Management 4.0 in a Digital Age | JR Reagan | TEDxWoosongUniversity

Summary

The video script discusses the evolution of management in the digital age, particularly in the context of the fourth Industrial Revolution. It explores how advancements in technology, such as robotics, artificial intelligence, and blockchain, are blurring the lines between management and technology. The speaker highlights the transformation of traditional management roles into orchestration, as machines take over manual tasks, and the shift in marketing strategies due to digital integration. The necessity of management is emphasized, with a focus on how it must adapt to leverage technology for better decision-making, strategy, and leadership. The script concludes by stressing the importance of understanding management fundamentals and applying them in innovative ways to navigate the new digital and physical landscape.

Takeaways

• 🤖 The lines between management and technology are blurring with advancements in AI, robotics, and blockchain, leading to the concept of Management 4.0 in the digital age.
• 🏁 We are in the fourth Industrial Revolution, where computers are beginning to mimic tasks traditionally done by humans, including management roles.
• 📲 For digital natives, the integration of technology into daily life is not a revolution but a norm since their birth, highlighting a generational shift in the perception of technology.
• 🔄 The merging of the digital and physical worlds is a hallmark of the fourth Industrial Revolution, which brings about significant changes in management practices.
• 🛠️ The first Industrial Revolution introduced steam power, liberating humans from reliance on animal power and enabling new industries.
• 💡 The second Industrial Revolution brought electricity, which enabled process management and the creation of factories and assembly lines.
• 💻 The third Industrial Revolution introduced the microchip and computers, automating manual tasks in management and enabling computer systems and networking.
• 🔢 Accounting and finance are becoming digitized and real-time, with technologies like blockchain adding trust to transactions immediately as they occur.
• 🤹‍♂️ In the fourth Industrial Revolution, managers are evolving from organizers to orchestrators, overseeing the integration and operation of intelligent systems.
• 🎯 Marketing is shifting from traditional models to insightful, pervasive, and instructional approaches, with technology enabling personalized product recommendations.
• 🧑‍🤝‍🧑 Human resources is being augmented by AI to help reduce biases and improve hiring processes by evaluating verbal and non-verbal skills more objectively.
• 🧘‍♂️ Strategy and decision-making, while aided by AI, remain a human endeavor that requires complex thinking and cannot be fully replicated by machines.
• 🗣️ Leadership in the digital age is about trust and the ability to lead not just humans but also intelligent machines that act and think like humans.

Q & A

What is the main theme discussed in the video script?

The main theme discussed in the video script is the evolution of management in the digital age, particularly in the context of the fourth Industrial Revolution, and how advancements in technology like robotics, artificial intelligence, and blockchain are changing traditional management roles and practices.

What is the significance of the term 'Management 4.0' mentioned in the script?

The term 'Management 4.0' signifies a new era of management practices that are heavily influenced by digital technologies. It implies a shift from traditional management methods to more integrated and intelligent systems that leverage the capabilities of the digital age.

How does the script define the fourth Industrial Revolution?

The script defines the fourth Industrial Revolution as an era where the digital and physical worlds merge, bringing together advancements in robotics, artificial intelligence, and other technologies to perform tasks traditionally done by humans, including management roles.

What are the four industrial revolutions mentioned in the script, and how do they differ?

The script outlines four industrial revolutions: 1) The first, starting in the 1700s, focused on steam power, liberating humans from reliance on animal power. 2) The second, centered around electricity, enabled process improvements and factory assembly lines. 3) The third, in the 1960s to 1980s, introduced the microchip and computers, which automated many manual tasks. 4) The fourth, the current era, integrates the physical and digital worlds with added intelligence, leading to significant changes in management and operations.

How is accounting and finance changing in the fourth Industrial Revolution according to the script?

Accounting and finance are changing by becoming more digital and real-time. Technologies like blockchain are adding trust to transactions, allowing for immediate verification and use of financial data, transforming accounting into a dynamic and integral part of organizational operations.

