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Industry 5.0: The Next Industrial Revolution is People-Centric

Jean-Philippe Raiche
Industry 5.0: The Next Industrial Revolution Is People-Centric

Industry 5.0 will radically change how companies work in the next ten years. It will no longer be just about automating and optimizing processes. Instead, it will make workers' lives easier, more productive, and more meaningful.

We live in an era of increasing automation where machines take over human tasks with little human labor. However, a new industrial revolution is coming our way, aiming to improve workers' lives using technology rather than replacing them with robots.

This article will examine what Industry 5.0 means for business owners today: how they can stay competitive with this new trend and how employees can benefit from it!


What is industry 5.0, and how will it radically change your business strategy

Industry 5.0 is a people-centric industrial revolution. It's the next phase of the Industrial Revolution 4.0 that we've seen in the last decade or so. This evolution supports human creativity and promotes mechanized efficiency, creating an ecosystem where humans and machines can work together more effectively to solve problems faster than ever.

In 2020, the CODIV-19 pandemic swept around the globe. The resulting economic turbulence created an environment ripe for Industry 5.0 to take root and grow stronger than ever. While Industry 4.0 had already established a base in manufacturing, logistics, and supply chain management by empowering machines to make decisions based on real-time data, Industry 5.0 is now ready to take over the world. It's looking to impact every business sector, from marketing to finance to customer service.

How will it revolutionize business?

Industry 5.0 is about augmenting the digital transformation of businesses with the efficient integration of humans with technology so that they collaborate more meaningfully in a safe environment.

Essentially, it's about supporting human creativity while promoting mechanized efficiency through new tools like 3D printing, collaborative robots (cobots), AI/ML, digital twins, blockchain, etc.

The fifth industrial revolution is not just a matter of technology. It's about harnessing the power of people and machines to create new opportunities, unlock value and drive growth.

It means creating a culture that supports innovation, experimentation, and creativity while ethically harnessing automation. As a result, many organizations are beginning to invest in high-performance human-machine partnerships that enable more significant levels of automation across their business operations.

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A Recap of the Industry 4.0

Industry 4.0 marked a breakthrough in manufacturing and communications, denoting an industrial revolution that started around 2014-15. It was a revolution that brought together the physical and digital worlds and changed how we think about production. Industry 4.0 is continuing its course, but it is not without challenges.

For any revolution to happen, there must be some resistance. Otherwise, the movement cannot be sustained and will never reach its full potential.

  • The first challenge was getting all parties on board with the new technology; some companies stuck to their old ways, while others wanted to embrace change. There were also issues around data privacy and security, as well as too much reliance on the Internet of Things (IoT) devices which could leave them vulnerable if they become infected by malware or viruses.

  • Another challenge was the fear of job displacement with the increase in automation and artificial intelligence. This meant that many people were uncomfortable with machines taking over their jobs, making them more resistant to change.

Despite these challenges, there are opportunities for people to work in the manufacturing sector of industry 5.0 if they have skills they cannot automate. This means you must learn new skills to stay ahead of technology and remain relevant in your job market.

Industry 5.0: the next phase of the industrial revolution




The next phase of Industry 4.0 is Industry 5.0, which will change how we work, live, play, and learn. It is an extra step further into automation, AI, robotics, and human-machine collaboration.

The driving factor of the Fourth Industrial Revolution was the digitization of information, which allowed us to access and share data in new ways. The fifth industrial revolution is the next step in this evolution, where we will see an exponential increase in connectivity between people, machines, and data that unlocks previously untapped value.

To bring this into the present, we have seen many jobs automated by robots or artificial intelligence (AI). However, rather than people losing jobs, many jobs will be created, requiring people with new skills. For example, in The Future of Jobs Report 2020, the World Economic Forum predicts that automation will displace about 85 million workers but create 97 million new jobs by 2025 across 26 countries. This means that it is essential for companies to invest in people's education and training to participate in the next industrial revolution.

Industry 5.0 is not only about automation and robotics but also about creating new jobs and ensuring that people remain at the center of production processes.

The fifth industrial revolution offers many opportunities for companies to improve their competitiveness, increase productivity, and reduce costs while respecting people's rights. The European Union calls it 'people-centric' and is committed to ensuring people are not left behind.

This approach acknowledges that people are a company's biggest asset. They embody knowledge, expertise, and ideas; create solutions; make them happen; build things from scratch; innovate as individuals, teams, or groups.


The three iillars of this industrial revolution

At the heart of Industry 5.0 are three pillars:




Human-centricity in the new industrial revolution

People are at the center of processes and decision-making. They have a say in how things work, define the process by which they do their job, understand what is happening around them, and are not merely cogs in a machine but part of a more extensive system. Human-centricity is the first pillar that defines Industry 5.0, a manufacturing process whereby technology enables society to serve people's needs better and be more humane overall.

This is a move away from the Industrial Revolution, in which people were merely cogs in a machine. People were removed from the process and thought of as expendable commodities. The human element is fundamental to Industry 5.0. You can see this in how people interact with technology. Indeed, it's about understanding how the human mind works before designing systems that work for people.


The ability to adapt quickly to change is critical for Industry 5.0 companies who want to stay competitive in a changing world of uncertainty (new technology, changing market needs).

