Agile Management and VUCA-RR: Opportunities and Threats in Industry 4.0 towards Society 5.0

Cover of Agile Management and VUCA-RR: Opportunities and Threats in Industry 4.0 towards Society 5.0
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(17 chapters)
Abstract

The future will see a new revolution in both industry and society in Industry 5.0. Human–robot collaboration and robotic management will be critical components of Industry 5.0. In this revolution, humans and robots will collaborate to improve process efficiency by utilizing human intelligence and innovation. Industry 5.0 creates a powerful framework for modern digital smart factories and manufacturing technologies through complex systems, and it is constructed to interact with powerful computing power, to solve complex problems more efficiently and with less human intervention in this Volatile, Uncertain, Complex, Ambiguous, Radicality, and Rapidity (VUCA-RR) world. To overcome VUCA-RR world, Industry 5.0 involves a combination of human and robotic systems for sustainable development. Managers, practitioners, researchers, and educators are scrambling to understand and implement the method as well as to find best practices toward Industry 5.0. This chapter will draw attention to research and practice topics in the VUCA-RR and business agility development methodology in perspective of Industry 5.0.

Abstract

The world is changing fast and pace of changes that are being observed since start of the twenty-first century have never been observed before. Due to such changes and their impact, world is described in terms of Volatile, Uncertain, Complex and Ambiguous (VUCA). The trend of industry 4.0 is also said to be an another contributing factor into the VUCA environment. The VUCA creates a lot of challenges for organization from the perspective of management and leadership. Both business and leadership agility are needed more than VUCA as the VUCA world is becoming old. Therefore, the purpose of this research is to review the literature and to summarize the understanding with regard to managing VUCA-RR world in an era of Industry 4.0. Since the advent of term VUCA, many researchers have provided theoretical model and framework to guide managers regarding to their action and strategies. But, current research postulates based upon the literature that agile management’s tools and techniques are highly effective in managing the situation of VUCA-RR in the era of Industry 4.0. The research concludes that Industry 4.0 together with VUCA-RR and indecently possess to change management challenges to organizations. The organization can be in better position to manage change management challenges posed by Industry 4.0 by implementing the agile management. The Industry 4.0 will latter compliment to agile management tools and techniques which will make any organization to become a better equipped to face the VUCA-RR world. The research has also concluded that agile management powered by Industry 4.0 enabling technologies presents enormous opportunity in the form of VUCA 2.0 (Vision, Understanding, Courage, Adoptability, Rapidity and Radicality) that can be used to square off the effect of VUCA-RR world.

Abstract

The environment in which businesses perpetuate their vital existence can be named as VUCA due to its variable, uncertain, complex and ambiguous structure. In the world of VUCA, which is far beyond the classical environmental conditions, the success of the businesses largely depends on the performance level of the staff they employ. The high or low level can be directly affected by the leadership style which the business managers will be exhibiting. Agile leadership type emerges as one of the leadership styles that could be successful in such environmental conditions. For this reason, the main purpose of this section is to provide information about the agile leadership issues that play a fundamental role in the success of businesses in today’s VUCA world, which can positively affect the employee performance and this level of performance, and, at the same time, which could be successful in these environmental conditions. In order to achieve this aim, first of all, the concepts of agile leadership, employee performance and VUCA world are explained. In the following sections, agile leadership and the relationship of this leadership style with employee performance are discussed in the VUCA world spiral.

Abstract

Apparently, scholarly attention is shifting to Society 5.0. The study of Industry 4.0 (I4.0), including its impacts on industrial productions and services, is saturated. However, there is a need for scientific investigations of the relatively new emerging concept of Society 5.0, especially regarding its relationship with I4.0. Given this necessity, the chapter conceptually examines Society 5.0 new normal and its antecedent – I4.0, with a value of the economically productive society in the post-coronavirus pandemic era. The chapter further elucidates the strategic role of emotional resilience and I4.0 collaborative partnership. Society 5.0 aims for a new society based on the notion of a human-centred economy and inclusivity. Consequently, new sets of innovative and artistic jobs will possibly emerge, driven by human competencies in collaboration with technology. In other words, Society 5.0 new normal is targeting a balanced or blended economic approach that favours a fit between society and industry and ensures that all citizens live a high-quality life by eliminating the delimiting effect of technology such as artificial intelligence (AI) on the physical space and wellbeing of the people. Hence, I4.0 collaborative partnership and emotional resilience are perceived as strategic and influential in achieving the feat of a Super Smart Society.

