Industry 4.0: New Challenges for the Digital Transformation

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Industrial revolution 4.0 is the historical journey of the fourth phase of the industrial revolution. The industrial revolution 4.0 has created fundamental changes in the way we live, work and interact with technology. All aspects of the digital industrial era collaborate with each other by utilizing the latest data and information.

Digital transformation has become a universal phenomenon that has hit various sectors of life. This big wave of transformation also had a significant impact and helped lead the direction of development. Especially in this 4.0 era, the digital revolution has also touched the industrial to personal spheres. 

On the other hand, the digitalization phenomenon is also seen as supporting the acceleration of processes in industry which ultimately has an impact on economic growth. To face and prepare yourself, you can understand the essence of how important it is for us to be actively involved in this change. Listen and understand, come on!

Industrial Revolution 4.0

Industry 4.0: New Challenges for the Digital Transformation
Industry 4.0

We are currently in the early stages of an industrial revolution that has begun to change the way we live, the way we work, and the way we relate to each other. In scale, scope and complexity, this revolution resulted in a transformation that was far different from previous revolutions. So it needs to be responded to by all stakeholders, from the public and private sector to academics and the general public.

So far there have been several industrial revolutions in human history, starting with the first industrial revolution where companies were able to increase their production after the discovery of steam engines and water power. Then, in the second industrial revolution, which was marked by the discovery of electricity, industrial circles used it to carry out mass production. 

Human energy can be saved again with the arrival of the third revolution which has the mission of automating production which is the result of the discovery of electronics and information technology. And finally, the Industrial Revolution 4.0, which is based on the third industrial revolution and is characterized by the blurring of boundaries between the physical, digital and biological realms.

The concept of industrial revolution 4.0, hereinafter abbreviated to RI 4.0, is defined as revolutionary change based on various latest technologies. This revolution is marked by the emergence of cyber-physical systems, Internet of Things (IoT), Big Data, and various services utilizing IT. Apart from that, RI 4.0 can be said to be a revolutionary change that occurs when Information Technology is applied to all industries.

There are major changes (megatrends) in the three main aspects of RI 4.0, namely in 1) physical aspects including Automous Vehicles, 3D printing, Advance robotics, and new materials; 2) the digital aspect which is marked by the presence of the Internet of Things (IoT), Big Data, Blockchain, and Platforms, and 3) the Biological aspect whose progress has begun to be felt, namely Genome and synthetic biology.

The speed of change caused by RI 4.0 was unprecedented in its predecessor revolutions. Compared to the previous industrial revolution, RI 4.0 has exponential speed, that is, it is slow at the beginning and then moves so fast that it influences (disrupts) industry in each country throughout the production, management and governance systems. The influence of RI 4.0 can be felt in various things, namely business, economy, state, society and individuals.

In the business sector, the center of change is how customer service is improved. Services must be provided in accordance with customer expectations. Companies that cannot meet customer expectations will be abandoned by their customers. 

For this purpose, companies need information from Big Data, the data of which is obtained from various social media platforms such as Facebook, Twitter, Instagram, Waze, WhatsApp, etc. User data will be processed using datamining science and artificial intelligence to then provide information/recommendations about unique services to a customer. 

As a result of pressure from the Industrial Revolution 4.0, business, industry, and companies responded with products in the 'Beta' version model, meaning that changes are always open to each operating model. Today we see the demand that companies need to respond to their customers in real time wherever they are.

Global connections, artificial intelligence, and automation have disrupted the economy. Technology and innovation have combined to increase productivity in companies. New jobs appear and some old jobs gradually disappear. Routine work that is usually carried out by human workers is gradually being replaced by robots. 

For example, with the invention of driverless vehicles, the driver's job is no longer needed. The presence of robots results in the loss of human sources of livelihood, however, humans have been gifted with talents and creativity that robots do not possess, which can actually give rise to new jobs that did not exist before. At this time, new jobs are starting to emerge, such as Gene designer, Big Data and AI scientist, eSports, Cyber security, Elderly Care, and others.

What is digital transformation in simple words?

Digital transformation is a process that organizations implement to integrate digital technology in all areas of business. This process fundamentally changes the way organizations deliver value to customers. Companies are adopting innovative digital technologies to make cultural and operational changes that better adapt to changing customer demands.

Digital transformation is the use of technology to transform analog processes into digital. We have experienced digitalization in all areas of our lives from smart watches to artificial intelligence-enabled home assistants. Digital transformation refers more to the way technology revolutionizes business with new areas of technology such as machine learning, big data, and the internet of things.

Your brand may not have to worry about these tough topics right now, but you definitely should implement a digital transformation strategy. Examples of digital transformation include the following:

  • Companies are starting to build digital solutions, such as mobile apps or e-commerce platforms
  • Companies are migrating from on-premise computer infrastructure to cloud computing
  • Companies are adopting smart sensors to reduce operating costs

There are many reasons why any brand should go digital, not least because the whole world is now doing it. Every new start-up business strategy will immediately implement digital in this modern era because old processes are starting to be abandoned for new business models. 

