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Slavic, D.; Marjanovic, U.; Medic, N.; Simeunovic, N.; Rakic, S. Industry 5.0 Concepts. Encyclopedia. Available online: https://encyclopedia.pub/entry/55221 (accessed on 14 April 2024).
Slavic D, Marjanovic U, Medic N, Simeunovic N, Rakic S. Industry 5.0 Concepts. Encyclopedia. Available at: https://encyclopedia.pub/entry/55221. Accessed April 14, 2024.
Slavic, Dragana, Ugljesa Marjanovic, Nenad Medic, Nenad Simeunovic, Slavko Rakic. "Industry 5.0 Concepts" Encyclopedia, https://encyclopedia.pub/entry/55221 (accessed April 14, 2024).
Slavic, D., Marjanovic, U., Medic, N., Simeunovic, N., & Rakic, S. (2024, February 20). Industry 5.0 Concepts. In Encyclopedia. https://encyclopedia.pub/entry/55221
Slavic, Dragana, et al. "Industry 5.0 Concepts." Encyclopedia. Web. 20 February, 2024.
Industry 5.0 Concepts
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Although the concept of Industry 5.0 is relatively new, companies from developed countries that have a high level of implementation of Industry 4.0 have already started the transition to Industry 5.0. Even though Industry 5.0 enables developing countries to become a part of developed countries’ value chains, it is not known which path to Industry 5.0 developing countries are taking. 

Industry 4.0 Industry 5.0 Social Network Analysis

1. Introduction

Industry 5.0 represents a strategy designed for filling in major Industry 4.0 deficiencies, by combining the technologies developed in Industry 4.0 with Society 5.0 and the Operator 5.0 principles [1][2][3]. These deficiencies are mainly related to neglecting people both as a crucial part of many kinds of processes and as customers [3]. Industry 5.0 aims to use the Industry 4.0 technologies, such as the internet of things, big data, and collaborative robots, for meeting goals, which propose a better future for society as a whole, and for humans as individuals [1][3][4][5]. The aforementioned goals are meant for fulfilling the Sustainable Development Goals created by the United Nations and for designing improved workplaces for employees [2][4]. Accordingly, Industry 5.0 requires the use of Industry 4.0 technologies in a way that will make new opportunities for supporting the main ideas of Society 5.0 and Operator 5.0 [1][2]. Society 5.0 presents a vision of a society that uses new-age technologies for solving crucial societal problems, such as hunger, poverty, and environmental issues [6]. When it comes to Operator 5.0, it is crucial to understand how workplaces have to be organized in order to provide successful collaboration between humans and robots [1][4].
Besides bringing the focus back to human touch and people in general, sustainability and resilience are being addressed by Industry 5.0 as well [7]. This led to the three main pillars of Industry 5.0: human-centricity, sustainability, and resilience [8]. Researching Industry 5.0 became a trend in 2022, and hundreds of articles and papers on a wide range of topics have been written: what is Industry 5.0, how and when was it initiated, what are its pillars, what are the practical implications, how can Industry 5.0 be implemented, what are its benefits, and how does it compare with Industry 4.0. Slavic et al. described the main concepts of Industry 5.0 [7], Madsen et al. described the birth and emergence of Industry 5.0 [9], Cockalo and collaborators showed the transition process to Society 5.0 [10], and Xavier et al. showed the bibliometric analysis of the Industry 5.0 development [11].

2. Digital Product-Service Systems

When firms started to offer services and products together, the term Servitization was created [12]. During the previous years, firms have started to use Servitization as a strategy for doing business, which has triggered the appearance of Product-Service Systems [13][14]. Product-Service Systems represent a way to increase a product’s value, by including different kinds of services as a part of the final version of the product that is offered to the end users [15][16]. These services range from basic to advanced, where the basic ones represent services related to the characteristics of the product, while the advanced services do not relate to the product’s characteristics [17].
The initiation of Industry 4.0, known as the Fourth Industrial Revolution, has caused Servitization to grow into Digital Servitization, and Product-Service Systems have a new, digital dimension—Digital Product-Service Systems [12][18]. When offering Digital Product-Service Systems, firms are including digital services with the products aimed for end users [19].
In the context of Industry 5.0, Digital Product-Service Systems contribute to all three of the main approaches [20]. The contribution to human-centricity reflects in the number of people needed to successfully implement and manage the Digital Product-Service Systems, which enables improvement of the existing value chains and the creation of new ones [21][22].
Additionally, Digital Product-Service Systems support sustainability because of their digital aspects—not only do they influence business models in a manner that makes them long term and sustainable, but they also lower the negative impact that firms are having on the environment, both locally and globally [23][24].
Finally, during the COVID-19 pandemic, Digital Product-Service Systems proved to be resilient, precisely because of their digital aspects [20]. Digital services can be provided no matter the time and place, the main condition is to have Internet access so that the digital services can be delivered [25].

