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Saniuk, S. Identification of Social and Economic Expectations. Encyclopedia. Available online: https://encyclopedia.pub/entry/18893 (accessed on 15 November 2024).
Saniuk S. Identification of Social and Economic Expectations. Encyclopedia. Available at: https://encyclopedia.pub/entry/18893. Accessed November 15, 2024.
Saniuk, Sebastian. "Identification of Social and Economic Expectations" Encyclopedia, https://encyclopedia.pub/entry/18893 (accessed November 15, 2024).
Saniuk, S. (2022, January 27). Identification of Social and Economic Expectations. In Encyclopedia. https://encyclopedia.pub/entry/18893
Saniuk, Sebastian. "Identification of Social and Economic Expectations." Encyclopedia. Web. 27 January, 2022.
Identification of Social and Economic Expectations
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This entry is adapted from the peer-reviewed paper 10.3390/su14031391

The dynamic development of the fourth industrial revolution, focused on the implementation of Industry 4.0 technologies, sparked fears of governments and society regarding the dehumanization of the industry in the future. Currently, there is a need to consider sustainable development and the crucial role of man in the assumptions of industry’s future development. Concerns about the implementation of the fourth industrial revolution’s technology became the basis for building the assumptions of Industry 5.0. 

fourth industrial revolution Industry 4.0 Industry 5.0 social expectations

1. Towards Industry 4.0 and Industry 5.0

Industry 4.0 represents the integration of intelligent resources (machines and equipment) and information technologies, making production processes more efficient. Industry 4.0 is a new approach and new form of working, creating new roles for people in industry [1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18][19]. I4.0 is a subset of the fourth industrial revolution. Customers and business partners cooperate within business processes and create new value by using high-quality services. Thanks to the intelligent monitoring of systems in real-time, companies can control and optimize their activities and make decisions efficiently [20][21][22][23][24][25][26][27][28].
Industry 4.0 is a revolution in manufacturing control methodology, including dynamic machine changeovers initiated by information carried in workpieces. Communication in I4.0 at the factory level and in extended networks requires broadband communication, including the transmission of smart sensors, resources, and equipment in real-time. New solutions implemented in factories result in changing management paradigms and building new business models based on maintaining the balance between the development of autonomous (intelligent) technology and remote communication systems and the quality of life and recognized values in different societies [29][30][31][32]. The changes that are taking place in industry 4.0 include a wide range of innovations at the level of plants and factories belonging to various industries and services as well as the functioning of entire societies [33][34][35][36][37][38][39]. Industry 4.0 is essentially a trend towards automation and data sharing in the technologies and processes of production that include CPS, Internet of Things (IoT), cloud computing, cognitive computing, and artificial intelligence [40][41].
Hermann, Pentek, and Otto [1] defined Industry 4.0 as CPSs, the Internet of Things, the Internet as a service, and the smart factory. They used this definition to propose six principles supporting Industry 4.0 solution implementation. These are:
  • Interoperability—the ability of an enterprise’s systems and employees to cooperate within data exchange and coordination activities.
  • Virtualization—involves supervising the physical flow processes using one or more virtual resources with the simultaneous participation of physical resources.
  • Decentralization—refers to moving to multiple systems instead of a central system to reduce risk and provide operational flexibility.
  • Real-time virtualization capability—the ability to process all system data in real-time to facilitate decision-making.
  • Service orientation and modularity—using Big Data technology and predictive analytics to support and understand customer needs.
  • Modularity—the ability of companies to adapt to changing industry demands and needs flexibly.
Regarding topics in the Industry 4.0 area, there is a lot of focus on sustainability aspects—consumer, business models, and the economy. Stock and Selinger [23] defined Industry 4.0 as the next stage in the creation of sustainable industrial value that must focus on sustainable development and production. By providing precise information about the production process [39], resources, and energy consumption, the producer can optimize the production system across the network value [40]. The new technological solutions promoted by Industry 4.0 should increase the production efficiency and environmental performance of products throughout their life cycle. This implies an increased need for smart technologies of production. In a sustainable market, customers (consumers) should focus on “environmentally friendly” products that are renewable, shared, and characterized by an ability to recycle [42].
The fourth industrial (technological) revolution has expanded the boundaries of what companies can provide as value to customers. In today’s highly competitive manufacturing environment, companies face the challenge of dealing with large data sets, the need to make quick decisions, and the flexibility of manufacturing processes [41]. The modern nature of manufacturing is shaped by a paradigm shift from mass production to unit and batch production, oriented to satisfying customer needs and providing customized products. The range of customer expectations from products is extensive and diverse [43][41][44][45][46].
