What Are the Industry 4.0 Technologies and How does it Work?

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The term “Fourth Industrial Revolution” was first officially recognized by the World Economic Forum in 2016 as a description for the technological changes currently taking place. Meanwhile, the concept of "Industry 4.0" has been promoted by the German government as a strategy to modernize the manufacturing sector. This term was first used in 2011 in the context of industrial transformation.

The development of IoT and AI technologies became increasingly prominent around the mid-2010s, playing an important role in driving broader industry change. These changes are the result of gradual technological evolution, and Industrial Revolution 4.0 can be considered a transition period that is ongoing today.

The increasingly rapid development of technology has had a major impact on various sectors, including industry. Industry 4.0 is a phenomenon that changes the industrial paradigm by combining digital and physical technology to create a more efficient, flexible and connected production system. Even though it provides great opportunities, the development of Industry 4.0 also brings various challenges that need to be overcome.

What is Industry 4.0 and advantages?

What is Industry 4.0 and advantages?
Industry 4.0 Technologies

One of the main advantages of Industry 4.0 is greater connectivity, especially through the Internet of Things (IoT). With broader connectivity, companies can monitor and optimize their production systems in real-time, reducing production costs and increasing efficiency. Apart from that, technology such as big data and artificial intelligence can also help companies make more precise and effective decisions.

However, the adoption of Industry 4.0 also brings challenges for companies. One of the main challenges is cyber security. As more and more connected devices and data are generated, companies must ensure that their systems are secure and protected from cyberattacks. 

Apart from that, industry 4.0 also requires human resources who have adequate skills and technological knowledge. This can be a challenge for companies that must adapt quickly to meet rapidly changing market needs.

Industrial Revolution 4.0 is a term that refers to the stage of industrial evolution characterized by the widespread adoption of digital technology, artificial intelligence, connectivity and system integration in various aspects of production and human life.

It is a continuation of previous industrial developments and includes a major transformation in the way humans produce, distribute, and interact with technology. Previous industrial developments, starting from

  • The First Industrial Revolution focused on mechanization and mass production using steam engines in the 18th century, then followed by
  • The Second Industrial Revolution which emphasized electricity-based mass production and assembly technology in the early 20th century, and
  • The Third Industrial Revolution was characterized by automation, computerization, and the development of information technology in the second half of the 20th century.
  • The Fourth Industrial Revolution is a stage of industrial evolution characterized by the integration of digital, physical, and biological technologies that is driving fundamental transformations in the way production, distribution, and consumption are carried out starting in the early 21st century.

What are the characteristic of Fourth Industrial Revolution?

Some of the main characteristics of the Industrial Revolution 4.0 include:

  • High Connectivity: Devices and systems are connected online through the Internet of Things (IoT), enabling real-time exchange of data and information between devices, machines, and humans.
  • Artificial Intelligence (AI): The use of artificial intelligence technology to process big data and make complex decisions based on patterns and analysis.
  • Advanced Robotics: Development and application of intelligent robots and more complex automation in a variety of industries, from manufacturing to services.
  • Additive Manufacturing (3D Printing): The use of 3D printing technology to create products by gradually adding layers of material based on a digital model.
  • Big Data and Predictive Analytics: The collection, analysis, and utilization of large amounts of data to gain deep insights into consumer trends and behavior, and to forecast future events.
  • Cyber-Physical Systems: Tight integration between the physical world and the digital world, where physical systems (such as machines and devices) are connected with computer systems to interact and operate in a coordinated manner.
  • Virtual and Augmented Reality: Use of virtual reality (VR) and augmented reality (AR) technologies for simulation, training, and product design.
  • Cloud Technology: Utilization of cloud infrastructure to store and access data and applications easily and with high scalability.
  • Biotechnology and Genomics: The application of digital technology in biological research, including the development of drugs and gene-based therapies.
  • Business Paradigm Shift: Driving changes in business models, including customized mass production, subscription-based services, and new approaches to supply chain management.

The Industrial Revolution 4.0 has had a significant impact on various sectors, including manufacturing, logistics, health, energy, agriculture, and many more. It also brings new challenges and opportunities, such as changes to employment, cybersecurity, data privacy, and overall social change.

What are the pillars of the fourth industrial revolution?

What are the pillars of the fourth industrial revolution?
Pillars of the Fourth Industrial Revolution

Industrial Revolution 4.0 is a phenomenon that will basically collaborate cyber technology with automation technology. The existence of the Industrial Revolution 4.0 can also be known as a cyber physical system. Where the implementation concept will also center on automation.

The presence of information technology in the application process will reduce the involvement of human power in the process. This means that effectiveness and efficiency in a work environment will also increase automatically.

