Facts and Readiness of Souvenir Shops in Implementing the

Industrial Revolution 4.0: A Case Study in Manado

Reny Syafriny

, Sangkertadi

, and Rahmat Prijadi

Faculty of Engineering, Universitas Sam Ratulangi, Manado, Indonesia

Keywords: Souvenir shops, Information Technology.

Abstract: Souvenir-shop is one part of the tourism system Industrial chain. In the present world tourism sector has

implemented the Industrial Revolution 4.0 in various scales and characteristics. Therefore, the souvenir-shops

should also have implemented it. Manado city in Indonesia as a coastal tourism city that offers natural

landscapes, seascapes and traditions, still needs to be supported by the presence of souvenir-shops. Through

this study, it was investigated about the souvenir store’s readiness in the city of Manado in applying the

Industrial Revolution 4.0 in their daily business processes. The method used was the distribution of

questionnaires containing questions about the Industrial Revolution 4.0. It contains the readiness of workers,

information promotion systems, a database of goods, online sales interactions, and networking with outside

parties. Ten souvenir shops in Manado city were as objects of this research. In general, it can be concluded

that most of the shops did not correctly implement the Industrial Revolution 4.0. They need a kind of guidance

and assistance from the government so that they could better prepare to implement the Industrial Revolution

4.0 in order to improve the quality of their business.

1 INTRODUCTION

The fast-growing Electronic Commerce has changed

the paradigm of business affairs in recent years. E-

commerce enabled big opportunity to do sales,

promotions, offer some services by the internet.

Popular since the end of 1970th, E-Commerce is

trading transactions made by online in a computer

network arranged in a database between the product

provider and the party who needs the product,

between costumers and producers.

The world of tourism and travel activities, on the

other hand, have also proliferated. As one of tourists

destination in MICE (Meeting, Incentive,

Conference, and Exhibition) Manado grew up and

became a famous tourism city since 2009 at the

moment of World Ocean Conference (WOC). Ample

of New structures constructed in order to

accommodate both national and international events.

Dozens of industrial wheels are spinning well as an

effect of MICE events, including Event Organizer,

rental transports, digital printing, travel agencies, and

culinary business.

During the late six years, the visitors came to

Manado raised 2.4 times. It indicated that the city has

been able to attract travellers to visit some interest

objects around. Consequently, the development of

numbers of accommodations and restaurant

businesses lived up. Unfortunately, it does not

comply with the flourishing of handicrafts and

souvenirs enterprises. Some of them are bankrupted

unable to maintain their business. Others are running

in limited conditions.

In a discussion and press gathering with the

leaders of the National Assembly in 2018, the head of

provincial planning board stated that North Sulawesi

has tourism potential is quite large but was

constrained by infrastructure and human resources

problems.

This research focused on the problem of human

capital resources skill related to souvenir shops

adaptation process dealing with the revolution of

Industrial Technology Information and

communication. The importance of tourism affairs is

considered as the main objectives of economic

development for the local government. This issue

should be compatible with the Industrial

Technological Revolution 4.0.

We are currently entering the beginning of a

revolution that fundamentally changes the way of life,

jobs opportunity and the relation of both (Schwab,

2017). In his book “The Fourth Industrial

Syafriny, R., Sangkertadi, . and Prijadi, R.

Facts and Readiness of Souvenir Shops in Implementing the Industrial Revolution 4.0: A Case Study in Manado.

DOI: 10.5220/0010622300002967

In Proceedings of the 4th International Conference of Vocational Higher Education (ICVHE 2019) - Empowering Human Capital Towards Sustainable 4.0 Industry, pages 211-214

ISBN: 978-989-758-530-2; ISSN: 2184-9870

211

Revolution” he mentioned that the presence of the

industrial revolution 4.0 had changed human

lifestyles especially in an urban area which

introducing various kinds of businesses affairs, new

jobs, new professions that were never predicted

before. Online shopping and online transportation

came up offering new opportunities to achieve

financial gain.

The research aims to uncover the existence of the

souvenir shops that have leading roles as provider

merchandise for travellers as a souvenir when they

leave the city. The shops play an essential role to

increase the attractiveness of tourism in visiting North

Sulawesi. The main research question is to what

extent the readiness of the shops to meet the

challenges of the industrial era 4.0 and how they

maintain their business involved with the digital

world.

