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Leadership and Organization for the Companies in the Process of Industry 4.0 Transformation

    Author

    • Özlem Akçay Kasapoglu
,
10.33844/ijol.2018.60217
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Abstract

The global effect of disruptive technology has brought about huge productivity improvements in manufacturing. The changing and differentiated demand of the customers pushed the industry to improve their production systems in the Industry 4.0 concept for being more responsive to the changing conditions. The increased knowledge level on the data science made the data analytics possible and more meaningful. Industry 4.0 is the common name used to describe the current trend towards a fully connected and automated manufacturing system, or Smart Factory. All production decisions are optimized based on real time information from a fully integrated and linked set of equipment and people. There is an urgency in the manufacturing companies to change their technology, knowledge, and he workforce skills for the Industry 4.0 understanding in order to stay competitive. The transformation process to the Industry 4.0 concept is a strategic decision and it requires leadership to deploy the strategy all through the organization by training from the top to the bottom of the organization.

Keywords

  • Leadership
  • Disruptive Technology
  • Industry 4.0
  • Analytical Hierarchy Process
  • Quality Function Deployment
  • Smart Factories

Highlights

 

Correction to:

Akçay Kasapoglu, Ö. (2018). Leadership and Organization for the Companies in the Process of Industry 4.0 Transformation. International Journal of Organizational Leadership, 7(3), 300-308. https://doi.org/10.1186/s40468-020-00101-6

 

The author regrets to mention that after the online publication of my article (Kasapoglu, 2018) in International Journal of Organizational Leadership, I found out that some direct quotations, though appropriately referenced,  have not been clearly indicated by indentation or quotation marks. Therefore, I decided to paraphrase them in order to avoid misunderstanding.  As a result of this, we do apologize to the readers and the publisher for the oversight. The following corrections should be considered in the manuscript:

 

Page 300-303 (Abstract and Introduction):

The correct sentence in the ‘Abstract’ section is:

 

The global effect of disruptive technology has brought about huge productivity improvements in manufacturing. The changing and differentiated demand of the customers pushed the industry to improve its production systems in the Industry 4.0 concept to be more responsive to the changing conditions. The increased knowledge level of data science made data analytics possible and more meaningful. There is an urgency in the manufacturing companies to change their technology, knowledge, and workforce skills for the Industry 4.0 understanding in order to stay competitive.  The transformation process to the Industry 4.0 concept is a strategic decision and it requires leadership to deploy the strategy all through the organization by training from the top to the bottom of the organization.

 

The correct sentence in the ‘Introduction’ section is:

 

Information and communication technology advancements are having a significant impact on a number of economic sectors. Industry paradigms are changing as a result of the availability of connection, networked things, real-time data, and ubiquitous information (Santos et al., 2017).

     Industry 4.0 envisions a smart industrial environment in which machines are capable of autonomously exchanging information and regulating one another at a global scale so that cyber-physical systems, the smart factories, can operate independently (Tjahjono et al., 2017).

     Leaders have the potential to significantly impact their organizations' performance. According to upper echelons theory, top management's judgments and choices, including their evaluation of the environment, strategic decision-making, and encouragement of innovation, can have a good or negative impact on the organization's success (Tidd & Bessant, 2014, p. 62).

Even with the best of intentions, a lot of product development projects end in failure and result in the release of subpar goods. On the other side, a lack of communication between the various roles engaged in product development leads to a lot of product development projects having a very disorganized process and wasting resources (Matzlera & Hinterhuberb, 1998).

     A systematic implementation of Cyber-actual Systems, which closely monitor and synchronize information from all associated perspectives between the actual factory floor and the cyber computational environment. Industry 4.0, the next generation of production, is being ushered in by this trend (Lee et al., 2015)

     In their study, Faller and Feldmüller (2015) noted that in order to maximize their own production, regional SMEs require further training in contemporary technologies that enable Industry 4.0 scenarios and techniques.

     According to Rennung et al. (2016), the advancement of "Industry 4.0" is becoming more and more prevalent. The project is inadequate and manifests as a problem. Prior studies on the idea of "Industry 4.0" have concentrated on manufacturing settings. The significance of services for the next project is investigated through expert interviews

     Customized production is replacing mass production in the manufacturing sectors. Productivity rises as a result of the industries' quick development of production technologies. A new degree of organization and control over the whole value chain of a product's life cycle is known as Industry 4.0, or the fourth industrial revolution, and it is focused on meeting the needs of increasingly customized customers (Vaidya et al., 2018).

     Supply chains in the modern world need to be adaptable. The capacity to handle a wide range of products, fulfill short lead times, and respond to a wide range of quantities in order to thrive. Since industrial value creation has seen significant growth in recent years, the capacity to generate value is predicated on an organization's ability to make decisions and execute Industry 4.0 performance initiatives (Velinov et al., 2018).

     In this global world, understanding the customers is a must. Pull strategy all through the supply chain must be applied and data should be shared among the upstream. An agile and responsive strategy can only be applied if the customers are listened to. In today's industry, where the growing distance between producers and users is a concern, the Quality Function deployment method links the needs of the customer with design, development, and manufacturing with the Industry 4 concept. This is the only way to survive in this highly competitive world. Digitalization, or so-called Industry 4.0, will help companies to have more responsive operations and supply chains. The determination of the transformation requires a strategic plan and a good organization till the end of the life cycle.

     Organization design enables creativity, learning, and interaction, shared vision, leadership, and the will to innovate, appropriate structure, key individuals, effective team working, high involvement innovation, creative climate, external focus, and a clearly articulated and shared sense of purpose stretching strategic intent (Tidd & Bessant, 2014, p. 62). The deployment of this strategy requires the organization of the right trainings. The aim is to increase the understanding of Industry 4.0 all through the organization and to stay responsive and competitive and it can only be done by understanding the customer.

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International Journal of Organizational Leadership
Volume 7, Issue 3
July 2018
Page 300-308
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APA

Akçay Kasapoglu, Ö. (2018). Leadership and Organization for the Companies in the Process of Industry 4.0 Transformation. International Journal of Organizational Leadership, 7(3), 300-308. doi: 10.33844/ijol.2018.60217

MLA

Akçay Kasapoglu, Ö. . "Leadership and Organization for the Companies in the Process of Industry 4.0 Transformation", International Journal of Organizational Leadership, 7, 3, 2018, 300-308. doi: 10.33844/ijol.2018.60217

HARVARD

Akçay Kasapoglu, Ö. (2018). 'Leadership and Organization for the Companies in the Process of Industry 4.0 Transformation', International Journal of Organizational Leadership, 7(3), pp. 300-308. doi: 10.33844/ijol.2018.60217

CHICAGO

Ö. Akçay Kasapoglu, "Leadership and Organization for the Companies in the Process of Industry 4.0 Transformation," International Journal of Organizational Leadership, 7 3 (2018): 300-308, doi: 10.33844/ijol.2018.60217

VANCOUVER

Akçay Kasapoglu, Ö. Leadership and Organization for the Companies in the Process of Industry 4.0 Transformation. International Journal of Organizational Leadership, 2018; 7(3): 300-308. doi: 10.33844/ijol.2018.60217

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