J  .  A  . M  . I

Journal of Applied Management and Investments



ISSN 2225-3467



icon2 Journal Home

icon2 Aims and scope

icon2 Editorial Board

   Current Issue & Archive

icon2 Authors Guidelines

icon2 Editorial Contacts










Current Issues & Archive

 Volume 10 Issue 1 2021                       < Previous paper                        


Implications of theIndustry 4.0” Concept on Management Practice



Yurii Hrinchenko, Doctor of Economics, Associate Professor

Department of Marketing and Business Administration

Odesa Mechnikov National University, Ukraine








“Industry 4.0” concept was developed to meet the challenge of technology progress in the field of data processing, artificial intelligence, robotics and cyber-physical systems. This concept changes the production systems to serve efficiently various customer demands. The major obstacles for successful implementation of “Industry 4.0” from a CEO perspective are unclear economic benefits and excessive investments and lack of qualified employees. The readiness to adopt new approaches in engineering, management and education defines national strategies for the forth industrial revolution progress. The new concept of manufacturing builds integrated and customer-oriented supply-chains, so the outputs and inputs go beyond processes boundaries. The radical change in manufacturing design requires a new set of skills for engineers, managers and employees. Management experiences a substantial shift from functional-based to customer-value oriented logic. Meaning of efficiency and effectiveness, scope of planning and control, organizational design for power and task distribution, communication patterns and coordination networks challenges profound changes both in meaning and form. More flexible and complex environment, patterns for instant coordination, priority for autonomous decision-making require new skills and new attitudes for employees and managers to exploit all benefits of “Industry 4.0”.



Industry 4.0, smart factory, digital manufacturing, cyber-physical systems, organizational design, customer-oriented supply chain, efficiency, management paradigm



Research paper


February 23, 2021


March 22, 2021


March 29, 2021

JEL Codes:

O33, M11, O14


Hrinchenko, Y. (2021), “Implications of the “Industry 4.0” Concept on Management Practice”, Journal of Applied Management and Investments, Vol. 10 No. 1, pp. 31-41.

Full text:







(c) 2011-2021 Journal of Applied Management and Investments