Managing complexity in the era of Industry 4.0

Dinya László and Klausmann-Dinya Anikó: Managing complexity in the era of Industry 4.0.

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Abstract

Complexity is one of the biggest barriers to success in organizations, whether in the business or nonbusiness sectors. Despite this fact there is very little research into the causes and consequences of this rapidly growing problem in the era of Industry 4.0. Similarly, there is very little practical information that provides actionable advice on how management in organizations can attack this problem. Internal complexity challenges like economic turbulence, understanding changes in customer needs, coping with economic crises, successfully launching innovative new products or services, dealing with regulatory changes, and finding and keeping talent are all major issues of management. In coordinating internal complexity with a complex competitive external environment, management of organizations needs to continually respond in order to succeed. We define complexity as the number of components in a system plus the variety of relationships among these components plus the pace of change in both the components and the relationships. Larger systems are often more complex – but they may just be more complicated if their behavior is unpredictable. Based on the database of the Global Entrepreneurship Index (GEI) we compared the EU-member countries (especially Hungary) and how prepared they are for management of growing complexity. Simplicity in business exists when we have exactly the right number of essential components and connections to achieve a successful result – no more, no less. That means everybody has to find an optimal level of complexity, which is called simplicity, or good complexity, so we can talk about good or bad complexity, and their respective levels are changing continuously. Investigating the countries, we have identified three clusters of displaying different management challenges: balanced, flexible, and vulnerable countries with regard to their capacity to face and manage growing complexity. Hungary is among the latter group.

Item Type:	Conference or Workshop Item
Heading title:	Business development
Journal or Publication Title:	Proceedings of the Central European PhD Workshop on Technological Change and Development
Date:	2020
Volume:	4
ISBN:	978-963-306-741-3
Page Range:	pp. 10-22
Language:	English
Publisher:	Faculty of Economics and Business Administration Doctoral School in Economics
Place of Publication:	Szeged
Event Title:	Central European PhD Workshop on Technological Change and Development
Event Type:	Conference
Event Location:	Szeged
Event Dates:	2019. április
Related URLs:	https://acta.bibl.u-szeged.hu/77650/
Uncontrolled Keywords:	Technológiai fejlődés, Üzleti élet
Additional Information:	Bibliogr.: 22. p. ; ill. ; összefoglalás angol nyelven
Subjects:	05. Social sciences 05. Social sciences > 05.02. Economics and business
Date Deposited:	2022. Dec. 06. 08:48
Last Modified:	2022. Dec. 06. 08:48
URI:	http://acta.bibl.u-szeged.hu/id/eprint/77651

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