
are human-centred. Big data cannot be converted into information without relevant
technology assets. Big data may require significant investments in technology such as
the aforementioned information systems.

It is undeniable that Big data is a disruptive innovation that will potentially have major
consequences on businesses in the future (Ylijoki and Porras, 2018:8). This is because
keeping up with big data technology is an ongoing challenge. This is due to the fact that
big data technology is changing at a rapid pace. With the advent of the Internet of Things
(IoT), more objects and devices are connected to the internet, thus gathering more data
on consumer usage patterns and product performance. An example of this is Apache
Hadoop. A couple of years ago, Apache Hadoop was the most popular technology used
to handle big data. Then Apache Spark was introduced in 2014. Today, an
amalgamation of the two frameworks appears to be the ideal approach.

Making use of big data requires companies to monitor data flows (instead of static data
sets) and integrating analytics into core business processes. Thus, big data represents
a paradigm shift from the IT side toward the business. The effective utilization of
information is undeniably a source of competitive advantage. Big data initiatives
therefore require up-to-date organizational and managerial abilities that influence the
evolution towards data-driven business (Ylijoki and Porras, 2018: 8). Big data and the
IoT work in coexistence. The data extracted from IoT devices provides a mapping of

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device interconnectivity. These device mappings are significant as they have been used
by the media industry, companies and governments in order accurately target their
audience and ultimately increase media efficiency.

Big data is characterized by the following elements: volume, velocity and variety,
followed by veracity and value (Porras, 2016).

• Volume refers to the increasing amount of data (Laney,2001). Big Data volume is
measured using gigabytes, terabytes or petabytes. Vast amounts of data can result
either from large files, such as video clips, or from a large number of observations.

• Velocity refers to the increasing rate at which data are produced and consumed.
The pace maybe a steady data flow such as real-time GPS coordinate readings
once per second. On the other hand, velocity could also refer to volatile, interval
driven unpredictable data flows (Kitchin and McArdle,2016), such as a data burst
on social media

• Variety refers to data formats and structures (Laney, 2001). Semi-structured data,
for example includes social media posts, whilst unstructured data includes text or
video. Both of these data formats require different approaches compared to
dealing with structured data.

• Veracity relates to the importance of addressing and accessing the accuracy of

data. It ultimately determines the quality of the data based on its authenticity. An
example of this would be forecasting the weather.

• Value relates to the context where the data are used. This element was proposed
by Gantz and Reinsel (2011). Value is ultimately defined by a firm’s profits and
revenue, which directly correlates to the organisation’s performance.

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 3. CHAPTER 3: RESEARCH METHODOLOGY

3.1. Introduction

There are three designs an academic can consider for a research study and they are the
following: qualitative, quantitative, and mixed methodologies are all research tools that
could be utilized (Nieuwenhuis, 2016).

a) Qualitative Research

Qualitative research can be described as one in which the researcher makes knowledge
claims and predictions based primarily on constructivist perspectives or participatory
perspectives or both. (Creswell, 2003:18)

b) Quantitative Research

Creswell describes quantitative research as one in which the inquirer uses prior
knowledge in order to develop a hypothesis or prediction of results or research outcome.
This type of research is heavily based on numerical values and data that can be proven
through statistics and probabilities.

c) Mixed Methodologies

This method uses a pragmatic approach and collects both qualitative and quantitative
data sequentially and uses it to develop a rationale for research purposes. (Creswell,
2003:18). Mixed methods are significant as they present and interpret visual pictures of
the procedures of the study.

For the purpose of this research study, Qualitative research shall be used in efforts to
collect relevant data. Qualitative research would be best fitting as qualitative research, it
allows for in-depth understanding and insight into the actions, emotional state and
attitudes of millennials in the digital climate. This research study shall be exploratory

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research. The reason for this is that with Industry 4.0 emerging, many new paradigms
and questions come about, which results in some research becoming questionable.
Exploratory research aids understanding of an unknown or uncharted area of research.
The research shall be an inductive method as this approach allows for the investigator to
interact and get closer to understanding the methods organizations use to communicate
with their current consumers, and how that may be altered by the digital revolution and
Industry 4.0 (Maree, 2016).

3.2. RESEARCH PARADIGM

When expanding on the research design, one must also consider the research paradigm.
A paradigm consists of the following components: ontology, epistemology, methodology,
and, methods. Each component will be explored below, and ultimately assess the
relationships between them.

a) Epistemology

Epistemology is interpreted as the nature and forms of knowledge (Scotland, 2012:9).

