Digital Transformation in the Era of

Industrial Revolution 4.0

THE NEW MACHINE AGE

Source: Source : The Key to Growth? Race with the

Machines, Erik Brynjolfsson.
|2|
|3|
GLOBAL DIGITAL STATISTICS
(Global Digital Population 2018)
4.021 BILLION

7.593 BILLION 1.9 BILLION

*Monthly ac,ve users

5.135 BILLION

3.196 BILLION
|4|
MOST VALUABLE COMPANIES IN THE WORLD – 2019
(Market Capitalization (Bn. USD), January 9, 2019)

#1 #2 #3

780.52 748.68 735.90

#4 #5 #6

728.36 499.59 375.89

375.11 #8 #9

#7 355.13 346.11 |5|

MOBILE TELECOMMUNICATION EVOLUTION

Source : ZTE (World Mobile Congress) 2018 |6|

 INTELLIGENT TOP 10 STRATEGIC
AUTONOMOUS THINGS
TECHNOLOGY TRENDS 2019
AUGMENTED ANALYTICS
AI-DRIVEN DEVELOPMENT

DIGITAL ETHICS
AND PRIVACY

QUANTUM
COMPUTING

Source: Gartner |7|

 INDUSTRIAL REVOLUTION MILESTONES

1.0! 2.0! 3.0! 4.0!

MECHANICAL ELECTRICAL INTERNET DIGITAL
Through the Through the Through the Through the
introduction introduction use of use of cyber-
of mechanical of a division electronic and physical
production of labor and IT systems systems!
facilities mass that further
with help of production automate
water and with the help production!
steam power! of electrical
energy!

1784 1870 1969 2017

Time

EMPOWERING CORPORATIONS EMPOWERING PEOPLE

SCALABLE EFFICIENCY SCALABLE ADAPTABILITY

Doing things right Doing the right things
Source: MITV, Forbes, The Dualarity |8|
 INDUSTRY 4.0 CHARACTERISTICS

Smart products are Smart products are

equipped with sensor AWARE CONNECTED equipped with M2M
technology giving access communication device that
to condition information enables interaction and
regarding the product and Autonomous
Robot data exchange with other
its environment cyber-physical systems
Big Data Simulation

Augmented System
Reality
INDUSTRY Integration

4.0
Additive Internet of
Manufacturing Things

Smart products are Cloud

Computing Cybersecurity Smart products are
equipped with computing equipped with control
power that enables technology that enables
autonomous decision- automonous product
making and self-learning
processes based on
INTELLIGENT RESPONSIVE adaption based on
internal or external
defined algorithms command

Source: MITV, Capegemini, BCG |9|

 IMPACT OF INDUSTRIAL REVOLUTION 4.0
“The Fourth Industrial Revolution is not just about technology or business. It’s about society.” -JOE KAESER (President and CEO, Siemens AG)

Ethics and Identity Fusing Technologies

Innovations are redefining what it means The Revolution open new frontiers of
to be human collaboration between disciplines.

Innovation and Productivity Inequality

The impact of new technologies on
productivity is not being captured by INDUSTRY Wealth inequality is worsening, and new
technologies threaten to aggravate that
traditional tools
4.0 trend

IMPACTS
Business Disruption Disruption to Jobs and Skills
The foundations of business as we know it The Fourth Industrial Revolution is shifting
are being challenged job roles and skill sets

Agile Technology and

Governance Security and Conflict
New technologies are outpacing The Fourth Industrial Revolution is
regulatory frameworks changing the nature of conflict

Source: MITV, World Economic Forum |10|

KEY CHALLENGES FOR INDUSTRIAL 4.0

Digital skills
Shortage
Access to finance
for the scale of Data and cyber
investment security

Specialized strategic
management & Comprehensive access
planning capabilities to proof points

Creating a culture of
collaboration

Source: https://www.siemens.com/customer-magazine/en/home/
industry/creating-a-practical-pathway-to-industry-4-0.html, 2018

INDUSTRY 4.0 OFFERS MULTIPLE BENEFITS
PRODUCTIVITY
Increased productivity…through
a higher level of automation that
reduces production time, enables
better asset utilization and
inventory management
INDUSTRIAL 4.0
BENEFITS
Increased quality…of products
via sensors and actuators that
monitor the current production
in real time and quickly
intervene in case of errors
QUALITY
Source: https://www.i-
scoop.eu/industry-4-0/, 2018
FLEXIBILITYTY
Increased flexibility…through
machines and robots that can
execute the production steps for
a large number of products
Increased speed…from the first
product or factory idea to the
finished product through consistent
data and new simulation
opportunities
SPEED
 CONVERGENCE OF IT AND AUTOMATION How IoT impacts on various industry?

*ERP : Enterprise Resources Planning, MES : Manufacture Execu,on System, SCADA : Supervisory Control and Data Source : IoT Analyrics, 2018
Acquisi,on, PLC : Programmable Logic Controller, I/O : Input/output Signals |13|
DIGITAL TRANSFORMATION = DIGITALIZATION + DIGITIZATION

DIGITAL TRANSFORMATION
Integrating Digitized Processes to achieve enterprise-wide
automation spanning multiple functions; modernization of
current processes & supporting infrastructure to achieve
previously unattainable or unimaginable outcomes

DIGITALIZATION
Using digital technologies for better business
outcomes and inserting new technology into
existing processes to optimize value

DIGITIZATION
Conversion of manual data or
process into digital and using
digital technologies to
automate processes

