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Role of innovation for Industry 4.0
The fourth industrial revolution, better known as Industry 4.0, is dramatically reshaping the business landscape.
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Illustration of Industry 4.0. (Shutterstock/File)
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he fourth industrial revolution, better known as Industry 4.0, is dramatically reshaping the business landscape. Advances in technology, connectivity and manufacturing are changing the way businesses operate and compete, as well as motivating business leaders to consider reengineering their enterprises.
Everything from business models to production methods are evolving and in the process, changing whole industries. In Indonesia, this process is well under way, affecting traditional businesses and creating new ones. Just a few short years ago, Indonesians did not enjoy the convenience of ordering food online or booking a Go-Jek or Grab ride by the mere touch of their smartphones.
Industry 4.0 will over the next decade fundamentally transform corporations and the entire business sector. The question for business leaders is, are they ready to face the change that is under way and create intelligent enterprises to effectively deal with the change?
Indonesia is gearing up for Industry 4.0 in a big way. The government has unveiled its Making Indonesia 4.0 initiative to boost the manufacturing sector. New start-ups are emerging that marry technology with demand, in the process creating new services and products.
In this environment of rapid change, business leaders need to ensure that their organizations are prepared for Industry 4.0 or risk being disrupted. In this fast-changing internet economy, business leaders must accelerate their innovations and enhance customer experience. However, to kick-start and sustain innovation while staying on top of business operations is not easy.
The key challenge for Indonesian business leaders is being ready for Industry 4.0. What does this mean?
A study sponsored by SAP and undertaken by The Economist Intelligence Unit titled “Planning for Prosperity: Assessing the Future Readiness of Family Businesses” found 40 percent of family businesses in Indonesia viewed rapid pace of technological change as a threat to their businesses.
