Industry Revolution 4.

In today’s era, industrial production need a lot of improvement because the number of product
demand increased. They need a production system that can adapt fast with the ever-changing
market request. One of the reason why the demand of market increased is that the high population
growth around the world. That also leads to the demand of high quality product with enough
quantity. The conventional industrial production system won’t be able to maintain their product in
a long haul. The only way is that we improve the industrial production.

These problems can be solved by technology advancement that can we used to improve industrial
productions. Industrial Revolution 4.0 is a phenomenon that combine cyber technology and
automatic technology. The concept of application is centered on the concept of automation carried
out by technology without requiring any human labor force in the application process.
This concept certainly increase efficiency value in certain working area where time management
consider as the most vital and needed by all the industrial actors. Also, Good time management
exponentially have an impact on labor quality and production costs.

An example of technology utilization in industry is the process of bookkeeping and production

processes that are now easily accessible to anyone and at any time. Other than technology roles as
industrial upgrade, there are other benefits that can we found in all aspect of society. In today status
quo, exchanging information is easily accessible anytime and anywhere by using the internet.

The reason why the writer used this topic is that it’s important to understand the status quo of our
industrial progress. We can learn so much stuff from it. We can find a business opportunity, new
IT based production system, or even used it to help our everyday activity. The writer goal is to
educate the reader about Industrial revolution 4.0. Because whether we realize it or not, industry
4.0 is already being apply in our everyday life and also has given a few impacts in our everyday
activity.
In this paper we will breakdown the Origin of Industrial revolution 4.0, 9 types technology that
will be the main pillar of industrial revolution development, design principles of industrial 4.0,
expert opinions about industrial revolution 4.0, whether or not Indonesia is capable on facing
industrial 4.0, and the program making of Indonesia 4.0.

1
The Origin of Industrial Revolution 4.0

Industry revolution 4.0 was introduced by Prof. Klaus Martin Schwab. A German economist, also
founder and executive Chairman World Economic Forum. In his book, he stated that we are on a
new revolution that fundamentally change our way of life, work, and relation toward other
individuals. In industry 4.0, manufacture technology has entered automatic trend and data
exchange. This includes the cyber physical system, Internet of things (IOT), Cloud computing, and
Cognitive computing.

Industry 4.0 is actually a strategic initiative from

Germany government. The goal is starting to transform
the industrial manufacture through digitization and
exploitation new potentials of technologies. It’s no
surprise that this concept came from Germany, Since
Germany recognize as a country that highly focused on
industry. And is even a global leader in the sector of
manufacturing equipment. And because of that, the
concept of Industry 4.0 is seen as innovation at global
scale from Germany to sustaining their position as the
Prof. Klaus Martin Schwab
most influential countries in machinery and automatize
manufacturing.

The basic concept of industry 4.0 was first presented at the Hannover fair in the year 2011. Since
then, Industry 4.0 is a common discussion topic in research, academic, and industry communities
at many different occasions. The main idea of this concept is to exploit the potential of new
technologies, such as:
 availability and use of the internet, IoT
 integration of technical processes and business processes in the companies
 digital mapping and virtualization of the real world,
 ‘Smart’ factory including ‘smart’ means of industrial production and ‘smart’
products.

2
Beside of that, industry 4.0 is also related with the fact that many up to now exploited possibilities
for increasing the profit of industrial manufacture are
almost exhausted and new possibilities have to be
found. Sometimes the production cost were lowered
with introduction of just-in-time production, by
adopting the concepts of lean production and
especially by outsourcing production to countries
with lower work costs. Industry 4.0 is a promising
solution of decreasing cost of industrial production.
Smart Manufacture production factory

According to some researchers, industry 4.0 could result such as:

 Decrease production costs by 10-30%

 Decrease logistic cost by 10-30%
 Decrease quality management cost by 10-20%

There are also another advantages of this concept such as, a shorter time-to-market for the new
production, an improved customer responsiveness, enabling a custom mass production without
significantly, increasing overall production costs, more flexible and friendlier working
environment, and more efficient use of natural resources and energy.

3
9 type’s technologies that will be the main pillar of industrial revolution development

In industrial revolution 4.0 there will be nine types of technologies that will be the main pillar of
industrial development. These pillars will be able to improved conventional industry to a digital-
based industry. Those pillars are:

1. Internet of Things (IoT)

Internet of Things is a concept where certain object have capability to transfer data through
network without any man-to-man interaction or man to computer. Internet of Things sometimes
called as IoT. This IoT itself has improved a lot such as convergence wireless technology, micro
electromechanical system (MEMS), and also the internet. IoT sometime being identify by RFID
as a method for communications. Although, IoT are also embodied other censor technologies, such
as wireless technologies and even QR code system that we found in everyday life activities.

