THE STRUCTURAL TRANSFORMATION OF FACTORS OF PRODUCTION IN THE FORMATION PROCESS OF THE FOURTH INDUSTRIAL REVOLUTION (INDUSTRY 4.0) AND POSSIBLE NEW FACTORS OF PRODUCTION

Abstract

Industrial revolutions have always been requisitefor human beings in order to adapt to time and innovation trends, and forced them to be in a constant search for novelty in order to maintain productivity. Regardless of what business branches or sectors they are, their historical developments are all based on the phenomenon of Industrial Revolution since people need to show and advertise their productionsfor the process to continue, which would enable the emergence of new ideas, formations, revolutions, and concepts. Based on this notion, the scope of each Industrial Revolution and the factors of productions were examined and analysed through literature review. The study aims to form new concepts by means of bringing Artificial Intelligence, Cloud Computing System, and Digital Environment (Internet of Things), which are referred to as the factors of production of the Fourth Industrial Revolution, up for discussion or introduce new concepts that can replace the old factors of production into literature. The concept of Industry 4.0 is basically a revolutionary transformation that brings about industrially new ideas, formations and processes. Hence, the emergence of new concepts is an inevitable and natural consequence of this transformation. Likewise, with the Fourth Industrial Revolution, the classic Factors of Production will inevitably change or be renewed. Concordantly, Industry 4.0 highlights Artificial Intelligence instead of labour, Cloud Computing System instead of technology or the power of knowledge, and Digital Environment (Internet of Things) as new concepts. The study aims to form new concepts into literature by means of bringing possible new concepts up for discussion