Ultimately epistemological conventions are associated with how knowledge can be
created, acquired and communicated, in other words what it means to know. Lastly
epistemology probes the nature of relationship between the knower and what could be
known? With regards to this research study, epistemology shall help provide businesses
with insight into their future markets and consumers.

b) Ontological

Scotland 2012, Defines Ontology as the study of reality and being. Ontological
assumptions are associated with what constitutes reality, in other words what is.
Researchers need to question their surroundings or research in accordance to their
perceptions of how things really are and how things really work. With reference to this

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research study, Industry 4.0 is not a social construct, but rather reflects the reality that is
upon society, known as digitization or Industry 4.0.

c) Axiology

Axiology is the strategy or plan of action which lies behind the choice and use of methods
(Scotland, 2012:9). Thus, methodology examines why, what, from where, when and how
data is collected and analyzed. Ultimately, axiology asks the researcher on how to go
about collecting data. This research shall provide investigators or scholars with deeper
insight into how Industry 4.0 will revolutionize the world.

When considering the above-mentioned research problem, the interpretivist or ontological

paradigm is the most suitable. the interpretivist paradigm is described as one that
accumulates data, analyses it and then formulates a theory based on the information and
observations. The reason for choosing this approach compared to the deductive
approach is the fact that the inductive approach is primarily constructed from gathering
information first and then coming up with concepts or theories (Maree, 2016). We shall
be gathering information and data from both the business and the consumer, providing
different perspectives of the digital and communication spectrum.

3.3. POPULATION

A sample group of the considered target market will be engaged with through a group, to
gain an understanding of how consumers use technology and internet to communicate
with various brands. In-depth interviews will be conducted with participants that identify
as the ‘Post Millennial or Generational Z’. These are likely individuals who have internet
connection and are available on social platforms. In depth interviews will also be
conducted with relevant corporations and organizations. This will be to evaluate how big
corporations will be affected within the 4th Industrial Revolution and the radical shift to
digitization. The organization that has been chosen is the Toyota brand. Toyota is a

23
suitable organization for this study as it a global brand that is well known that will be
affected by the changes that Industry 4.0 will present.

3.4. SAMPLING

Theoretical sampling refers to the sample dimensions and addresses the ensuing
questions; how many partakers, occurrences or actions must be considered before no
new information would be impending? Ultimately sample size depends on what the
researcher wants to know, what is at stake, what will be useful, what will have credibility
and what can be done with available time and resources (Maree 2016: 84). In the case
of this research study, we shall make use of purposive sampling. Purposive sampling is
when members of a sample are chosen with a ‘purpose’ to represent a phenomenon,
group, incident, location or type in relation to research conditions. With regards to this
particular research study characteristics that need to be considered are the fact that the
participants have to be between the ages of 17-22 that have internet access and are
available on various social media platforms. Purposive sampling was chosen for the
focus-group interviews as only people who identified as part of “Generation Z’ are going
to be interviewed.

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3.5. RESEARCH PLAN/METHODOLOGY

This literature review shall take on a two-phase data collection approach; namely online
questionnaire and in-depth interviews.

Table 3.1. Data Collection Methods:

Planned Sequence Planned Activity and Technique to be used

1 Administer online survey

2 Conduct one-on-one interviews

3 Possible follow-up of one-on-one interviews and/or

focus-group interviews.

(MAREE, 2016:38)

3.5.1. Interviews

There are three fundamental types of research interviews: structured, semi-structured

and unstructured interviews. Designed for this research case, the best suited option
would be semi-structured interviews. Semi-structured interviews consist of numerous
vital questions that help to outline the areas to be explored, but also allows the
interviewer or interviewee to deviate in order to pursue an idea or response in more
detail. (Gill, Stewart, Treasure, and Chadwick, 2008:291). Ultimately, the purpose of
interviews is to explore the fundamental views, experiences, beliefs and/or motivations
of individuals/participants on specific matters. Interviews may be beneficial as follow-up
to certain participants to further explore their responses. These interviews shall be
conducted with managers and directors of relevant marketing companies. The aim of
the interviews will be to gain deeper insight into their current business models, target
market and what it would take for them to adapt to a more digitalized approach.

25
 3.5.2. Follow-up interviews

Follow-up interviews will be conducted with relevant organizations, in order to evaluate

if they have adopted a more digital approach in their business models, in order to comply
with Industry 4.0. The follow-up interviews shall occur 3 weeks post first interviews. The
aim for these follow-ups is to confirm that the information from the initial interview
remains the same. When interviewing Big corporations

3.5.3. Online Survey

\]According to (Bhat, 2019) an online survey is a set of survey questions is sent out to
a target sample and the participants of this sample can respond to the questions using
the internet. The Respondents receive these surveys through various channels these
could include email, embedded websites, social media etc. Advantages of using online
surveys as a research tool is that it has the advantage of reaching a wider audience
through the use of the internet (Wright, 2017). The survey shall be conducted through
survey monkey and sent out to the aforementioned sample group. The aim of using this
research tool is to gather more data on customers, including everything from basic
demographic information (age, education level and so on) to social data. This research
tool should also provide insight on how consumers feel about the 4th Industrial
Revolution. Another advantage of using online surveys as a research tool is that they
offer respondent anonymity (Sutherland, 2019). Due to confidentiality features
participants feel more comfortable providing open and honest feedback.

