Digital Human: Human Capital Development Formulation to Achieve Excellence Industrial Competitiveness

Aiyub, Aiyub and Adnan, Adnan (2022) Digital Human: Human Capital Development Formulation to Achieve Excellence Industrial Competitiveness. Scientific Research Journal of Economics and Business Management, 2 (1). pp. 1-7. ISSN 2788-9505

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Abstract

The concept of Human Resources has evolved and developed rapidly. At the beginning of its development, the concept of HR was known as the welfare office or the welfare industry, then it developed into labor management, then into personnel management, then into human resource management and the last stage of development was known as human capital or people management. At this stage it should be time for the concept of HR to change, starting from its definition, strategy, challenges, and also the concept of HR in the digitalization era, but unfortunately, the development of comprehensive literature at this stage is still lacking. The rapid development of technology in the Industrial 4.0 era has had an impact on the shift in the role of humans as strategic elements in an organization. The transfer of technology marked by the use of Artificial Intelligence (AI) has led to the shift of most of human work to machines. The development of the Internet of Things (IoT) has had an impact on the automation of most jobs. The concept of Big Data with a large volume, speed and variety of data has shifted the role of humans in obtaining, processing and analysing data for managerial decisions. In addition, there is a tendency in the future for companies to turn into a Smart Industry which has an impact on the lack of recruitment and applying high selectivity in the selection of their employees. This phenomenon will continue to grow to a point where humans themselves begin to doubt the existence of humans as a critical and important resource in an organization. Companies are starting to ask “is it still important for people to be retained in their organizations?”. Even if some people must be preserved, who should be retained in the organization. This situation becomes a big problem for the continuity of human importance in the industrial world. A concrete solution must be sought to solve the problem of the loss of the role of humans "in their own homes". This study aims to formulate a digital human-based human capital development model by synergizing the roles and responsibilities of educational institutions, government, and industry in preparing humans who are able to survive, meet the requirements, and exist in the growing "Smart Industry". The research is directed to formulate a digital human model with the research phase starting with a systematic literature review following a structured manuscript. Keywords: Human Capital, Digital Human, Smart Industry, HR Strategy and Competitiveness.

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