Every day there is more and more talk about what the Fifth Industrial Revolution (5IR) or Industry 5.0 will be, even though many companies are still far from the so-called Industry 4.0 (yes, and at this rate we will have industrial revolutions more often than Olympics).
In view of this, a question arises: Is it too ambitious to consider Industry 5.0 before reaching 4.0?
To help you find the answer, we would like to reflect on the main highlights of this industrial «revolution» and answer the question of whether it is feasible for companies to think about Industry 5.0 right now, even before Industry 4.0.
What is Industry 5.0? the new approach
To talk about what Industry 5.0 brings to the table, we have to start from the foundations (which are not few) of its previous «version». We are talking about a major shift in the way our industries operate thanks to the convergence of different technologies: IoT, big data, AI, cloud computing, robotics, advanced automation, etc. In short, a series of elements that aim to make industry more efficient, intelligent and digital today.
It is true that many organisations are still working on implementing these changes, since not everyone was equally prepared to take this step. So, does it make sense to consider Industry 5.0 at this point in time? The answer is yes, as it is not necessary to go through version 4.0 to start with 5.0, but you can start incorporating some of the key elements of this new revolution right away.
Does it make any sense to consider Industry 5.0 when not all companies are ready for 4.0?
This fifth industrial revolution, or rather industry version, is more about values than about technology. Although it certainly draws on the major development achieved by Industry 4.0, unlike previous revolutions, here we are not talking about a technological leap representing a breakthrough.
Industry 5.0 focuses more on the meaning we want to give to industry, from a moral rather than a technical point of view. The industry of the future will be efficient and productive but it must also resume its important role as a social player. This means putting people back at the centre (something Industry 4.0 seemed to have forgotten), adopting a more resilient model and improving environmental sustainability.
The 3 pillars of Industry 5.0 that Europe wants to promote
The concept of Industry 5.0 is still very much alive and needs further development. This new approach arises from the need to adapt the industry to the new reality we live in, which is heavily influenced by environmental issues and lessons learned from the COVID-19 pandemic.
This issue is very high on the Agenda of the European Union, which aims to make its industry globally competitive and a world leader. In this context, the EU wants to accelerate investment in research and innovation to facilitate the implementation of these 3 key pillars of Industry 5.0:
1. Human-centeced approach
This is the main shift in perspective from the previous version: people’s needs and interests will be at the heart of processes. All companies boast that people are their main asset and ultimately it is what needs to be cared for, considering and prioritising this «asset» also in industrial processes, including the updating their skills and knowledge.
2. Sustainable
Our resources are finite. Industry needs to adopt a circular economy model that allows for a better optimisation of resources, reducing consumption of raw materials and upcycling waste to minimise its impact.
Increasing the quality of products and processes must also be addressed in this approach. Greater process quality also means better use and therefore less waste generation and energy consumption. Likewise, higher product quality translates into longer shelf life, i.e. less waste.
Increased quality in processes also means less waste generation and energy consumption.
Moreover, collaboration between people and technology will allow further progress in demand customisation already initiated in Industry 4.0, but taking it to new limits. New technologies can make it easier for customers to customise their order even before it is manufactured, thus reducing surplus stocks, resource consumption and waste.
3. Industry resilience
The third pillar focuses on industry resiliency, so that organisations can more easily overcome disruptions of all kinds. This is the main lesson we have learned from the pandemic, although these events can also have other origins such as geopolitical, climatic, etc.
Achieving this involves developing resilient supply chains and having a flexible production system that can be adapted to demand fluctuations.
Knowledge management and information management within each link in the production chain are also key aspects, since they allow for better informed decision-making.
And of course, people management, as decision-makers and, ultimately, the centre of any industrial process.
What Marvel has taught us about Industry 5.0
Here we would like to take the liberty to resort to fiction (as we did in the Tron article) to illustrate what we are talking about. In a parallel universe, specifically that of the Marvel movies, Tony Stark (Ironman) would be a global leader of Industry 5.0.
Really? Yes, look:
- Tony and his company have cutting-edge technology (AI, cobots, advanced automation, virtualised processes, etc.) but not to work in isolation.
- He (the person) takes centre stage: he comes up with ideas and that touch that only humans can have.
- And finally, he uses the information provided by the system to his advantage and relies on it to make decisions. In other words, it achieves its full potential while keeping himself at the centre.
In a way this is considering industry as an Arts and Crafts industry. A potter used to have a potter’s lathe and ropes to make pots, but now our engineers have the latest technology. In the end, it is the craftsman’s hand that makes the magic.
So, industrial revolution 5.0 or upgrade 4.5?
As we have seen, this new Industry 5.0 is not based on a paradigm shift due to a technological change, so we may wonder whether this is actually a new industrial revolution or simply an update that seeks to solve some of the problems that are limiting the real deployment of Industry 4.0.
This is a quite subjective question in form, depending on one’s understanding of the term «industrial revolution». But we don’t want to get lost in form, we want to get to the heart of the matter. And the content reflects a shift from where we came from.
It is obvious that technology is a crucial pillar, but not at the expense of people. Automation is not just robotisation. As we have seen, it is important to keep workers at the centre of the process as they are the ones who have the real potential to develop new industry models.
It must be clearly understood that technology is not an end in itself, but a means to an end. In fact, we need a good foundation before embracing technology for technology to unfold its full potential. That foundation is built on human talent and good production processes.
Conclusion: automation but with added value
In conclusion, we believe that what Industry 5.0 has to offer is necessary and that we can already embrace it. In other words, it is not necessary to have gone through technological development and digitalisation to start thinking about values such as resilience, sustainability or people.
At least this our reflection at SMARTPM, where we are dedicated to automation but with a different industrial vision.
Through our work we aim to make factories smarter, more resilient, efficient and environmentally sustainable. We strongly believe that the industry of the future has a critical role to play for the benefit of society.
We have this vision of the industrial future in our DNA, thanks to the talent and values of the people who are part of our team. We rely on technology and processes as a driver of change, but without neglecting the talent of people.
If you are interested in automating your production processes with added social value, we would like to meet you. We have one thing in common!
Header photo: cottonbro | Ironman photo: Massimo Virgilio