3.6. DATA ANALYSIS METHODS

Once all relevant research and insights have been collected an inductive data analysis
shall be applied. This is significant as it will assist in formulating a solution to the

26
aforementioned problem statement. Triangulation shall be used in order to analyze all the
data gathered from the research findings.

3.7. VALIDITY

When investigating the validity and reliability of data, the four measures that need to be
considered for qualitative research is credibility, transferability, dependability and
confirmability.

a) Credibility

(Maree, 2016:123) defines credibility as the ability to assess the congruency of the
findings in relation to the reality. Credibility questions the investigator on how to warrant
that the reader will have confidence in in the findings of the research. Credibility is also
enhanced through the expansion of an early acquaintance with the participants and
the participating organizations, but also through a distinct, purposive sampling, detailed
data-collection methods and triangulation.

b) Transferability

Refers to researchers making connections between elements of study and to their

personal experiences. To upsurge transferability, researchers should focus on how the
partakers of the study are responding in that context, whilst also considering the
context to which the discoveries apply (Maree, 2016: 124). In order for transferability
to be effective it is the investigator’s responsibility to paint a full picture of the context,
this can be achieved using two methods: thick description and purposeful sampling.

c) Dependability

Dependability is verified through the research design and its execution; the functioning
aspect of data gathering; and the insightful review of the project. Ones initial research
design may change as the study commences, and new data sources and gatherings
techniques could be incorporated (Maree, 2016: 124). Ultimately documenting the

27
 entire research process makes the source and one’s data more dependable and
credible.

d) Confirmability

(Maree 2016:125) defines confirmability as the degree of objectivity or the extent to

which the findings of a study are shaped by the contributors and not by the investigators
bias, incentive, or interest. Strategies that are used to increase confirmability include
triangulation which reduces the effect of researcher bias. In order to reduce researcher
bias, investigators need to admit their own predispositions.

3.8. ANTICIPATED CONTRIBUTION

The most important contribution of the study will be the evaluation how current business
models and how they relate to the current digital climate and the future of Industry 4.0.
The most important and valuable data will come from the various organizations that will
be interviewed as they will provide insight into current and future target markets as well
as market trends that will be subject to change as the introduction of the Fourth
Industrial revolution commences.

3.9. ETHICAL CONSIDERATIONS

Every study has its limitations and researchers often experience problems in collecting
and analyzing their data. Before an interview takes place, respondents should be
informed about the study details and given assurance about ethical principles, such as
anonymity and confidentiality. This gives respondents some idea of what to expect from
the interview, increases the likelihood of honesty and is also a fundamental aspect of
the informed consent process. Ethical considerations shall be orchestrated through
acquired consent by the respondents participating in the focus groups and interviewers.
Prior to commencing the questions, a signed letter of consent will be completed by each
participant, participants will also have the right to remain anonymous should they wish
so.

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4. CHAPTER FOUR: PRESENTATION AND DISCUSSION OF FINDINGS

4.1. Introduction

In this chapter, the data collected from the one-on-one interview and the online survey
are presented. The data is displayed through graphs, pie charts and a word cloud. The
data from the respondents is further examined and analyzed in order to provide relevant
insight for the study. The data will be analyzed in conjunction to the research objectives
that were proposed earlier in this study.

4.2. Presentation and discussion of findings

The above mentioned will be explained and discussed in greater detail in order for a
deeper understanding and further insight into the findings. The analysis of the data was
conducted as per the research methodology discussed in Chapter 3, whereby
triangulation was used in order for the study to remain credible. It is important to note
that because it was a small-scale qualitative study, results cannot be not generalized to
the broader population. Graphs and pie charts have been presented based on the
research findings, particularly to highlight demographic issues

4.3. Demographics of respondents

Online survey

An online survey was sent out to various participants in attempt to get insight on how
they felt about the 4th Industrial Revolution. The questionnaire had 10 questions and a
total of 29 respondents completed the online questionnaire. The demographics that
were gathered in this survey were age, internet usage and accessibility. In the sample
it was stated that the targeted sample group were participants under the age of 23, who
identified as ‘generation Z’. Below is a pie chart representing how many respondents
identified as ‘generation Z’ as well as the other respondents.