These modern brands have not weathered the so-called “digital disruption” that impacted legacy businesses, so they are already ahead in terms of operational efficiency. This means that as your brand wants to catch up, you need to update your workflow to welcome the digital era.

But it's not just about stopping the competition. Using digital technology can have huge benefits for teams, company culture, and overall productivity.

Digital Transformation and Industrial Revolution 4.0

Industrial Revolution 4.0 is also closely related to the term Digital Transformation. Digital Transformation itself is defined as changes brought about as a result of the application of digital technology in all aspects of people's lives.

An organization or company that wants to carry out a digital transformation process must prepare itself to face cultural changes as a consequence of implementing digital technology. Because based on a survey, as many as 57% of companies in the world are transforming towards digital. However, of that number, around a third failed.

This failure was mainly due to not yet fully understanding the digital transformation process. Because it is not only about how to make a digital version of a physical product, but also covers changes in consumer behavior, employees and various other cultural aspects.

Why digital transformation is important in business?

Why digital transformation is important in business?
Why digital transformation is important?

Following are several reasons why digital transformation is very important for the sustainability of businesses and companies.

1. Able to adapt to changes in consumer behavior

Current technological advances and digital transformation have brought changes to customer or consumer behavior. The most fundamental change is that consumers' interest in shopping directly by visiting stores has decreased. 

Currently, most consumers are more interested in making online transactions because it is more practical and efficient. Only with a smartphone connected to an internet connection can consumers buy their various needs. That means they don't have to worry about traffic jams, bad weather, or long waits in line.

So, so that your business continues to run smoothly, as a businessman you must carry out digital transformation to be able to adapt to these changes. For example, by creating an online shop, and optimizing product or service marketing with digital marketing. Currently, many business people are creating websites or using marketplaces to open online stores.

2. Increase consumer satisfaction

Digital transformation will also make it easier for consumers to obtain information related to the products or services offered without time and place restrictions. Service can also be carried out more optimally, both in the purchase transaction process, delivery, and complaints about obstacles that may occur and how to overcome them. That way, digital transformation will be able to increase consumer satisfaction.

3. Save more time and costs

In applying digital technology for business, companies will gain many benefits in terms of time efficiency and cost savings. For example, if you have a business with branches spread across various cities, sending documents between branches is no longer a problem. 

The reason is, data or documents can be easily shared via Google Drive. Apart from that, the application of digital technology also allows small businesses to reach a wider target market. If previously marketing was only done by paying for advertisements on television or print media, now marketing can be done online.

4. Effective and efficient efforts

After the transformation, all systems will be computerized and integrated. Service to consumers and marketing can also run more optimally. Apart from that, the possibility of human error can also be minimized. This is an effective and efficient effort, not only in time and costs, but also in energy.

5. Reduce the risk of internal fraud

IT development and all computerized and integrated systems is a form of digital transformation. This can reduce the risk of fraud occurring within the company, because every information and report will be recorded in the database. Apart from that, there is also a security system that makes access to important data only limited to authorized people.

6. Increase competitiveness and profits

With current technological developments, there are many more challenges that must be faced in running a business. One of them is tight business competition. The pace of business in this digital era continues to move dynamically and very quickly. 

In order not to lose out in competition between businesses or at least to survive in the market, every businessman must increase competitive value by carrying out digital transformation. In this way profits can also increase.

7. Make the customer journey simpler with superior security standards

Digital transformation in terms of strengthening data protection is one of the mandatory things that should not be ignored. The reason is, data protection is needed so that data is not easily exploited by cybercriminals. 

For example, in general, the authentication used to access a system is SFA (single factor authentication). However, since banks and many other companies are now using online banking and e-commerce to run their business or store data, authentication security has now switched to using 2FA (two factor authentication).

With this kind of authentication, it means that only truly authorized people can access a system, file or application. So, in the context of digital transformation, make sure your business uses 2FA. With sophisticated and easy-to-use AI-based technology from Verihubs, the customer journey will be simpler and of course with superior security standards.

What is Fourth Industrial Revolution challenges and opportunities?

What is Fourth Industrial Revolution challenges and opportunities
Challenges in the Labor Market

Major challenges in industry 4.0 include concerns regarding data security and privacy, changes in the workforce landscape, and the digital divide between developing and developed countries.

However, there are opportunities for economic growth, development of innovation, improvement of quality of life through advanced and sustainable technology. Challenges that need to be overcome in Industry 4.0 to optimize benefits and adapt to the changes it brings include:

1. Workforce Transformation

The industrial revolution 4.0 brought major changes to the workforce landscape. The existence of automation and the use of smart technology can replace repetitive labor roles, resulting in changes in skill requirements.