What role do managers play in a factory full of robots, as described in the script?

In a factory full of robots, managers transition from being organizers to orchestrators. They are responsible for bringing together various elements, including robots and AI systems, to work efficiently and effectively, leveraging their knowledge of management to enhance overall operations.

How is marketing changing in the fourth Industrial Revolution?

Marketing is changing by becoming more insightful, pervasive, and instructional. The fourth Industrial Revolution enables products to be where the consumer is, with digital products and services that can adapt and respond to consumer needs and preferences in real-time.

What challenges does the script suggest for human resources in the fourth Industrial Revolution?

The script suggests that human resources will need to adapt to the use of artificial intelligence to help reduce biases and improve decision-making in areas such as hiring and employee evaluation. It challenges traditional human-centric management approaches by integrating AI to augment human capabilities.

How does the script view the role of strategy in the fourth Industrial Revolution?

The script views strategy as still fundamentally a human endeavor, requiring complex thinking and decision-making. While AI can assist and sometimes outperform humans in certain strategic tasks, the nuanced and contextual aspects of strategy-making are likely to remain a human strength.

What is the potential impact of AI on leadership roles, as discussed in the script?

The script discusses the potential for AI to act as a new type of coworker or even a boss, challenging traditional notions of leadership and trust. It raises questions about whether humans can trust AI entities to make decisions and lead, suggesting a need to rethink leadership in the context of AI and human collaboration.

What is the fundamental takeaway from the script regarding the future of management?

The fundamental takeaway is that management is not becoming obsolete but is instead evolving. Managers need to understand the fundamentals of management and apply them in new ways within the context of the digital and physical world merger, leveraging technology to enhance their roles and make better decisions.

Outlines

00:00

😲 The Digital Transformation of Management

The script discusses the evolution of management in the digital age, highlighting the convergence of management and technology. The speaker introduces Management 4.0, a concept that encompasses the integration of robotics, artificial intelligence, and blockchain into business practices. The fourth Industrial Revolution is presented as a transformative period where computer performance begins to outpace human capabilities, prompting a reconsideration of the necessity and nature of management. The speaker also touches on the digital natives—Millennials—who have grown up with technology and for whom the digital-physical merge is a normal part of life. The historical context of industrial revolutions is provided, from the steam-powered first revolution to the microchip-driven third, setting the stage for the current revolution characterized by the fusion of digital and physical realms,智能化, and the potential redefinition of management roles.

05:00

💼 The Changing Landscape of Accounting and Finance

This paragraph delves into the transformation of accounting and finance in the fourth Industrial Revolution. Traditionally, these fields have relied on human input and verification, but with the advent of technologies like blockchain, trust in transactions can be established instantaneously, globally, and without the need for human oversight. The role of accounting has evolved from a manual, post-hoc activity to one that is digitized and integral to the real-time functioning of organizations, becoming a valuable asset akin to 'new oil.' The speaker suggests that while the manual aspects of management are being automated, the human role shifts towards decision-making, with technology augmenting rather than replacing human capabilities.

10:03

🤖 The Role of Managers in an Automated World

The script explores the future of operations management, where tasks traditionally performed by humans are increasingly being handled by robots and AI. The role of the manager is redefined from an organizer to an orchestrator, drawing an analogy with Disney's Fantasia, where Mickey Mouse conducts various elements to work in harmony. The manager's new role involves overseeing and coordinating the activities of autonomous systems to ensure efficiency and effectiveness. The paragraph also touches on the changes in marketing due to the fourth Industrial Revolution, where products and services are becoming more personalized, insightful, and pervasive, leveraging digital technologies to meet consumers where they are and anticipate their needs.