An example of Internet of Things is a food processing, electronics, and any machine or

technologies that connected to local or global network through implanted censor that always
active. So to make it simpler. Internet of Things is referring to device that can identify certain
visual representsation with internet-based structure.

2. Big Data

Big Data is a term to describe data with big volume, whether is a structured data or unstructured
data. Big Data has been use in lots of business. It’s not just about how big the data but it’s more
about what should the organization use data. The data can be used to analyze to find knowledge
that can help business decision-making and better business strategy.

The number of data that has been made and save in global scale are almost unimaginable. These
data rapidly increase which is Big Data have potential to collect key knowledge from business
information. But till this day, only a small amount of data that be able to analyze. Big Data in
business become a good strategy in handling raw information to transform them into a never
ending profit for business organization every day.

The key point of Big Data is the concept itself is about the volume, speed, varieties, variability,
and complexity. With huge business opportunity that can help make business making-decision in
the future.

4
 3. Augmented Reality

Augmented Reality or also known as AR is a technology that give the user certain experience
through video or audio 3D. AR and VR (Virtual Reality) has concept, but the different is that VR
is taking you to a fake reality so you can feel it. But AR is about bringing that fake reality to the
real world through computers. For instance, a paint companies has an app that can make people to
change their house color instantaneously. They only need to take a picture of their house. And
change it whatever you want through the app. Of course is not going to change the color of your
house in the real life. But you can see the changes through your smartphone.
Augmented Reality is also a business opportunity. As we can see, there are lots of company that
use AR for business. Such Ikea, Dulux, Instagram, Amazon, GAP, and etc. but why exactly this
company want to use Augmented Reality technologies? It’s because most companies trying to
make things simpler for buyers and also attract people to buy their products. By giving them
depiction of what they will get. It will create a bond between buyer and seller that the buyer will
trust the company.

4. Cyber Security
Cyber Security is a technology that design to protect network, computer, program and data from
any attack, treat, or unauthorized access. Cyber security is also an effort to protect information
from any possible cyber-attack. Any form of cyber-attack in information operation is act of
destruction on purpose which will hamper confidentiality, integrity, and availability of
information. Every company that transform into digital data-based are recommend paying
attention and use cyber security in saving, access, and take important information. Data is precious
assets of the company and can become a problem for the company if that data fall into irresponsible
individuals. That’s why most company even government always protect their data.

Cyber security is beneficial for protect and prevent any misuse of the data from someone who
don’t have any rights to access the data. And it’s a good publicity for the company to be recognize
by the public that they use cyber security. It give good reputation to the company as well.
Especially for company that work on managing public data, such as social media.

5
 5. Artificial intelligence

According to H. A. Simon (1987), Artificial intelligence is research area, application, and

instruction that related with programming computer to do things that human see as smart. But
according to Rich and Knight (1991) it’s a study about how computer doing things that better than
human does. And from all that now we can conclude that AI is a computer technology or machine
that have intelligence like human being. To make things simple, it’s a smart instruction that given
to program even machine.

AI is can be beneficial in manufacture sector. The

existence of AI can increase the accuracy of
production. This of course will make any work
lighter and can give maximum results. In
industrial sector, the use of robots for string up
machine therefore giving comfort and security
towards the manager and worker. AI can be set by
human to adjust with their working task. And they have ability to learn data simultaneously, which
the more data they accept and analyze. The greater the outcome that came from AI.

6. Additive Manufacture
Have you ever heard the term of additive manufacture? It’s a science breakthrough in manufacture
industry that sometime being use for 3D printer. However, did you know that this technology is
already exist for 3 decades? It exists. Additive Manufacture is not limited only for 3D printer. It’s
also a Rapid Technology, and Direct Digital Manufacture (DDM). This technology advancement
has spread all over the globe and still going to give us surprise with its improvement.

In the digital era, we can bring any digital design picture into the real world. In the manner of scale
and shape. Conventional industry method can produce any product with every kind of design. But
additive manufacture can do better multiple times. One of the benefit of this technology is that
their ability to form more design. Design that cannot be manufacture with a single chunk of raw
material but additive manufacture can bring it to reality. As a matter of fact, they can produce
faster product instead of the conventional manufacture.

