In my view, industry 4.0 has both Pros and Cons. Yes, I agree Automation may replace process oriented works (Not imediately but gradually). On the other hand, it would create lot opprunities for the Skilled Workforce (Particular who are experts in Information Technology and internet based work force).

Again, 4.0 would promote investers in maximizing their profit by increasing the scale of skilled whilst ignoring less technically skilled people.

Agree Rajaratnam Dilakshan . Thats I'm afraid of. In developing country the human resorces quality is rather low. It will be difficult to for them to be included in Industry 4.0. So I'm afraid that there will be an increase in unemployment rate

Yes industry 4.0 will increase automation, but I think if developing countries focus on building skills and expertise in the lower end of the supply chain (food production) which will still require large labour, they might survive

Thank you for your answer Vincent Tawiah . I wonder, if the industry 4.0 model can be implemented in labor intensive industry?

Sigit Setiawan Exactly the point, industry 4.0 cannot be implemented in all areas (at least not completely). Given that most developing countries have agrarian land, and food will always be a need, why don't they focus there?

Dear Vincent Tawiah,

Thank you very much for the very clear answer.

Best Regards

Desalegn Abraha

Quite true Vincent Tawiah . Unfortunatly industry 4.0 model maybe not mature enough to be implemented in odd type industry like that (agriculture).

Sigit Setiawan

Various recent studies found few notable challenges while considering industry 4.0 implementation in developing countries. Bad infrastructure, the availability of cheaper labor and the costly installation of technology, lack of government funding, and lack of awareness are among the challenges. 

Dear Dr Sigit Setiawan,

What do you think about implementing Industry 4.0 model in developing country? As we know, many developing country have high unemployment rate, and Industry 4.0 usually involve automation that reduce workforce needed in an industry.

Although I am not an expert in Industry 4.0 model I can give some views. If Industry 4.0 usually involve automation that reduce workforce it will not be appropriate and logical to apply it in developing countries which uaually have high unemployment rate.

Best Regards

Desalegn Abraha

In my opinion, thinking that Industry 4.0 is always connected with automation is quite wrong. Computerized automation is not Industry 4.0, but Industry 3.0 model. In my opinion Industry 4.0 is about producing specialized or customized product but in mass production way. It is done using Industry 4.0 technologies (but not necessary all of them), but more importantly vertical and horizontal tight integration with network technology. Thats way specialized or customized product can be produce and have already a buyer. But in production system itself, didn't need a highly automation system. For example an electrical panel that very specialized for a customer need to be assembled manually. But if the process is using digital, or IOT devices in network to help worker to assembled it, also a tight integration both vertical and horizontal, to market (customer) and supplier, than it can be categorized as Industry 4.0

So in my opinion if we are thinking Industry 4.0 as such, there will be a chance that labor intensive industry can be implemented with Industry 4.0. As we know labor intensive industry is a backbone in developing countries.

What do you think Desalegn Abraha Gebrekidan ?

It has both advantages and disadvantages. Automation improves production. So in the developing nations industry 4.0 should be brought in as a support to human workforce.

Dear Dr Sigit Setiawan,

As it is a combination of technology and labor or human workforce that has to be used and as developing countries are also at different levels of industrialization and automation, the combination can not be standardized and different levels of combination have to be used depending on each and every country's level of development.

Best Regards

Desalegn Abraha

Though it appears to be true and admittedly logical, Automation leads to a general growth in all spheres of the economy, the ripple effect, and that , in turn, propels more employment.

Dear Dr Siva Pardhiva,

Thank you for the clarification.

Best Regards

Desalegn Abraha

I agree Siva Pardhiva , but are industry 4.0 always connected with automation?