29
Figure 4.1. The age of the online respondents

As seen above, it is noticed that majority of the respondents were between the ages of
24-42 identifying as ‘Generation Y’. This is significant as it contrasts the original
intended sample size being ‘Generation Z”. Generation Z however, respondents came
in second though, with a percentage of 37%.

Another demographic indicator that came through in the findings was the access and
usage of the internet. This demographic indicator is important as it represents the
possible LSM (Living Standard Measurement) that the respondents could fall under.
Having access to internet and WIFI is an indicator of a high LSM usually ranging from
8-10. It’s also significant as most South Africans do not have access to internet therefore
not giving them access to information or global news. Below is a graph representing the
access to internet.

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 Do you have constant access to
WIFI/Internet services?

Yes
No
0 20 40 60 80 100 120

Responses

Figure 4.2. The internet access of respondents

4.4. Results and Discussion of 4th Industrial Revolution

Online Survey

Below is a presentation of the results captured from the respondents who participated
in this study. The results have been presented in a table format and will be discussed
beneath each table presentation. Although it is presented in a quantitative aspect,
results are discussed from a qualitative approach where themes and patterns have been
identified. Only when there is a difference of views between certain demographics will
it be discussed and commented on.

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The first question that was asked for this section was to test the respondent’s knowledge
of the 4Th Industrial Revolution. Below is a pie chart representing the percentages of
participants who know about the 4th Industrial revolution.

DO YOU KNOW ABOUT THE FOURTH

INDUSTRIAL REVOLTUION?

17%
Very aware
37%
Somewhat aware

Not so aware
23% Not aware at all

23%

Figure 4.3. Consumer knowledge about 4th Industrial Revolution

32
The next question in the online survey was aimed to gather consumer perspective on
brand engagement. The responses have been summed up into a word cloud and
provides researchers with the perception of the various participants. This links back to
the 3rd research objective, being to ‘evaluate how consumers make use of digital
platforms to communicate with organisations. The survey question was as follows:

Do you think social media has affected how brands communicate with us?
(Please explain)

Below is a word cloud to represent consumer responses and perceptions about brand
communication and engagement. These are the words or concepts that consumers
associate with brand engagement.

Figure 4.4. Consumer perception on brand engagement

33
The next question in the online survey aimed to assess the popularity of social media
platforms in order to communicate to brands. This is relevant to the 4 th Industrial
revolution study as it demonstrations the shift in consumer and brand engagement and
dynamics. It shows the importance of brand online presence and communication. This
question is significant as it also relates back to the 3 rd research objective being ‘to
Evaluate how consumers communicate with brands’. Below is a graph showing the
most popular social apps and networks used to engage with brands.

Figure 4.5. Which is the most popular social media to communicate to brands

34
The next question that was asked in the online survey was to access consumer
knowledge about the implications of data hacking within the 4th Industrial Revolution.
With the impending 4th Revolution, privacy infringements and data safety pose as
possible threats as most digital information will be accessible through various cloud
systems. This is significant as it is an ethical consideration that organizations as
consumers need to be aware of. Data hacking could affect the use of social media, the
sharing of information and the overall rights of human civilization. Data has become one
of the most expensive currencies as brands and organizations are selling consumer
data in order gain more target market insight. It is noted in the graph below that only
46% of the respondents knew of the dangers of data hacking. This is important as
organizations should responsible in educating consumers about the dangers of social
media and data mining.

ARE YOU AWARE OF THE IMPLICATIONS OF DATA

MINING AND HACKING WHILST USING SOCIAL MEDIA?

Not at all aware

3.33

Not so aware
20

Somewhat aware
30

Extremely aware
46.67

Figure 4.6. Consumer awareness about data hacking

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Another question that was assessed in the online survey, pertained to the various
sectors of the 4th Industrial revolution. Due to the immersion of a new digital age, new
sectors will emerge as a result of new innovations and technological shits. In order to
accommodate the digital climate organizations and governments could fail to employ
and regulate new technologies to seize their profits. 4TH Industrial Revolution could be
within the control of consumers as long as we are able to cooperate across geographies,
sectors and disciplines in order to take advantage of the prospects it offers.

IF YOU WERE TO INEST IN THE 4TH

INDUSTRIAL REVOLUTION, WHICH SECTOR
WOULD IT BE?

