SME BUSINESS MODEL FOR INDUSTRY 4.0

Imanuddin Hasbi; Putu Nina Madiawati

Imanuddin Hasbi Department of Business Administration, Faculty of Communication and Business, Telkom University
Putu Nina Madiawati Department of Business Administration, Faculty of Communication and Business, Telkom University

Keywords: Industry 4.0, SME, Business Model, Mass customization, Performance Indicator

Abstract

Ongoing technological development pushes industry towards and recent developments in production processes and their automation have led to the definition of the Fourth Industrial Revolution, commonly known as ―Industry 4.0‖. Considering new technology as a determinant of future business environment, we find it necessary to examine how platforms such as Industry 4.0 will change enterprises organization and business models. Designed model should serve as guidance for new and also already existing enterprises for implementing of Industry 4.0 required attributes especially in early stage. SME is an abbreviation for small and medium-sized enterprise, sometimes seen as small and midsized enterprise or business. Main emphasis is given on software and cloud solutions that will become necessary despite the fact that in recent industrial SMEs they do not play significant role. Such transformation will raise crucial questions about funding new technologies. We explore how small and medium‐sized enterprises (SMEs) engage in innovation.