BACHELOR OF COMMUNICATION WITH HONOURS

SEMESTER SEPTEMBER 2021

ABCM2103

INFORMATION TECHNOLOGY, MEDIA AND SOCIETY

MATRICULATION NO : 780614125079001

IDENTITIY CARD NO : 780614125079

E-MAIL : aswanfazli@gmail.com

TEL. NO : 013-9321236

LEARNING CENTRE : KOTA KINABALU LEARNING CENTRE

 Manufacturing is the production of goods through the use of labour, machines, tools,
and chemical or biological processing or formulation(Electric et al., n.d.). It is the essence of
the secondary sector of the economy(Electric et al., n.d.). The term may refer to a range of
human activity, from handicraft to high-tech, but it is most commonly applied to industrial
design, in which raw materials from the primary sector are transformed into finishing goods
on a large scale. Such goods may be sold to other manufacturers for the production of other
more complex products or distributed via the tertiary industry to end-users and consumers. In
Malaysia, the manufacturing sectors brings in 1049 approved projects, RM 91.3 billion of
approved investments and 80190 job opportunities in 2020(MIDA, n.d.).

While, Information and communication technology (ICT) is an extensional term for

information technology (IT) that stresses the role of unified communications and the
integration of telecommunications and computers, as well as necessary enterprise software,
middleware, storage and audio-visual, that enable users to access, store, transmit understand
and manipulate information(Higgins & Meadows, 2013). ICT is an umbrella term that
includes any communication device, encompassing radio, television, cell phones, computer,
and network hardware, satellite systems and so on(Higgins & Meadows, 2013). ICT is a
broad subject and the concept are evolving. It coves any products that will store, retrieve,
manipulate, transmit, or receive information electronically in a digital form such as personal
computers, smartphones, digital television, email or robots.

ICT has begun taking its roots in the manufacturing sectors during the 3 rd industrial
revolution or the digital revolution. The third industrial revolution began in the ‘70s in the
20th century through partial automation using memory-programmable controls and computers.
Since of these technologies, we are now able to automate an entire production process –
without human assistance(Hodson, 2018). Now, the implementation of the fourth industrial
revolution (IR 4.0) is taking place where the application of information and communication
technologies to industry. it builds on the development of the Third Industrial Revolution.
Production systems that already have computer technology are expanded by a network
connection and have a digital twin on the internet so to speak(Desoutter, n.d.). These allow
systems lead to “cyber-physical production systems” and therefore smart factories, in which
production systems, components and people communicate via a network and production is
nearly autonomous(Desoutter, n.d.).

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 Malaysia has also tried to integrate IR 4.0 to ensure that the manufacturing sector
continues to be competitive in terms of productivity, innovation, and talent while creating the
jobs needed for sustained growth. The Industry4WRD initiative was launched in 2018 as a
catalyst to support the manufacturing and manufacturing-related services sectors transition
into IR 4.0 successfully(MITI, 2018). In June 2020, the Smart Automation Grant (SAG) was
introduced under the National Economic Recovery Plan (PENJANA) to assist and incentivise
manufacturing and services companies to automatise and digitalise operations, production
and trade channels. MIDA also offers assistance and facilitation for businesses to accelerate
the adoption of digital technologies and become the catalyst in driving the nation’s digital
economy(MITI, 2018).

The advancement of the ICT has caused a lot of changes towards the manufacturing
sectors which some of the changes are positive changes while some of the changes can have
negative impacts on the manufacturing sectors. The positive impacts of ICT towards the
manufacturing sectors are that ICT can help the sectors to increase their efficiencies, help
them integrate & automate the machine, and ICT also enables the systems that were used in
the sectors to self-adapt. The first positive impact which is the increase in the efficiencies is
because ICT has caused the change of relationships among suppliers, producers, as well as
customers as well as between humans and machines compare with the traditional
manufacturing system. Also, the advancement of ICT which led to the IR 4.0 will make it
possible to gather and analyse data across machines, enabling faster, more flexible, and more
efficient processes to produce high-quality goods at a reduced cost(Rüßmann et al., 2015).
This in turn will increase manufacturing productivity, shift economics, foster industrial
growth, and modify the profile of the workforce(Rüßmann et al., 2015). There is a study
made by Amir Gholam Abri which studies the impact of information technology on
productivity and efficiency in Iranian manufacturing industries and based on the result he
obtained shows that information technology (IT) has a positive and statically significant
effect on the productivity of manufacturing industries(Abri & Mahmoudzadeh, 2015).