Figure 1: Growing numbers of visitors to Manado city.

2 METHODS

The focus of research is on the usage of computer-

based information Technology and Communication

as a device to obtain, sending, processing,

interpreting, storage, organize, and managing the data

in their trading activities in Manado. An investigation

was held by distributing questionnaires containing

questions about the readiness of workers, information

promotion systems, database of commodities, online

sales interactions, and networking with outside

parties.

Twelve souvenir shops participated in this

research: 5 among those were located around Tikala

District, near Manado City Hall; 2 were located along

Sam Ratulangi Street, and 5 offered their products

along the road to the Main Airport of Manado City.

They are listed as follows :

Table 1: List of participants and its product on the research.

No. Shops’ name Location Main Products

1 Christine

Klappertaart

Tikala Ethnic foods.

2 Miens Souvenir Tikala Handycraft,

textiles

3 Manado

Souveni

Tikala Handicraft,

snacks

4 Kawanua

Souveni

Tikala Handicraft,

snacks

5 Aneka Rasa

Souveni

Tikala Handicraft,

snacks

6 Lenso Manado Sam

Ratulangi

Textiles,

handicrafts

7 Merciful

Building

Sam

Ratulangi

Handicraft

snacks

garments.

8 Maengket

Souvenir

Kairagi Textiles,

garments,

handicrafts

9 Manarou

Souveni

Kairagi Snacks,

handicrafts

10 MM Bakery &

Café

Kairagi Pastry, snacks

11 Oleh Oleh

Manado Indry

Kairagi Snacks,

handicrafts.

12 Oleh Oleh Oma

Yuli

Kairagi Snacks,

handicrafts

The method used was the distribution of

questionnaires containing questions about the

management system in their enterprises, whether the

information technology was used fluently among the

labours. Semi Open-ended questions were delivered,

which allowed the entrepreneurs of souvenir

expressed three main issues about significances of the

technological device in their trading activity. Those

three issues are 1) sales promotion of their products,

2) storage system of goods and 3) Skill of the

labours.

3 RESULTS AND DISCUSSIONS

The result shows that :

3.1 Sales Promotion Activities

The majority of souvenir shops in the city of Manado

have already used a website and YouTube for

marketing their merchandise, but the use of this tool

is only for passive promotions. The activity of

communication used are WhatsApp media, SMS and

voice call through cellular phones is increasingly

intensive to discuss various business affairs. The

friendship linkage frequently becomes the way to

promote by using a limited application of mobile

phone like WhatsApp or Short Messages System.

ICVHE 2019 - The International Conference of Vocational Higher Education (ICVHE) “Empowering Human Capital Towards Sustainable

4.0 Industry”

212

(SMS). Advertising and promoting through media

online were not widespread yet.

Updating the current information related to the

tourism business is observed through the internet.

However, discussion about these matters has occurred

within the friendship linkage through Whatsapp

Groups media.

Figure 2: Souvenirs shops along the road to Manado

Airport.

Relationship with national and international

partners or stakeholders of similar service providers

on tourism affairs is conducted on the limited linkage

among close friend. Communication was held

through popular applications such as Whatsapp and

SMS.

3.2 Stockage System

The souvenir shops are never used technological

device for managing their merchandise. The

availability of products for sales is managed

traditionally. Order and delivery system was running

manually.

Figure 3: Products of merchandise: Handicrafts and

garments

Cellular phone with the limited application was

the primary technological device they used for

running their business, whereas some other

application capable of increasing the sales of their

products and could give the more added value like

better quality, reliability, skills, and more interest.

3.3 Skill of Labors

Technology needs to be managed effectively in order

to enforce changes in a person’s behaviour on the

utilization of technology for profitable business

competition.

The labours of the souvenir shops relied on the

only device or cellular phone in their daily activities

by using WhatsApp, SMS and voice call application

in limited services. Other applications for improving

their skill were never used for the benefit of their jobs

or running a business. There is no specific

requirement in the recruitment process of staffing.

