Strategic Management in SMEs in Industry 4.0

Strategic Management in SMEs in Industry 4.0

Mustafa Atilla Arıcıoğlu (Necmettin Erbakan University, Turkey) and Büşra Yiğitol (Konya Food and Agriculture University, Turkey)
Copyright: © 2020 |Pages: 23
DOI: 10.4018/978-1-7998-2577-7.ch012

Abstract

It is envisioned that the fourth industrial revolution contains many concepts such as modern automation and production systems, data collection, data processing, analysis, and data transfer and consists of intelligent factory applications such as augmented reality, the internet of things, cyber physical, and cyber security systems. It reveals the fact that a new era awaits enterprises in the relationship between technology and production due to these predictions for future changes. SMEs are one of the important segments that these triggers, which are the precursors of structural change, will affect. So how will SMEs experience the Industry 4.0 process? What do unmanned factories mean for SMEs? Which countries/SMEs will have the Industry 4.0 technology and Industry 4.0 infrastructure which require high capital, Which of them will create opportunities? In this chapter, the problems that SMEs will face in the digital transformation process and the political and strategic approaches that can be developed to deal with these problems will be evaluated.
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Industry 4.0

Bringing together energy, raw materials, technology, and human beings forms the basis of the theoretical structure of industrialization. Although human beings are more binding and governing rather than being a component, he constantly seeks space for himself in the existence of the first three elements.

In the theories of organization, while pioneers of classics see man as a part of the machine, Bourdie considered production as a broad conceptual basis from the capital to strategy, and Galbraith thinks that making human beings ordinary and absentaneous in the development of the industry is as “the age of doubt”. The privatization and naming of the space include a new perspective with the development of the industry. the rationale for scaling and valuation also emerged with industrialization. This process led to emerging of workshops and then the factories and then the existence of integrated facilities in the rapidly future. electricity, sheet metal, motor and the story of engineer/technician/worker develops through these readings. The existence of speed is a time measurement for large-scale enterprises, whereas for small-scale enterprises, it means the limit between asset and absence is narrowed. SMEs who have survived with the first three revolutions thanks to their curvature, adaptability, and mobility, are preparing for a new but perhaps more difficult test.

Key Terms in this Chapter

Strategic Management: It is a process containing planning, monitoring, analysis, and assessment of all that is necessary for an organization to meet its goals and objectives.

Industry 4.0: Industry 4.0 is the fourth industrial revolution that envisages the integration of robots, artificial intelligence and simulation technologies into production processes.

SMEs: It refers to small and medium-sized enterprises (SMEs) that employing less than 250 workers and annual financial balance sheet total not exceeding € 43 m.

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