Jel: o14, o31 application of internet of things in industry 4.0

Ivaylo Kostov Assistant Professor, Department of Industrial Business and Entrepreneurship, D. A. Tsenov Academy of Economics, Svishtov, Bulgaria E-mail: i.kostov@uni-svishtov.bg orcid.org/0000-0002-1308-945X Introduction. Industry 4.0 is a concept that is considered a new phase in the Industrial Revolution, closely related to the application of information technologies and the digital transformation of manufacturing. The main purpose is to be created a more holistic and more connected ecosystem, focused on supply chain management in industrial companies. Implementation of solutions in Industry 4.0 is mostly related to the concept of the Internet of Things (IoT). Mass deployment of this type of technology in industrial enterprises is the basis of the so-called Industrial Internet of Things (IIoT). Achieving interoperability in the IIoT requires the combination of two technologies: the Internet of Things and the Internet of People. Aim and tasks. This article describes the implementation of the concept of the Internet of Things in industrial enterprises, as a key technology factor for developing Industry 4.0. Results. A brief overview of the evolution of industrial production from the beginning of the Industrial Revolution to the emergence of Industry 4.0 is made. The main principles for implementing Industry 4.0 solutions ensure that the entire production process is computerized. Industry 4.0 solutions are mostly associated with the concept of the Internet of Things (IoT) whose definition and essence are obtained in this article. Based on the various concepts of the IoT are presented solutions that can be used in the industry, namely: in consumer devices in technology used in public organizations in infrastructure applications in industrial applications, also called the Industrial Internet of Things (IIoT). Therefore, we can say that there is a significant potential for improving production processes as regards: optimization of operations, forecasting equipment support, inventory optimization, improving workers' security, shipping chain optimization, etc. Conclusions. The application of the Internet of Things in enterprises is an important and decisive step in the process of their digital transformation and transition to Industry 4.0. The interaction between humans and machines, carried out through Internet technologies, leads to the emergence of the Internet of Everything, which will be a basic concept in industrial production in the coming years. However, the role of man in the production process should not be completely eliminated, but solutions should be sought that support and intellectualize his work.