The main challenge is to prepare the workforce with relevant skills to face these changes. This requires thorough preparation such as enhanced education programs, digital skills development, and the ability to adapt and learn continuously.

2. Data Security and Privacy

An important challenge in industry 4.0 is ensuring the security of data that has been collected, stored and analyzed properly. Cyber security is also guaranteed to protect user privacy data.

Data protection must be the main focus in technology development and there needs to be adequate regulations to overcome various security threats that continue to develop.

3. Management and Leadership Skills

This industrial revolution 4.0 requires managers and leaders who are able to understand and manage the changes brought about by new technology. The challenges faced include developing management skills based on innovation, the ability to integrate technology into business strategy, and leadership that is able to motivate teams in fast-paced change.

4. Synchronization of Regulations and Policies

Determining appropriate regulations and policies is very necessary in industry 4.0 in order to overcome security, privacy and ethical issues in the use of technology. This challenge requires the development of regulations that are responsive and adaptive to technological developments, as well as good coordination between government, industry and other institutions, so that it will produce sustainable policies and support innovation.

5. Digital Inequality

The rapid development of technology has resulted in digital inequality between countries, organizations and individuals. Challenges that need to be considered include the technology access gap, the digital skills gap, and the economic gap between those who are able to adopt and utilize technology and those who are not.

Reducing digital inequality can be done with digital inclusion programs, fair access to technology, and empowering all parties to take advantage of industry 4.0. The rapid industrial transformation 4.0 has brought interesting opportunities in various sectors. Here are some of the main opportunities presented in Industry 4.0:

a. Operational Efficiency

The opportunity for the emergence of industry 4.0 is increasing operational efficiency through automation and the use of intelligent technology.

Connected IoT (Internet of Things) devices enable real-time data collection and analysis, resulting in improved production processes, more efficient supply chain management, and scheduled device maintenance. This can reduce operational costs, increase productivity and optimize resource use.

b. Product and Service Innovation

Industry 4.0 opens up broad opportunities for product and service innovation. Through leveraging connectivity and powerful data analytics, companies can better understand customer needs, recognize market trends, and respond quickly.

This enables the development of more personalized products, improved customer experiences, and more adaptive service. Companies can also combine new technologies, such as artificial intelligence and virtual reality to create revolutionary products and services.

c. Flexibility and Customization

The continuously developing Industry 4.0 allows production to be more flexible and adaptable to changing market demands. Through automation and adaptive manufacturing systems, companies can quickly change production processes, configure products according to customer demand, and optimize supply chains.

This opens up opportunities for flexible mass production and increases the fulfillment of each individual's needs.

d. Better Customer Service

Technological developments enable better interactions between companies and customers. For example, chatbots and virtual assistants can provide real-time customer support, data analysis can provide insight into customer preferences, and personalization of service can improve the customer experience.

This technology will open up opportunities to build stronger and more interactive relationships with customers, increase loyalty and provide better service.

e. Economic Growth and Creation of New Jobs

The emergence of industry 4.0 has the potential to encourage economic growth and create new jobs. Through the adoption of new technology, companies can increase productivity, expand target markets, and create new business opportunities.

Technological developments also open up opportunities for startups and innovators to create new solutions and new industries. This has the potential to create jobs in the technology, software development, data analysis and other related services sectors.


Before the emergence of ChatGPT, various human needs had already implemented the support of the internet and the digital world as a vehicle for interaction and transactions. For example, in the sharing economy sector there are Airbnb,, Zopa, Bcycle, BookMooch,, Zipcar, or what is currently popular with teenagers is Netflix. Examples in the education sector are Coursera, Audacity, Canvas Network, Edx, NovoED, Iversity, Open2Study and Future Learn.

In the e-government sector there are eGovernance, and HealthTap. In the field of cloud collaboration there are also Google Drive, Dropbox and Microsoft Office. And what is currently trending is of course e-commerce, such as Bukalapak, Shopee, Tokopedia and others. And finally in the field of Smart Manufacturing there are Sculpteo and 3D painting.

1. Challenge or Threat

Globally, the era of digitalization in the Industrial Revolution 4.0 will eliminate around 1 – 1.5 billion jobs throughout 2015-2025 due to the replacement of human positions with automatic machines (Gerd Leonhard, Futurist). It is estimated that in the future, 65% of elementary school students in the world will work in jobs that do not exist today (U.S. Department of Labor Report).

2. Opportunity

The era of digitalization has the potential to provide a net increase in employment of up to 2.1 million new jobs by 2025. There is a potential reduction in carbon emissions of approximately 26 billion metric tons from three industries: electronics (15.8 billion), logistics (9.9 billion) and automotive (540 billion) from 2015-2025 (World Economic Forum). 

For this reason, the advantages of science and technology in the fields of electrical engineering, mechanical engineering, chemical engineering, informatics and other technical fields are important for Indonesian human resources to master.

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