Competence and readiness of small and medium industries against of industrial revolution 4.0

Small and Medium Industry (SMI) is one of the strategic business sectors that is very influential in the industrial revolution 4.0. Industry 4.0 refers to the concept of using the internet of things, as well as smart and cloud-based manufacturing. The SMI constraints from the knowledge, skills, use of technology, so that needed the competence and readiness of Small and Medium Industries in the Industrial Revolution 4.0. This study examines the level of SMI Competence and SMI Readiness in facing the Industrial Revolution 4.0. The design and model of this study were developed using TRA. The development of this model was carried out in three stages. The purpose of the conceptual is to explain and analyze the description of the Small and Medium Industry Competency variables and the readiness of small and medium industries. The results of the conceptual about the indicators of each variable that will be used in further research.