10% 7%
Robotics
10% Articifial Intelligence
21%
Social Media/Apps

14% Big Data

Cloud Computing
Sensors/Virtual reality
38%

Figure 4.7. 4Th Industrial Revolutions sectors

36
 4.5. One-on-one Interview

The second research methodology that was used was interviews. One interview was
conducted with an executive of the Toyota brand. The participant wished to remain
anonymous but holds the position of one of the Vice presidents at Toyota. The following
discussion shall outline the outcomings of the interview that was conducted. This
element of the research study is directly related to the 2 nd research objective being to
‘Evaluate how Industry 4.0 impacts organizations and their business models’. This
discussion shall only highlight the important key takeout’s from the interview. The
interview had 10 questions, but only the most important shall be discussed in this
section. For full interview questions and transcripts refer to Appendix B and C.

First question that was asked in this interview was:

What business model does Toyota follow?

Toyota is a car manufacturing organization. Their business production model is based

on their internal philosophy called ‘The Toyota way.’ The Toyota Way is a set of
principles and behaviors that were established in 2001. These values and principles
outline Toyotas managerial approach and production system. The pillars are focused
on two key aspects: continuous improvement, and respect for people. These principles
are adapted from Japanese language, continuous improvement in Japanese (kaizen)
and respect for other people (Genchi Genbutsu). With these principles in mind, it is
important to also outline Toyota’s overall strategy. Toyotas overall manufacturing
strategy and core business model is to have ‘minor facelift’s’ throughout their motor
vehicle products life cycle. An example of this is to release a car every 10 years, but
every year or two have minor changes such as interior etc.

37
The second question in the interview related to Toyotas communication efforts. It aimed
to assess the current methods that Toyota uses to communicate with their relevant
stakeholders. This is significant as it relates to the 3rd research objective being to
‘Evaluate how consumers make use of digital platforms to communicate with
organizations. It was important to gain the perspective of consumer engagement not
only from consumer perspective, but a brands perspective. The question was as follows:

How does Toyota currently communicate with its stakeholders (both internal and
external)?

Toyota communicates with its external and internal stakeholders using a variety of
media channels. These include social media, emails, sms, face-to-face, skype,
newspapers etc. Social media is used as a tool to target their consumers according to
their demographics, and locations. Social media is also pertinent to the brand as it helps
the brand remain relevant amongst its consumers. Toyota often makes use of
advertisements on YouTube to capture their audience. The Toyota twitter page is used
as a directory to inform consumers on upcoming events, new car models and any
activity that Toyota might be participating in. Toyota does not have one global twitter
page, but rather twitter pages designated for each country that they are available in.
This helps consumers easily locate and engage with brand and ask relevant queries
and questions based on their country’s location as well as consumer experience.

38
The next question was related to 4th Industrial revolution. This question aimed to test if
Toyota a s brand was aware of the 4Th Industrial revolution and the implications and
challenges it could pose for the organization. This question is significant as it relates to
the 1st and 2nd research objectives being to firstly ‘Explore the uses of Industry 4.0’, and
secondly, ‘Review how Industry 4.0 impacts organizations and their business models’.
The question was as follows:

How is Toyota going to equip itself for the 4th Industrial Revolution (what
changes)?

Toyota is very aware of the fast approaching 4th Industrial Revolution and its
technological changes. As a result of this revelation, Toyota plans to expand their hybrid
model cars. Toyota already has hybrid model cars called Prius hybrid vehicle. A hybrid
car can be described as a vehicle that combines one electric motor with a gasoline
engine to move the car, and its system recaptures energy via regenerative braking. The
benefit of electric cars is that they are deemed as more environmentally friendly,
because they use less fuel, which ultimately means less emissions.

A possible challenge that 4th Industrial revolution can present for the Toyota brands is
Automation and Digitization. Automation refers not only the automation of cars, but also
the automatization of mass labour. Autonomous cars can be defined as self-driving
cars, these are posed as a challenge for the Toyota brand as it will soon become an
expectation from consumers and that will as a result impact the entire manufacturing
Industry. Labour automation poses as a serious threat as there will be an inclination of
robots and technology in the factory, therefore replacing human labour. This will thus
directly impact employment and job security in the 4th Industrial Revolution. Another
challenge of the 4th Industrial revolution is Car sharing. Due to the radical technology
shot and booming economic climate some consumers won't be able to afford their own
cars due to the expensive car market. Consumers will then be forced into concepts such

39
as car sharing. Car sharing is the practice of sharing a car for regular travelling,
especially for commuting. Although the 4th Industrial revolution could present many
challenges for the vehicle manufacturing industry, The Toyota executive also noted that
it could also be an opportunity to train people and develop the right skills in order to be
compatible with the automation and digitization.

The last relevant question was aimed to assess the ethicality of Toyota’s data collection
process and management. This question is pertinent to this study as it relates to the 4th
research objective being ‘To consider the ethical implications of Industry 4.0’. This will
be assessed from an organizations point of view, and how the brand protects and
captures its consumer data. The question was as follows:

How does Toyota manage its current data?