Information technology is everything that

supports us to record, store, process, retrieve,

transmit/deliver and receive information (Behan &

Holmes, 1990). Development of Information

Technology and Communication is beneficial in

every aspect of human life, as well as in the domain

of commerce. Information networks have an

extensive and comprehensive range, and the existence

of e-commerce business is one of the alternative ways

that are beneficial for service and trade entrepreneurs.

Figure. 4: Relationship between souvenir shops and

supplier – costumers – partners.

Souvenir shops should maintain and use an

effective and efficient information system to identify

and evaluate customers, suppliers, and employees. It

is beneficial for support transactions, sales,

procurement planning.

During the industrial revolution 4.0, trading and

management affairs rely more on ITC. Working

processes are changed and transformed in order to

increase productivity. Improve product quality and

satisfy the customers

Technically, the information and communication

technology rapidly developed; however, the

capability of entrepreneurs in optimally benefit it, at

a certain point, needs a big effort. The five elements

of information systems needed great effort for their

implementation: hardware, software, human

resources, data and facilities/procedures (Mildawati,

2000).

Expansion the productivity for entrepreneurs

often meet some obstacles, among others, the slow

process of mastering technology, lack of

preparedness organizations in the management of

Facts and Readiness of Souvenir Shops in Implementing the Industrial Revolution 4.0: A Case Study in Manado

213

changing, decision making, coordination, and

hardware maintenance. The most crucial obstacle in

Indonesia is the local culture of society who are not

accustomed to modern life and still maintain the

traditional way of trading.

The readiness of workers in general as critical

human resources for the public building is in

questioned. Their skills, motivation, and wages

affected the work ethic. The result showed that most

of the workers depend on the smartphone gadget as a

tool for individual consumption and communication

with each other. They are using a simple and

accessible application for chatting, playing games and

other personal needs in working.

Recruitment of staff had lacked the personal skills

condition. There are no prerequisites for the job offer.

Subsequently, the result in competition for the

business of souvenir could hardly be developed. The

result shows that many entrepreneurs in this field

failed and bankrupted.

The shopkeepers passively monitoring the

development of tourism affairs through the internet,

communication activity occurred on a limited

linkage. Communication with other business partners

and stakeholders in the tourism sector (such as

hospitality, travel agencies) is managed by using a

mobile phone or Short Message Services. Online

service has not become part of all selected shop

respondents.

4 CONCLUSIONS

The business of supplying goods and marketing

products is an inseparable part of regional tourism

support activities that can elevate local identities that

need to be preserved because they have become the

target of local governments in supporting tourism

programs.

Conclusion of the research that most of the

souvenir shops could hardly afford to take advantage

of new technology in the Industrial Revolution 4.0.

They need attentive guidance and assistance from the

local government so that they could be well prepared

in order to improve the quality of their business.

Supported by many natural potential and beautiful

panorama on the coastal area, Manado has a

geographical uniqueness with a strategic location to

grow up MICE tourism. (Meeting, Incentives,

Conference and Exhibition). Various national and

international events have taken place in this city,

which was capable of fostering competition and

competitiveness of the city in the development of

tourism. Convenient services should support all of

this in terms of accommodation, transportation,

culinary industry, and the provisions of souvenir

shops. But unfortunately, the readiness in organizing

various events was constrained by the availability of

human resources as a support for the planned

activities.

REFERENCES

Sudrajat Jajat, 2014. “Penerapan E-commerce dalam

Menunjang Penjualan Produk,” jurnal Universitas

Komputer Indonesia. 2014.

Pratama,A.R , A. F Subhi, ASY Irawan, A.R Juwita 2015.

“Analisis Teknologi Informasi E-Commerce dalam

Bidang Perdagangan”.

Mildawati, T. 2000. “Teknologi Informasi dan

Perkembangannya di Indonesia.” Ekuitas Vol.4 No.2

Juni 2000 : 101-110.

Ihsan dan Prananda Herdiawan,2000, “Di Antara Mimpi

dan Masa Depan” ,Warta Ekonomi,No.41/Th.XI/28

Pebruari.

Warta Ekonomi,2000, “ Ekonom dan Ekonomi Baru,”

No.3/TH.XI/31 Januari.

Behan & Holmes. 1990. Understanding of Information

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4.0 Industry”

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