The considerations conducted so far in the literature still emphasize the technological changes that should be introduced in the production companies of Industry 4.0. However, due to its effects in all areas of the economy, the industrial revolution should be understood more broadly. Noteworthy are the changes in creating a new strategy focused on meeting social, economic, and environmental needs in the scope of all links in the value chain and customer orientation [2][3][4][11][47].
The discussion on the effective implementation and use of Industry 4.0 technology is ongoing. At the same time, a new trend of the fifth industrial revolution is emerging, going beyond the production of goods and services for profit. Industry 5.0 brings a new look to the industry and requires everyone to change their minds and behaviors [48].
Industry 5.0 is an industry that focuses on the return of humans to the production system. In this revolution, man and machine find ways to work together to improve the quality and efficiency of production. The interaction of human and artificial intelligence is paramount in Industry 5.0. The fifth industrial revolution is also more beneficial for the environment as companies develop systems that use renewable energy and eliminate waste [49][50][51].
According to the EC, the strength of Industry 5.0 is the social goal, beyond jobs and economic growth, of becoming a resilient provider of well-being by making the manufacturing industry respect the planet’s boundaries and putting the well-being of the industrial worker at the center of the production process. The main ideas of the Industry 5.0 concept were considered by the participants of a meeting of research and technology organizations organized by the European Commission (EC) on 2–9 July 2020 [52]. At that time, the basic principles of the Industry 5.0 concept were developed, and key directions of change were proposed to make the industry more sustainable and human-centered [49].
The premise of Industry 5.0 focuses on greater human involvement in cyber–physical systems and creating interaction in the human–machine system [50]. The interaction involves connecting humans with smart devices and the cyber–physical system through smart mobile devices [51]. Today, robots appear to be replacing humans due to advances in artificial intelligence development and the potential for brain–machine interface development [53][54][55]. This means, in the future, a strong combination of robots with a human brain and the use of them as collaborators and executors of commands rather than competitors [56]. The idea of Industry 5.0 will therefore focus on developing more advanced human–machine interfaces using artificial intelligence (AI) algorithms. This represents an opportunity to harness the capabilities of human brains to increase the efficiency of the automation and robotization of systems [57]. This means breaking with the view of losing control of the cyber–physical world, dominated by thinking robots, which was feared in the Industry 4.0 era [58]. The transformation of the Industry 4.0 concept to Industry 5.0 represents a combination of the advantages of a cyber–physical system of intelligent machines and common sense thinking, which can mean a focus on productivity and sustainability [58][59][60][61][62].
In human–machine integration, it is also essential to develop competence and knowledge in new technologies and the trend of talent management. The future is based on investment in employee retraining and the lifelong learning process. According to Forbes, about 34% of HR leaders invest in developing strategies to prepare for new technologies [63]. This implies a need to focus on talent development and talent management for employees to improve the productivity of systems and better orient to the needs of the economy and society [64][65].
It is expected that Industry 5.0 will create many new jobs in human–machine interaction (HMI) and human computational factors (HCFs). Some of the most critical areas in which jobs will be created include intelligent systems, artificial intelligence and robotics, machine programming, machine learning, maintenance, and training [66]. The goal of Industry 5.0 is a higher standard of living and creativity through high-quality custom-made products that lead to sustainable production and consumption. A favorable factor for the development of the Industry 5.0 concept is the growing environmental awareness of society. This means interest in green products, the sharing economy, and interest in developing a circular economy [67].
Industry 5.0 emphasizes the importance of technology for industrial development. Still, at the same time, it promotes social goals in the workplace, e.g., it emphasizes workplace safety with next-generation technologies or human–machine relationships and external purposes, i.e., social and environmental responsibility [68]. Industry 5.0 does not deny the necessity of digitizing societies, economies, and industries but instead extends it with social and environmental aspects [69].
Digitalization in Industry 5.0 is a broad philosophy that organizes enterprise and supply chains processes. Within this philosophy, digitalization and elements of artificial intelligence penetrate people’s everyday life. Hence, scientists believe that Industry 5.0 is creating the idea of “Society 5.0” [70][71][72]. Society 5.0 is limited to industry and solves social problems by integrating physical and virtual space. Society 5.0 is a society in which advanced technologies are actively used in people’s lives, industry, health care, and other spheres, not for the sake of progress, but for the benefit and quality of life [73][74].

