A new industrial revolution, also mentioned as “industry 4.0”, focus to combine production, information technology, and the internet with advances in data storage, networking, and artificial intelligence. One of the key components of the fourth industrial revolution is an advanced technology for data transformation. Small and medium-sized enterprises (SMEs) need to go through it to fully take the advantage of the benefits in Industry 4.0.
SMEs in ASEAN countries are the key players as it represents around 95-99% of the enterprise population. It also contributes significantly to the GPD dan employment of ASEAN economies. SMEs take account of 51.7% and 97.2% of employment and contribute 30% and 53% to GDP. In Indonesia, SMEs contributes 89% of employment and 57.8% to GDP. Thus, SMEs are the future of the nation’s economy that need to be supported by its development. As a mean to maximize this potential, SMEs need an interconnected and centralized system that can keep track of everything from raw materials to the final output and customer delivery. Currently, Industry 4.0 offers several benefits for the development of SMEs. However, they need to adapt and maximize this technology to fully benefit.
The industrial revolution 4.0 encourages SMEs to pay attention to several things in order to get maximum benefits. Having high digital literacy is the main asset in competing in the digital world. A business strategy by utilizing technology is very necessary to support business development. In addition, having a quality product and commitment and creativity to increase product quality is one of the strongest assets to compete.
There are some general obstacles for SMEs, they are lack of business support, a high degree of over cautiousness when it comes to investments in Industry 4.0, a lack of the right competences, a lack of digital standards, threats through cyber security, lack of finance, and finally lack of the right business tools. However, the opportunities are increased productivity, competiveness and growth.
Having the right business tools would help a lot for the development of the business. It helps to run the business by providing excellent information for better management. In result, the business will be undemanding to manage and business goals will be easier to achieve.