Rejuvenation of Business Management Tools in Industry 4.0

The world of business economics (and management) traditionally has been viewed as relatively linear. In such context, competitive dynamics depends on contingency between structural factors and contextual factors, as well as characteristics of a representative company. But, the context has been changed under the impact of Industry 4.0. By synthesizing the breakthroughs from cyber and physical (and/or biological) worlds, it gave rise to an almost endless stream of combinatorial innovations. There are two major consequences of the previous transition. First, universal connectivity as the new free good enables that the world of engineering reaches the levels of complexity and dynamism typical for non-linear systems. Second, emerging amalgams of cyber and physical breakthroughs trigger in business management transformation of linear value chain into exponential value chain (or platform), actually a non-linear system. Mentioned structural changes lead to convergence of the engineering and business management in conceptual terms. In this paper we explore the ways in which Industry 4.0 can offer a powerful and consistent platform for implementation of conventional business management tools. We have been inspired by two achievements. First, to map out the impact of Industry 4.0 on double paradigm change, both in macro and micro (or business) management. Second, to explore, with key details, the impact of the paradigm change in business management on effectiveness of conventional management tools. By doing this, we wish to promote the broader and systemic thinking, synthesizing micro and macro management perspectives into a single point of view that is actually based on the reversibility principle.