The Fourth Industrial Revolution: Managing Technology Development for Competitiveness
Published at : 27 Jan 2018
Volume : IJtech
Vol 9, No 1 (2018)
DOI : https://doi.org/10.14716/ijtech.v9i1.1504
Berawi, M.A., 2018. The Fourth Industrial Revolution: Managing Technology Development for Competitiveness. International Journal of Technology. Volume 9(1), pp. 1-4
| Mohammed Ali Berawi | Faculty of Engineering, Universitas Indonesia, KampusUI Depok, Depok 16424, Indonesia |
We are in the midst of a fourth industrial revolution, in which technological advances in every aspect of our lives are being integrated. Industry 4.0 has evolved in response to developments in information and data technology. A shift in workplace culture has been highlighted by the Internet of Things (IoT) through the exponential growth of smart devices that connect all things, data, and services, with people. Entire value chains are interconnected by autonomous systems created by intelligent machine and data networks.
The unification of effective projects, products, and services is dynamic, with the consequence that entire production systems–across and within companies, industries, and society–are being transformed. The value creation chain over the entire life cycle of products is interconnected, resulting in a fusion of physical and digital worlds. An isolated aspect of the production process is no longer being considered by industry personnel. Instead, integration is being applied from inception to product output, using services supported by new, advanced, and enhanced data collection technology. Technologies such as smart and intelligent machines, artificial intelligence, cyber production systems, and three-dimensional technology are increasingly being used to accelerate product or service competitiveness. The fourth industrial revolution is transforming the economic paradigm and mechanisms used to create value and generate benefits, i.e., efficiency, effectiveness, and customization, as well as quality and innovative products, projects, and services.
The extensive utilization of technological advancements in many smart city sectors, a topical IoT-related development, has become the most effective way of improving quality of life. Technological breakthroughs impact on the way in which we live, work, and interact in the urban space. The integration of smart cities technologies is becoming more visible and enhancing the lived urban experience.
The Integration of Business Industries
Technology is arguably one of the most significant forces affecting business competition, and has the ability to change the existing industry processes and to create new industries. Technology is used to reduce operational costs, improve quality, and expedite innovation with the objective of creating sophisticated products and markets. Information and communication technology (ICT) forms the mainstay of innovative solutions. New forms of cost-efficient collaboration between products and services have been enabled by the use of the Internet and digital social media.
Product values are enhanced by the creation of systems that connect the information-processing systems that govern a physical product, thereby increasing the interconnectivity of objects and functions, as well as through access to available data and services online. The use of sensors, the Internet, artificial intelligence, and big data analytics has the potential to transform the way in which goods are manufactured and services are delivered. Advances in technological systems have increased flexibility in manufacturing, helped to facilitate mass customization, and ensured better quality and improved productivity.
It is also possible to maximize company revenue by connecting products and services, and through the creation of additional business line functions. The manufacturing, transportation, and processing industries can now be linked through online services. In addition, the use of online transactions has been simplified and expedited by developments in financial technology (Fintech) and other service industries. Thus, the use of an integrated system in which multi functions are combined via a single application is characteristic of the way that business is currently conducted.
Since technological innovation is a significant commercial global force, information technology is being used extensively used to connect business strategies and operations within corporations. Regulation policy and business practices need to be continually updated by leveraging technologies to build, maintain, and enhance the competitive advantage of a country or company, based on advance knowledge and expertise. As a consequence, large-scale collaboration and partnership is required to manage business integration.