
Purpose
Industrial Revolution 4.0 is still evolving. The purpose of this paper is to assess the progress of Indonesia in achieving an initiative for Industry 4.0. As the largest country in Southeast Asia, Indonesia plays a critical role in implementing Industry 4.0. In addition, this study proposes an open innovation strategies for small and medium enterprises (SMEs) in facing Industry 4.0, especially in the Indonesian setting. Open innovation is viewed as a long-term innovation model that relies on cross-border commerce between businesses and countries.


Design/methodology/approach
This study undertakes a comprehensive literature review to capture the necessary insights for establishing an early grasp of solution design. A total of 32 sample papers were qualified using a set of selection criteria designed to find the most relevant existing studies in the Industry 4.0 and Indonesia domains. The meta-details as significant discoveries were processed using a content analysis approach. In addition, the research deployed sentiment analysis from text mining to inter-operate and classify (positive, negative and neutral) in-text data using text analysis techniques to identify public sentiment toward Industry 4.0 in Indonesia.


Findings
The key finding is that there is a favorable relationship between digital ecosystem readiness and open innovation adoption for SMEs. While, knowledge management is a critical factor in guiding a country’s successful implementation of the open innovation paradigm. Furthermore, some of the major findings revealed that many initiatives for Industry 4.0 are carried out by the private sectors. In regards to the procedure, the role of government is the protection of market regulations. This could be due to preserving fair competition between corporations and SMEs. Local businesses and SMEs should be protected to ensure their survival. In addition, the major cause of the slow adoption of Industry 4.0 in Indonesia is the lack of digital equipment. This is because of the shortage of digital equipment that can create a digital divide between large and small businesses and between industries in the urban and rural areas.


Research limitations/implications
This study discussed some of the most essential issues of SMEs in adopting open innovation that is required for Industrial Revolution 4.0. It focuses on how digital ecosystem’s readiness influences open innovation adoption for SMEs in Indonesia. By understanding its current state of readiness, it contributes to the policymakers in deciding how and where to adopt open innovation and develop digital ecosystem and identify which ones might best meet their needs for any developing countries.


Originality/value
This paper is useful to academics, practitioners and policymakers in the fields of technology and public policy. The research provides some initial insights into Indonesia and any developing countries on Industry Revolution 4.0 and the needs for SMEs in adopting open innovation.


Adopting open innovation for SMEs and industrial revolution 4.0

This research examines individuals’ feasibility of adopting digital wallet also known as ‘eWallet.’ It aims at assessing the technological readiness among customers especially youth by measuring the acceptance level of digital wallet adoption in a massive implementation of the digital economy. Adoption of eWallet can potentially enhance the efficiency of financial institutions and the provision of new services for the convenience of the customers. The nature of this study was developed in the context of South East Asia focusing on Brunei Darussalam. The study using a framework for assessment based on the unified theory of acceptance and use of technology model revealed that the main construct of the model to be predictors of behavioral intention, was attitude towards using technology and anxiety. These results might be as a result of the millennial generation being in constant interaction with various types of technology, paired with the rising Internet connectivity leading to the minimal impact of the digital wallet adoption.

/pdf/factors-influencing-individual-in-adopting-ewallet-4b3whvh37h.pdf

Factors influencing individual in adopting eWallet

Financial Technology (FinTech) has become a disruptive innovation. Being one form of FinTech financing, peer-to-peer (P2P) lending has been widely developed and has grown rapidly for the last few years. The main challenge for P2P lending is on managing risks. FinTech with artificial intelligence (AI) can be used as a strategic tool in mitigating risks for FinTech companies in assessing creditworthiness of a potential customer. However, AI-enabled assessment has created several ethical issues and dilemmas for the stakeholders in the industry. This paper aims to examine the ethical issues and dilemmas by deploying theories of consequentialism and deontology in assisting an ethical decision-making process. An AI-enabled risk assessment will automate processes in understanding potential applicants for P2P lending. The automation process can potentially mitigate any ethical shortcomings as well as the negative impacts in mining the potential customer’s data.

Financial Technology with AI-Enabled and Ethical Challenges

The Critical Success Factors for Robotic Process Automation

The paper attempted to discuss on the impact on the education system in the Industrial Revolution 4.0 era (IR 4.0). The IR 4.0 has changed the technological innovation environment in which it is controlled by artificial intelligence and digital physical frameworks which make interface between humans and machines more universal. Innovation’s rapid revolution has provided another education model for the future (Education 4.0). In order to prepare graduates for future life and work accomplished through IR 4.0 where more smart robots will replace people in certain divisions of service or jobs, education should leverage relevant information and expertise that could not be replaced by robots. Innovation interruption that creates Education 4.0 based on educational growth and skills has made future learning more custom, hyper, smarter, flexible, worldwide and interactive. As cutting edge educators, to improve future learning, we need to explore new and creative approaches to using educational creativity. In this regard, this introduction hypothesizes the necessity that teachers re-examine their old teaching and learning originations, and update or upgrade the learning experiences of their understudies so that they meet the requirements of Education 4.0.

Fourth Industrial Revolution and Educational Challenges

Artificial intelligence poses a particular challenge in its application to finance/treasury management because most treasury functions are no longer physical processes, but rather virtual processes that are increasingly highly automated. Most finance/treasury teams are knowledge workers who make decisions and conduct analytics within often dynamic frameworks that must incorporate environmental considerations (foreign exchange rates, GDP forecasts), internal considerations (growth needs, business trends), as well as the impact of any actions on related corporate decisions which are also highly complex (e.g., hedging, investing, capital structure, liquidity levels). Artificial intelligence in finance and treasury is thus most analogous to the complexity of a human nervous system as it encompasses far more than the automation of tasks. Similar to the human nervous system, AI systems in finance/treasury must manage data quickly and accurately, including the capture and classification of data and its integration into larger datasets. At present, the AI network neural system has been gradually improved and is widely used in many fields of treasury management, such as early warning of potential financial crisis, diagnosis of financial risk, control of financial information data quality and mining of hidden financial data, information, etc.

Christof Nelischer

Papers

"Intelligent" finance and treasury management: what we can expect