FRAMEWORK OF INDUSTRIAL REVOLUTION 4.

A. INTRODUCTION
Information for the same knowledge from ancient times. There was limited
information and it can then be processed. It can be collected and used as a competitive
advantage. Things are getting harder with the passing of time. Information is now
available in a variety of forms and sizes, and it is becoming increasingly uncontrollable.
There are numerous difficulties with instructor coming of a thousand-year old child with
advanced intelligence and digital ability. The current generation of Gen-Z reports in a
dialect that is not fully understood by older generations; they have their own
computerized typeface. They have specific ways of understanding and articulation.
Despite digital security issues, advanced local citizens make use of the huge assets and
computerized innovations of the Internet to make something imaginative, inventive and
expressive. Techno-addicts and Wi-Fi also tend to be a smart way of working on learning
that mixes information with images, symbols, sound and video, leisure activities,
diversions and artificial intelligence and complex assembly. In order to improve training
and skills in this advanced stage, computer education and a mixed method of education
through flip flop schools, MOOCs and chat rooms are yet to be developed.
Industry 4.0 has its own separate types or models of arrangements, like all data
advances in general. According to one viewpoint, ostensibly intelligent frameworks may
reproduce simple and repetitive schedules as large-scale digital output. Through
duplicating timetables, Industry 4.0's digital physical systems can be seen as a century or
a resembled of true social behavior forms. But, with a fluid system with extremely
intelligent and creativity, digital physical frameworks can recreate the flexibility,
inventiveness and totally new H2M connection.
In 2011, Germany coined the term "Industry 4.0" to describe the Fourth Industrial
Revolution's digital transformation of manufacturing (Lasi et al., 2014). The phrase has
become a rallying cry for academics and practitioners all over the world (Schwab, 2016;
Porter and Hepplemann, 2014).
Individual development, horizontal integration in cooperative networks, and
digital supply chain inclusion underpin this new industrial paradigm (Brettel et al., 2014;
Kagermann et al., 2013).

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B. METHODOLOGY
In this paper, the researcher used case study research as research methodology.
The case study approach allows a researcher to systematically analyze data in a specific
context.
A case study process, in most cases, selects a particular geographic region or a
small group of people to investigate. Essentially, case studies study contemporary
phenomena of real life by a detailed examination of a limited number of incidents or
circumstances and their relationships The case study method is described by Yin (1984)
as an empirical study that investigates a contemporary phenomenon, as part of its real
life, unless the limits of the phenomenon and the context are clear and different evidence
sources are employed..

C. INDUSTRIAL REVOLUTION 4.0

Although the impact of AMT in the 3rd Industrial Revolution still remains
uncertain, a new technology package is emerging, offering everything that has been
promised previously, and more. Is this the start of a new revolution?
Industry 4.0's main technology is characterized by a combination of physical and
cybernetic systems, the Cyber Physical system (CPS). (Switzerland, 2014) Lee and
others. Both systems act as if it is one: Digital events have an effect on physical events,
and vice versa (Lee, 2010). It has a wide variety of applications (Hellinger and Seeger,
2011).
With CPS, auto-productive processes are developed that become intelligent based
on double representation: the compounds can determine their configuration and trajectory
in the production line via communication and decision-making algorithms (Lee, 2015).
CPS intelligence is distributed rather than centralized in process steps, giving operations
greater stability and flexibility.
The development of modular and independent plug and play systems for various
product and process configurations has become a pillar of Industry 4.0. The following
reports from Schleipen et al. (2015, p. 803), which state that "the core aspect is
identification of control bodies that can be connected and operated within manufacturing

