The next big thing for manufacturing companies? Ask a hundred entrepreneurs and chances are you'll be hit with the term Industrie 4.0 just as many times. A world of data and connected machines. But in the meantime, the next industrial revolution is actually already lurking around the corner. As early as 2021, the European Union pushed forward a new way of manufacturing. The new keywords? Resilience, sustainability and a production floor where people are at the center. We probably don't need to tell you that the inspiration for this new world has a lot to do with the aftermath of a certain pandemic. But what exactly does it entail? And how quickly will you need to shift gears?
In 2011, during the Hannover Messe, the term Industrie 4.0 was born. Originally, it was meant to herald the new decade for the German manufacturing industry. An evolution essentially driven by cyber-physical convergence. In other words: IT and OT are growing ever closer together. Data are becoming the new foundations of industrial production. After all, they are the basis for further optimization. A secret weapon that eventually took root far beyond Germany. All over Europe and far beyond, this new industrial revolution was embraced and shaped. Where most companies are today? Capturing data is quietly becoming established. The next step is to now harness those mountains or lakes of data to drive improvements. To define the right business cases and move on to the next round with those fruits picked.
So why Industry 5.0 now? Isn't this already complex enough? Doesn't this already require enough transition? Yes and no. After all, the European Union does not see this as a new revolution. Rather an addition or a correction of where the pendulum in Industry 4.0 may have swung too much in one direction. The technology associated with it: autonomous and semi-autonomous processes, hyper-automation, advanced robotics, self-optimizing systems, data exchanges ... In other words: Industry 4.0 feels rather, shall we say, "cold. Tech, data, ecosystems, machines and all those intelligent environments enabled by OT and IT are perhaps more for a specific audience. The latter, by the way, includes IT technologies that have been known and adopted in other sectors for years, such as cloud computing, various forms of AI and automation technologies and big data (analytics). What is missing from this list? The human touch. And that is precisely what Industrie 5.0 should add in Europe's vision.
An attempt at definition, for starters: Industry 5.0 recognizes the power of industry to achieve societal goals beyond jobs and growth to become a resilient provider of wealth, by making production respect the limits of our planet and putting the well-being of the industry worker at the center of the production process. So the key words to remember about Industry 5.0 are resilience, sustainability and people-centricity.
Indeed, it is no coincidence that attention to Industry 5.0 is now accelerating. Just as the coronagraph accelerated digital transformation, it accelerated attention to other challenges of our time and the importance of people, environment and social change. But as with another phenomenon that existed before but is now receiving much attention, hybrid work models, the drivers behind Industry 5.0 are not new. They have only been adapted to the modern zeitgeist - and therefore accelerated.
But human-centric does not mean that we are returning to artisanal times. Industry 5.0 still has a lot of technology in the tank, as fuel. Perhaps the most typical example is the cobot.
After all, in those applications, man and machine are going to work closely together. But there is more, of course. Machine learning offers a solution for covering repetitive, manual tasks that can lead to worker burnout, using bots and tools that offer the potential to minimize worker stress and maximize productivity. Machine learning is a stepping stone to introducing artificial intelligence even into the heart of manufacturing and machine. We are only seeing the tip of the iceberg of that now. In addition to AR and VR machine learning, AI bots are expected to play a major role in Industry 5.0. These technologies enable manufacturing companies to optimize results while minimizing the need for human intervention in assembly and production.
But what should all this bring to the industry? Why should we put aside Industry 4.0 and put our focus on 5.0? Europe's report lists three with a bullet point. Retaining more and better human talent, energy savings and greater resilience. There is also an overall long-term benefit, even the most important of all: competitiveness and relevance through industrial adaptation to new markets and an ever-changing world.
In the first case, attracting and retaining talent, we also see one of the key challenges of Industry 5.0. Millennials and digital natives, who will make up 75% of the workforce by 2025, have very different preferences and motivations than previous generations. For example, a high percentage of them view a company's social responsibility and commitment to the environment as very valuable before working with them. If a company wants to adopt the values needed to attract this large, specialized workforce, it must not only adapt its production processes but also initiate alternative projects to its operations, such as social volunteer programs or activities that help the local community.
All well and good, you are convinced, but how should you go about it? Not headlong, that much is clear. The same approach as for Industry 4.0 is the best recipe for success. So start small. Rather than trying to change their entire production process at once, it is often more efficient for companies to start with small pilot projects and gradually scale them up. This way, new technologies and processes can be tested and evaluated before being integrated on a large scale. The first step should always be to assess the current state of business operations, including production processes, workforce and technological capabilities. This helps identify areas that can benefit from the integration of Industry 5.0 technologies and processes.
Key concerns within Industry 5.0: cybersecurity and data protection. With the integration of Industry 5.0 technologies and processes also comes the need for enhanced cybersecurity measures and protection of sensitive data. The company must ensure that it has robust cyber security measures in place to protect itself from potential cyber threats and ensure the privacy of employee and customer data. And since humans are central to an Industry 5.0 world, investing in training and education will be a must. After all, Industry 5.0 requires a new set of skills and knowledge from employees, so it is important to prepare them for the new technologies and processes. This will help ensure a smooth transition and maximize benefits.