Industry Voices: The Dawn of Industry 5.0 – Adding People to the Digital Mix

So, what is the difference between Industry 4.0 and Industry 5.0? Many describe Industry 4.0 as the use of digital systems for product design and manufacturing. This can include the use of digital twins and shared data via cloud connectivity. Industry 5.0 is described as a new phase of product design and manufacturing that involves humans working with advanced technology and AI-powered robots designed to improve workplace processes.

Industry 5.0 includes emerging technology. As new technologies are introduced, so are regulations that manage those technologies, forcing product designers and manufacturers to comply with changes in real time. “There is a real need to be aware of relevant regulations and whether your product is in compliance at every step of the design process,” said Rob McAveney, CTO of PLM company Aras. That means companies can no longer wait until the product is completed before testing for compliance.

Putting the Digital Thread into Product Design

Regulations are not just product requirements. They guide complex and critical tasks that can involve an integrated organizational approach to ensure product integrity. The goal is no surprises that can force a product to be re-engineered or scrapped altogether. “Compliance checking needs to go hand-in-hand with the design process,” said McAveney.

As products become more complex, information needs to be transparent as it flows across internal departments, partners, and suppliers throughout the entire product lifecycle. By eliminating the traditional silos that make collaboration difficult, product design development, and intent is shared.

This process becomes a digital thread that can make the difference between success and failure. Accomplishing this means shifting from Industry 4.0 with its use of digital twins, AI, analytics, and cloud to the next step: Industry 5.0. That is marked adding people-technology interactions, sustainability, and resiliency.

We caught up with Rob McAveney to get a deeper look into the product integrity and digital threads that are a hallmark of Industry 5.0.

Image courtesy of Aras.

What is Industry 5.0, and how does it differ significantly from Industry 4.0?

Rob McAveney: We should think of Industry 4.0 as when digital transformation finally took hold in the industry, as organizations implemented and saw the benefits from automation and optimization initiatives. Industry 5.0 will instead be about redefining the relationship between humans and technology, and how they can complement – not compete – with each other.

There are three key areas that will make up Industry 5.0: resiliency, human focused interactions, and sustainability. The concept of a connected digital thread linking people, processes, and data across product lifecycles is necessary for these areas of Industry 5.0 to take hold within manufacturing and product driven organizations. An effective digital thread strategy establishes a platform for humans and AI to collaborate continuously, accelerating design cycles while leveraging the power of simulation, digital twins, and generative AI.

Resilient organizations can withstand and adapt to changing business conditions and unforeseen disruptions. By embracing resiliency across the board, organizations can quickly mitigate unexpected risks, while also keeping up with the pace of change in the industry and in customer demands.

Human-focused interaction promotes a more natural relationship between people and technology. Technology advances will make decision making and problem solving easier due to the availability of real-time data, analytics tools to understand that data, and AI tools to assist with extracting insights and making good decisions. Manufacturing processes – as well as the products being developed – will be more human-centric as a result.

Sustainability is about more than an occasional analysis to find more environmentally-friendly components or comply to a new regulation. We must acknowledge that sustainability is a moving target that requires constant attention. Aligning sustainability objectives with business goals can reveal new opportunities for innovation and growth, and regardless of an organization's stance on environmental concerns, optimizing and reducing resource utilization just makes business sense.

While Industry 4.0 was about automation and digitalization, 5.0 is about taking the results of these digitization efforts and applying them to create a new way of working, interacting, and producing. Something unlike what’s been done before.

How does sustainability play into Industry 5.0?

Rob McAveney: Sustainability has become an even more critical challenge for organizations to address. Driven by regulation and customer demand, it is rapidly moving from a topic of discussion to a business imperative for manufacturers.

To be successful, sustainable practices need to permeate every stage of the product lifecycle, spanning design, manufacturing, distribution, and disposal. Adopting eco-friendly materials and promoting energy-efficient processes enables organizations to reduce their environmental impact while enhancing resource efficiency.

By embedding sustainability directly into their business strategies, organizations not only mitigate risks but also uncover opportunities for innovation and expansion, paving the way for future product advancements.

Can you expand a bit more on human-focused interactions?

Rob McAveney: A major focus of Industry 5.0 is how people connect with and engage with technology. Establishing and encouraging a seamless way for employees to collaborate with technology will improve all aspects of the workplace and be a game-changer for what can be accomplished quickly and with high standards of quality.

