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IMPLEMENTATION OF INDUSTRY REVOLUTION 4.0: CHALLENGES, IMPLICATIONS AND THE WAY FORWARD

NG KENG GEAP

BSC (HONS) IN INFORMATION SYSTEMS

SUPERVISOR: PROF LEE CHIEN SING

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INTRODUCTION

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INTRODUCTION

  • Over the years, many corporation has been eyeing on Industry Revolution 4.0 (IR4.0) technology which can improve their overall performances
    • Trend
      • Internet of Things (IoT)
      • Cloud Computing
      • Artificial Intelligence
      • Big Data
      • etc

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INTRODUCTION (CONTINUED)

  • According to PwC’s 2016 Global Industry 4.0 Survey, over 2000 participants from 9 different industrial sectors and 26 countries
    • IR4.0 has established a way to discuss a proper execution in terms of value chain
    • Drive additional revenue with comes with lower cost and greater efficiency gain
    • Strengthen deeper relationship between companies and their customers with co-creation and customization
  • Corporation like Apple, Amazon, Grab & MyCar has been selected in this study as they are the few successful players in their own industry

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AIMS AND OBJECTIVES

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AIMS AND OBJECTIVES

  • Research Questions
    • What are the factors which determine the strength or weakness of each of the selected company?
    • What inferences can be draw with selected model and horizontal/vertical innovation for the selected companies’ product/service?
    • Does social influence play a crucial role in determining the outcome of the perspective of Malaysian usage of the product/service in selected company?
  • Research Objectives
    • To identify which factors affects the overall intention towards using the product/service from selected companies.
    • Implicate then suggest a way forward after identifying overall intention towards using selected companies product/service.

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LITERATURE REVIEW

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LITERATURE REVIEW

  • Technology Acceptance Model (TAM)
    • Proposed by David (1989)
    • 2 main factors affecting attitude then intention to use are:
      • Perceived usefulness
      • Perceived ease of use
  • Unified Theory of Acceptance and Use of Technology (UTAUT)
    • Proposed by Venkatesh (2003)
    • 4 main factors which affect behavior intention then use behavior are:
      • Performance expectancy
      • Effort Expectancy
      • Social Influence
      • Facilitating Conditions
    • Mediating factors such Gender, Age, Experience, & voluntariness of Use

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LITERATURE REVIEW (CONTINUED)

  • Michael Porter generic strategies (1980)
    • Michael Porter is famous with his generic strategies for competitive advantages
    • It can be use for analysis to create or change business value chain or its business model as a whole
    • The 4 competitive advantages are:
      • Cost Leadership
      • Differentiation
      • Cost Focus
      • Differentiation Focus

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LITERATURE REVIEW (CONTINUED)

  • Horizontal value chain
    • Horizontal integration is a type of business expansion strategy
    • Allow the business to grow with other businesses similar to its primary product/service to achieve economies of scales or to reduce competition as a whole
    • Gain access to new customers or markets, including overseas
    • To be allow to cut down costs by sharing technology, R&D, marketing, distribution, and production plan (Traver, E. 2019)
  • Vertical value chain
    • Vertical integration is a type of business strategy whereby a company owns or controls its suppliers (backward), or distributors (forward) to control its value of the product or the supply chain (Tarver, E. 2019)
    • Allow company to control its value chain process as well as reduce costs and improve efficiencies
    • Gain access to worry-free supply of ingredient if company owns its’ supply chain
  • Overall value chain
    • Digitalization has taken over almost all the industry, logistics has no exception, and IR4.0 has made a huge impact of increasing in efficiency in this area, from production line to end user
    • Michael Porter value chain (1985) mentioned that company competitive advantage is supposed to be understood deeply which also include company’s internal structure.

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

  • TAM has been chosen on this study, 2 primary factors which are perceived usefulness and perceived ease of use has been pursue with.

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RESEARCH METHODOLOGY (CONTINUED)

  • Questionnaire Survey
    • Likert scale, closed-ended & open-ended questions
  • Data Collection
    • Google form (via Facebook, Instagram & Whatsapp)
    • Primary Data
    • 204 respondents
  • Analysis Software
    • SPSS
    • SPSS Amos
  • Data Analysis Method
    • Descriptive Analysis
    • Reliability Analysis
    • Structural Equation Modelling (SEM)

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DESCRIPTIVE ANALYTICS

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DESCRIPTIVE ANALYTICS

  • Age Group

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DESCRIPTIVE ANALYTICS (CONTINUED)

  • Gender

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DESCRIPTIVE ANALYTICS (CONTINUED)

  • Marital Status

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DESCRIPTIVE ANALYTICS (CONTINUED)

  • Number of Children

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DESCRIPTIVE ANALYTICS (CONTINUED)

