The Three Pillars of Industry 5.0

Summary

Over the course of the past decade, technological innovations have rapidly transformed the manufacturing industry. Traditionally, manufacturing processes were linear, fragmented and reliant solely on manual labor. With the adoption of Industry 4.0, however, a wave of digitization swept through. Companies spent years connecting data, connecting devices, automating processes and experimenting with AI and analytics—all which helped optimize processes and enhance productivity.
 

The success of Industry 4.0

The technologies and process improvements commonly included in Industry 4.0 revolutionized how products were designed, engineered, produced and maintained. Companies across every vertical industry invested heavily in digital transformation initiatives, leveraging technology to improve their offerings and gain a competitive edge.
 
Product-driven organizations have been transformed during the age of Industry 4.0.  Everything from the standardization of predictive maintenance practices, to supply chain optimization, to simulation-driven design changed the game for the better. The collection and analysis of data drove better decision-making, resulting ultimately in operational efficiencies and better quality control. The advent of the cloud and related technologies finally made it possible to deliver on the promise of scalability and accessibility, enabling remote work and collaboration.
 
As these technologies become more commonplace, and the manufacturing industry continues to face challenges ranging from finding and retaining talent, to driving greater efficiency from existing technology and equipment investments, we can start to see the beginnings of Industry 5.0. With Industry 5.0, the concept of cognitive systems is introduced. Cognitive systems can be thought of as traditional technologies augmented with artificial intelligence (AI), that are then used to solve difficult problems with less and less help from humans. This means a great deal of the repetitive work done over the years will be able to be automated away. This will be not just a progression—but a paradigm shift; one that demands a reevaluation of industry-wide approaches and ideologies.
 

The pillars of Industry 5.0

If Industry 4.0 can be thought of as the stage of digitalization, where automation and optimization took hold, then Industry 5.0 will be about redefining the relationship between humans and technology. Industry 5.0 represents a fusion of human intelligence with technological capabilities—emphasizing collaboration, sustainability and long-term resiliency.
 
At its core, Industry 5.0 embodies the convergence of people and technology, and how they can complement—not compete—with each other. At the same time, Industry 5.0 will also take its cue from recent global events, establishing a foundation for sustainable manufacturing practices and resilient systems that can adapt to unforeseen disruptions.
 
There are three key pillars that define Industry 5.0: (1) Human Focused; (2) Sustainability; and (3) Resiliency. Let’s take a closer look at each.
 
Pillar 1: Human focused
Interactions between people and technology—and how easy it is for them to collaborate—will make up the heart of Industry 5.0. Cognitive systems, comprising AI, machine learning and advanced robotics, will work in tandem with human operators to augment decision-making and problem-solving capabilities. This approach ensures workers will invest their time in more creative tasks that we as humans prefer to do and let AI do the repetitive work as an advisor in the background. It is important to note that human interaction is still required to evaluate and finalize decisions. People and technology will form a symbiotic relationship—one that fosters innovation, creativity and agility—to drive continuous improvement across the product development and manufacturing lifecycle.
 
In order to be successful with this pillar, organizations must  think carefully about the technology they invest in, ensuring that it will provide value, make it easier for its people  to accomplish their goals and drive the business forward. In addition, organizations must prioritize human-centric design and invest in training  programs to empower their employees. Training those in your ecosystem is a necessary step if you want to open the door to wider implementation and greater benefits that come along with Industry 5.0. By fostering a culture of collaboration and knowledge sharing, companies can harness the full potential of its people, driving sustainable growth and competitiveness.
 
Pillar 2: Sustainable
Despite all of the political discourse on the topic, sustainability has become an even more critical challenge for organizations to address. Driven by regulation and customer demand, it is rapidly moving from a topic of discussion to a business imperative for manufacturers. Companies must start by building a culture and enable methodologies that support sustainability goals and benefits.
 
As a part of Industry 5.0, sustainable practices will be followed throughout the product lifecycle, from design and manufacturing to distribution and disposal. By embracing eco-friendly materials, energy-efficient processes and circular economy principles, organizations can minimize their environmental footprint while maximizing resource efficiency.
 
Preparing your organization to support sustainability requires a holistic, data-driven approach, encompassing product design, supply chain management and stakeholder engagement. By integrating sustainability directly into their business strategy, organizations can not only mitigate risks but also unlock new opportunities for innovation and growth. While there is no single solution for sustainability, the right technology combined with an effective strategy can ensure companies meet sustainability goals and lay the groundwork for future enhancements.  
 
Pillar 3: Resilient
Closely tied to the theme of sustainability is that of resiliency. We live in turbulent times. The supply and demand issues from the peak pandemic years are still fresh in everyone’s minds, underscoring the need to be able to weather any disruption, large or small.
 
In Industry 5.0, systems will need to be designed to withstand shocks by having the ability to adapt to changing circumstances. All too often, business processes change without concern for the ability of the systems to change with them. The critical differentiator in a successful, resilient enterprise is making sure that product data is available to all who need it—yet it’s kept secure as it moves through the enterprise. Whether it's geopolitical uncertainties, natural disasters, or global pandemics, resilient organizations are better equipped to navigate challenges—and this quality will define which will find lasting success.
 
To build resilience, organizations must proactively plan for business continuity and risk management. Innovation will be key. Not just any innovation—differentiated innovation. Advanced technologies such as predictive analytics, digital twins, AI and IoT-based sensors will alert organizations to potential threats and guide them toward implementing measures that can mitigate those risks.
 
It is more than just technology that will be required to foster resilience, however. Building resilience and agility into your organization to embrace and enable change—and faster than your competitors—is key.There needs to be a belief that your organization can respond swiftly to any unforeseen event, regardless of how difficult, helping to ensure continuity of operations and customer satisfaction.
 

The digital thread drives Industry 5.0

The concept of a connected digital thread linking people, processes and data across product lifecycles is necessary for the pillars of Industry 5.0 to take hold within manufacturing and product driven organizations. An effective digital thread strategy establishes a platform for humans and AI to collaborate continuously, accelerating design cycles while leveraging the power of simulation, digital twins and generative AI. The continuous flow of information in context will change the nature of product design and lead to more sustainable products and businesses that can more quickly adapt to changing dynamics.
 
Companies must seize the opportunity that comes with accelerating change and compressed innovation cycles. By embracing the pillars of human focused, sustainability and resiliency, organizations can unlock new opportunities for innovation, growth and competitiveness in an increasingly dynamic and interconnected world.