2. Society 5.0 in the Era of the Fourth Industrial Revolution

The fourth industrial revolution, Industry 4.0, and Industry 5.0 are technological changes and social and industrial changes caused by the digital transformation of industry. The fourth industrial revolution can be defined as the age in which modern technical solutions and technologies shape the industrial environment and influence the economy and society, intensifying sustainable development [8][11][16]. The fourth industrial revolution’s megatrends are Economic 4.0, smart factories, Society 5.0, sustainable consumption, and sustainable production [75].
The modern world is characterized by a highly uncertain and volatile environment. This applies to many spheres of life: technology, economy, work, culture, and values. Cas-tells [76] aptly calls modernity “constant change”. Bauman [77], on the other hand, refers to it as “liquid modernity” in which everything changes, nothing is stable or predictable, and every organization and every person must be flexible and constantly adapt to new conditions [78]. Modern technologies and the pace of the commercialization of research results make the changes occurring in production organizations extremely dynamic. However, it is not the new technologies or the rate of change that pose the most significant challenges in today’s market environment. There is a technological dominance of changes in production, services, education, science, and administration, which is the basis of intelligent automation, robotization, logistics, and communication. It is the material that binds together individuals’ professional, private, and social lives and even entire communities. Joint enterprise research, marketing, or after-sales service is the path to joint sustainable production [9][10][11][12]. Economies of scale are the engine of globalization, and Industry 4.0 and 5.0 are its next stage of development.
The idea of Industry 4.0 determines economic change leading to Economy 4.0 [13][14][15][79], which encompasses a fully digital value chain from suppliers through to intermediaries and brokers to the end customer (the recipient of the product/service), regardless of who that customer is: a business, consumer, building owner, retail store owner, employee, citizen, passenger, or patient [19][80].
Economy 4.0 is, on the one hand, Industry 4.0 and 5.0 with smart factories. On the other hand, there is the extension of smart concepts to many sectors, such as smart grids, smart mobility and transportation, smart buildings, smart healthcare, and smart farming. The scope of Economy 4.0 can be divided as follows [81]:
  • 4.0 technologies applied to the smart factory;
  • 4.0 technologies applied to inter-factory collaboration (smart or not);
  • Manufactured smart things deployed in smart end-user environments;
  • Digital services provided to the users of smart environments.
Keidanren [82] believes that creativity and imagination should undoubtedly be the key to shaping the future. In 2016, Keidanren published a declaration, “Towards the realization of a new economy and society—Reforming the economy and society”, which established Society 5.0 as a new vision for the further responsible development of society. He defined Society 5.0 as a human-centered society that balances economic progress with social problem-solving through a system that integrates cyberspace and physical space. Artificial intelligence, Big Data, and the Internet of Things are just some of the areas of research and development that are becoming part of everyday life [16]. Everyone’s life is becoming saturated with digital data and information technologies through which we develop and share ideas, generating new business ideas. With the advent of smartphones, there are new ways of shopping, new ways of working, and the like, and our picture of the world and everyone’s daily life is changing a lot [17][18]. Digital technology enables the next industrial revolution, thereby changing the previous production-centric society into an intelligent society whose attribute is information [83][84][85].
The Japanese government made an analysis and, based on this, developed the “Fifth Science and Technology Base Plan,” which was adopted in January 2016. The plan envisions a transition from Industry 4.0 to Society 5.0, in which all aspects of society, including industrial work, are shaped by the latest techniques and technologies. Japan has been faced with the need to develop a new model for how society will function. It experiences problems with energy shortages and imports, limited natural resources, and an aging population. The policymakers’ main idea is to use artificial intelligence (AI) to solve long-term social and economic problems. In doing so, the Japanese government has developed the Japan Revitalization Strategy 2015 [86] and the Japan Growth Strategy 2017 [87], outlining how it will work to promote economic growth in key areas of the economy. New economic growth will be supported by the development of artificial intelligence, the continuous robotization of society, and the automation of industry with ubiquitous super-fast communication.
