Industry 5.0 is the new production model out there.
It refers to the use of research and innovation as drivers for industrial production that rests on the pillars of a sustainable, human-centric and resilient approach.
Industry 5.0 in its truest essence is an accelerator of the 2030 UN Sustainability Development Goals (SDGs).
According to the European Union, Industry 5.0 provides a vision of industry that goes much beyond efficiency and productivity. It reinforces the role and contribution of industry to society.
Simply put, it is the 5th industrial revolution.
The new sustainable strategy
Terms like ESG, CSR, Bottom of the Pyramid, Triple Bottom Line, and many alike, have been around for quite some time.
What is now changing is how people and planet are overriding profits and growth and are at the center stage of the very definition of industry.
Industry 5.0 is about repurposing the core objectives of an industry! Sustainability is the new imperative. What is needed is the implementation of new technologies and processes that have minimal impact on environment, help conserve energy and natural resources, and at the same time ensure safety for all stakeholders.
The human-centric approach
Ever since Covid, talent attraction and retention has become a challenge. Something shifted in the way people viewed their work life. The realisation dawned on many of us that it was no longer necessary that we commute to work every day. That it was still possible to be efficient and productive if one where to work from home. Hence, today, we have a whole generation of workers who look at work life balance from a different prism and lens.
Industry 5.0 sees people as ends rather than as means to achieve growth. It is now about organisations serving people and not vice versa. This perspective aims to promote talent, diversity, and bring about employee empowerment.
The resilient strategy
Both, the VUCA and the BANI world emphasis on drawing up strategies that focus on growth, profit, and efficiency.
We have been hearing about agility and flexibility for a long time. The new approach is to now create organisations that are ‘anti-fragile’ and are able to anticipate, react, and learn systematically from any crisis.
Putting back more!
History is evidence of the impact industrial revolutions has had on civilisations. From mechanisation to agriculture, to the world of internet, and now the manufacturing world. Industry 5.0 brings about a whole new paradigm shift in how manufacturing industry functions. The collaboration between machinery and humans is aimed to improve the optimisation and automation of enterprises. It is also about customising products as per needs of the population. The human intervention element is stronger and human psychology will play a central role in how technology is designed and applied.
Industry 5.0 demands that companies to be more empathetic towards societal issues. It reflects a shift from the focus on shareholders to focus on stakeholders, which includes the complete ecosystem of the industry. It is about putting back more into society and ensuring companies keep stakeholder wellbeing central to their growth and business.
Getting ready for Industry 5.0
Companies are now looking to become part of the solution, rather being part of the problem. A few things that we can do to ensure we blend in with the new industrial revolution:
- Use tools of psychology, creativity, and design thinking to look at solutions
- Make innovation central to every aspect of work and reframe old models of thinking
- Focus on people/talent being integral to growth (this despite the so-called threat of AI)
- Empower teams to lead, delegate, and bring change (more flat organisations)
- Have a personalised approach towards different stakeholders (one size fit all approach is passé)
The time has come to leverage the best of machines and human creativity to drive optimal outcomes.
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