I think, I dont quite agree with that. Industry 3.0 bring computerized automation to increase productivity level. So what you says is already happens in Industry 3.0 revolution. But in my opinion, Industry 4.0 aims different thing, its aim to cater to create a customized product, ultimately will bring a single product for a single customer (very customized), but produce in mass production ways like industry 3.0. It can do that by using technologies specific for Industry 4.0, like 3d printing, IOT for completely control the production line through digital telecommunication network (thats didnt happen in Industry 3.0), and therefore tightly integrated both vertical and horizontal link. Therefore Industry 4.0 will open a new market, undreamed by Industry 3.0, a very specific product for a customer ordered by that customer before production. But again it is not necessary the whole production line is automated like Industry 3.0 model, but I think it also can be use in labor intensive industry, people being use as 'smart' machine as is a robot, that controlled and integrated by IOT

In my opinion, the key issue is the nurturing of innovation ecosystems in developing countries that are coherent to Industry 4.0. Another question is how the Industry 4.0 model will be transferred to developing countries? Who are the actors of this transfer? Are local institutions mature enough to promote Industry 4.0 in developing countries? And what are those institutions?

Dear Sigit Setiawan and Taras Danko,

I would like to thank you both for giving very good and clear views and opinions about the question; What do you think about implementing Industry 4.0 model in developing country?

Best Regards

Desalegn Abraha

In my opinion there is no 'best practice' in transferring technology Taras Danko . Each country will be very different with the another because the root cause of need of a particular technology is different. But in my opinion, one thing is sure, the main actor for this transfer are producer of manufacturing equipment/technology. This because developing country do not have solid scientific foundation, so the only one thing they (developing country) can negotiate is adjusting the new technology (industry 4.0) to particular case in that country

Thank you Sigit Setiawan for your reply. I agree, the view on the developing countries as the adopters of new technologies that MNCs bring is quite common in the research community. The International Product Life Cycle theory (Vernon, 1966) is a manifestation of this view. Yet, there is another aspect of it. Perhaps, the Fourth industrial revolution is changing this pattern. In particular, emerging markets MNCs are attracting much attention recently. Many of them are high-tech companies. Also, startups, engineering companies, manufacturers from developing countries are becoming active players in industry 4.0 global value chains. My native city Kharkiv, Ukraine, is a vivid example. We have 30,000 employees in IT industry here, and their primary sales go to the US.

Yes, Taras Danko , there might be a sector that developing country can contribute in Industry 4.0, that is soft parts, the software. As we know, one of core technology of industry 4.0 is AI and cloud computing. Both is software heavy.

But for hardware technology, I'm afraid developing country cannot match the MNC that already put a mountain of money to develop the hardware

The views and ideas being presented by various people are very interesting and I following the discussion very clsoely.

Best Regards

Desalegn Abraha

The points presented here are very interesting. If the issue is the implementation of industry 4.0, most developing nations have large markets where products can be sold and large profits made and industry 4.0 can help to achieve great deal of it. There are many manufacturing or industrial processes in most developing nations that require such an upgrade in order to optimize their production. However, if the issue is contribution to the building of industry 4.0 then most developing nations may be limited within more of software development and little in the hardware development.

Correct Emmanuel Chukwudi Agbaraji , I'm afraid except from developing software, developing country will only be as target market for MNC in implementing Industry 4.0, as always be

@ Sigit Setiawan, you have a strong point.

Although it started slowly the discussion is proceeding at a very high rate which is beyond my imagination.

Best Regards

Desalegn Abraha

Thank you Desalegn Abraha Gebrekidan .

In my opinion Industry 4.0 still at infancy, and many of its technology is under development. So if a country, even a developed country can focus its research capability in one small parts of Industry 4.0 technology, than that country can get a huge return in the future. If not, as we discussed earlier, we only can develop software parts of Industry 4.0 and become target market for MNC in hardware parts

Dear Sigit Setiawan,

Thank you very much foryour comments and the clarification. depending on its level of development isn't possible for one country to put focus on both one small parts of Industry 4.0 technology and other technologies.

Best Regards

Desalegn Abraha

I think if developing country act now before all the technology is researched by MNC or developed country it still possible Desalegn Abraha Gebrekidan , because not all the industry 4.0 is a mature technology.

I agree Sepideh S. Zakeri

Dear Sigit Setiawan,

Thank you for your comments and views about the issue which is under discussionm.

Best Regards

Desalegn Abraha