15:04

🧐 The Human Element in HR and Leadership

The final paragraph examines the impact of AI on human resources and leadership. It acknowledges the inherent biases in human decision-making and suggests that AI can help mitigate these by providing more objective assessments of candidates during the hiring process. The discussion then moves to strategy, questioning whether AI can replace human strategic thinking, given the complexity and nuance involved in decision-making processes. The paragraph concludes with a reflection on leadership in the age of AI, pondering the trust dynamic between humans and AI, and whether AI can ever be seen as a leader. Ultimately, the speaker asserts that management and leadership remain essential, albeit in a transformed capacity, requiring a deep understanding of the fundamentals applied to a new context.

Keywords

💡Management 4.0

Management 4.0 refers to the evolution of management practices in the digital age, incorporating advancements in technology such as artificial intelligence, robotics, and blockchain. The term is central to the video's theme, which discusses how traditional management roles and practices are adapting and evolving due to the integration of digital technologies into business operations. An example from the script is the mention of how management is changing with the advent of the fourth Industrial Revolution, where digital and physical worlds merge, and智能化 systems perform tasks traditionally done by humans.

💡Digital Age

The Digital Age is characterized by information and communication technology that has transformed the way we live and work. In the context of the video, the Digital Age is the backdrop against which management practices are being redefined. It is the era where digital natives, individuals who have grown up with digital technology, are becoming the norm, and where digital tools and platforms are integral to business operations and management strategies.

💡Fourth Industrial Revolution

The Fourth Industrial Revolution, as discussed in the video, is a current era marked by a fusion of technologies that are blurring the lines between the physical, digital, and biological spheres. It is a concept that underscores the video's narrative about the transformative impact of technology on management and business operations. The script mentions this revolution as a time when computers and intelligent systems are beginning to mimic tasks traditionally performed by humans, including management tasks.

💡Artificial Intelligence (AI)

Artificial Intelligence (AI) is the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions. In the video, AI is highlighted as a key driver of the fourth Industrial Revolution and a significant factor in the evolution of management. The script discusses how AI can perform tasks previously done by humans, thereby changing the nature of management and the roles that managers play.

💡Blockchain

Blockchain is a decentralized and distributed digital ledger that records transactions across multiple computers so that the record cannot be altered retroactively, without the alteration of all subsequent blocks. The video mentions blockchain as one of the technologies that add trust to transactions, which is a significant shift from traditional accounting and finance practices. It is an example of how technology is transforming the fundamental operations within management.

💡Digital Natives

Digital Natives are individuals who have grown up during the digital age and are accustomed to using digital technology as part of their daily lives. The term is used in the video to describe a generation that has never known a world without advanced digital technology, and for whom the integration of digital tools into all aspects of life, including management, is second nature.

💡Orchestration

Orchestration, in the context of the video, refers to the new role of managers in the fourth Industrial Revolution, where they are not just organizing tasks but also harmonizing the complex interactions between humans, machines, and intelligent systems. The script uses the analogy of a conductor leading an orchestra to illustrate how managers must now oversee and direct the activities of diverse elements within an organization to achieve efficiency and productivity.

💡Accounting and Finance

Accounting and finance are fields within management that deal with the measurement, processing, and communication of financial information about economic entities. The video discusses how these fields are being revolutionized by digital technologies, such as blockchain, which enable real-time, trusted transactions. This shift is part of the broader theme of how management practices are adapting to the digital age.

💡Operations

Operations refer to the management of the production and delivery of goods and services within an organization. The video highlights how operations are being transformed by the fourth Industrial Revolution, with tasks often being delegated to robots and AI. This change underscores the video's theme of the evolving role of managers in overseeing and optimizing these automated processes.

💡Marketing

Marketing is the process of promoting, selling, and distributing a product or service. The video discusses how the fourth Industrial Revolution is changing marketing, with digital and physical worlds merging to create new opportunities for insightful and pervasive marketing. The script gives an example of a smart mirror that can analyze a person's skin and recommend products, illustrating the personalized and interactive nature of marketing in the digital age.