Abstract

The future of human society has to take into account on the one hand, the natural requirements of the society as a whole, and, on the other hand, the influences generated by economic, social, informational factors but also in relation to the environment. Therefore, the future is seen and described in relation to the need to create the conditions for achieving sustainable development goals. The unpredictable evolution and uncertainties of recent years explain the need to include in the decisions of organizations, responsibly applied approaches. In order to achieve and maintain a balance between the interests of various actors on a global scale, it is necessary to practice responsible management, which deals with both the management of current critical issues worldwide, but also in relation to the need to ensure living conditions and the prosperity of future generations. Thus, as an adequate response of companies and organizations of various types to these complex challenges is integrated as a defining element of business strategies a principle of responsible management called social responsibility. This means that, through the elaborated decisions, these companies have to find a way of treatment balanced between the fulfillment of their own financial objectives and the social obligation of the contributions of these entities to the sustainable development of the economy in which they operate. This results, in fact, in the large-scale development and implementation of the concept of corporate social responsibility (CSR). On the other hand, the functioning of all companies in the realities of the present times, characterized by volatility, uncertainty, complexity & ambiguity (VUCA) requires significant efforts and resources on their part, so that, by collecting an important and comprehensive volume of data, there is the possibility of generating reliable forecasts.

Abstract

The issue of trust in Industry 4.0 is extremely important from an organization’s perspective. The dynamic development of 4.0 technologies implies wide-ranging changes, which, in order to be implemented effectively, require cooperation based on trust. The purpose of this literature analysis is to identify key research areas regarding trust in Industry 4.0 and to identify further research directions.

Based on a comprehensive literature analysis, the most prominent areas of research on trust issues in Industry 4.0 will be presented (k=36). This chapter will also identify and discuss directions for further research.

The results of the analysis enable to illustrate the trends of science development in the area of Industry 4.0, as well as to identify key issues related to trust. Moreover, the research problems for further studies on the analyzed issue will also be indicated.

The research presented here identifies key Industry 4.0 technologies that are based on trust.

The review provides a valuable resource for practitioners regarding the critical aspects of implementing Industry 4.0 with respect to trust.

This is the first comprehensive literature review diagnosing research areas, technologies, and directions for future research on trust in Industry 4.0.

Abstract

The term of lateral thinking in Oxford dictionary is seeking to solve problems by unorthodox or apparently illogical methods. On the hypercompetitive markets agile, value-oriented, inspiring, collaborative, appreciative leaders are needed. These AVICA-type leaders have the ability to catalyze and develop adaptive processes. They are receptive to innovation and also open to the creative thoughts of others. The leader himself is also a lateral innovator and unfolds the creativity of the employees in business life and the students in higher education. The educators, in a lateral approach, are leaders, but can also be Renaissance-type people, polyhistors, homo ludens. Creativity researchers generally agree that educators’ view on creativity determines the way in which they deal with developing students’ mindset. In our research, we evaluate how important students consider the knowledge of lateral innovation to their related subjects, the development of their innovative way of thinking and how they perceive the activities of the lecturers in this direction. The other question is whether educators see lateral approach as an important value creation process. The ultimate goal of the research is to explore the factors that contribute to the implementation of the lateral mindset for the sustainable competitiveness of higher education in economics.

Abstract

Today, amid a global pandemic, the world is changing rapidly. This bought a sense of urgency to adopt this change for the sustainability of both individual and corporate existence. The name given to the future world on the brink of this change and transformation is VUCA (Volatility, Uncertainty, Complexity and Ambiguity). COVID-19 pandemic exposed leadership teams to novel challenges that required many changes to their practices. This has been the most volatile, uncertain, complex, and ambiguous (VUCA) times in healthcare. VUCA software technologies that connect different geographies of the world over the Internet have provided institutions with standardization, harmonization, and acceleration. Understanding the VUCA world, adapting to it, focusing on the opportunities rather than the challenges it brings are the basis of sustainability. In order to increase or maintain the level of development of the countries, it is possible with the health institutions to provide a quality service and the development of standardization based on the VUCA approach. This global pandemic has clearly affected healthcare systems and workers throughout the world, with many worse affected than others. This chapter aimed to give information about the importance of why health managers should provide services based on the VUCA approach.