In the information society—also called Society 4.0—knowledge and information are insufficiently shared. Members of cross-sector teams do not adopt the same values, limiting the potential outcomes of collaboration in society [88][89]. In contrast, Society 5.0 suggests using intelligent technologies to connect people by sharing knowledge and information to create new social and business chains [90][91][92]. Society 5.0 envisions the use of modern technology and information solutions to free humans from exhaustive routine work and improve available information. Society 5.0 is defined as a human-centered society in which economic progress, containing solutions to social issues, is balanced by a system that offers the high integration of digital and real space. Thus, we are talking about a society characterized by a higher level of integration, the interpenetration of both realities—digital and real—facilitating the embedding of cyberspace in the real world. Such a society can also be called a super-intelligent society or a creative society [90][91][92][93].
Society 5.0 aims to create a world in which essential goods and services are delivered to everyone anytime, anywhere, regardless of region, age, gender, language, or other constraints. It aims to simultaneously achieve gross domestic product (GDP) and prosperity and overcome social challenges, thereby contributing to the community’s well-being. Society 5.0 is expected to affect daily life but focuses mainly on economic and social aspects (Table 1) [82].
Table 1. Areas of economic and social change in Society 5.0.
Area Activity
Cities and Regions Better data sharing on energy, transportation, water, waste, people movement.
Decentralization of communities in suburbs and rural areas; respect for diversity.
Energy Development of affordable, sustainable energy.
Development of systems that respond to local conditions.
Prevention of disasters Information sharing between organizations.
Use of digital technologies.
Continuing medical and disaster relief services.
Healthcare Focus on prevention and individualized health care.
Access to individualized life stage data using computerized health platforms.
Telemedicine.
Agriculture and Food Use of technology for crop growth and optimization.
Inclusion of different actors in the food value chain.
Logistics Using technology to automate logistics.
Data sharing across the supply chain.
Personalized products to meet specific customer needs.
Manufacturing and services Service-oriented rather than hardware-oriented.
Customers will be able to order items designed specifically for their needs.
Support for small businesses to produce quality goods.
Finance Diversifying financial services with digital technology.
Better distribution of funds across society.
Better access to financial services, based on the use of cryptocurrency and token economy, such as blockchain.
Public service Improve public administration services based on digitization and better data sharing.
Establishing safety nets in response to priority safety areas.
The benefits of the idea of Society 5.0 should be enjoyed by all. Society 5.0 should be human-centered; it should strike a balance between economic progress and solving social problems through a system that largely integrates cyberspace and physical space. Japan, therefore, wants to be a model for a new society in which various social challenges can be solved by realizing the vision of Industry 4.0 in every industry and field of society. In this way, the society of the future will be one in which new values and services are continuously created, making people’s lives more convenient while ensuring sustainable and balanced development [94]. The combination of the pillars of Industry 4.0 and Industry 5.0 and the artefacts of Society 5.0 are summarized in Table 2.
Table 2. Industry 4.0 vs. Industry 5.0 vs. Society 5.0.
Industry 4.0 Industry 5.0 Society 5.0
Source
High-Tech Strategy 2020 (German government’s technology development strategy)
Strategic initiative Industry 4.0 (recommendations of representatives of German business, industry, and science for the implementation of a government program shaping revolutionary changes in industry)		 Industry 5.0 towards sustainable, human-centric, and resilient European industry
European Commission 2020		 Japan Revitalization Strategy 2015
Japan Growth Strategy 2017
Scope of subject matter
Smart Factory
Manufacturing-focused solutions
Mass customization
Servitization
Cyber–physical networking		 Humanization of industry
Human-centric
Sustainability
Resilience		 Super-intelligent society
The Society 5.0 and Industry 5.0 concepts refer to a fundamental change in today’s economy and society.

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Sebastian Saniuk
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