What management model should manufacturing companies adopt so a to adapt to the various challenges of 2022 and beyond? In this article, see how management 4.0 is giving way to management 5.0, based more than ever on technology, but with a human touch.
What is management 4.0 ?
After the hunter-gatherer society, the agricultural society and the industrial society (factories and assembly line work), the 4.0 society has revolutionized the world of work. Also known as “industry 4.0”, it uses digital technologies and robotics to improve operational efficiency and optimize production and marketing processes.
As such, procurement, operations logistics, communications, marketing and management are interconnected. Equipment failures, noncompliance, supply chain problems and marketing are managed in a comprehensive manner.
According to a study by Glasford International, business acquisition of new technology increased by 25 percent by 2022. This industry transformation can involve multiple things, depending on each company:
- Interconnect and synchronize different systems and resources;
- Use automation and production monitoring applications to control quality in real time, anticipate and prevent production downtime and optimize equipment maintenance and efficiency;
- Save all business-related data in a secure cloud (cloud data);
- Use robotic equipment designed to perform tasks in interaction with employees;
- Exploit the possibilities of 3D printing;
- Optimize digital marketing (websites and social media) with massive data analytics applications that help understand customer needs through geolocation, purchase history, Internet product searches, the ergonomic journey of website visits, etc. ;
- Implement ERP and CRM software;
- Install cybersecurity software;
- Get started in e-commerce;
- Etc.
What challenges will leaders face ?
Companies that will go through a digital transformation must be managed by proactive leaders who adapt easily to change. Making use of technological innovations will be crucial in the coming years, and effective managers will then need to plan to:
- Analyze business needs and apply appropriate technological solutions: According to a survey conducted by Glasford International1, integrating new technologies is the No. 1 change companies wanted to make in the near future.
- Acquire and develop employees’ understanding and skills related to these technologies: according to a study conducted among Quebec and Ontario companies in 2021, managers identified their lack of technological skills and their lack of motivation as the main obstacles to their digital transformation project. However, employees show an interest in getting involved in the development of digital solutions (56% say they are motivated to use a new technology and to take training to learn how to use it, and this figure rises to 83% among 18 to 34 year olds).
- Establish an investment plan and a digital transformation strategy: according to the same study, 76% of business leaders said they had an investment plan and 68% said they had transformation planning in place. In 2022, 46% of companies have created an investment plan and 60% have planned their digital transformation.
- Provide an attractive work environment to recruit and retain talented employees: According to the Glasford survey, 88% of employees want to work in a hybrid environment. Managers must keep this top of mind.
Management 5.0, a complement to management 4.0
Industry 5.02 is a new vision of industrial development that is supported by the European Commission. It encourages the consolidation of resilience strategies towards risks related to, for example, a pandemic, a labour shortage or a supply chain disruption. To do so, this new approach promotes the use of innovative digital and robotic technologies, while recommending environmentally and human friendly practices.
Companies have already embraced these values: according to the March 2022 Glasford survey, 46% have implemented an environmental compliance policy, 33% have implemented community outreach measures, and 19% have made a commitment to developing ethical values.
In Industry 5.0, the human factor becomes incredibly important so as to mitigate the negative impacts of an overly digital society. Employees are placed at the centre of the technology implementation process, and this is exactly what managers need to do to retain and motivate talent!
Invest in your digital transformation
Recruit qualified, high-performance managers to integrate digital technologies into your business. Team up with the recruiting professionals of Glasford International Canada to find the right leader.
Count on the strength of our network of 350 recruiters, who have a bank of qualified and experienced candidates in Canada and in over 25 countries! Contact us today at info@glasford.com to leave us your contact information and explain your recruitment needs.