Cognitive systems, AI, machine learning, and advanced robotics will complement human operators, enhancing decision-making and problem-solving abilities. Employees’ roles will change, as this close collaboration also allows for a different division of labor. Humans will focus on creative endeavors, while technology will handle repetitive tasks and act as a supportive advisor. Together, people and technology will establish a symbiotic relationship that promotes innovation, creativity, and agility. This will drive continuous enhancement of the product development and manufacturing processes.

For Industry 5.0 and its human-technology collaboration to be successful, organizations must think carefully about the technology they invest in. It must provide value by making it easier for employees to accomplish their goals, while also driving the organization forward. Many next generation products are designed around providing new or greatly improved experiences that leverage AI to improve interactions. Organizations also need to apply these principles to the workplace experience of their employees, regardless of whether they operate on the shop floor or the administrative offices.

When employees are given the tools to work to their full potential, growth and competitive advantages are the natural result.

What are the issues that Industry 5.0 addresses? Workforce shortages? Supply chain visibility? Production visibility?

Rob McAveney: The way I see it, it's less about the issues that Industry 5.0 addresses, and more about giving companies a way to differentiate themselves and create better products.

There are, of course, industry-wide issues such as skill gaps, an aging workforce, and supply chain visibility needs. All of these are things that advanced technologies and new process approaches can help to solve. The human-centric approach is a key element of Industry 5.0 that will help companies rethink the way employees work with technology. Resiliency and sustainability initiatives will give organizations the supply chain visibility they need – from manufacturing to delivery – while promoting new, more sustainable and resilient ways of operating in order to withstand disruptions.

The adoption of new technologies in Industry 5.0 will change traditional processes, making them more efficient. Combining this with process improvements that the work being done becomes more refined, focused, and cost-effective changes the game for companies. It creates a competitive advantage as they design, manufacture and bring stronger products to market.

How widely do you expect Industry 5.0 to be adopted? Will it be embraced beyond the top 5% of manufacturers?

Rob McAveney: The truth of the matter is that Industry 5.0 may not be adopted by more than the top 5% or manufacturers, especially early on. The challenge is wrapped up in the fact that the lifespan for each evolution stage keeps getting shorter and shorter. Industry 4.0 hasn’t even been adopted across the entire industry yet and we’re already seeing many moves toward Industry 5.0. Given these trends it will likely be less than a decade from now that we’re seeing folks discuss and move toward Industry 6.0.

There are plenty of valid reasons for companies to be lagging in adopting all the aspects of Industry 4.0 or 5.0. There needs to be investment, buy-in, and the time and ability to move forward. It differs for each company.

That said, there will be a wall that many of these companies will hit soon if they’re not evolving with the rest of the industry. Adoption is going to be limited but without it companies are going to struggle to keep up and actually operationalize the efforts they made to get to 4.0. All that digital transformation and all those digital threads they created will remain underutilized. Companies that are serious about adopting AI will have to take that next step.

Will the role of AI increase?

Rob McAveney: As AI matures, it will continue to be used more and more in our workplaces, across all industries. While it may not be ready to handle complex decisions or tasks just yet, AI is primed to help employees and organizations by taking over many of the repetitive, non-creative tasks. These are tasks that most employees are happy to free themselves of, as their time can be better spent. For example, it will redefine engineering from a role of creating design artifacts to a role of describing requirements and constraints for AI to operate within.

It wouldn’t surprise me to one day see the role evolve to where the most successful engineers are the ones who can best leverage generative design and simulation tools to automate the engineering process. It will be less about designing the optimal solution themselves and more about defining the solution space in which AI must operate.

How will it change the job for the shop floor worker?

Rob McAveney: Hopefully it changes it completely. The experience will be very focused and intuitive. It will be about leveraging experience and new forms of automation instead of performing repetitive tasks. The worker will be able to apply their knowledge to devising new ways of manufacturing the next generation of a product. However, that next generation product that is conceived by AI might be completely different – and different sooner. The experience will be better, the tasks performed will be clearer, and the role itself will be well documented. The job will continue to evolve as more parts of the process are automated.

As for adopting new technology, will change management be an issue for manufacturers?

Rob McAveney: Change management might be the hardest part. It is always very difficult, no matter the industry. Some might say it’s truly where a digital transformation succeeds or fails.

Disrupting well-honed processes is difficult – and we saw several companies have to deal with this during Industry 4.0-driven changes. Frankly, there are a lot of companies that simply haven’t accomplished this yet and will likely struggle again with the changes that come with Industry 5.0.

The trick to making organizational change management less of a challenge is to create a positive experience for employees. Help them understand how to adjust to change, how to understand value, and how the company values their skills. Over time we’ll be able to minimize clerical tasks and focus on the creative input employees can provide.