Besides, the other positive impact of ICT can be seen when the manufacturing
systems would become fully integrated and automated as a result of digital adoption that will
transform the industrial environment. The integrated and automated system creates a direct
line of communication between the system that allows plant equipment to more efficiently
communicate with operators and other machinery(IndustLabs, n.d.). Integrating the system
will help the manufacturing sectors better coordinate between systems and appliances

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because when the manufacturing sector has a system that is connected with the Internet of
Things (IoT) makes automated manufacturing more efficient and help the machine to
effectively communicate and resolve issues and information across the system without having
to rely on operators which is the things that are needed the most during this Covid-19
because, when the worker is asked to work from home (WFH) they can observe the
machinery using their devices such as computers and smartphone to observed the machinery
and practice social distancing that the government have instructed.

The positive impact that ICT brings to the manufacturing sector is that the ICT allows
the machine and software used in the manufacturing sector to self-adapt to any changes. The
environment in the manufacturing sector will become unified by the connected systems that
enable interactions within and between systems to allow self-configuration, failure prediction
and be more adaptive to changes(MITI, 2018). The ICT brings to the table such as sensors,
machines, workpieces, and IT systems will be connected along the value chain beyond a
single enterprise. These connected systems which are also known as cyber-physical systems
can interact with one another using standard internet-based protocol and analyse data to
predict failure, configure themselves, and adapt to changes(Rüßmann et al., 2015). This will
help the manufacturing sector on reducing the cost to produce a product and the product that
the sector brings will help the economic growth by producing a high-quality product with a
fraction of the prices that were used to pay. It also helps to reduce any waste due to the
improvement made that allows the machine to predict any failures ahead of time.

Besides the positive impact that ICT has on the manufacturing sector, there are also
negative impacts on the manufacturing sector. The implementation of ICT has caused
inequality and disruption to existing jobs in the manufacturing sector. The technology will
segregate the manufacturing sector into low skill/low pay and high skill/high pay categories,
resulting in some of the discomforts by the worker in this sector. It is further argued that
industry 4.0 will benefit the owner of intellectual capital and their shareholders, while also
deepening the gap between those dependent on labour versus those dependent on capital,
increasing inequality. When the ICT becomes more advance and all the factory becomes
more autonomous leading to less staff needed for the factory to run. A recent study released
by McKinsey Global Institute reports that roughly one-fifth of the global workforce will be
impacted by the adoption of AI and automation, with the most significant impact in
developed nations like the UK, Germany and US. By 2022 50% of companies believed that
automation will decrease their number of full-time staff by 2030, robots will replace 800

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million workers across the world(How Will the Fourth Industrial Revolution Impact the
Future of Work? - Change Recruitment, n.d.).

Cyber threat is also one of the concerns regarding ICT in the manufacturing sector.
For many manufacturing companies, the biggest cyber threat is a lack of knowledge and
training regarding how to identify and avoid potential threats. Jason Miller has listed out 7
cyber threats for manufacturing companies such as phishing attacks, ransomware, internal
breaches, equipment sabotage, IP theft, supply chain attacks and nation-state attacks(Miller,
2021). By 2019, the manufacturing sector reached the top 10 status as the 8 th most targeted
industry by cyber attackers. The problem exploded in 2020 when many companies were
forced to depend mostly almost entirely on remote workers due to pandemics restrictions.
While most of the world was largely unprepared for the effects of COVID-19, cyberattacks
were ready. The manufacturing industry moved from the 8th most targeted industry by
cyberattacks to number 2, falling behind finance and insurance(Miller, 2021).

There are a lot of studies made related to the effects of ICT on the manufacturing
sector. There are four studies that I have analysed which are: The Use of ICT in Design and
manufacturing written by M. R. Muhamad, Industrial integration of ICT; opportunities for
international research cooperation under the IMS scheme written by Michael Abramovici,
Top 7 cyber threats for manufacturing companies by Jason Miller, and Industry 4.0: The
Future of Productivity and Growth in Manufacturing Industries by Michael Rüßmann. These
studies are very important so that ICT in the manufacturing sector can be used efficiently.