Abstract

Marketing agility has gained more attention from scholars and managers due to the current and emerging conditions of the COVID-19 pandemic. The pandemic has changed the marketing landscape, resulting in a dramatic shift in consumer behavior in the worldwide lockdowns. Consumers sought an efficient response and reaction in real-time to their changing needs, concerns, and priorities. The shift in consumer behavior and demand forced service enterprises to develop dynamic marketing plans to adjust to the new normal that created unprecedented disruptions in their traditional business. As one of the most dynamic sectors of service marketing, tourism was challenged by the pandemic-related restrictions and contemporary competitive circumstances and faced the destructive, yet transformative impacts of the outbreak. The tourism enterprises all over world were compelled to implement innovations to adjust to the new customer preferences and needs for a sustainable change to develop dynamic marketing solutions. This chapter aims to review and analyze how the tourism enterprises gravitated to a new approach and implemented an agile marketing strategy focusing on the emerging customer priorities, based on analysis of the hotel websites. A functioning group of 4 and 5-star hotels located in Bodrum, Turkey, was selected and their website updates from the beginning of the COVID-19 pandemic to the proliferation of the vaccines were examined considering the official data on inbound, domestic and outbound tourism. The findings provided an insight into the concept of agile in tourism marketing applied to a function characterized by the radically changing conditions that bring in new threats and opportunities.

Abstract

The global incidence of dengue has grown dramatically in recent decades. According to WHO, 3.9 billion people are at risk of infection with dengue viruses with 70% of the actual burden is in Asia. In Pakistan, Punjab faced the major dengue outbreak with 21,685 confirmed cases and 350 deaths, mainly due to DENV-2. Dengue is a major health care problem that affecting countries worldwide. Dengue epidemic have a devastating impact on health care systems. All four characteristics of VUCA are true of the challenges we face due to the dengue epidemic. That called for a need to have integrated disease and surveillance (IDSR) framework for the management, prevention, and control of dengue. The IDSR framework for dengue includes hospital readiness, patient reporting system, surveillance, evidence-based decision making, awareness, citizen engagement, and availability of insecticides along with third party validation on top of it to keep a close check on containment efforts. A comprehensive patient portal was developed for all public and private health care facilities to report dengue cases i.e. suspected, probable, and confirmed as per the Dengue GCP guidelines. For surveillance, smartphone-based application was developed for field users to report larvicidal activities i.e. indoor residual spray in real-time, case response, and hotspots (areas at risk). As per established Standard Operating Procedures, hotspot regime was setup to sweep out breeding spots or larvae population at regular intervals in a week. For the purpose of evaluation and monitoring, third party validation application is designed to check activities that are performed as per prescribed standards or not. Dashboards and reports are available for various stakeholders to facilitate evidence-based decision making. These reports analyze field-based activities and rank performance of district and town. System also generates alerts i.e. Breteau (the number of positive containers per 100 houses inspected) and Container (percentage of water-holding containers infested with larvae or pupae) Indices, in real-time, enabling the administration to take decisions in a timely manner. Looking at the magnitude of dengue-related morbidity and mortality, all departments were involved in dengue prevention and control activities. This approach has proven effective in curtailing this mosquito-borne disease. The impact of these interventions can be clearly seen in regard to confirmed patient and death reported in recent year.

Abstract

Development of the technology, besides creating opportunities for the world, and making people’s lives easier on the one hand, has also created difficulties, on the other hand. The processes on the earth have accelerated, and the environment has become more unpredictable. That was the ground of emerging VUCA (Volatility, Uncertainty, Complexity, Ambiguity) in military services and afterwards in the business sector.

The rapid development of different directions, especially of technology, made mankind rethink about attitudes, find out, and expand their skills in order to be effective in the constantly changing environment. The reality that the competencies obtained before were not sufficient became obvious. Nowadays, VUCA leaders with their sophisticated and vital skills are extremely necessary for the business to reach the goal with minimal loss.

Higher education, as in every circumstance, in this case also has its huge impact and significance. Higher Educational Institutions (HEIs) are responsible for education, which on its end, is the starting point of development and restructuring the complex reality. Redesigning the teaching and learning environment can prepare future VUCA leaders. In case the universities try to provide a new generation with the skills necessary for the existing reality rather than following the obsolete flow, the business sector will get workflow more prepared for VUCA challenges.