Industry 5.0 companies must rapidly shift their focus to stay ahead of the curve and adapt to market changes. This is where resilience comes in. It's about being able to bounce back from failure, learn from mistakes, and move forward with a positive mindset despite setbacks.

Resilience is also about ensuring that businesses have the proper infrastructure to continue operating at a high level even if natural disasters or other crises occur.

The ability to stay positive in the face of adversity can be a powerful tool for companies that want to increase their chances of success in today's volatile business landscape. It works well with sustainability because it helps companies to stay on track with their goals and objectives.

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Adding new skills for workers means that companies can reduce costs while still providing quality products/services to customers.

It also means that employees will likely stay with their employer longer. Indeed, they feel valued by being given new opportunities for learning and growth in their careers.

The bottom line is that employers who invest in their employees' lifelong learning are more likely to see higher levels of engagement, productivity, and profitability. This is good for companies and benefits society since it leads to stronger communities with more opportunities for everyone.

Sustainability is also about implementing circular processes that enable the reuse, repurposing, and recycling of natural resources, reducing waste and environmental damage, and increasing the efficiency of our manufacturing processes.

It is about ensuring that we leave a better world for future generations, and this is why companies must invest in people and processes that provide a more sustainable future.

Businesses need to build on the successes of the fourth industrial revolution by implementing a new set of rules and policies that meet today's challenges and opportunities. The fifth industrial revolution will require companies to rethink their economic model and how they run their businesses.

Companies should also reconsider how they measure success to align themselves with the values of society at large. We need new metrics that measure human well-being and environmental impact to create a more sustainable future.


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How to achieve Industry 5.0

Industry 5.0 will be a reality in the next few years. However, how soon it fully arrives depends on your business and industry. The key components of Industry 5.0 are already beginning to play today. As these trends grow in popularity with consumers, companies will compete more fiercely than ever by adopting cutting-edge technology that gives their products an edge over their competitors.

If you're not prepared for Industry 5.0 yet (or want a refresher), here are some tips to get started:

  • Recognize Industry 5.0 as a growing trend and be aware of its potential impact on your business.
  • Embrace your people's ever-increasing needs and empower them to succeed, fulfill their potential and contribute to the organization's success.
  • Provide the proper training and skills development so employees can adapt to changing times.
  • Invest in the necessary technology and infrastructure to become a digital business.
  • Build a collaborative culture focusing on innovation, agility, and speed.
  • Create an open environment that encourages employees to share their ideas, collaborate, and work with partners outside the organization (including customers).
  • Keep your customers top-of-mind by using data analytics tools to gain insights into customer needs, preferences, and behaviors. Then, you can deliver better products and services faster.


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Management in Industry 5.0

The next generation of management will focus on developing and empowering the workforce to take ownership of achieving organizational goals and creating an open culture that encourages employees to share their ideas, collaborate, and work with partners outside the organization (including customers). It also involves using data analytics tools to gain insights into customer needs, preferences, and behaviors so you can deliver better products and services faster.

Managers play a critical role in industry 5.0 by providing the leadership and guidance needed to successfully implement the new technologies and processes required to deliver value to customers. The role of managers will evolve from focusing on efficiency, control, and compliance to empowering employees, promoting innovation, and facilitating collaboration.

The shift from industry 4.0 to 5.0 is not just about technology. It's also how we work together as a team. It requires a different approach to leadership and management, focusing more on trust, empowerment, and collaboration.



How can this new industrial revolution help your business?

The idea of Industry 5.0 is not confined to manufacturing. Still, it can apply across all sectors—including services, agriculture, and retail businesses—to create a competitive advantage for companies in every industry.

Industry 5.0 has the potential to transform the way we live and work by making it easier for companies to innovate faster than ever before. The future of Industry 5.0 will be defined by how well companies can adapt to the new technology, how they use it to create new products and services for customers and how they train their employees for the jobs of tomorrow.

When it comes to the future of manufacturing, you can take several different approaches.

  • You may focus exclusively on Industry 4.0 and its automation benefits.
  • Alternatively, focus on increasing human-machine collaboration with Industry 5.0's emphasis on people-centricity.

Your business's most logical long-term strategy might be a combination of both. This approach incorporates the best qualities of both models: personalization and improvement through machine learning capabilities, enabled by your workers' ability to learn faster than ever thanks to new technologies like UTrakk.

The next industrial revolution, Industry 5.0, will change how manufacturing works forever. Focusing on human-centricity will radically improve people's quality of life and future generations.

UTrakk is a technology that supports skill evolution and operation management. UTrakk's skill-based approach enables you to create more value with fewer resources while fostering a more favorable work environment for employees.

Don't hesitate to contact us today to learn more about how you can prepare for Industry 5.0 and how UTrakk can help you do that.


Jean-Philippe Raiche

Jean-Philippe Raiche

Partner – Strategy and Development A partner at Proaction International, Mr. Raiche holds advanced degrees in mechanical engineering and quality. As an expert in the effective integration of performance and excellence best practices, he has accompanied more than a thousand companies in America and Europe over the past two decades, in addition to giving conferences and contributing to several publications about quality and performance.