In the industrial world, this can have a significant impact on the quality of work and also production costs. However, it is actually not only industry, but all levels of society also benefit from this system.

In the Industrial Revolution 4.0, there are at least five types of technology that can become pillars for the development of a digital-ready industry. Starting from the internet of things, big data, artificial intelligence, cloud computing and also additive manufacturing.

Each pillar has a different meaning and function. So, below is the meaning of each pillar.

1. Internet of Things or IoT

Internet of Things or IoT is a system that will utilize computing devices, mechanical and also digital machines in one type of relationship or interrelated connection which is useful for carrying out its functions through data communication on the internet network without any interaction between humans or interaction between humans and computers.

Apart from that, the Internet of Things will also integrate four components. Starting from sensor devices, connectivity, data processing and also user interface. Currently there are several Indonesian applications that have implemented the Internet of Things.

2. Big Data

Next there is Big Data which may be a term that is quite familiar. Big Data is a term that describes a large volume of data, both structured and unstructured. However, it is not the amount of data that is important in this case. However, it refers more to what an organization does with data.

Big Data itself can be analyzed for better decision making and business strategies. In Indonesia itself, there are already several Big Data service providers.

3. Artificial Intelligence (AI)

Artificial Intelligence or AI has also become a term that has recently become very popular. Artificial Intelligence or AI is a computer or machine technology that has human-like intelligence and can be adjusted according to human wishes. 

Artificial Intelligence will work by studying the data it receives continuously. The more data that Artificial Intelligence receives and analyzes, the better AI will be at making predictions.

Examples of the application of Artificial Intelligence include chatbot applications and facial recognition systems which are currently often used as attendance systems in various types of companies or state agencies.

4. Cloud Computing

Next there is Cloud Computing or cloud computing systems. Cloud Computing itself is a technology that will make the internet a center for managing data and applications.

Where computer users will provide access or login rights to use the cloud or cloud which can be configured by the server or server via internet services.

An example is hosting a website in the form of a virtual paladin. Apart from that, Cloud Computing also has three types of models. Each Cloud Computing model has its own function. The three types of Cloud Computing models are as follows.

  • Cloud Software as a Service (SaaS) is a service that allows users to use applications provided by cloud infrastructure.
  • Cloud Platform as a Service (PaaS) is a service that allows users to use a platform that has been provided. In this model, the development carried out will focus more on application development.
  • Infrastructure as a Service (IaaS) is a service that allows users to use the infrastructure that has been provided. Where users can perform several important performances such as processing, storing, networking and using other computing resources required by the application. Currently, in Indonesia there are many companies that provide Cloud Computing services.

5. Additive Manufacturing

Additive Manufacturing is a form of new breakthrough in the manufacturing industry by utilizing 3D printing machines or what we often know as 3D printing. Having a design drawing that has been completed digitally will be able to be made into a real object with the same size as the actual design or at a certain scale.

Additive Manufacturing technology is now capable of producing many designs and producing goods that cannot be produced by traditional manufacturing technology.

6. Cyber Security

The latest technology that has developed in the industrial revolution 4.0 era is cyber security or cyber security. The industrial revolution 4.0 means that almost the majority of business activities throughout the world take place digitally on the internet, so cyber security is needed.

Basically, cyber security is a form of protecting information from all forms of digital attacks that can occur on the internet. Not only information, but cyber security also provides protection for database systems, programs or applications, and networks.

7. Augmented Reality

One of the newest technologies in the development of the Industrial Revolution 4.0 is Augmented Reality or AR. AR is a technology that combines two-dimensional virtual world objects with three-dimensional objects in the real environment, and then displays these virtual objects in real-time.

Some examples of applications that use AR technology are chatbot applications and facial recognition, which is also known as facial recognition.

8. Simulation

The next technology is simulation, which is a representation of operations over time. Simulation is used in a variety of situations, such as to improve performance, testing, safety engineering, and training.

9. System Integration

Next is system integration, which is a connection between several systems, both physical and functional. This system integration combines sub-system components into one unified system to ensure all functions work well as one unit.

What are the impacts of the 4th Industrial Revolution?

The development of industry 4.0 can also have significant social and environmental impacts. While technology can help reduce waste and increase energy efficiency, use of this technology can also produce hazardous e-waste and consume non-renewable resources. In addition, technology adoption can also affect traditional employment and generate uncertainty among the workforce.

To overcome these challenges, companies must plan and implement sustainable and socially responsible strategies. This includes investing in environmentally friendly technology, developing a workforce with adequate skills and knowledge, and ensuring cyber security. 

Apart from that, companies must also consider the social impact of adopting this technology. Then companies also need to work together with the government and society to ensure that the development of this technology can provide maximum benefits for all parties.

