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Embracing Industry 5.0: Innovating Towards a Smarter Future

In case you missed the memo, we’re either in the midst or at the tail end of what most people believe to be the fourth Industrial Revolution. Dubbed Industry 4.0, it introduced robotics, artificial intelligence (AI), and machine learning (ML) into the manufacturing and industrial sectors. The goal behind all that new tech was simple: Create more affordable, higher-quality, accessible goods through improved productivity.

We’ve exceeded that goal: Intelligent factories are both more efficient and more profitable than their predecessors [i]. But as noted by Luke Smaul, Principal Partner at digital industry growth firm Momenta, we can still do much more.

“Industry 4.0 focused so heavily on technology that it lost sight of the real, human-level goals,” Smaul explains. “Now, as Industry 4.0 becomes mainstream, Industry 5.0 is emerging as the next great transformation in the industrial sector. Although still in its infancy, it could be revolutionary if approached correctly—we now have an opportunity to ensure it becomes what it needs to be by leveraging the lessons learned from Industry 4.0.”

Stronger Together

AI and ML may be the technologies everyone’s most excited about, but they’d be nothing without big data as a foundation. The capacity to capture, orchestrate, and analyze data from the factory floor has proved to be an incredibly powerful driver of innovation. Modern factory floors are filled with sensors that not only provide factory operators with greater visibility but also enable more sophisticated robots.

Smaul believes that this data-driven interconnectivity will become the crux of Industry 5.0. Modern factory devices are already interconnected; Industry 5.0 would simply add humans into the mix, emphasizing the unique and complementary strengths of humans and machines.

Notes Smaul: “At its core, Industry 5.0 recognizes that while automation and digitization have revolutionized industrial processes, humans possess unique qualities such as creativity, critical thinking, problem-solving, and emotional intelligence that are invaluable in driving innovation and addressing complex challenges. If approached correctly, this could represent an industrial revolution of a magnitude not yet experienced by the industrial sector.”

Shifting the Design Focus

Industry 4.0 was all about the technology. It was about introducing new systems and innovations to the factory floor. Now that those innovations are all in place, the next step is unlocking their full potential.

And the best way to do that is by shifting the design focus of Industry 5.0 to reintroduce a human element.

“In Industry 4.0, human intervention and cooperation were lesser concerns,” notes Smaul. “For example, many factories have entire sections of automated industrial equipment that are completely siloed. This technology-first design philosophy fails to consider that the humans in the factory will be fundamentally impacted by the new technologies.”

The design philosophy of Industry 5.0, on the other hand, is one of human-machine collaboration. One of the best early examples can be found in co-bots—industrial robots designed to work safely and productively with humans rather than in isolation. This human-first approach could improve collaboration, decision-making, and creativity in heretofore unseen ways.

But it needs to extend beyond the factory floor, encompassing the entire supply chain.

“Consumer behavior has changed considerably in recent years,” Smaul continues. “For example, people are increasingly demanding customized and personalized products. Unfortunately, the industrial sector often is disengaged with these changes, leaving it incapable of contending with a dynamic consumer market.”

Simply put, factory operators cannot focus solely on determining the best technology to improve productivity and profitability. They also need to consider what consumers want and how they can integrate new systems to meet those demands.

Building a Circular Economy

Sustainability has always been a bit of an elephant in the room for the manufacturing sector, and Industry 4.0 largely didn’t engage with it. As such, Industry 5.0 represents an enormous opportunity for manufacturers to embrace a circular economy, not only improving efficiency and profitability but also reducing environmental harm.

“Today’s manufacturing industry is based on an inherently unsustainable open-loop system,” Smaul explains. “Raw materials are sourced, and then goods are produced, consumed, and discarded. Materials are wasted and dumped in landfills despite the fact that a significant volume could be reintroduced into the economy.”

And here’s where we return to data as a foundation for Industry 5.0. One of the most important factors in unlocking circular manufacturing involves breaking down silos. By enabling the open exchange of data across the entire supply chain, organizations can achieve, among other things:

• Improved supply chain transparency.
• A deeper understanding of production needs.
• A more effective means of identifying supply chain bottlenecks.
• The means to maximize the use of resources and minimize waste.

“If we incentivize data sharing across sectors, Industry 5.0 can provide organizations with the information they need to embrace a circular economy,” continues Smaul. “This requires a fundamental shift in how we consider leveraging technology inside of manufacturing and in how manufacturing relates to the circular economy as a whole.”

Conclusion

Industry 4.0 greatly improved productivity and efficiency. Although it was a revolution in many ways, it fell short in others.

By applying the lessons we learned from Industry 4.0, we have the potential to make Industry 5.0 the most significant Industrial Revolution yet, creating a better, more sustainable future in the process.

“The industrial sector should make the world a better place to live,” says Smaul. “Unless we’re taking steps to make things more sustainable, we aren’t achieving that goal. We need to start by emphasizing a human-first design approach, embracing a circular economy and manufacturing model, and committing to a better world.”

“Some say that Industry 5.0 is just Industry 4.0 with a soul,” he concludes. “If we learn from the past and build Industry 5.0 intelligently and thoughtfully, we might unlock a true revolution in the industrial sector.”

(Photo: zapp2photo/Stock.adobe.com)

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[i]. Richard Howells. “SAP Brandvoice: How Industry 4.0 Boosts Productivity and Profitability in Intelligent Factories.” Forbes, July 1, 2020. https://www.forbes.com/sites/sap/2020/07/01/how-industry-40-boosts-productivity-and-profitability-in-intelligent-factories/?sh=14355e2148ec.

About the Author

Nick Greene is an experienced writer who works closely with multiple brands to create technology content.