In the paper written by M.R. Muhammad regarding the use of ICT in design and
manufacturing, he has stated that ICT can make design and manufacturing more robust,
effective and efficient by using computer-based systems, such as virtual systems and
computer simulation(Muhamad, 2019). In this journal, the writer has mentioned several
advantages of ICT applications in design and manufacturing such as saving cost and time
throughout the design and manufacturing process, being relatively simple and easy to use in
helping design and manufacturing, making the design more robust, shorten cycle time in
product development, high precision and quality of the products, reduce of support
component, can be designed, tested and modified design without physical testing, increasing
capabilities at product development and improvement, can help management at design and
manufacturing more robust and shorten time-to-market, etc. The writer also mentioned
several advantages of using the internet as the medium of communication, from the

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perspective of suppliers and designers which are designers are free to choose when and where
to work. They are not confined to an eight to five routine in an office. The internet allows the
communication of ideas among designers from different parts of the world. It also allows
collaboration between designers, manufacturing engineers, marketing personnel to evaluate
the virtual prototypes. Designers can share the usage of computer-aided prototyping tools
through the internet. The manufacturers can tap into the global market of Internet users via e-
commerce. They can potentially market their product anywhere in the world. The
manufacturer can advertise their wares for all to view. The information is available 24 hours a
day and data can be updated as and when required. Manufacturer can use the internet
information to provide real-time manufacturing, logistic support and business services right at
the customer’s doorstep.

Then, in the journal Industrial integration of ICT; opportunities for international

research cooperation under the IMS scheme written by Michael Abramovici, what I have
understood on the studies is that four ICT-related trends that will profoundly impact
manufacturing in the future which is increased enterprise agility and adaptability, the growth
of embedded intelligence in products and processes, the transition from physical products to
product/service systems, and the reorientation towards a holistic perspective of the product
lifecycle(Abramovici & Filos, 2011). The journal also mentioned the challenges that
manufacturing industries which is to reconcile competitiveness and environmental
friendliness of products and processes. The writer has proposed a way to address this
challenge which is a new generation of ICT-based industrial methods, systems, and
tools(Abramovici & Filos, 2011).

Besides, the issues of top 7 cyber threats for manufacturing companies are a very
important issue and needed to be understood and prevented by all manufacturing companies.
The first threat is a phishing attack which is one of the oldest and most widely used tactics
among cybercriminals(Miller, 2021). The writer has mentioned several ways manufacturing
companies are more vulnerable to phishing attacks than other industries are the lack of
preparation throughout the industry, the use of systems never intended to be connected with
the outside world, long supply chain with many interconnected companies, hackers can often
access the names of management employees to impersonate and fragmented system across
different departments make it difficult to apply a single security framework(Miller, 2021).
Then, ransomware is also one of the cyberthreats that the manufacturing companies have
because it is a type of malware that encrypts files on a network and makes them unusable

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until the demands of hackers are met. These threat actors may threaten to sell or leak
sensitive data if the ransom is not paid. The third cyber threat is the internal breach where the
attack is done by the employees or other personnel with access to the company out of anger
or dissatisfaction. Equipment sabotage is also one of the threats where the operational
technology that is connected with the technology of modern communication systems makes it
vulnerable to outside threats and the implication of danger due to the equipment sabotage are
far more sinister(Miller, 2021). In addition, the theft of intellectual property (IP) is a type of
information theft more likely to go overlooked than the theft of customer data. Yet, it’s a
serious crime that can damage a company significantly. IP theft is especially important in the
manufacturing sector because your company intellectual property is what differentiates you
from the competition. On top of that, supply chain attacks and nation-state attack is the most
dangerous out of all the other cyber threats and can cause harm not only to the company but
to a nation or global threat.

The last news that I have analysed is the industry 4.0: The Future of Productivity and
Growth in Manufacturing Industries by Michael Rüßmann. The writer has mentioned that
there are nine pillars of technological advancement which are big data and analytics,
autonomous robots, simulation, horizontal and vertical system integration, the industrial
internet of things, cybersecurity, the cloud, additive manufacturing and augmented
reality(Rüßmann et al., 2015). The writer has mentioned a lot of impact by the industry 4.0
and takes Germany as an example. The first impact is the productivity for example, for the
next five to ten years, industry 4.0 will be embraced by more companies, boosting
productivity across all German manufacturing sectors by 90 billion to 150 billion
euros(Rüßmann et al., 2015). Productivity improvements on conversion cost will also range
from 15 to 25 percent(Rüßmann et al., 2015). Then, revenue growth will also be one of the
impacts of industry 4.0 such that it will increase the GDP of Germany by 1 percent. Besides,
employment will also be impacted. The writer has found out that, the growth that industry 4.0
stimulate will lead to a 6 percent increase in employment during the next ten years. And
demand for employees in the mechanical-engineering sector may rise even more- by as much
as 10 percent during the same period. They also estimated investment worth 250 billion euros
during the next ten years which is about 1 to 1.5 percent of manufacturers’
revenues(Rüßmann et al., 2015).