6
 7. Simulation
The reason why our technology have advance rapidly is that simulation. But firstly, what is
simulation technology? It is an imitation of the operation of real-world process or system overtime
that base on the data or information that we input. It is easy to understand why simulation is
ubiquitous in engineering and industrial organizations. Imitating a real-world process or system
allows experts to study the process or system they are interested in within a controlled, repeatable
environment.

Digital Factory - FASTSUITE

The model representss the system itself. The simulation represents the operation from time to time.
Simulation are used in lots of context, such as optimizing the work performance. Safety procedure,
testing, training, education, and video games. So basically simulation is the results of technology
advancement that supported the concept of Industrial 4.0.

8. System integration
The world is connected through the internet. Which make system integration become more crucial
and the number of system information increased. But firstly, what is system integration? System
integration is a chain that connect few systems whether it is in physical form or functional. This
system combine sub system component in one system that can guarantee every function are
working in a unity in a system.
System integration is beneficial for managing and analyzing data. The improving an information
flow in an organization. A report usually does take time, however more information will be
relevant in managerial activities that can be obtained if needed. This advantage is a strong reason
to prioritize integrated information systems because the main purpose of the information system
is to provide the right information at the right time. Another advantage of integrating a system is

7
its nature which encourages managers to share information produced by their departments so that
it routinely flows to other systems that need it.
System Integration is important, because:
 Providing real-time data access
 Updating data for analysis and data exchange, arranging data placement for
performance.
 Accelerated growth and innovation
 Better Analysis
 Improved security system
Through having an effective system that fully integrated. Businesses can achieve their objectives
more efficiently and effective. This ensures their operations are more cost and time-effective .It is
all about speed of use and efficiency of interpreting the information. Not to mention having
everything on one screen will really benefit you when you are making those important business
decision.

9. Cloud Computing
Lastly is Cloud Computing. Cloud Computing is a combination of computer utilization in a
network system with internet based improvement (Cloud) that have purpose to run program or
application through computer to computer that connected in the same time, but not all the
connection are connected to the internet by cloud computing. Computer technology that based on
cloud system is a technology that make internet as the main host of the server for managing data
and also the users application.
This technology allow the users to run program without any installation and give access for the
user to accessing their personal data through computer with internet. Cloud computing also help
users in many ways, in addition to data efficiency, saving more money, and etc. here are few other
benefits of cloud computing:
 All the data stored in a main server
 Data secured
 Flexibility and high scalability
 Long-term investment

8
In the end this technology will be main aspect of Industry 4.0 which this technology already
progressive in the status quo. Such as Email, Apple Cloud, Google docs, and etc. with the
technology we have today, this technology is just going to improve in the future.

Design Principles Industry 4.0

Industry revolution 4.0 have four principles that help company to identify and implement certain
scenario that can happen in industrial production and management system. That four principles
are:

1. Interoperability
Machine capability, software, censor technologies, and human to connect and interact
with each other through internet media for Internet of Things (IoT).
2. Information Transparency
The ability of system information to create a copy of physical world in a manner of virtual
with by enriching digital factory models with sensor data.
3. Technical Support
First one is the ability of an aid system to help people collect data and make visualizations
in order to make wise decisions. Second, the ability of the cyber-physical system to help humans
perform various heavy, unpleasant, or unsafe tasks for humans.
4. Independent Decision
The ability of the cyber-physical system to make decisions and perform tasks as
independently as possible.

Expert opinions about industrial revolution 4.0

There are several opinions of experts about the industrial revolution 4,0. Firstly, according to Jobs
Lost, Jobs Gained: Workforce Transitions in a Time of Automation, released by the McKinsey
Global Institute (December 2017), in 2030 as many as 400 million to 800 million people must find
new jobs, because it was replaced by an engine. All jobs that doesn’t require soft skills will be
replace by machine. Those job that only require technical skill are easily worked by machine and
giving us better outcome.

9
The second opinion, according to the Minister of National Development Planning, Bambang P.S.
Brodjonegoro, has the same opinion as McKinsey & Co. According to him, entering the 4.0
industrial revolution Indonesia will lose 50 million job opportunities. This situation already
happened. For example, the toll gate is operated without any human interference.

The third opinion, according to Industry Minister Airlangga Hartarto, is the opposite. The 4.0
industrial revolution provides an opportunity for Indonesia to innovate. A revolution focused on
developing the digital economy is seen as beneficial for Indonesia. Digital economic development
is a market and talent, and Indonesia has both. He disagreed that the 4.0 industrial revolution would
reduce labor, but instead increase efficiency.

