Industry 5.0 is a framework for re-imagining the future of energy, manufacturing, mobility, and supply chains that build upon and complement the meaningful groundwork paved by the vision of Industry 4.0. Industry 5.0 uses collaborative robots and artificial intelligence to bring a human touch to the concept of digital transformation. Promoted by the European commission and other governmental bodies, Industry 5.0 emphasizes a triple-bottom-line of economic, environmental, and societal impact, bringing ESG (Environment, Social and Governance) perspective and balance to what have often been technology-led and economic-driven choices.
Industry 4.0 -- a phenomenon since the industrial revolution – deals with the integration of innovation and new technologies into the manufacturing production process. Though Industry 4.0 has delivered industrial automation and other significant positive impacts, it sometimes has replaced humans in the workflow process. Industry 5.0 seeks to correct that imbalance, using the concepts of cognitive computing, cyber-phyisical systems, and artificial intelligence to ensure humans have a role in the digital transformation that is continuing to evolve.
One of Industry 5.0 challenges is to make processes more human-centric. Part of the motivation is to mitigate the concerns and resistance to automation from labor unions and politicians concerned that Industry 4.0, in theory, could create crises of technological unemployment. From the start of the cycle of innovation during the industrial revolution, the goal of manufacturers has been to enable technologies that would make the production process more efficient. From a practical perspective, this benchmark has been achieved – highly automated processes can deliver highly consistent and repeatable outputs. But this does not address the need to provide increasingly customized or personalized products (as customer expectations become increasingly sophisticated). Human-machine collaboration is the key to unlocking these benefits.
Understanding your company’s digital maturity is the first step in driving value – and profitable business transformation — through digital technologies. That is why implementing an Industry 5.0 maturity model is essential to starting your digital journey. Without understanding your current state, and putting a plan in place, you risk making high-cost, low-value decisions or investing in initiatives that your existing technology can’t support. Digital maturity is the ability to quickly respond to or take advantage of opportunities in the market based on current tech stacks, staffing resources, and digital technology. It’s an organization’s ability to take on digital transformation not only from the standpoint of digital technology, but organization-wide, including people, culture, and processes, to achieve business outcomes without the risk of human error. While there is a heavy emphasis on technology, the level of digital maturity an organization has is also impacted by speed and adaptability, largely due to resources in human capital and automated processes. It’s a team effort, in the truest sense.
Industry 5.0 Organizational Structure
Industry 5.0, at its core, is a way to realign human and machine in an environment when workers find themselves increasingly supplanted by technology. The Industry 5.0 workforce is one that joins human and digital resources to leverage things like artificial intelligence, big data, machine learning, cloud computing and IoT to develop the smart factories of the future. The industry 5.0 business model will rely heavily on the education and training of manufacturing workers so they can optimize their workforce skills and find their place in this contemporary business model.
Perhaps the most important distinction of Industry 5.0 is the reintroduction of the human element into the manufacturing process. In one sense, the human element brings the soul back to manufacturing by enabling collaborative production – the imagination and flexibility of the human worker becomes empowered and advanced with the ability to harness cyber-physical systems like collaborative robots (or cobots). The combination of smart machines, cognitive computing, cloud computing, and savvy humans will allow for true “mass personalization” and more nimble production.
Industry 5.0 seeks to restore a human-centric approach to business that some would say was lacking with an Industry 4.0 approach. The symbiosis of humans and machines is essential to creating more jobs, leveraging productivity and efficiency, and attracting and retaining talent. Particularly to technology-centered organizations, human capital is the most strategic asset and businesses will need to accommodate the growing cohort of Gen-Z and Millennials’ changing needs. For younger generations of workers, the commitment to environmental and social factors becomes increasingly important in their choice of employer, and this may include a commitment to community initiatives, flex working arrangements, and the cultivation of historically underrepresented minorities in leadership roles. The human-centric vision also critically involves re-thinking how workers and machines collaborate. Traditionally static manufacturing processes can be updated with digital twins, and new collaborative robotics (cobots) with line workers empowered to exercise greater flexibility in production. A healthy and happy workforce with opportunities for creative personal and professional advancement is likely to create lasting value for the business.
Industry 5.0 seeks to create a manufacturing environment that is both sustainable and resilient, while also being human-centric. With the growing regulatory and investor emphasis on reducing carbon emissions and environmental impact, businesses need to evaluate their resource footprint that supports their manufacturing process. This may involve analyzing the source of raw materials, the proportion of waste generated, along with an evaluation of the environmental impact, the energy efficiency of processes, as well as the sources of energy.
Many firms have committed to specific reductions of fossil fuels and clean energy generation sources. Additionally, the adoption of new materials and composites (away from petroleum-based for instance) can reduce environmental impact while increasing smart manufacturing practices, such as recycling and repurposing materials, to achieve objectives for socio-ecological sustainability.
In the Industry 4.0 paradigm, businesses have been forced to cope with increased uncertainties and adapt to cope with change. That’s why Industry 5.0 bolsters resilience for companies looking to balance man and machine. It’s important for organizations to engage in planning exercises that account for potential disruptions across the value chain, from the factory floor to the supplier network, to transportation channels, to regulatory and geopolitical changes that can promote the achievement of societal goals.
Digital technologies and methodologies (simulations and AI-enhanced modeling) can help identify optimal alternative paths in the event of disruption, weighing different factors such as cost, substitution, quality, and logistical concerns into the mix. Start with identifying the greatest points of vulnerability (whether in process or supply chain), isolate the key inputs, and then formulate contingency planning for any disruptions. It's better to have a plan and not need it than be caught unprepared.
The essential Industry 5.0 smart factory strategy builds upon the Industry 4.0 approach of deploying IoT technologies in manufacturing facilities. This strategy uses artificial intelligence to collect and analyze data using cloud computing – then, using data insights to power more efficient value chains. The key is automating processes – through the use of universal robots on the factory floor – and incorporating edge computing (both sensors and actuators). This pure application of technology helps create smart factories, leverage digital twins, and realize hyper-optimized production lines and smart products.
The essential Industry 5.0 strategy is designed to ensure a framework for industry that combines competitiveness and sustainability, allowing industry to realize its potential as one of the pillars of transformation. It is a strategy focused on emphasizing the impact of alternative modes of (technology) governance for sustainability and resilience. An effective Industry 5.0 strategy empowers workers using digital devices, endorsing a human-centric approach to technology; builds transition pathways towards environmentally sustainable uses of technology; expands the remit of corporation's responsibility to their whole value chains; and, finally, introduces indicators that show, for each industrial ecosystem, the progress achieved on the path to well-being, resilience, and overall sustainability.