💡Human Resources

Human Resources (HR) is the function within an organization that focuses on recruitment, training, and managing people. The video discusses the challenges and opportunities presented by AI in HR, such as reducing bias in hiring and evaluating candidates more effectively. This relates to the video's broader message about how management practices, including HR, must adapt to leverage the benefits of AI and other digital technologies.

Highlights

The lines are blurring between management and technology with advancements in areas like robotics, AI, and blockchain.

The fourth Industrial Revolution involves computers mimicking human activities, including management tasks.

Digital natives have never known a world without advanced technology, making the digital revolution a norm for them.

The merging of the digital and physical worlds characterizes the fourth Industrial Revolution.

The first Industrial Revolution was marked by the advent of steam power, liberating humans from reliance on animal power.

Electricity enabled process improvements and the creation of factories during the second Industrial Revolution.

The third Industrial Revolution introduced microchips and computers, automating manual tasks in management.

In Korea, there is a high density of robots in factories, indicative of the ongoing fourth Industrial Revolution.

Accounting and finance are changing with real-time, trusted transactions facilitated by technologies like blockchain.

The manual aspects of management are being automated, allowing humans to focus on decision-making.

Operations within organizations are increasingly automated, with AI and robotics handling tasks traditionally done by humans.

Managers in the fourth Industrial Revolution are becoming orchestrators, overseeing automated systems.

Marketing is changing with the fourth Industrial Revolution, becoming more insightful and pervasive.

The concept of product placement is shifting, with products becoming available wherever the consumer is.

Human Resources is being augmented by AI to help reduce biases in hiring and evaluation processes.

Strategy creation is being enhanced by AI, although it still requires complex human thinking.

Leadership in the digital age is about trust and will involve leading not just humans, but also AI and robotic systems.

Fundamentals of management have not changed, but their application must adapt to the new digital and physical world.