  • Occupation

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DESCRIPTIVE ANALYTICS (CONTINUED)

  • Income

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DESCRIPTIVE ANALYTICS (CONTINUED)

  • Current Residence State

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DESCRIPTIVE ANALYTICS (CONTINUED)

  • Highest Education

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DESCRIPTIVE ANALYTICS (CONTINUED)

  • Conclusion
    • Majority of the respondents are…
      • between age 20 to 29
      • Single
      • No child
      • Student
      • Income 0 to 1500 MYR
      • Urban resident (Selangor, Kuala Lumpur…)
      • Highest education level: Degree

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DESCRIPTIVE ANALYTICS (CONSTRUCTS)

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DESCRIPTIVE ANALYTICS (CONSTRUCTS)

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DESCRIPTIVE ANALYTICS (CONSTRUCTS) (CONTINUED)

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DESCRIPTIVE ANALYTICS (CONSTRUCTS) (CONTINUED)

  • Conclusion
    • Product, perceived ease of use is more important than perceived usefulness
    • Service, perceived usefulness is more important than perceived ease of use

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RELIABILITY ANALYSIS (CRONBACH’S ALPHA)

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RELIABILITY ANALYSIS (CRONBACH’S ALPHA) (APPLE)

  • Social Influence
    • Acceptable internal consistency
  • Perceived Usefulness
    • Excellent internal consistency
  • Perceived Ease of Use
    • Excellent internal consistency

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RELIABILITY ANALYSIS (CRONBACH’S ALPHA) (APPLE) (CONTINUED)

  • Perceived Attitude Towards Using
    • Excellent internal consistency
  • Behavior Intention to Use
    • Good internal consistency

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RELIABILITY ANALYSIS (CRONBACH’S ALPHA) (AMAZON)

  • Social Influence
    • Acceptable internal consistency
  • Perceived Usefulness
    • Excellent internal consistency
  • Perceived Ease of Use
    • Excellent internal consistency

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RELIABILITY ANALYSIS (CRONBACH’S ALPHA) (AMAZON) (CONTINUED)

  • Perceived Attitude Towards Using
    • Excellent internal consistency
  • Behavior Intention to Use
    • Excellent internal consistency

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RELIABILITY ANALYSIS (CRONBACH’S ALPHA) (GRAB)

  • Social Influence
    • Acceptable internal consistency
  • Perceived Usefulness
    • Good internal consistency
  • Perceived Ease of Use
    • Good internal consistency

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RELIABILITY ANALYSIS (CRONBACH’S ALPHA) (GRAB) (CONTINUED)

  • Perceived Attitude Towards Using
    • Good internal consistency
  • Behavior Intention to Use
    • Good internal consistency

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RELIABILITY ANALYSIS (CRONBACH’S ALPHA) (MYCAR)

  • Social Influence
    • Acceptable internal consistency
  • Perceived Usefulness
    • Excellent internal consistency
  • Perceived Ease of Use
    • Excellent internal consistency

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RELIABILITY ANALYSIS (CRONBACH’S ALPHA) (MYCAR) (CONTINUED)

  • Perceived Attitude Towards Using
    • Excellent internal consistency
  • Behavior Intention to Use
    • Excellent internal consistency

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STRUCTURAL EQUATION MODELLING�(SEM)

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STRUCTURAL EQUATION MODELLING (SEM) (APPLE)

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STRUCTURAL EQUATION MODELLING (SEM) (AMAZON)

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STRUCTURAL EQUATION MODELLING (SEM) (GRAB)

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STRUCTURAL EQUATION MODELLING (SEM) (MYCAR)

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DISCUSSION AND CONCLUSION

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DISCUSSION AND CONCLUSION

  • TAM has been chosen in for this study to explain the feedback towards Apple, Amazon, Grab, & MyCar company
  • Average mean
    • Perceived usefulness is more important than perceived ease of use in terms of product
    • Perceived ease of use is more important than perceived usefulness in terms of service
  • SEM
    • Apple: Attitude towards using holds the most significant to predict behavior intention to use
    • Amazon: Perceived ease of use holds the most significant to predict perceived usefulness
    • Grab: Perceived usefulness holds the most significant to predict attitude towards using
    • MyCar: Attitude towards using holds the most significant to predict behavior intention to use
  • Overall, extended variable (social influence) seems to be not supported towards perceived usefulness in all 3 companies expect Amazon

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LIMITATION

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LIMITATION

  • Only 204 respondents participated in this study
  • Age group is mostly made up for younger generation (20 to 29 years old)
  • Location should expand to rural area such as Kedah, Malacca, and Terengganu which has no respondents in this study
  • A short interview before taking survey would benefit data distribution

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THANK YOU

Q&A