Digital Transformation and Industry 4.0

The current era is witnessing many changes on various levels. The information and communication revolutions are considered one of the important changes which has cast a shadow over how different institutions in society work via the phenomenon of digitization. As some of the most important institutions of society, industrial companies have been responding to this phenomenon of digital transformation to improve products and customer service while achieving a significant profitable return. This response by these institutions to the digital transformation has resulted in the emergence of the so-called fourth industrial revolution. In this context, this chapter reviews the definition of digital transformation as well as its dimensions, benefits, and obstacles. It also comments on the future of digital transformation and its relationship with industry. Ultimately it presents the fourth industrial revolution in terms of its definition, history, criteria, benefits, and the challenges it faces moving into the future.

Risk Management for Traditional and Innovative Contracts

Risk management is a very crucial aspect in contracting; it has been an issue since the early days. This is becoming more and more challenging as new dimensions have entered the arena. With a lot of stakeholders working together to produce value, this includes contracts, providers, customers, and end users. The risk management paradigm has shifted and transformed multiple times in the recent years. This chapter is trying to touch on the risks associated with traditional contracts, then move ahead to suggest a design model for risks in innovative contracts. In between, the chapter is touching on points related to outsourcing and governance.

Regulating Digital Transformation

Digital transformation is the core value of the 4th industrial revolution or Industry 4.0. Although the efforts are focused on utilization and usage of technologies like artificial intelligence, internet of things, cloud computing, and many other technologies. We should focus in parallel on regulating the technologies to provide the proper road map and put the proper regulatory frameworks to remove uncertainties in development, investment, or implementation of technologies. Regulatory effectiveness is very important in saving time and rolling out technologies. In one initiative, regulatory technology (RegTech) will utilize the technology to enhance the regulatory process in financial sector; Regulation 4.0 is another; however, plenty of work is still ahead. Some regulators are keen to facilitate the emerging technologies and to see the consequences immediately, thus they use sandbox thinking in evaluating the impact at a small scale. In summary, this chapter will highlight the different practices and methodologies to regulate the digital transformation in the best way.

Transformation of Human Resources Management Solutions as a Strategic Tool for GIG Workers Contracting

Recently, organizations are becoming more intelligent, flexible, and efficient by using new digital technologies in human resources management (HRM). The HRM solutions are considered as an important source to support strategic decisions, create value within and across organizations for employees and management. Today, organizations are facing challenges for gig workers to retain the level of progression and development required for business continuity. Gigs are generally self-employed who are very hard to manage without having a solid e-HRMS that can fulfill their needs in addition to the permeate employee needs as well. The main objective of this chapter is to highlight digital transformation in HRM and dive into the e-HRM concept, development stages, types, and strategies. In addition, it shows how e-HRM contributes to increase the effectiveness of human resources. It will also discuss multiple dimensions about the gig work management (GWM) including the contracting methodologies, policies, and behaviors that the e-HRM need to consider for the gig workers.

Using Blockchain for Smart Contracts

Today's era of globalization and digital transformation has produced many modern technologies that have influenced modern societies, blockchain being one. This chapter will set out definitions and criteria related to what blockchain is, its advantages and limitations, and its relation to the modern techniques used in the conclusion of smart contracts; and the impact of this technology on fighting administrative and financial corruption. Within this chapter, the central focus is on a new form of contracts founded as a result of the challenge of aligning the current system of the contract with the application of blockchain technology (i.e., to replace the idea of credit intermediation in dealing [notary, bank, management] with another thought based on a peer-to-peer system to increase contractual security and to establish the principle of self-implementation of the contract without the need to mediate with others).

Agile IT Department Contracted for New Roles in a New Era

The complexity of business and competitive environment enforces organizations to adopt innovative ways for doing business. This drives a new trend of agile organizations that are adaptable to market and technology changes. As a result, 75% of organizations recognized agility as one of the key drivers for their IT strategies. As organizations start adopting digital transformation initiatives, they recognize the necessity to adapt agility in their IT departments as well. However, moving to an agile organization and an agile IT department is more complex than adapting an agile software. This chapter aims to provide an in-depth explanation of agile IT department specifying its features, roles, and differentiation elements from the traditional IT department. Emerging technologies that are crucial in the movement towards an agile IT department are also discussed with possible change management process to facilitate the transition of the agile IT department into profit center that is contracted to add value for the whole organization while working in a feasible partnership mode with the business.

Enhancing the Contracting Touch Points Through Innovation

The subject of this chapter revolves around how Industry 4.0 is changing our way of life. The way we communicate, travel, socialize, learn, relax, or do business changed significantly. As a major architecture and design offices, Industry 4.0 technologies are adding new layers to our business every day. This affects the design of offices, houses, communities, and cities. The relation with contractors, customers, and all stakeholders have changed creating new interfaces, channels, and touch points. Terms such as “collective intelligence” or “crowdsourcing” come into the picture with development in the mobile technology, collaboration tools, and Industry 4.0 ecosystem. It is interesting to see how this advanced means are facilitating new mindsets in design architects and construction industry. Customer expectations are being elevated as well. This is adding a lot of touch points with suppliers and consumers, and that is why a new innovative contracts and contracting is required.

The Inspiring Contracts

Contracts are a powerful and often underutilized way to shape the business while involving all stakeholders. There exist stunning stories where an inspiring contract turns a lose-lose scenario into a successful relationship that fosters significant win-win behaviors. The latter will depend on contracting practices adapted to the level of coordination and the outcomes being sought. Inspiring contractual arrangements can drive a better outcome-based approach that is benefiting everyone. Every business is currently oriented toward value-centered outcomes; contracts can help sustain this approach by incentivizing the desired behavior to reward activities that create value, rather than simply reimbursing costs. Contract discussions should not be adversarial, but they should present an opportunity to align consumers' and providers' values while keeping expenditure under control. This chapter discusses real stories where innovative and inspiring contracting styles generate a vast value and realign the business approaches. This chapter is putting the concept and the story together.

Contract Design and Related Agreements

As we delve into value deconstruction, the number of contractors will increase a great deal, and every specialty will have its own parameters. The contract by its own will not be able to accommodate all clauses and conditions that may be due for changes. Now imagine, what would happen if important information like trade secrets of any corporation or business were to be leaked to competitors? And wouldn't it be so much better to legally oblige to privacy and urge those who consent to keep the information in question completely under wraps? For this reason, it is important to have an ecosystem of agreements such as NDAs, SLAs, and others to complete the chain and allow for efficient governance and risk management considerations. NDAs and confidentiality provisions have groundbreaking propensity. The design of such agreements is fundamental and various parameters must be considered. This chapter directs attention to these subjects and concerns by discussing the various types of complementary agreements and how they can be attached to the original contract to add value and reduce risk.

Employee Selection and Recruitment Contracts in the Digital Transformation Era

The selection and employment processes are considered among the complicated jobs that the human resources department performs. It is related to making specific decisions that are often difficult to withdraw or undo, such decision determine the fate of the organization in terms of human competencies that is selected to conduct the business functions. The employee selection and contracting are changing heavily in the digital transformation era, HR department needs to transform and find new ways to hire and retire based on technology tools. More professionals are looking at limited time jobs rather than permanent jobs as shown in the gig economy. The main objective of this chapter is to highlight hiring, training, and contracting of professionals in this era along with development stages, types, and strategies. In addition, it shows how such activities contributes to increase the effectiveness of employment process as well the organization effectiveness. In the last part will be presented the conclusions, recommendations, and future research suggestions.