Transcripts

give you something new to think about

I've taught management and I've also

taught technology and we're starting to

see the lines blur between those two

management 4.0 in a digital age we're

now in an age where we have robotics

artificial intelligence technology like

blockchain all of these different things

that are normal in business in

management and so it bears the question

then how does management change in the

digital age or an even better question

is management even necessary in a

digital age why do we call it management

for ATO what is new about today than is

different from before we're rapidly

reaching a point where human performance

is being outrun by computer performance

we're starting to see the ability of

computers to do things that are only

able to do by humans before so we've

called it the fourth Industrial

Revolution that now we have computers

who are beginning to mimic the things

that we could do including management

for many of our young folks in the room

the digital Millennials we call them the

digital natives for all of you this is

not new this is not a revolution at all

this is something that's been normal

since you were born you've never known

anything but a smartphone a TV that you

could look at that could do wonderful

things an entirely fast internet this is

not a revolution at all but the world

you're going to step into may be

different and it may challenge the

notion of management as we bring

together not just the digital world but

the physical world to do things that we

all see are happening now that we can

talk and have a device in our home

understand us and do things on our

behalf the digital and the physical

world merging is really what the fourth

Industrial Revolution is all about but

before we go to the fourth Industrial

Revolution why is it different how did

we get there

we've had four revolutions the first one

beginning in the 17 to 1800s and is all

about steam it may not seem significant

to all of you but at the time this was

really important it liberated human

beings from the power of animals that we

had to have horses and cows and those

things do those things for us before now

we had machines we could go farther we

could go faster we could do things and

go places we could never think about

before the first revolution was

extremely significant and created new

industries like the locomotive the

second revolution was all about

electricity again something we take for

granted now we didn't have that then it

did then allow us to do things we

couldn't before particularly in

management we could do what's called

processes a word that really wasn't used

much then and is entirely familiar to

our management student now that we could

begin to create factories and do things

on an assembly line through the

enablement of electricity that moved

things on our behalf not just with

expensive steam power but cheaper

electricity and then we reached the

third revolution happening in the 1960s

to 70s to 80s we finally had the

microchip we finally had the computer

that now could do things faster they

could actually do calculations and do

different types of activities in the

management world that traditionally we

had to do manually as as human beings

this enabled us to do things now that we

couldn't before computer systems and

networking the things which you're

familiar with are all powered with this

microchip there's a so significant in

the third revolution and then we reached

the fourth revolution the fourth

Industrial Revolution which were all in

the midst of right now here in Korea we

have the highest density of robots in

factories in an entire world and we're

starting to see the forth and dust

revolution

bringing together that physical and

digital world but adding something on

top of it intelligence bringing together

the things that we know and are learning

in our practice in our brains and

transferring that to computers to do on

our behalf and it causes really some

significant changes potentially in the

world of management but going back to

the original question is management even

necessary in this fourth Industrial

Revolution let's take a look

we're familiar with accounting and

Finance it's one of the basics of the

management field accounting and finance

in very simple terms gives us the rules

which we know how to do business and

organizations by we know how to count

things we know that keep score we're now

seeing the basis of that change in a

dramatic way because accounting has been

around for hundreds if not thousands of

years but we enter a calculations and

numbers in a book we make sure they add

up but it takes humans to do that it

takes humans to look at that and make

sure it's right it takes humans to then

make sure that those numbers are then

useful for something else

accounting and Finance has changed

because now we see the ability for us to

use these numbers not just after the

fact not just later when they've been

verified not just later when we can

trust them we can actually use those

numbers as they fly around in Lightspeed

around the world we have technology now

like blockchain these other technology

words we hear about they actually add

trust to the numbers that typically

would only be done by human beings we

can now have a transaction be trusted

when it initiates when you use your

phone to buy something immediately that

information can be trusted all the way

around the world when we want to order

something new you bought one we need to

produce one more we don't have to wait

for the numbers to add up accounting has

become extremely digital accounting has

become now digitized in a way that

becomes in some ways the new oil of the

organization and now accounting and

finance is changing in the fourth

Industrial Revolution but just as we had

mentioned is management necessary in

this world we talked about the need to

have the rules we've talked about the

need to keep score when we're able to

not use human power to verify things but

use it for decision making we now can

make organizations move faster we can

actually do things we couldn't before

so we've transferred the manual part of

what we've done to the computer and

added intelligence to now free us just

as steam had freed us from animal power

we're now freed from computer power to

actually make better decisions another

concept we're very familiar with in

management is operations it's the

fundamental part of what we do

operations really is that whole

heartbeat of an organization bringing in

goods processing them ordering sending

them out that whole inertia of business

which now are seeing is done by

oftentimes by robots and intelligent

artificial intelligence things that now

we delegate human tasks to on a very

regular basis so you would ask then what

is the role of a manager now what is a

role of a manager in a factory full of