Source: Techaisle.com, 2018

|14|
The Impact of Digitalization and Automation …#Part 1…

|15|
 INDONESIA STATISTICS

World’s 15th largest country Internet users 132,7 mio

Total area 1,919,440 km2 Penetration 50%

World's 4th most populous Active SocMed users 130 mio

country >266Mio population Penetration 49%

World's 16th among G20 Mobile users 177,9 mio

members Penetration 67%

34 Provinces and 514 Mobile Social users 120 mio

Districts Penetration 45%

Source: wearesocial.org (2018), indonesia digital landscape (2018)

|16|
DIGITAL ECONOMY POTENTIAL IN INDONESIA
The government targets Indonesia to become the center of the digital economy in Southeast Asia by 2020

ON DEMAND SERVCIES FINANCIAL TECHNOLOGY (FINTECH)

Proyeksi transaksi Nominal transaksi
Pangsa pasar Indonesia tinggi
di Indonesia 2016 per populasi 2014
132,7 juta 63,4 juta US$ 14,5 miliar US$ 56,98 miliar
Pengguna internet Pengguna ponsel pintar (Rp 190 triliun) (Rp 747 triliun)
Para Pemain: Para Pemain:

INTERNET OF THINGS (IOT)

Potensi pasar Asia Pasifik
2020 E-COMMERCE
US$ 583 miliar Potensi transaksi di Indonesia
2015
2013 2016 2020
US$ 250 miliar
US$ 8 miliar US$ 20 miliar US$ 130 miliar
Para Pemain:
(Rp 104 triliun) (Rp 261 triliun) (Rp 1.700 triliun)
Para Pemain:

Source: Kominfo, Tech in Asia, IDC, Daily Social, BI, Statistika, IDEA, World Bank |17|
 THE RISE OF INDONESIAN UNICORN

Ferry Unardi
IDR 27 Tn.
William Tanuwijaya 2012
IDR 15 Tn.
2009

Nadiem Makarim
Bukalapak
IDR 14 Tn. IDR 53 Tn.
2010
2010

Source : BBC and Kompas, 2018 |18|

Source : Departemen Perindustrian RI, 2018
|19|
INDONESIAN AMBIGUITY IS LARGELY SPECIFIC TO THE DOMESTIC SETTING OF THE
COUNTRY AS IT IS ROOTED IN ITS LIMITED CAPABILITIES AND RESOURCES

Technologically Politically
Economically
deficient dysfunctional
Rising Socially
Military Institutionally
vulnerable uncoordinated
Weak

INDONESIA’S LEADERS HAVE TO UNDERTAKE LARGE SCALE POLITICAL,

BUREUCRATIC AND ECONOMIC REFORMS TOWARDS
INSTITUTIONALIZATION, INDUSTRIALIZATION & DIGITIZATION

a proper balance
between… The requirement of foreign assistance in
The rise of nationalistic defense buildup, large scale industrialization
sentiments and digital & technological innovation

Source : Vibhanshu, “Indonesia’s Foreign Policy and Grand

Strategy in the 21st Century : Rise of an Indo-Pacific Power”,2018. |20|
|21|
CHINA DOMINATES GLOBAL
MANUFACTURING

|22|
SILLICON VALLEY HAS DOMINATED
TECHNOLOGY FOR 40 YEARS

SILLICON VALLEY FORMULA IS NO SECRET

Brain Power Capital Government Ecosystem Culture |23|

TOP 10 STARTUP ECOSYSTEMS IN THE WORLD 2017: Many regions have tried to copy SV
CHINA RISING model…All have failed…CHINA will be
the Exception…

Source : https://venturebeat.com/
2017/12/02/top-10-startup-ecosystems-in-
the-world-2017-china-rising/, 2018
|24|
FROM LOW-COST ASSEMBLER TO
CUTTING-EDGE INNOVATOR

IT’S HAPPENING
FASTER THAN YOU THINK ! |25|
CHINA HAS ITS OWN UNIQUE FORMULA

|26|
USA VS CHINA

|27|
|28|
PEOPLE PERSPECTIVE
CHANGE IT ORGANIZATION’S CENTER OF GRAVITY, HIRE NEW ROLES
AND USE BIMODAL WORKSTYLES
User Experience
Designer
34%
Product Manager
Voice Interaction
Designer 42%
34%
CUSTOMERS ECOSYSTEMS API Product
Manager

Algorithm Model Designer 34%

Chief Analytics Officer 34%

Digital Workplace
Machine Trainer 34% INTELLIGENCE Leader

30%
IoT Specialists

THINGS IT SYSTEMS
Mega Vendor
Manager 41%
Source : CIO Survey, Top Performance Only, N = 175, 2018 |29|
 NECESSARY SKILLS IN 2020

Top 10 Skills…
Creativity
…in 2015 …in 2020 Creativity will become one of the top
three skills workers will need. With
the avalanche of new products, new
1.  Complex Problem Solving 1.  Complex Problem Solving technologies and new ways of
working, workers are going to have
2.  Coordinating with Others 2.  Critical Thinking to become more creative in order to
3.  People Management 3.  Creativity benefit from these changes. Robots
may help us get to where we want to
4.  Critical Thinking 4.  People Management be faster, but they can’t be as
creative as humans (yet).
5.  Negotiation 5.  Coordinating with Others
6.  Quality Control 6.  Emotional Intelligence
7.  Service Orientation 7.  Judgement and Decision Emotional Intelligence
Emotional intelligence, which doesn’t
8.  Judgement and Decision Making feature in the top 10 today, will
become one of the top skills needed
Making 8.  Service Orientation by all.
9.  Active Listening 9.  Negotiation
10. Creativity 10. Cognitive Flexibility

Source: MITV, World Economic Forum |30|

The Impact of Digitalization and Automation …#Part 2…

|31|
“Help young people. Help small guys. Because small guys will
be big. Young people will have the seeds you bury in their
minds and when they grow up, they will change the world.”
~ Jack Ma ~

…Thank You…