THE RESTRUCTURING OF THE ADMINISTRATIONAL-ORGANISATIONAL APPROACHES OF BUSINESSES IN THE PROCESS OF INDUSTRY 4.0

Naci Atalay DAVUTOĞLU

doi:10.15637/jlecon.7.027

Authors

Naci Atalay DAVUTOĞLU Erciyes University/TURKEY https://orcid.org/0000-0003-4881-8242

DOI:

https://doi.org/10.15637/jlecon.7.027

Keywords:

Industry 4.0, Management-Organisation, Cyber-Physical Systems, Internet of Things, Internet of Services

Abstract

Industrial revolutions have long since been mandatory for humanity in order to adapt to the age and innovations, resulting in the search of new ways to sustain productivity. Regardless of the line of business or the historical background of a sector, the concept of industrial revolution underlies the historical development of all sectors. The main reason is that production sustainability occurs when humanity presents their products at the same time announcing them. Consequently, new ideas, creations and revolutions can develop. Based on this, the first Industrial Revolution developed as a direct result of mechanisation while the Second Industrial Revolution developed as a result of electricity, and the Third Industrial Revolution developed as a direct result of computerisation.

Nowadays, the Fourth Industrial Revolution aims to transform Internet of Things and Internet of Services into production. In the near future, enterprises will adapt to these innovations and hence improve their technologies, managerial and organisational perceptions, administrative levels, decision-making and logistic systems, as well as production facilities by means of developing global networks as part of Cyber-Physical Systems. Thanks to Cyber-Physical Systems, enterprises will carry out information production, control function, smart machines and storage systems independently within the production environment. This system will provide a rapid development of concepts like production, engineering, material procurement, industrial processes, supply chain, and life-cycle systems.

Therefore, the aim of the present study is to theoretically analyse how managerial and organisational perceptions of enterprises undergo changes following the adoption of Industry 4.0 using literature review, which is defined as second-hand data, and to discuss the issues considering the restructuring of management-organisation of enterprises in accordance with this developing trend.

Jel Codes: M10, M12, M13

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