End Of Competition, The: The Impact Of The Network Economy. C N A Molenaar

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      • machines substituting manpower (e.g., for textiles);

      • new forms of power production (e.g., waterpower, steam engines);

      • use and processing of new materials in different ways (such as cotton and linen).

      The Second Industrial Revolution started at the end of the 19th century, with the application of technology in new forms of transport: the car and the airplane. The world consequently became smaller and the physical infrastructure was modified again, with roads alongside railways. Technological changes in turn led to a chain reaction and to changes in society. The introduction of electricity around the turn-of-the-century, i.e., from the late 19th to the early 20th century, also resulted in a disruptive change. ‘The end of night’ became a reality, increasing the length of days and making new developments possible. The new inventions that arose from this, such as the telegraph and telephone, made the world even smaller and led to new forms of communication. First the newspapers were published; this was quickly followed by the invention of the radio.

      The motors of change were the technologies (which sped up and improved mobility), the distribution of information and new forms of communication. International trade became evermore important and prosperity increased. America led the way, while the new discoveries resulted in further prosperity and a new elite (the owners of the machines).

      The most important changes were as follows:

      • a broader impact of technology on society;

      • the application of the combustion engine (cars, aviation, machinery);

      • mass production through further industrialisation and applications in the processing industry.

      The Third Industrial Revolution started in the 1960s with the emergence and application of computers. These computers initially had a facilitative function and enabled greater efficiency by taking over certain tasks; manual work became automated. The areas in which the computers were applied changed particularly in the 1970s and the decades that followed. Automation increasingly developed into computerisation (information technology (IT)), making information more accessible and improving the communication medium. This development heralded the disruptive changes that were in store for many facets of our daily lives. It also meant the start of the service sector. Due to the increased computerisation, the decision-making process became evermore complex, leading to the creation of more services that would help and relieve companies and individuals in this work. Services were developed that would help to interpret the information to allow for better decisions. Although these changes did lead to adaptations, the old structures remained intact in many cases. Changes require time, acceptance and vision.

All three factors (computerisation, communication and efficiency applications) needed time, but small changes had major consequences.² IT helped in gaining greater knowledge and insight into what was happening, and the mobility broadened the perspectives of private individuals, businesses and leaders. Old boundaries (mental and physical) came under pressure. There were also major consequences on the political front. The Eastern bloc could not hold up, and the wall fell. China (Asia) emerged as a world power and America profited maximally from its head start (America did not suffer any economic damage from the Second World War; this actually resulted in an economic revival with America becoming the world leader). Increasingly more capital became available for investments, a reinforcing process, which led to greater prosperity and new applications in the area of technology. The emergence of the Internet as an information and communication medium, in the early 1990s, was the last step in a change process from limits (restrictive) to no limits. Physical limitations became virtual challenges. In the Netherlands, the rank and file of the political parties continued to remain faithful to this for quite some time. It was only at the start of the 21st century that the old electoral structure was breached, in particular by the new 18-year-old (and older) electorate.

      America became increasingly important as a world leader and undisputedly led the way when it came to technology. Companies such as GE (General Electric) and IBM, as well as the automobile industry and particularly large companies in the telecommunication and automation sectors, developed a new infrastructure that was led by America. This was considerably more extensive and far-reaching than ever before and affected all facets of daily life. Due to this development, the American lifestyle became the norm, and American prosperity the aspiration.

      The most important changes are as follows:

      • the use of computer technology in industry and in durable and consumable products;

      • mass production and marketing for mass markets;

      • greater efficiency and increased internationalisation.

      We now hear about the Fourth Industrial Revolution based on Internet applications. Barriers of time, location, information, timeliness and communication are disappearing rapidly. These developments are leading to changes, often disruptions, and are no longer limited to a particular area. They are interconnected. The applications and changes in a geographical area, in society or in the applications of the technology are interchangeable. They can be applied directly in many areas. It is no longer possible to isolate a particular application (whether per application area or geographical area). Thanks to the Internet, everything is interconnected, and there is insight into the consequences and the possibilities of changes. The accessibility of information is helping to empower everyone more than ever before. Knowledge and power are being devolved to anyone who wants it. This is the basis of the network economy. The development from an agricultural society to an industrial society, then to a society based on IT, will eventually lead to a network economy that connects everything with everyone. This Fourth Industrial Revolution is much more far-reaching than all other previous industrial revolutions. The rules of play will have to be discovered and determined all over again. This period of transformation will of course lead to frictions, tensions and new balances of power (Figure 1).

      Figure 1. From Industry 1.0 to Industry 4.0 (engineersjournal.com).

      Important changes are the following:

      • unparalleled speed and extent of the changes;

      • disruption of all markets and industries, as well as consumer behaviour;

      • a structural change of systems, production, society and markets.

      What has the Past Taught Us?

      The first two industrial revolutions were primarily focused on the transition from human production capacity to machine production capacity, as well as on the automation and optimisation of processes. During the Third Industrial Revolution, the emerging possibilities of IT and electronics made a shift possible from a (mass) focus on products to a focus on product adaptations for a particular target group. This allowed more individualised options to be offered that could meet a specific demand. The Fourth Industrial Revolution makes use of the ubiquitous availability of data and communication, which allows customers (and consumers) full control of the production processes.

      The customers and consumers are able to remotely control the production processes by sending data that are based on their individual wishes. In this way, a customer-oriented (specific) product can be generated in a series with a batch size of one.

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