Balve / Edelkraut / Köhler Management 4.0

Handbook for Agile Practices, Release 3
1. Auflage 2019
ISBN: 978-3-7494-3941-6
Verlag: BoD - Books on Demand
Format: EPUB
Kopierschutz: 6 - ePub Watermark

E-Book, Englisch, 312 Seiten

Who should read this Book? This book is written for anyone who is interested in agility or needs to be agile. It is for those who seek deeper knowledge about what keeps the agile world together. You can read it from the perspective of a top manager or decision maker who feels the urge to be more agile. But you can also take the book and just follow it from the perspective of a user. What do you get? - A systemic picture of agility - to enable you to analyse your system (your team, your department, your company or your business network) and identify fields of agile application and the specific need for agility. - The ingredients of an Agile Mindset - this allows you to transform your organization and develop an agile culture for your organization. - The theoretical foundation of agile principles - so that you can really understand and assess the value of all the expert ideas for you and your organization. You will get the necessary skills to tailor organization specific agile frameworks without losing essential ingredients. - Input for your own reflections - you will be capable of innovating agility and be ahead of the main stream.

Heilbronn University, Faculty for Industrial and Process Engineering, 74081 Heilbronn He holds a master degree in Mechanical Engineering with specialization in International Project Management. After graduating, Dr. Balve spent five years in the field of consulting and research at the renowned Fraunhofer-Institute for Manufacturing Engineering and Automation. Since then, he has held various management positions in logistics and quality in the automotive industry. In 2009, Dr. Balve was appointed professor at Heilbronn University in the Faculty of Industrial and Process Engineering. He is director of the Manufacturing and Operations Management bachelor program and head of the Heilbronn Learning Factory. His fields of research include lean manufacturing systems and state-of-the-art project management approaches.

Autoren/Hrsg.

Balve, Patrick

Edelkraut, Frank

Köhler, Jens

Nuhn, Helge F. R.