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systems The rest of the manufacturing system without changing control applications."
The physical process is connected through the Internet to the virtual and provides
embedded intelligence, which enables it to quickly respond to market requirements. This
means that low-cost small batch production can meet demand without the need for a scale
(Brettel et al., 2014).
The outcome is cyber-physical systems of major technological developments in
Internet, inbuilt systems, informatics and artificial intelligence. "There are some
examples of ever smaller integrated circuits, and the rapid increase in the computing
capacity and bandwidth of networks and increasing efficiency in internet search engines."
(P. 15 of Seeger and Hellinger, 2011). The combination of these technologies has the
ability to cause havoc.
Industry 4.0 implementation necessitates not only corporate, but also government-
wide participation, investment. Despite cost cuts to IT and electronics additional costs
will be included in the total investment, for example, equipment replacement,
infrastructure and education (Kagermann et al., 2013). Investment-profit trade will be
influenced by the economic situation.
According to D'Aveni (1994), A dynamic market with hyper competition created
the race for innovation. This means that the competitive advantage is not permanent
anymore, and that companies have to adapt continuously (D'Aveni et al., 2010).
Cooperation is increasing simultaneously and interactively, to innovate and operate
(Chesbrough, 2006), to design, to produce and to provide a product or service for several
organizations.
According to Porter and Heppelmann (2015), Intense changes are taking place in
the value chain, to the point that businesses must challenge everything they do and the
industry they are in. "Servitization" of manufacturing goods, as well as emerging
business models and verticalization systems (Langlois 2003) are trends. The large
vertically organized company in the twentieth century is disappearing instead. To add
value to goods and services, a large number of actors communicate (Langlois, 2003;
Anderson, 2012).
Companies also had to diversify their offerings due to increased demand
(McKinsey Global Institute, 2012; Schleipen et al., 2015). As the minor cost of extending

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 the scope is negligible, The word "long tail" was coined by Anderson (2006) to describe
the phenomenon of serving small niches or even individual customers. This time in a
different role the demography has returned: population continues to grow, but the
working age population (WAP) in industrial countries has decreased since 2011.
(Osborne and Freie, 2016). The WAP peaked in 2014, including in China. It implies a
labor shortage and rising wages. In recent years, the wage gap between developing and
developed countries has narrowed (Zhai et al., 2016). There are also the costs of social
care to remember, as well as potential GDP impacts. Initiatives relating to total
automation of production processes are being stepped up in this context. Aging is a
circumstance that can hasten the pace of Industry 4.0 (Kagermann et al., 2013).
In the coming decades, Germany regards Industry 4.0 as being strategically
important for developing its economy (Kagermann et al., 2013; Hermann, 2015). Strong
commitment to research and applications on the subject has also been demonstrated in
other European and Asian countries (European Commission, 2013; Zhang et al., 2014;
Kagermann et al., 2013).
Due to its pre-definition of the 4th revolution, all results or effects are forecasts,
hypotheses or forecasts. Profits such as better and cheaper use of resources as well as
disadvantages such as unemployment and income disparities are hotly discussed.
Only recently has Industry 4.0 started. Certain technologies are used and tested,
but substantial progress remains. Standards for interoperability, cyber security and
network reliability are all connected (Kagermann et al., 2013). There are also some
challenges facing institutional environments, such as education and regulatory systems.
An expert believes that the benefits of this new revolution – and possibly the
disadvantages – will take two or three decades.

D. INDUSTRIAL REVOLUTIONS IN THE PAST

The definition of the three industrial revolutions is summarized in this section, these
include the key elements of technological change, economic conditions, and demography
in each phenomenon.
1. First Industrial Revolution on 1784-1870

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 At the end of the 18th century, water/coal/steam power was available, as were
machines for animal and human labor. These technologies increased
manufacturing's production power, resulting in the birth of the factory. This
revolution started in Britain and led to an increase in productivity in various
industries, first in the textiles sector and then elsewhere (Freeman and Soete,
1997).
The most successful technological progress of the revolution, the Watt Steam
Engine, Many other inventions and implementations followed (Brynjolfsson and
McAfee, 2014). The steam engine, in addition to being more powerful than the
water wheel, gave manufacturing more autonomy: it was less susceptible to
environmental factors as floods and Droughts occurred in areas far from rivers
(Freeman and Soete, 1997). "[...] paved the way for more performance
improvements, which ultimately made the steamer a universal mover," according
to the technology. for all industries of the economy" (Landes, 2003).
At the time, machinery had been another major development. They were used in
the textiles industry for the first time, with every technological development
posing a new challenge for the system as a whole (Landes, 2003). These
developments spread to many industries.
The economic situation was appropriate. The use of mechanized agricultural
instruments increased food and wool production; the deployment system set up
rural manufacturing networks to promote goods and the monetary flows of the
island; and access to foreign markets was assured by the burgeoning ultramarine
trade. The United Kingdom was fertile ground for an industrial revolution after
two centuries of almost uninterrupted development (Hobsbawm 2016).
While ingenious men have developed solutions to problems of productivity,
others with technical skills have rationalized their manufacturing processes and
improved their ability to improve these solutions. Technology problems were
simple during the First Industrial Revolution and did not need advanced scientific
knowledge or large funds (Landes, 2003; Hobsbawm, 2016).
Demography was the driving force behind this revolution's success. The
population started to rise rapidly in the 18th century (Roser and Ortiz-Ospina,

