Digital Transformation and IoT in Industry 4.0: Opportunities and Security Challenge

Abstract

The rapid development of information and communication technology has driven a global digital revolution that fundamentally changes patterns of social interaction, business operations, and organizational management. Within the framework of the Industrial Revolution 4.0, the Internet of Things serves as the backbone of digitalization by connecting physical devices through sensors and intelligent systems capable of generating real-time data for decision-making. This concept enables higher operational efficiency, automation, more accurate predictions, and the creation of new data-driven business models. However, this transformation also brings significant challenges, particularly in terms of cybersecurity, data privacy, and the digital divide, which has the potential to widen inequalities in technology access. This study applies a literature review method to analyze IoT development, its contributions to digital transformation, as well as the risks and opportunities it generates. The findings indicate that IoT can enhance productivity and efficiency across sectors, yet requires robust security strategies and adaptive regulations to ensure sustainable implementation.