The Fourth Industrial Revolution or Industry 4.0 is dramatically reshaping the business landscape. Advances in technology, connectivity and manufacturing are changing the way businesses operate and compete and motivating business leaders to consider re-engineering their enterprises.
Everything from business models to production methods is evolving and, in the process, changing whole industries. In Indonesia, this process is well underway, affecting traditional businesses and creating new ones. Just a few short years ago, Indonesians did not enjoy the convenience of ordering food online or being able to book a Go-Jek or Grab ride by the mere touch of their smart phones.
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 underway 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 innovation 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?
According to a study sponsored by SAP and undertaken by The Economist Intelligence Unit titled “Planning for Prosperity: Assessing the Future Readiness of Family Businesses,” 40% of family businesses in Indonesia view rapid pace of technological change as a threat to their businesses.
Paradoxically, they are also highly optimistic about using technologies, emerging as the most positive in Southeast Asia towards their capability to deploy technology such as data analytics (8.5 on a 10 point scale with 10 being the most confident); cloud computing (8.3) and automation (8.2).
They also scored highly in terms of confidence level towards their employees’ digital proficiency (8.4), development of new skills (8.4) and ability to hire and retail talent (8.3).
Clearly, Indonesian companies and business leaders are ready to adapt to Industry 4.0.
In our view, the key to not only surviving but thriving in the Fourth Industrial Revolution is to become an intelligent enterprise.
This will require a mindset change and a willingness to transform their organizations to get more done with less, deliver experiences that wow customers and challenge competitors with new business models.
We have all heard about new technologies such as AI, Machine Learning and Blockchain. But very few of us truly appreciate how these technologies all come together to effect change, benefit society while enhancing corporate performance.
SAP has created a platform – The Asian Innovators Summit – for Indonesian businesses to lead and create new business models through the Industry 4.0 revolution. The Summit, which will take place on April 2 in Jakarta, is held across five countries with Indonesia being a key economy ripe for change. This year’s theme is Together #OurGrowthStory which includes a showcase of top Indonesian innovators and how they harness technology to thrive in the digital economy.
Business leaders in Indonesia and indeed the world over must be ready for the great change that is underway. Given its current growth trajectory, Indonesia is targeted to become a developed economy by 2045, according to the National Planning Development Agency (BAPPENAS). One of the most important keys to get there will require Indonesian companies to become intelligent enterprises and harness Industry 4.0 to their advantages.