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 2017), having a two-fold impact on the economy: first, the fast-growing population
generated demand, and then more labor was compounded over many decades. The
higher the population, the lower the wages and the lower the incentives for
mechanization.. But "a lack of work appears to have encouraged capital to deepen
in Britain in the 18th century, as a result of a more abundant supply spread over the
coming decades," the Landes (2003, p. 117). This revolution has brought about
dramatic economic and social changes. The emergence of a proletarian class with
no other source of income; separation of work and personal life; routine
subordination to factory rhythms with clock rigidity; and the expansion of
metropolitan areas. These are just some examples. (French only, 2016).
2. Second Industrial Revolution (1870-1969)
A new source of energy – electricity – appeared at the close of the 19th
Century, defining the Second Industrial Revolution together with mass production,
This time, the United States is in control (Freeman and Soete, 1997). Again,
technological developments in the energy sector have affected a variety of
industries, including rail, steel and chemicals. At the same time, production
increases in mass production systems including interchangeable parts and
assembly lines. More specialized and expensive machinery was used, but
investment was compensated by economies of scale (Colorado, 1993).
It was caused not only by significant economic downturns (such as "the great
depression" of 1893 and the "crash" of 1930), but also by two world wars that the
economic scenery was charged with ups and downs. Generally, competition has
increased and capital in this revolution has been critical.
Industrialization spread through Europe and the United States in the mid-
nineteenth century, and the number of plants increased (Hobsbawm, 2016). A
concentration movement formed the overcapacity of the railways, the steel sector
and the petroleume industry; the automotive industry was then verticalized with
overcapacity generated by competition for more productive technologies;
(Hobsbawm, 2016; Frieden, 2008; Jensen, 1993). Science and investment have
gained importance because of their size and nature, and several companies have
established R&D departments (Freeman and Soete, 1997).

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 3. Third Industrial Revolution from 1969 up to Now
The use of electronics and information technology (IT) characterizes the Third
Industrial Revolution, rather than a transition in energy supplies.
The US led the revolution once again, but Asia was the main player (Freeman
and Soete, 1997).
This revolution's technological advancements (computers, chips, and the
internet) are the result of mass investment in R&D by governments and
universities (Freeman and Soete, 2008).
A range of previous manual activities, including design and management have
already been automated for manufacturing, electronics and information
technology. In these technologies, as they were developed in the 80's, they were
used as the term "PC Integrated Manufacturing Technologies" (CIM), "PC
Assisted Design," "Computer Assisted Manufacturers" (CAM) and "Flexible
production systems" (Gerwin and Tarondeau, 1982)
It was difficult to achieve the economic situation. In order to reduce costs and
increase sales, The oil crisis of the 1970s resulted in a drop in demand and an
increase in inflation. Many businesses and countries are deeply in debt (Frieden,
2008). To deal with this fact, new organizational strategies were needed..
Many industrial activities have been shifting from industrialized countries to
developing countries in the late twentieth century, especially Asia, to save money
(Porter, 1994; Stentoft et al., 2016). On the one hand, globalization, because of
communication requirements, increased the importance of IT applications.
Since labor costs are low, however, there have been few incentives for
automation in such countries. Although not prohibitively high technology cost,
implementing problems, such as obsolete facilities, lack of knowledge and
organizational limitations have increased the bill.
Many Asian countries were catching up and transforming the market through
knowledge transfer and educational investments. Some grew and became
competitors over time.

E. DISCUSSION AND FINDINGS

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1. Technological Advancements
Rosenberg (1982) states that the cumulative effects of small improvements and
intersectoral relationships – technological complementarities – have significant
economical consequences. According to Jovanovic and Rosseau (2005), the general-
purpose technologies (GPT) include the use of technologies which have a significant
and long-term overarching impact and have three main features: (1) the pervasivity of
the technologies, which means that they are used in many fields.
Steam, electricity/mass processing, and electronics/IT were the GPT in the three
previous industrial revolutions. Industry 4.0's key technology, CPS, is applicable in a
wide range of fields and enhances and facilitates a wide range of technologies (for
example, smart factories, smart farms, and smart cities). It has all of the
characteristics of a GPT..
"The availability of a technologies by itself does not imply that the use of the
technologies can be commercially justified" Despite progress in Industry 4.0
technologies (Scheer, 2015). Any elements of Industry 4.0 technology existed 30
years ago, but this paradigm is now only possible because ICT maturity and software
and hardware costs are lower (Brynjolfsson and McAfee, 2014).
2. Economic Scenario
Every revolution was motivated by the economic situation. This paper addressed
two major issues: availability of capital and market dynamics. Although capital
requirements during the First Revolution were not as high, a large number of
companies made consistent investments (Landes, 2003). In the twentieth century the
capital-intensive Second Revolution led to big conglomerates dominating the market.
These large companies were primarily adopters of IT from the Third Industrial
Revolution in the 1970s, 1980s and 1990s, but the economic environment was very
difficult.
According to Swink and Nair in 2007, the debate on AMT's benefits continues
for decades since the first implantations. The authors say that the contingency
approaches that explain the results of AMT implementation are based on many more
factors that are more suitable to tackle the problem. One might argue that the rate of
technological dissemination has been diminished by certain contingencies that

