THE ROLE OF MANAGEMENT IN THE PROCESS OF DIGITAL TRANSFORMATION Cover Image

ULOGA MENADŽMENTA U PROCESU DIGITALNE TRANSFORMACIJE
THE ROLE OF MANAGEMENT IN THE PROCESS OF DIGITAL TRANSFORMATION

Author(s): Krunoslav Čolak, Krunuoslav Tušek, Mato Pušeljić
Subject(s): Economy, Business Economy / Management, ICT Information and Communications Technologies
Published by: Visoka škola “CEPS – Centar za poslovne studije” Kiseljak
Keywords: digitization; digital transformation; public administration; managing; management;

Summary/Abstract: Although the fourth industrial revolution, to a greater or lesser extent, has entered the lives of every citizen and has already gained considerable momentum as the most progressive revolution so far, the possibilities of its utilization have not been reached. Therefore, these who are accountable, and these are primarily those who manage organizations, namely management, should recognize fourth industrial revolution not as a choice but as an imperative of success. This applies to all leaders, whether they are companies in the real sector or public sector entities in the country. Unfortunately, many of them are still unaware of what Industry 4.0 really means.Industry 4.0 or as is also called, digital transformation, implies connecting factors of the process into an intertwined value chain, collecting and analyzing data to improve processes through cost optimization, gaining a competitive advantage and improving customer relations by meeting their needs and desires.While in the real sector the benefits of the fourth industrial revolution are widely used, such a practice lags in the public sector. For public sector management to catch the running train called digital transformation, it must become aware of some basic concepts or rather change its way of thinking. First, they must understand that there is no difference between management in the real and public sector. The real sector is focused on the placement of products and services through cost / benefit market relations, supply and demand, and in this way the success of an individual company is measured. On the other hand, the public sector is focused on providing services to citizens in the most optimal way to meet the general social interest, and success is measured by citizens satisfaction.

  • Issue Year: 2020
  • Issue No: 2
  • Page Range: 196-212
  • Page Count: 17
  • Language: Croatian