Raue, Steve

Schaffitzel, Norbert

Schwarzenberger, Marcel

Marc,

Tuczek, Hubertus

Oswald, Alfred

Müller, Wolfram

Leseproben

1 Agile Management – Traditional Management has
reached its Limit
Author: Hubertus C. Tuczek Summary: Digitization is changing the environmental conditions for management in a radical way. Increasing change dynamics combined with new business models cannot be handled using traditional management concepts. Common enterprise structures, which have been successful so far, are not flexible enough for these new challenges and have to undergo a fundamental transformation process. New approaches need to be designed according to Agile Management principles and individual solutions developed for every branch or company. Key terms: Digitization, Changing Environmental Conditions, Disruptive Business Models, Traditional Management vs. Agile Management, Increasing Change Dynamics, Transformation Management Digitization – a Game Changing Force It is currently the number one topic: DIGITIZATION. We are living at the beginning of the next Kondratieff-cycle and everything around us is influenced by this new development. We are in the middle of a technological revolution, accompanied by economic, social and cultural change. What is happening? After the major technical innovations of mechanization, electrification and automation, the Internet has initiated a development, characterized by rapid paradigm changes with uncertain outcome. The Internet is actually nothing new anymore, given that 25 years have passed since we started to surf the World Wide Web and connect with each other around the world. But today’s technology has reached a level of maturity, with its dynamics capturing our private and business life with breath-taking velocity. While in those early days, only IT-geeks would have placed orders on the Internet, today shopping online is commonplace. This has changed the structure of business trading dramatically. On the book market for example, there is no getting away from the Internet giant Amazon. Assisted by digital technology, such disruptive business changes do not happen over longer time frames, but gain momentum in an exponential manner. This poses great danger to companies from a strategical point of view, as business environments and conditions may change suddenly from day to day. The short response time required does not match the time frame, which is typically anticipated for the strategy process within companies. What does this mean for the economy? The market capitalization of DAX-30 companies does not even add up to half of the stock-exchange price of the 30 most valuable companies in Silicon Valley - a tectonic shift of values. Additionally, studies carried out on the further value development of DAX-Companies do not generate confidence. Most companies in Germany, especially medium-sized businesses, were identified as having missed out on new trends. This is not a surprise, as such companies are typically led by "digital immigrants" who have written their success stories before the age of digital technology. Is there a need for change in every industry or company? Or are there islands of consistency where the traditional way of doing business can continue into the next decades, retaining a successful share of the market? In fact, the picture is not so black and white. As a business leader, you need to determine how your markets will develop, and therefore, subsequently, also your business model. There are companies like Kodak, which – an erstwhile dominant market leader in photographic supplies - was erased by the development of Digitization. Another example in the mobile phone sector is Nokia, which – despite being a market leader in its field – failed to understand and effectively react to the challenge of smartphones and their embedded App-logic. These dramatic examples show the need for top management to be able to foresee such disruptive changes, which in hindsight seem obvious, yet were not anticipated using traditional strategic corporate development processes. A model has been developed to help identify potential drivers for exponential change dynamics. This model classifies businesses and companies according to 2 dimensions. One is the technical complexity of the products involved and the other is the social complexity of the organization and its customer relations. Figure 1-1: Industry Dynamics Classification matrix (IDC) The industry dynamics classification as shown in Figure 1-1, suggests that a company positioned in the lower left corner of the matrix is characterized by low social complexity and products with low technical complexity. This can be referred to as a conventional industry. The more a company is exposed to social and technical complexity, the further the position of the company moves to the upper right corner of the matrix. Digitization is a driver for such increased complexity. For example, if you look at a taxi company, you could call this a rather "conventional" business (see also Figure 1-2). You require a license and a certain number of available cars and drivers who are coordinated by telephone operators, who then book journey requests from passengers. With digitization the game changes. Uber Technology Inc. has become a ride-hailing giant with billions of dollars of revenue, by offering an Internet platform, which connects drivers and people looking for a ride. Technical complexity increases due to IT-platform technology, which is necessary as a base for this kind of business approach. Social complexity increases with the number of passengers and drivers, who need to be brought together and integrated with their individual needs, for successful implementation of the commercial transaction. Figure 1-2: Game changing dynamics for the taxi business The worldwide growth potential of Uber's business model is staggering. In 2015 they doubled their revenue every six months, according to Uber’s Chief Executive Travis Kalanick. After only 7 years of existence on the market, the company is valued by investors at more than $ 50 billion. These figures indicate the game changing dimensions of this new business model, which was made possible by the opportunities created by digitization. In the market of smaller local enterprises, a global player, the size of a large international corporation has suddenly emerged within just a few years. Does this same logic apply to industries, where big global players dominate the market? Are they facing similar potentially disruptive changes in their business? Or is size a protective shield? An apt illustrative example in this context is the automotive industry. A massive consolidation process over the past few years has resulted in a small number of globally relevant enterprises. Now digital technology is coming into play and is changing the industry focus from mechanical to one with more and more digital know-how. One force for this development is the concept of autonomous driving. The necessary hardware, such as sensors and control units, is currently available. The further maturation of the technology is controlled by smart software algorithms, which enable the vehicle to safely find its way in all traffic conditions, without driver interaction. Traditional car companies are finding themselves at a digital cross-roads, where they need to invest intensively in new digital competences, in order to manage the paradigm, change they are facing. This transformation not only refers to technical challenges, but to a change in leadership style, which is also required. The high level of dynamics in this new environment cannot be accommodated using traditional functional hierarchies, but requires agile structures, which are already familiar in innovative software companies. Figure 1-3: Game changing dynamics for the automotive industry On the one hand, there are low-tech automotive companies, fulfilling the need for basic transportation and focus on developing countries. On the other hand, there are leading automotive companies, working on a variety of concepts to explore the potential of new business models. They are experimenting with car sharing enterprises, offer new emission-free powertrain options and are attempting to shape a new world of digital services around the vehicle industry. Meanwhile, new competitors have emerged in the automotive market whose core business is in the digital segment. Google is one example. They are developing the Google self-driving car, which can already be seen on the road as a prototype. They intend to bypass the hurdle of automotive market entry - the large sales and service organization, which has been necessary up until now - by having no intention of selling the car, but leasing it to customers for the time required. If a car develops a technical problem, it will simply be replaced by another car, with its repair being neither customer, nor time critical, for Google. This approach is also attractive for companies like Uber, who have already announced their intention to use self-driving cars for their ride-hailing business in the near future. It is not yet clear, who will win the race. But, it is a huge challenge for traditional car manufacturers, to transform their mechanically-based business into a digitally-integrated high-tech company. The next stage of technological development in the automotive industry is already visible with prototype applications: 3D-Printing. With this, customers would purchase the design for a specific car and then have their individual car printed on demand. Consequences for Management – What does the New Management Look...