Industry 4.0?

by - November 11, 2017

Big Data, Cyber-Physical Systems, Data Analytical, and so forth are several terms close to Industry 4.0. This fourth generation of industrial transformation shifts the “traditional” industries by the Internet of Things, Data, and Services.

 It can be said that almost all industrial sectors have undergone a change towards "digitalisation". In the nowadays world, it has been no difficulties for an individual to enter the retails industry by online shopping. In several countries such as Indonesia and United States, the existence of online shopping starts to threaten existing store economics and incentives.  

 Traditional retailers are starting to live and die over the change from the new business cycle. It could happen since the operational costs incurred, the salaries paid for shopkeepers, or other such expenses paid by traditional stores are not required by online shopping because they may only require one admin on duty to receive every order coming through the website or social media. It is not necessary as well to raise millions of expenses on building and electricity as they can keep running their online store from small shophouses without decoration or even from their own home.

The world of banking and financial services also began to undergo a radical transformation. The presence of internet-banking and branchless-banking has changed how retail-banking management is managed. The demand for branch offices is replaced by the presence of ATMs and the reliability of the internet-banking system. Many transactions conducted by banking consumers without going through a branch office.

Not only changes in the producer’s and consumer’s behaviour in business or trade, Industry 4.0 is like having cause-and-effect relation with the existence of Generation Y. Therefore, we will talk about this millenials generation on the next post.

Then, above those examples, we could know that this economic transition phenomenon is not only supports insdustries to go digitat, but also thinks about the displaced labor force as a result of competing in the industrial revolution 4.0. Especially, one of the characteristics of industrial revolution 4.0 is relative to capital intensive, solid technology, and labor non-intensive.

Within its unique characteristics coming up as trend in this century at digital age brings us to three form which are labor non intensive, capital intensive and technology intensive. Non Labor-Intensive, also known as liquid workforce, is a form of work needing less workforce or a little amount of work in relation to output. Companies are investing in the tools and technologies they need to keep pace with constant change in the digital era but there is typically a critical factor that is falling behind: the workforce. Companies need more than the right technology; they need to harness that technology to enable the right people to do the right things in an adaptable, change-ready, and responsive liquid workforce.  In short, business leaders are realizing their new liquid workforce can become their new competitive advantage. While Capital-Intensive refers to a business process or an industry that requires large amounts of money and other financial resources to produce a good or service. It is also requiring the investment of large sums of money. The advantages of capital intensive production is; can work 24/7 Quality of work is consistent, accurate and precise, can do work which is too dangerous and unpleasant for people. Then, technology-intensive production, on the other hand, is production that uses advanced technology to carry out tasks that otherwise would require (lots of) labor, or to perform tasks that no humans are able to do (for example, cell phone manufacturing).

Share
Tweet
Pin
Share
Tags :

You May Also Like

0 comments