In terms of technological revolution, the first paragraph of Transformation and changes in the technology evolved since 1945 [1]. It starts from the large big machine, desktop, mainframe, microchips, smartphones and lately the aim for all the devices are revolutionising to be more personal and smaller as it evolves and transforms towards the future. Throughout the years, the development of the industry has been gradually changing. The first industrial revolution occurred with the automation of using steam power and water power. Meanwhile, mass manufacturing which is sup- ported by electric energy and production lines occurred in the second industrial revolution. The application of electronics and digital revolution in order to further automate the production line have impacted positively towards the third industrial revolution previously and now it is revolving into the Industry 4.0. The paper that was written by MIT Sloan and Cap Gemini [2] refers to a Digital Transformation as an environment where everything for an organisation is connected which creates digital imperatives for companies to create transformation through technology that impacts Customer Experience, Operational Improvement and Business Model Change thus covering the organisation’s overall performance. The digital transformation is able to become a drive as well as an enabler for new forms of innovation through transformation, management of the knowledge environment, and enabling of demand driven supply chains [3]. As digital transformation is headed to Industry 4.0 where technologies are growing in an accelerated pace that is drastically changing and modernising. It has created an opportunity for the business to grow and envelope into a shorter process with better results. However, the readiness of SMEs needs to be recognised before applying digital transformation into the business processes as according to Bloomberg [4]. As Malaysian SMEs continues to grow by aiming to accelerate their contribution to the Gross Domestic Product (GDP) to a staggering 41 percent and the country’s exports share from SMEs to a 23 per cent by 2020 [5], Malaysian SMEs need to be prepared to the advances and challenges of Industry 4.0 in order to be competing with the world.

۲ Research Work

۲٫۱ Industry Revolution

The revolution begins with the improvements and advances in agricultural techniques that have created an increased supply of food and raw materials. The changes in industrial organisations as well as technological advancement have caused an increase in production, profits, efficiency and the increase in commerce, where all conditions which created the beginning of the Industrial Revolution. Therefore, the movement in which machines changed or altered people’s way of life as well as their methods of manufacture is called The Industrial Revolution [6]. The First Industrial Revolution was initiated in Britain and had spread through the whole world. It was a period in where fundamental changes have occurred and greatly impacted the sectors of agriculture, textile and metal manufacture, transportation, economic policies and the social structure in England. At this period, it is labelled as a revolution where it thoroughly destroyed the traditional or old manner of doing things [7]. Prior to the Industrial Revolution, the industrialisation marked a shift of power, mass production, factories and special-purpose machineries [8].