Whether or not Indonesia is capable on facing industrial 4.0

The industrial revolution 4.0 will bring many changes with all the consequences, the industry will
be more compact and efficient. But there are also risks that may arise, for example the reduction
in Human Resources because they are replaced by machines or robots. The world today is looking
closely at the 4.0 industrial revolution. There are millions of opportunities, but on the other hand
there are millions of challenges that must be faced.

What exactly is the industrial revolution 4.0? Prof. Klaus Martin Schwab, German technician and
economist, who is also the founder and Executive Chairman of the World Economic Forum,
introduced it for the first time. In his book The Fourth Industrial Revolution (2017), he mentioned
that we are now at the beginning of a revolution that fundamentally changes the way of life, work
and relate to one another.

The change is very dramatic and occurs at an exponential speed. Changes that are very influential
in life compared to the previous industrial revolution era. In the Industrial Revolution 1.0, the
growth of steam and water-based mechanization and energy became a marker.

Human and animal power is replaced by the appearance of machines. Steam engines in the 18th
century were one of the highest achievements. Revolution 1.0 can increase the economy is

10
extraordinary. During the two centuries after the industrial revolution the per capita income of
countries in the world increased sixfold.
The 2.0 Industrial Revolution was marked by changes in the development of electrical energy and
the driving force. Manufacturing and mass production occur. Telephone, car, and airplane are the
highest examples.
Changes occur quite quickly in the 3.0 Industrial Revolution. Characterized by the growth of
electronics-based industries, information technology and automation. Digital technology and the
internet began to be known at the end of this era. Industrial Revolution 4.0 is marked by the
development of the Internet of / for Things, its presence is so fast.
Many things that were unthinkable before, suddenly appeared and became a new innovation, and
opened up a very large business area. The emergence of transportation with ride-sharing systems
such as Go-jek, Uber, and Grab. The presence of the industrial revolution 4.0 indeed presents new
businesses, new jobs, new professions that were unthinkable before.

The program making of Indonesia 4.0

The Ministry of Industry will launch the Making Indonesia 4.0 program which is an integrated
roadmap and campaign to implement strategies to face the 4th industrial revolution era (Industry
4.0). The roadmap will be launched on April 4, 2018.

As a first step in carrying out Making Indonesia 4.0, there are five industries which are the focus
of industry 4.0 implementation in Indonesia, such as:
 Food and Drink
 Textiles
 Automotive
 Electronic
 Chemistry

These five industries are the backbone, and are expected to have a large influence in terms of
competitiveness and contribution to the Indonesian economy towards the top 10 of the world
economy in 2030. These five sectors will be an example for industry 4.0 implementation, new job
creation and new investment based technology.

11
Industry 4.0 in Indonesia will attract foreign and domestic investment in Indonesia, because
industry in Indonesia is more productive and able to compete with other countries, and strives to
be better accompanied by an increase in the ability of Indonesian workers to adopt technology.
Mental revolution must also be carried out, starting from changing the negative mindset and fear
of industry 4.0 which will reduce employment or the paradigm that technology is difficult.

We must strive to continuously improve learning abilities, skills that are in line with the needs of
the industrial era 4.0, so that we will have stronger competitiveness. We certainly hope that
industry 4.0 remains in control. There must be a joint awareness of both the government, the
business community and the community, that a major change in Industry 4.0 is an inevitable
necessity.

With all the potential available, we must become active actors who benefit from this great change.
The challenge going forward is to improve the skills of the workforce in Indonesia, bearing in
mind that 70% of the workforce is junior high school graduates. Vocational school education is a
must so that workers can be directly absorbed into the industry.

In addition the Government needs to increase the portion of research spending either through the
APBN scheme or provide incentives for Universities and private companies. At present the portion
of Indonesia's research spending is only 0.3% of GDP in 2016, while Malaysia is 1.1% and China
is already 2%. Research spending includes the establishment of techno parks in various regions as
a center as well as learning for prospective entrepreneurs in the era of the industrial revolution 4.0.

It is hoped that the level of innovation in Indonesia which is currently ranked 87 world can continue
to increase so that it is more competitive in the current technological transition era. The conclusion
is that the industrial revolution 4.0 is not a frightening event; rather, opportunities are opening up
for the nation's children to contribute to the national economy.

12
Conclusion
Industry revolution 4.0 is the breakthrough of industrial advancement. In the era of information,
the demand of a more effective and efficient production is increased. And companies want a
manufacture production system that can sustain in a long-haul. Because the society demands
increase rapidly and the company want a production system that can produce product rapidly and
doesn’t cost a lot of money. Industry 4.0 have 4 type of design principals. There are
Interoperability, Information Transparency, Technical Support, and independent decision.

13