The chapter discusses and presents the necessity of updated leadership skills in the VUCA reality and the role of higher education in stepping forwards to turning VUCA disruptions into VUCA possibilities.

Abstract

Both explicitly and implicitly, the central role of my writing is given to social trust, especially to its role in sustainable social futuring as a form of agile society in the twenty-first century. I consider the characterisation of trust a crucial notion as a theoretical frame of my paper. In the first part of my writing, I plan to introduce trust as social capital opposed to financial capital and other forms of human capital, its role in agile society building, focussing on its function as a social connective tissue. The theoretical part will be followed by a retrospection to the twentieth century Industry 4.0 peculiarities as a way that leads societal actors to the creation of Society 5.0 on a scientific, technological and political level. I intend to prove or confute statements regarding the relationship between social trust and the space for inclusive and sustainable social futuring, and Industry 4.0 peculiarities and inventions as a way of creating Society 5.0 and generating greater trust towards it. Finally, I plan to draw conclusions of the lessons of social futuring activities as a tool of creating agile society. I find this paper an especially important one in addressing the challenges of social trust building, of finding the appropriate steps towards the creation of an agile and responsive society and in describing the characterisations of Society 5.0.

Abstract

The key purpose of the current study is investigating the direct impact of information technology (IT) assimilations, flexible IT infrastructure, and supply chain competencies (supply side, demand side) on the supply chain performance of manufacturing firms. Meanwhile, the study has also estimated the mediating role of supply chain agility (SCA). Among 360 selected respondents for the underlying research, only 267 respondents have responded well and returned them back, thereby indicating 74% response rate for the survey. For the inferential analysis, the Partial Least Square Structural Equation Modeling was performed in Smart PLS 3.0. In context to this study, process compliance is the adherence and the execution of supply chain processes, including the processes related to distribution and production of management processes. On the basis of this theoretical background, the demand and supply-side competence are considered as the firms’ internal aspects. As a dynamic capability, the SCA enables firms to influence and respond to the firm’s external environment. Thus, the presence of such competencies allows to react against market developments. The resource-based view theory supports this argument, and states that competencies is an effective resource for developing dynamic capabilities.

Abstract

Throughout history, enterprises have tried to survive by competing in a dynamic environment. This competition has currently been to be more severe more in the age of Industry 4.0 due to modern automation systems, production technologies, and data exchanges. Today’s high technology and speed environment changes have created volatility, uncertainty, complexity, and ambiguity (VUCA) for almost all companies. To be able to cope with these environmental conditions, they have to be more dynamic, have more flexible and agile abilities. Not only it is not enough to have these abilities but also they need to use these abilities effectively. As to usage of these capabilities, it depends on organizational structure that have been built by considering several situational factors such as technology, technological change, innovation, and environmental instability. Organizational structure is a very important variable to increase the performance of the organization and to gain competitive advantage over enterprises’ competitors. In order that this study is guide for practitioners, it has been tried to explain the linkages among VUCA World, organizational structure and competitive advantage. Also, suggestions have been offered them to build their organization structure in order to be competitive by gaining success in three platforms called human resources, knowledge, and technology.

Abstract

This chapter aims to present the idea of leader robots (LRs) and proposes how LRs can step in to fill various manager positions. LRs are the robots that lead robots. Robotics engineers have already produced many robots for various applications such as in manufacturing, marketing, accounting even human resources in business management. We have witnessed many significant advancements in robotics and artificial intelligence research to achieve digital transformation. There are robots for various purposes of providing digital transformation toward Industry 5.0. Some post-modern organizations have already had robot employees and artificial intelligence applications. There are many studies on human–robot collaboration, robot development, and robot employee but limited research on LR. In this study, therefore, it is discussed the possibility of LRs that may be a key concept of Industry 5.0 in perspective digital transformation. Therefore, it is believed that this study will be one of the focuses of many upcoming organizational robotics research studies.

Cover of Agile Management and VUCA-RR: Opportunities and Threats in Industry 4.0 towards Society 5.0
DOI
10.1108/9781802623253
Publication date
2022-08-09
Editors
ISBN
978-1-80262-326-0
eISBN
978-1-80262-325-3