Toyota handles its data using EMC server systems. It is a Dell powered server system.
The product offering includes data storage, information security, virtualization, analytics,
cloud computing and other products and services that enable organizations to store,
manage, protect, and analyze data. Toyota only replenishes their data after 10 years of
use. Toyota does not share or sell their consumer data with any other cooperation as it
falls under one of their philosophies in ‘respecting others’, this core value is not only
practices internally, but extended to their consumers as well. Toyota makes use of EMC
servers to protect their consumers data from possible hackers. Cloud systems are seen
as a possible threat for foreign hackers and company spies.

40
 CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS

5.1. Introduction

The conclusions and recommendations of the research are presented and discussed
below in relation to the previous chapter findings and research objective. These findings
and deliberations are followed by a conclusion and recommendation for each. In addition,
suggestions for further research are made. The chapter ends by concluding the research
and recommending future research studies.

5.2. OBJECTIVE ONE

The first objective was to Explore the Uses of Industry/web 4.0

5.2.1 Findings from Literature

From the secondary and primary research conducted, it was evident that the fourth
Industrial Revolution would bring about massive change and boom in digital and
technology sectors. During the conduction of secondary research, it was noted that it is
important for consumers to acquaint themselves with 4Th Industrial terminology and
literature as discussed in the second chapter of this dissertation. We explored the
following frameworks: Digitalization, Artificial Intelligence, Virtual Reality, Internet of
Things, Information Systems and Big Data. These frameworks were found to be
appropriate works as they progress on the technological and systematic implications that
Industry 4.0 will have on organizations in the marketing Industry. The most important
takeout from this literature study was the definition and use of web 4.0. According to
(Almeida, 2017:7041) web. 4.0 is a new evolution of the web paradigm that describes a
new level of internet usage. It is also known as a symbiotic web, which describes the
interaction between humans and machines in symbiosis.

41
5.2.2. Findings from Primary research

Findings from the primary research supported the findings from the literature but greater
insight was found from the one on one interview. The main finding was the challenges
that the 4th Industrial revolution would pose on the manufacturing sector. Atomization
was found to be a major threat for the industry as it would result in a loss of jobs, and
ultimately a loss of humanity due to vehicles would be self-driven and automated. This
coincides with the secondary literature as a possible challenge that was posed in the
literature was the ‘loss of human touch’ and interactions. Another insight that was taken
from the interview was the sumptuousness and inaccessibility that would result from the
4th Industrial revolution. Due to everything becoming more digitized, accessibility to
certain services and products will become scarcer for the ordinary south African citizen.

5.2.3. Conclusion

From the research gathered from both the literature as well as the research for this
objective, it revealed that although the Fourth Industrial revolution could have many
benefits and bring about new technological innovations, it also poses many challenges.
These biggest challenges currently being the threat of job security and employment, as
well as data privacy and hacking.

5.2.4. Recommendations

The recommendation moving forward would be to continue educating consumers and

businesses about the 4th Industrial revolution. This is to equip individuals with the
adequate skillsets so that they can adapt and be relevant within the digital landscape.
Educating civilians about the 4th Industrial revolution will also assist in the integration of
machinery and automation; this will thus make the transition from human to machine
symbiosis more seamless.

42
5.3. OBJECTIVE TWO

The second objective was to Review how Industry 4.0 impacts organizations and
their business models

5.3.1. Findings from Literature

(Plesne, Justesen, and Glerup, 2018:1178) argue that digitalization drive how brands and
organisations operate and ultimately introduce new business models for organizations.
As a result of Industry 4.0, brands will be required to integrate and move towards a more
digitally adept business model in order to effectively communicate to its stakeholders and
adapt to the market. Another significant finding that came out of the secondary research
was Information systems. Information systems are predominantly noteworthy for the 4th
Industrial revolution as they give organisations and brands competitive advantage. This
is due to the fact that information systems offer greater service delivery performance for
organisations as they give feedback on how to measure company performance.

5.3.2. Findings from primary research

From the one-on-one interview, it was discovered that Industry 4.0 will impact business
models, particularly the manufacturing industry was the atomization of the industry.
Through the interview, the respondent atomization and digitization as one of the biggest
threats in their current business model as it would result in a lack of employment and
influx of robotics and machinery.

5.3.3. Conclusion

In conclusion, many brands will be obliged to review their current business practices in
order to compete and adapt within the digital climate. The 4th Industrial revolution will
present many challenges for businesses as many labour jobs will be replaced with Articial
intelligence or automation.