robots that we don't have to tell what

to do that they know what to do already

it's all about what I call orchestration

we've seen this for those of you have

seen Fantasia the animation classic from

Disney and Mickey is in there

orchestrating all these inanimate

objects to do something on his behalf in

many ways we're doing the same thing

managers in the fourth Industrial

Revolution

don't become organizers they become

orchestrators bringing together all

these things to do fast and efficient

things and we do it better because we're

able to use our knowledge of management

in order to to do the

another fundamental piece of management

is marketing we learned this in business

school it's fundamental to what we do in

order to enable businesses to sell

products we often talk about the four PS

right product price placement promotion

those things where you're supposed to be

in a place and I can influence you to

buy something through price or through a

promotion all of those different types

of things what we're seeing in the

fourth Industrial Revolution is now

that's changing dramatically it's not

about where you are to the product is

where the product is to you and

oftentimes it's in places we didn't

envision it could be your home

we now have products in the digit fourth

Industrial Revolution in the digital

world a mirror that can actually see you

and talk to you that could evaluate your

skin you can see how healthy you are

today versus yesterday it can start to

recommend products to you based on a

whole range of features and you haven't

said a word the 4th Industrial ushion

when we bring these digital and physical

worlds together now change the notion of

marketing because now marketing is

insightful marketing is pervasive

marketing is everywhere and it's not

interruptive it's actually very

instructional and we're able to do the

things we could not do even the things

we didn't know we wanted they're able to

actually sense the things that we like

based upon our conversations and how we

look in that way we act and provide

products that would fit our lives maybe

that we didn't anticipate and we're also

very familiar with human resources it's

interesting because if we look at this

field there's one term one word that

stands out human we've always known

management and organizations as just

that humans

so we've orchestrated a whole discipline

of management around this field how do

we motivate you how do we hire the best

employees

how do we actually look at the nonverbal

aspects of an employee before we hire

them and know that they're the right one

but there's also something fundamentally

challenging about humans in human

resources we're naturally biased we

naturally like certain things not like

certain things we're influenced by the

friends we have the countries we come

from it's not bad it's different and so

we're looking now in management in the

fourth Industrial Revolution as not

being replaced by a computer being

replaced by artificial intelligence but

being augmented by it and help us do

things better than maybe we could do

ourselves to potentially take away the

bias for example to evaluate somebody

and be able to look at their verbal and

nonverbal skills and be able to tell

that this person may have those none

those those qualities that we were

looking for that maybe we couldn't see

ourselves and give us a better chance of

finding the right hire the first time

and in management their strategy

computers now we've seen this from

computers were able to beat the best

game players that go at jeopardy all

these things which traditionally have

been purely a human exercise games and

strategy that now we're able to use the

fields of artificial intelligence to

help us create strategy and do things

maybe better than a human but the

question then becomes if a computer can

beat us at our own games can it do

strategy - and the answer is kind of

maybe but think about your own lives how

do you make a decision to buy something

simple such as a new smartphone there's

product

there's price there's place there's

promotion those those things that are

very standard but there's also those

other things how does it look how does

it feel how do you describe that and oh

by the way you had a conversation with

your friend last week and they told you

about this this foam

and you read something else and maybe

you saw somebody talking on this phone

on the bus on your way to school and you

thought wow that looks interesting

there's all these things which enter

into our heads and decision making that

sometimes we can't describe strategy

still is a human endeavor strategy still

requires a lot of complex thinking in

order for us to make a decision we can

use artificial intelligence to help us

and some places it's doing better than

us but so far we've never found a

computer that can think better than us

and this is the world of strategy that

managers in the fourth Industrial

Revolution will live in so then we get

to leadership probably the most

fundamental part of management that we

can look at a person in our organization

we can motivate them we can understand

what their career paths are in many ways

leadership is about trust trust in them

looking at you as a leader for you to

trust them if we look at this picture

this seems like a very trustworthy

individual this is actually the world's

first 24-hour artificial intelligence

newscaster it debuted two weeks ago in

China this could be your new coworker

this could be your new boss this is the

world that we'll live in in the fourth

Industrial Revolution as we learn how to

lead not just humans but things things

that act like humans things that think

like humans things that help us but it's

interesting as we look into the face of

this artificial intelligence it does

give us the feeling that we're looking

into a human being

and so it challenged us then challenges

us could we ever trust them if they gave

us a decisions if they gave us things to

do would we trust them would we see them

as a leader or will always be humans as

a leader so we've reached then a really

interesting inflection point

we've seen that in many cases management

is not dead management is entirely

necessary to this new world that we're

walking into this digital and physical

world combined that we have robotics and

intelligence all these things to help us

and make us better and make our

organizations better but we need to

actually be great managers two great

leaders two great strategists etc and so

as we think about the learning of

Management it means that we need to know

the fundamentals that those have not

changed we will just apply it to a new

world and to me I think that's probably

the most fundamental takeaway that we

will not do different things but we will

do things differently thank you very

much

[Applause]