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Management Reformation in the age of 4.0

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Md. Ashraful Islam, Research Assistant, Textile Focus

We are in an age where robotics, artificial intelligence, technologies like block chain all of these different things that are becoming normal in business and management. Industry 4.0 is an increasing vide in a country like Bangladesh that has especially recognized of late in apparel manufacturing operations. Industry 4.0 arises the question of how do change the management and if management even in the digital age is necessary? Earlier, in the last issue of Textile Focus an article was published on how industry 4.0 will affect the apparel and retailing industry and which tools will be used. This article talks about how industry 4.0 will force to reform management.

Defining Management

Today, how you do it is more important than what are you doing. So it is the process of doing things that is more effecting the end results. Importance of management, especially in the industry is becoming inevitable now days. To define academically, management includes the ability to plan, organize, monitor and direct individuals and it encompasses functions like accounting, finance, business administration, human resource, consulting, information technology, marketing, sales, retail and any other industrial operation. In other way, management in industry is a single or group of individuals who challenges and oversees a person or collective group of people in efforts to accomplish desired goals and objectives. So as long as the transformation of the industries is concerned it is the managers with skills of planning, organizing and leading projects are responsible to carry out the changes towards industry 4.0. This article tells about how management concepts are changing with the subsequent industrial revolutions.

Management 4.0

It’s about management at a time when society is changing and becoming more diverse; when the workforce is aging and where the demands and expectations of consumers and workers are very different from those of previous generations. We are rapidly reaching a point where human performance is being outrun by computer performance. image001We are starting to see the ability of computers to do things that are only able to do by a human before. For this, we called it the 4th industrial revolution. CMI defines Management 4.0 as management in the fourth industrial revolution where technology plays the most important role in shaping the business landscape in a way that is new. Management 4.0 theme focuses on technology transformed, pattern work transformed, leadership transformed, society transformed, the business transformed, lifelong learning transform.

Management 3.0

image003It began in 2010 with a book by Jurgen Appelo has, as yet another innovation in the world of managing software development, become the gold standard in Agile management. It encourages treating teams as complex and living systems, rather than as input-output production machines. Organizations are complex, adaptive systems and that good management mean taking care of the system instead of manipulating people. Management 3.0 is neither a framework nor a method. It is a way of looking at work systems, and it has a few timeless principles. In a nutshell, Management 3.0 empowers teams. Specifically, it refers to what is perhaps the best way, at least at present, for getting the most out of agile teams. The premise behind Management 3.0 is to redefine leadership to where management becomes a group responsibility, where everyone works together to find the most profitable and efficient ways for a business or organization to reach its objectives while prioritizing employee happiness, which everyone seems to be finally realizing is the key to a productive work environment.

Management 2.0

image005In a Management 2.0 organization, everyone recognizes that “people are the most valuable assets” and that managers have to become “servant leaders” while steering the organization from “good to great.” These are certainly interesting ideas, but sadly, managers often use the wrong approach. They correctly understand that improvement of the whole organization is not achieved by merely improving the parts but, at the same time, they prefer to stick to the hierarchy and have a tendency to forget that human beings don’t respond well to top-down control and mandated “improvements.” It’s an idea that acknowledges that management is about human beings and that managers must seek ways to help people find their true calling and achieve great results together. Management 1.0 is doing the wrong thing and Management 2.0 is doing the right thing in the wrong way – according to Jurgen Appelo.

Management 1.0

In this style of management, people assume the organization consists of parts and that improvement of the whole requires monitoring, repairing, and replacing those parts. Management 1.0 assumes that the community of employees is better served with competition and politics than with collaboration and a shared purpose.

Management even necessary in the digital age?

Accounting & Finance

We are familiar with accounting & finance. It is one of the basics of the management field. In simple term, accounting & finance gives us the rules which we know how to do businesses. Accounting & Finance has become digitized in a way that becomes in some ways new oil of the organization. Because of the 4th industrial revolution managers nowadays has to cope up with the following things which help the organization to move faster than before. Artificial Intelligence or AI refers not only to software that can draw conclusions from large quantities of data and adjust its activities based on those conclusions, but it can also be a system that can learn quickly in real-time and be applied to an entire organization. Cloud technology allows applications to run on remote servers and are accessed via a web browser. It can still provide much of the same functionality as desktop accounting software. Robotic process automation or RPA refers to the use of automation applications to reduce the amount of human labor required to process accounting and finance transactions. Distributed ledger technology or DLTrefers to a consensus of replicated, shared, and synchronized digital data geographically spread across multiple sites, countries, or institutions with no central administrator or centralized data storage. Blockchain was the first fully functional DLT and can be easily understood as a type of DLT.

Operations

Another concept that is very familiar in management is operations. It is a fundamental part of what managers do. Operations really are that wholehearted part of an organization, bringing in goods, processing them, ordering and sending them out. The whole inertia of business which now is seen is done by robots or artificial intelligence. To learn about depicted descriptions about operations, please see the previous month’s news latter of textile focus where it was depicted.

Marketing

Another fundamental piece of management is marketing. Industry 4.0 is a game-changer for marketing. Digitally connected customers won’t buy from laggards. Consumer buying behavior has already changed the way people buy in B2B. Depending on which stats you want to believe, anywhere from 67-94% of the B2B buying cycle is already conducted online. If it is hard to get information or buy from you, the buyer will move on to another vendor. New players enter the buying cycle for all connected products. Since everything is now connected and data is now a valuable asset, CIOs, IT Director, IT Tech becomes decision-makers and influencers in the buying journey.

Human Resource

It’s interesting because if you look at this field one word stands out that is human. The selection of employees and motivate them continuously done by the HR department of an organization. Because of 4th industrial revolution it becomes very easy to select proper employees for organization. AI or augmented reality can analyze pros and cons of an employee’s technical capability like knowledge and abilities,Knowledge Management,Computer programming/coding, organizing and processual understanding, ability to interact with a modern interface, etc. Technologies also analyze an employee’s personal skills like self-time management, ability to cope up with change, social skill, communication skills, etc. Technologies provide the analyzing result so accurately that managers can easily take decision of selecting the right employees for organization in the nick of time that was before time-consuming. In order for human resources to e able to contribute to business results, business units need to be strategic partners. In order to achieve this, HR specialists who can understand and interpret financial data, have a good command the dynamics in the sector in which the company operates and to the up to date developments and who contribute to important projects carried out in the company and develop applications and projects parallel to these elements will be needed.

it is profoundly clear that modern technologies and their effect on product, service and process design have a significant influence on how the Industry 4.0 organization is shaped, lead, managed and governed. Organizations are compelled to abandon bureaucracy in favor of knowledge-based learning paradigms. Human talent must be better educated and skilled to cope with the new situation. Processes are structured cross-functionally and program-managed. Cross-functional processes incorporate collaborative virtual networks of partners to improve organizational effectiveness and efficiency, leading to much-improved competitiveness. Moreover, partnering boosts small and medium-sized enterprise creation and concomitant job creation. Managers in the 4th industrial revolution don’t become organizers, they become the orchestrator, bringing together all these things to do it better & faster way using all these technologies.

Major reference

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