What is no less important to remember is that the development of industry 4.0 also requires collaboration between companies, government and society. Companies must pay attention to the needs and expectations of society in developing technology that can provide benefits to all parties, not just optimize profits. 

The government also needs to play a role in creating regulations that ensure the adoption of socially and environmentally responsible technology. On the other hand, society must also understand and follow technological developments to be able to use it wisely.

In a global context, the development of industry 4.0 can also provide opportunities for developing countries to increase their competitiveness in global industry. By leveraging digital and physical technologies, developing countries can accelerate infrastructure development and increase the productivity of their industrial sectors. 

However, this also requires serious investment and attention from the government and the private sector. The development of industry 4.0 is a phenomenon that cannot be avoided and continues to grow. As a society living in the digital era, we must accept and use it wisely. 

Industry 4.0 provides great opportunities to increase efficiency and optimize production systems, but challenges such as cyber security, social and environmental impacts, and the need for quality human resources must also be addressed seriously and responsibly. By collaborating between companies, government and society, we can develop industry 4.0 that is sustainable and provides benefits for all parties.

What is an example of Industry 4.0 implementation?

What is an example of Industry 4.0 implementation?
Application of Industry 4.0

We can see examples of the application of industry 4.0 in various industrial sectors ranging from FMCG, electronics, textiles, automotive, electronics, to financial services and banking. The following are five examples of industrial sectors that are the biological children of the Industrial Revolution 4.0.

1. E-Commerce

The emergence of E-commerce such as Shopee, Amazon, and Alibaba is a form of transformation of the retail industry which was touched by the influence of technology which then turned into an "online market".

Now, as time goes by and developments in technology and logistics infrastructure, the E-commerce industry has become very promising and is developing to enter the retail industry and conventional manufacturing industry.

This happens because the use of E-commerce provides an easier and more comfortable shopping experience for consumers compared to the old method.

2. Service Aggregator

The term aggregator or "collector" has become increasingly popular lately. The business can range from property aggregators, transportation, health services, to investment. All of these things can now be accessed through the touch of your finger and the gadget you own.

Previously, someone had to look for various information and as a company had to wait for consumers to come, the current development has become the opposite. With a service aggregator there is another advantage, namely data transparency.

This is because aggregators collect various data from various service vendors into one, so that consumers can easily make the choices they want. Apart from that, through aggregators someone can easily access and use them more practically.

3. Digital Marketing Agency

The third example is a digital marketing agency whose task is to execute various digital marketing strategies owned by the company based on the goals or objectives to be achieved. With the rapid growth of this industry, more and more digital marketing agencies are emerging, this is because digital marketing is an effective and controlled marketing method.

This is why many companies and organizations use trusted digital marketing services. Compared to training their employees, they prefer to use third party services because it is more efficient and saves time.

4. Digital Payments

Maybe you are a user of E-money or Paypall. This is an example of implementing digital payments. To date, dozens of digital payment vendors operate in Indonesia, each with their own features and advantages.

This digital payment is growing rapidly because it provides convenience and security for users in carrying out transactions. By using this service, users can easily pay without needing to bring other items when leaving the house and only need the gadget they carry every day.

5. Online Courses

Since the 2020 Corona Pandemic, not only remote work (WFH) has been carried out but also distance learning has to be carried out. Education Industry players are seizing this opportunity by providing online course services. Therefore, the industry in this field is growing rapidly, because people have no other choice to study and receive information in the midst of this situation.

However, the rapid development of online courses can also be due to providing a different learning experience if we compare it to education in general. This is because online courses can be carried out anytime and anywhere.


Until now, there are still many industries and related agencies that still choose to stick with conventional methods instead of immediately adapting the 4.0 concept. What is often the main reason is the large costs that must be spent on 'initial capital' for the 4.0 revolution.

In conclusion, it can be said that the development of industry 4.0 is a phenomenon that cannot be avoided and must be faced wisely. Industry 4.0 provides great opportunities to increase efficiency and optimize production systems, but it also brings challenges and risks that must be addressed seriously and responsibly. Collaboration between companies, government and society is needed to ensure the adoption of technology that is socially and environmentally responsible, and provides benefits for all parties.

Therefore, companies must pay attention to the needs and expectations of society in developing technology that can provide benefits to all parties, not just optimizing profits. The government also needs to play a role in creating regulations that ensure the adoption of socially and environmentally responsible technology. 

On the other hand, society must also understand and follow technological developments to be able to use it wisely. By collaborating and working between all parties, we can develop industry 4.0 that is sustainable and provides benefits for all parties. In this way, we can leverage technology and innovation to create a better and more sustainable future.

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