There are a lot of ways to improve the economic development of ICT in the
manufacturing sectors. Two solutions that I suggest for the manufacturing sectors is funding

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and outcome-based incentives and enabling ecosystem and efficient digital infrastructure.
Funding and outcome-based incentives can improve the economic development of ICT in the
manufacturing sector because it encourages the companies to integrate ICT in their company
and strive to adopt new manufacturing technologies and processes and invest in research and
development(MITI, 2018). Outcome-based incentives ensure that the companies strive to
make large progress and impact on society thus ensuring them to gain an equivalent reward.
There are a lot of new technologies that the companies can dive into such as robotics,
augmented reality, additive manufacturing and smart factories to improve the economic
development of ICT towards the manufacturing sector.

Then, enabling ecosystem and efficient digital infrastructure can improve the
economic development of ICT. Fast and secure data connection is a basic requirement for the
realisation of industry 4.0. A good and reliable internet speed rate is needed for implementing
internet-based production technologies or services, be it IoT solutions, the use of augmented
reality and wearables in production or the evaluation of real-time data. a digitalised and
connected infrastructure across supply and manufacturing value chains is critical to foster a
seamless movement of goods, data and services; drive efficiency and resource optimisation
and support joint development efforts(MITI, 2018). Thus, the enabling ecosystem and
efficient digital infrastructure must be done to accelerate the economic development of ICT
in the manufacturing sector to ensure that industry 4.0 can de realise and help develop the
people, transforming processes and adopting technologies better in the manufacturing sector.

In conclusion, the implementation of ICT in the manufacturing sector is very

important so that industry 4.0 can be adopted not only in the developed country but also the
developing country especially Malaysia. the manufacturing industry in Malaysia is so
important because it contributes to the nation’s export revenue and job creation ensured the
country’s growth despite global economic uncertainties. ICT helps the manufacturing sector
by ushering a new era of growth, changes and opportunities to occur which is industry 4.0.
ICT not only bring a positive impact on the manufacturing sectors but also negative impacts.
The positive impact that ICT brings is that ICT enable the manufacturing sector to become
more efficient in how they work and the quality of the production is also increasing. ICT also
leads to the integration and automation in manufacturing factories, the use of robotics and
smart factories that uses the Internet of Things in the manufacturing was only enabled
because of the ICT development. Besides, the self-adaptation to changes in the manufacturing
system was also one of the impacts of ICT in the manufacturing system, it enables the

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machines to self-correct itself and can calculate and predict the error in the systems helps the
manufacturing sector to save their money in the man-power/ operator and reduce any
potential waste that was caused by the error. The negative impact that the ICT brings is that
there will be a risk of cyber threats that the manufacturing companies need to be considered
when implementing ICT in their factories or companies. The other negative impact is that
there will be inequality of pay in the sector which further the wage gap between workers. The
automation in the factory will also lead to fewer needed employees in the factories which are
bad for the people. The four journals that were analysed also help further in understanding the
impact that ICT brings to the manufacturing sectors. The two best solutions which are the
funding and outcome-based incentives and enabling ecosystem and efficient digital
infrastructure will also help the development of ICT towards the manufacturing sectors
because it motivates the companies to strive better and further improve the use of ICT in the
manufacturing sectors. Thus, ICT is very important to the manufacturing sectors and should
be implemented or integrated into the sector and the bad effects that it brings can be further
diminished or avoided when the companies made preparations.

3194 words

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References

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international research cooperation under the IMS scheme. Journal of Intelligent
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2. Abri, A. G., & Mahmoudzadeh, M. (2015). Impact of information technology on
productivity and efficiency in Iranian manufacturing industries. Journal of Industrial
Engineering International, 11(1), 143–157. https://doi.org/10.1007/s40092-014-0095-
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 https://www.bitlyft.com/resources/cyber-threats-manufacturing-companies
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