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 worked against globalization and population growth - the relocation of manufacturing
to low salary countries. It has not fulfilled all its promises and is often accused of a
skepticism about industry 4,0. The Third Industrial Revolution.
For an invention to become an innovation, diffusion is necessary. It took time to
spread every revolution's main innovations (Brynjolfsson and McAfee, 2014;
Freeman and Soete, 1997). However, in recent years, the spread rate has increased
and technology is evolving faster than ever, indicating changes in shorter timeframes
(Brynjolfsson and McAfee, 2014).
D'Aveni (1994) describes the rhythm for innovation and globalisation as a
hypercompetitive business environment. It means shorter product and life cycles that
require flexibility and agility. Because Industry 4.0 provides modular, easily re-
organized self-configuration systems, it can provide a proper response, reducing time
to market, to this challenge. This system can, in addition, produce personalized
products at a cost that allows profit to be achieved in very small markets – this is the
concept of the "long tail" by Anderson (2006).
3. Demographic Changes
In the three revolutions, ultimately, demography was an important driver in
Industry 4.0. The population has grown considerably since the end of the 18th
century.
This leads to higher demand and work, both of which helped change. The growth
rate is slowing but, in the developed countries, the population is aging. It implies a
shortage of labor which might be a reason to replace capital with labor. It also can
affect demand since people over 64 tend to spend lower in all but health sectors (Frey
and Osborne, 2016).
Industry 4.0 refers to a number of technologies which require less work, which
can extend skilled workers' working life and which can increase sales on very
particular demands (Kagermann et al., 2013).
For the last three revolutions these features of technological progress, economic
scenario and demography were critical. The first and second spreads have been made
more fast and wide and the third has been slowed down. Even though the
technologies of Industry 4.0 are more advanced than disruptive, their combination

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 and context promise significant economic and social consequences similar to
revolution.

F. CONCLUSION
For a company to meet the challenges of industry 4.0 transformation, a successful
strategy is required. Most of the processes will be replaced by development of
technologies like Big Data and AI. Smartphones and apps are more of an interest to the
next generation. New technologies transform our lives through the "invention of and
production of new, unimaginable things." 
Computerized breaks occur every day. We need to protect our core values, our moral
standards, our Indonesian way of life as we enter the Fourth Industrial Revolution.
Advancing the digital transformation in IR 4.0 is a critical competition factor. Advanced
pioneers in education should use the potential opportunities offered by IR 4.0 to provide
their foundations with computerized management. If the progress in the 4th IR is
misapplied, it will surely distract us from our lifestyle, core qualities and character which
Indonesia is proud of. Consequently, Indonesia needs an Ethics and Responsibility Code
to provide guidance for organizations and individuals in investigating the 4th IR progress.

REFERENCES
Christina Orsolin K. Industry 4.0 : what’s make it revolution?. Paper presented in
EurOMA 2017
Wilkesmann, M., Wilkesmann, U. (2018). Industry 4.0 – organizing routines or
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Systems, Vol. 48 Issue: 2, pp.238-254
Sivathanu, B., Pillai, R. (2018). Smart HR 4.0 – how industry 4.0 is disrupting HR,
Human Resource Management International Digest
Drath, R., & Horch, A. (2014). Industrie 4.0: Hit or hype? [industry forum]. IEEE
industrial electronics magazine, 8(2), 56-58.
Landes, D. S. (2003). The unbound Prometheus: technological change and industrial
development in Western Europe from 1750 to the present. Cambridge University
Press.

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McKinsey Global Institute (2012). Manufacturing the future: The next era of global
growth and innovation, November
Shahroom, A. A., & Hussin, N. (2018). Industrial Revolution 4.0 and Education.
International Journal of Academic Research in Business and Social Sciences,
8(9), 314–319.

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