43
5.3.4. Recommendations

A recommendation would be to start phasing out old business models and focus on
teaching and learning new business models and adaptations. New business models
would include cloud computing systems as well as an integration of IOT’s. Another
suggestion would be for companies to start investing in better computer systems in order
to compete in the

5.4. OBJECTIVE THREE

The third research objective was to Evaluate how consumers make use of digital
platform to communicate with organizations

5.4.1 Findings from Literature

Artificial Intelligence will undoubtedly revolutionize the communication of consumers and

organizations, scientists are however predicting that due to the huge dependency on AI,
it could result in the extinction of humanity. Scientists also argue that AI will result in a
huge unemployment rate across the globe due to humans being replaced by machinery
(Alsedrah, 2017). Virtual Reality is also another significant and relevant framework in
today’s digital climate. Virtual reality is pertinent as it plays a role of value co-creation by
giving consumers the prospect to customize their brand experiences by making them
tangible.

5.4.2. Findings from primary research

Through the primary research, it was discovered that most consumers use digital and
social media in order to engage and communicate with their favourite brands. According
to the study the most popular brand that consumers use was Instagram as users find
pictures and video content to be more interactive and visually and audibly attractive.
Respondents also associated brand communication with feedback and stated that social

44
media was the easiest and most convenient tool to get a response from a brand.
Respondents also went on to add that they preferred social media interactions as they
felt that the engagement was more direct and personalized as brands would response
directly to their questions or queries. Another significant finding was that consumers were
aware of the use of social media for brands to target their audiences effectively.

5.4.3. Conclusion

It can therefore be concluded that social media is a very successful communication

channel that continues to maximize and leverage brand equity. Social media is a relevant
digital tool used by brands to enhance their brand identity and image. It is a tool that
assists brands in remaining relevant and current in the minds of their consumers.

5.4.4. Recommendations

Moving forward, brands should continue to use social media as a tool to communicate to
their stakeholders. Brands should invest in chatbots as well as integrate more virtual
reality in their communications strategies as it would be a competitive advantage that
would encourage consumers to engage even further.

5.5. OBJECTIVE FOUR

The fourth objective was to Consider the ethical implications of Industry 4.0 in any
business sector.

5.5.1. Findings from literature

From the secondary research in chapter 2, one key element that related to ethical
considerations is Big Data. Big data is term to analyse, analytically abstract data from, it
also entails data sets that are too large or complex to be dealt with by traditional data-
processing application software. Big data is significant to this study as it requires
45
companies to monitor data flows (instead of static data sets) and integrating analytics into
core business processes. Thus, big data embodies a paradigm shift from the IT side
toward the business. The effective utilization of information is undeniably a source of
competitive advantage (Ylijoki and Porras, 2018: 8). Big data cannot be converted into
information without relevant technology assets. The data that needs to be analysed is
usually derived from consumer internet activity and is typically mined through tracking
consumers digital footprint.

5.5.2. Findings from primary research

From the primary research conducted, it was discovered that consumers are aware about
the dangers of data mining and hacking. Although consumers were aware of the risks of
data hacking, many knew that not much could be done, as there is currently no law
against data mining. From a business point of view, Toyota was an organization that was
considered as ethically moral as they valued and respected their consumers, by not
sharing their data with any other organization as well as went through lengths to
continuously protect it.

5.5.3. Conclusion

Data hacking and mining is a huge threat in the 4th industrial revolution. Due to the rapidly
changing information systems, data sharing and mining could be standardized business
practice if the right laws and acts are not soon placed by government.

5.5.4. Recommendations

A recommendation would be for businesses to assure the consumers data would not be
sold or used by any other institution besides the organisation. The government should
also create a formal data rights act that will protect consumers from having their data and
privacy invaded through their digital footprint.

46
5.6. Concluding remarks

Through this study, it was discovered that due to the evolution of the world wide web,
specifically web 4.0, technology has and will continue to impact how brands communicate
to their consumers, particularly within the African environment.

This study provided more insight on how the evolution of the world wide web, specifically
web 4.0 influenced the boom of technology which catapulted the rise of the Fourth
Industrial Revolution. The fourth Industrial revolution focuses on the evolution of
technology and how businesses need to adapt in order to effectively communicate to their
stakeholders. Through the research it was found that due to the digital disruption, brands
today use means of social media and various technological innovations to communicate
with their consumers. These technological innovations included: Artificial Intelligence,
Virtual reality, the internet of things, information systems and lastly Big Data. Artificial
Intelligence focused on the robotics and the automation of future devices in the business
environment. Virtual reality focused on creating simulated prototypes in order to give
consumers a more customized brand experience. The internet of things focused on the
interconnectivity of all technological devices, and how business could use that to their
advantage in order to gain data and insights from their target audience. Information
systems focused on businesses updating their technology and its devices in order to
remain relevant and compete within todays digital climate. Big Data looked at the
collection and processing of data collected from various tech devices in order to predict
future algorithms to influence customer purchase behaviour. These various innovations
are pertinent to the 4th Industrial Revolution as they allow for interactive, instantaneous
and responsive communication between brands and their stakeholders. The findings
found that the integration of Web 4.0 into business models is pivotal, as it ultimately will
define an organisations competitive advantage.

47
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 7. APPENDIX A
Consumer (Online) Questionnaire

1. How old are you?

(GEN Z) (GEN Y) (GEN X) (BABY BOOMERS)

23 & under 24-42 43-64 65+

2. Do you know about the 4th Industrial Revolution?

Very aware

Somewhat aware

Not so aware

Not aware at all

3. Do you have access to WIFI/Internet services?

Yes / No

4. Do you have social media?

5. Yes / No

6. If yes which of the following social media? (May choose more than one)

Instagram Facebook

Twitter LinkedIn

WhatsApp YouTube

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7. What do you use social media for? (May choose more than one)

Post and go (no interaction)

To interact with friends, colleagues, acquaintances etc.
To watch/ stalk peoples accounts
To follow and stay updated with my favorite brands
To have multiple online connections and networking experiences

8. Do you think social media has affected how brands communicate with us? (Please
explain)

9. Are you aware of the implications of data hacking/mining whilst using social media/
internet?
Extremely aware
Somewhat aware
Not so aware
Not at all aware

10. If you to invest in the 4th Industrial Revolution which sector would it be in?

Robotics
Big Data
Artificial Intelligence
Social media/Apps
Cloud Computing
Sensors/Virtual Reality

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 8. APPENDIX B
Organization Questionnaire (Interview)

TOTOYA BRAND

1. What is your position within Toyota?

2. How long have you been working at Toyota?

3. What business model does Toyota follow?

4. How does Toyota currently communicate with its stakeholders (both internal and

external)

5. Are you aware of the 4th Industrial revolution?

6. How is Toyota going to equip itself for the 4th Industrial Revolution (what

changes)?

7. How does Toyota manage its current data?

8. Where do you see the Toyota brand in 10 years’ time?

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 9. APPENDIX C

Toyota Interview Answers

1. Manufacturing Vice President

2. Since 2001 (18 Years)

3. Manufacturing Business model = Car manufacturing , stakeholder relationships=

various mediums face-to-face, email, skype etc. Strategy is to have ‘minor
facelifts’ throughout their products life cycle. An example of this is to release a car
every 10 years, but every year or two have minor changes such as interior etc.

4. External= Social media, newspapers, adverts, sms to targeted customers

5. Toyota is very aware of the fast approaching 4th Industrial Revolution and its
technological changes. As a result of this revelation, Toyota plans to expand their
hybrid model cars. Toyota already has hybrid model cars called Prius hybrid
vehicle. A hybrid car can be described as a vehicle that combines one electric
motor with a gasoline engine to move the car, and its system recaptures energy
via regenerative braking. The benefit of electric cars is that they are deemed as
more environmentally friendly, because they use less fuel, which ultimately means
less emissions.

A possible challenge that 4th Industrial revolution can present for the Toyota
brands is Automation and Digitisation. Automation refers not only the automation
of cars, but also the automatization of mass labour. Autonomous cars can be
defined as self driving cars, these are posed as a challenge for the Toyota brand
as it will soon become an expectation from consumers and that will as a result
impact the entire manufacturing Industry.

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 Labour automation poses as a serious threat as there will be an inclination of
robots and technology in the factory, therefore replacing human labour. This will
thus directly impact employment and job security in the 4th Industrial Revolution.
Another challenge of the 4th Industrial revolution is Car sharing. Due to the radical
technology shot and booming economic climate some consumers won't be able to
afford their own cars due to the expensive car market. Consumers will then be
forced into concepts such as car sharing. Car sharing is the practice of sharing a
car for regular travelling, especially for commuting. These points are all considered
as business opportunities as because they have foreshadowed or foreseen what
is to come for the future. It's also important to train people and develop the right
skills in order to be compatible with the automation and digitisation.

6. Already answered

7. Toyota handles its data using EMC server systems. It is a Dell powered server
system. Dell EMC sells data storage, information security, virtualization, analytics,
cloud computing and other products and services that enable organizations to
store, manage, protect, and analyze data.

8. Toyota has been the leading car manufacturer in South Africa for the past 40 years.
And in the next 10 years hopes to still maintain that status. This due to them
always staying ahead of the market, Toyota has a quick response to current market
conditions and customer demands.

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