3. Industry 5.0: Human-Centric Approach

Industry 4.0 caused the development of many new technologies—autonomous robots, simulations, horizontal and vertical system integrations, the internet of things (IoT), cybersecurity, cloud computing, additive manufacturing, augmented reality and virtual reality (AR and VR), and big data and analytics [26][27]. In the context of the Fourth industrial revolution, these technologies are used to achieve mass product customization and a higher level of automatization and digitalization, as well as better coordination of cyber-physical systems [28]. These achievements have been made, and one big deficiency was identified—humans were removed from many workplaces and replaced by robots and machines, which has caused the shutdown of many jobs [29]. Furthermore, while Industry 4.0’s main focus is to make a higher profit by lowering the costs in all business spheres, Industry 5.0 requires firms to think about the global environment during the decision-making process [3]. This requirement arises from the previously mentioned SDGs, which are found in all three Industry 5.0 approaches [30][31]. In order to fulfill this requirement, it is necessary to include SDGs and their values in education, with an aim to raise awareness about this topic. Additionally, Education 5.0 will prepare pupils and students for future jobs that imply human–robot collaboration, by teaching them how to co-exist and manage the work being performed with the help of collaborative robots [32][33].
In the context of human-centricity, SDGs and Society 5.0 contribute by respecting employees, offering better working conditions, and observing people as a part of the value chain [6]. Human-centricity can be observed in two directions—the operators, and the customers [12].
When it comes to the operators, Operator 5.0 is a concept that has the biggest impact on defining the standards for new workplaces for manufacturing companies [4]. Future workplaces should consider using collaborative robots, which will work together with people (operators) during the execution of different tasks [1]. During the task execution, robots will be focused on dangerous, repetitive tasks, while humans will contribute through cognitive and creative work [12][34]. This work approach transforms manufacturing into mindfacturing, meaning that the main production factors are knowledge and talent, which enables the mass personalization of products [35]. Mass personalization is one of the main factors that differentiates Industry 5.0 from Industry 4.0 [3]. Some of the ways in which robots and humans will collaborate are gesture recognition and intention prediction, stress monitoring, and cognitive abilities development [29].
From the perspective of customers’ involvement, Industry 5.0 emphasizes the inclusion of the customers and end users in the value chain. This is achieved by including them in the production process, which results in a higher level of product personalization and stronger company–customer connection and loyalty [5].
According to the literature, human-centricity is measured by investments made in effective communication, unit empowerment, and personal growth [36]. Correspondingly, parameters used for measuring human-centricity in this research are: (1) the use of interactive interfaces with the operator; (2) the use of an internet/network connection in real time for automated data exchange; (3) the integration of tasks; (4) employee involvement in innovation development; (5) employee bonus systems for outstanding performances in production and/or innovation; (6) training and competence development of production employees with a task-specific focus; (7) training and competence development of production employees with a cross-functional focus; (8) training and competence development of production employees to support the implementation and use of digital production technologies or digital assistance systems; (9) training and competence development of production employees in data security and data compliance; and (10) training and competence development of production employees in creativity and innovation.

4. Industry 5.0: Sustainability Approach

Considering sustainability issues, three types of factor appear—social, economic, and ecological [37]. Social factors are related to the society and its needs, while economic factors reflect the economic steadiness of a particular firm or industry, and ecological factors represent the state of the environment [23][37][38]. These factors are also referred to throughout the Sustainable Development Goals (SDGs) established by the United Nations [6].
Industry 4.0 addressed sustainability, but only partially on a micro-organizational level [39]. Industry 5.0 approaches sustainability in a broader manner, taking into consideration not only issues on a micro-organizational level, but on a macro-organizational level, and on a global level as well [40].
It is expected that firms will develop corporate social responsibility, which supports informing and educating employees about current social and environmental problems, and encourages them to find new ways of doing business that have a weak or no negative influence on the environment, through implementing the use of new materials, recycling the products or their parts, etc. [1][6][41]. It is also expected that production planning will be performed according to planet Earth’s possibilities and constraints, because an increase in the production volume leads to an increase in gas emissions [1][42].
Additionally, when purchasing goods, modern customers seek to support businesses that not only offer high-quality products but also align with their values—this trend has led to an increasing emphasis on green business and the circular economy [31][43].
In this research, the parameters used for measuring sustainability were: (1) the possession of a certified environmental management system; (2) the possession of a certified energy management system; (3) the implementation of measures for improving efficiency in material consumption; (4) the implementation of measures for improving efficiency in energy use; (5) the implementation of measures for improving efficiency in water use; (6) the use of technologies for recycling and re-use of water; (7) the use of technologies to recuperate kinetic and process energy; (8) the use of technology that resulted in a significantly more efficient use of materials when first implemented; (9) product revamping or modernization; and (10) offering take-back services.

5. Industry 5.0: Resilience Approach

As a term related to firms and industry, resilience started to gain attention in 2020, during the COVID-19 pandemic [7]. The challenges that firms faced during this period required them to adapt their business models to newly established circumstances and continue doing business as usual, as well as to go back to their original business models when the circumstances changed to their previous state [44].
Resilience is improved by implementing digital solutions that contribute to different aspects regarding growth and development, as well as quicker responses to problems [45]. In the context of Industry 5.0, it is expected that firms, supply chains, processes, and business models will become resilient on a daily basis, in order to successfully address both the positive and negative impacts of their environment [31][43]. Resilience can be achieved by using adaptable technologies, which can improve the quality of the final products [2][46]. These technologies were developed during Industry 4.0, and will continue to be used in Industry 5.0. The most used technologies are the internet of things and artificial intelligence [25]. Additionally, technologies that will increase firms’ resilience and are expected to be used more frequently are collaborative robots, as well as digital twins [4][47].
Resilience can be established on an industry level by digitalizing the economy and creating a partnering network between firms, which would bring collaboration to its full potential [46]. Digitalizing the economy by implementing circular economy means that business models are becoming sustainable and more valuable, which contributes to the Industry 5.0 sustainability approach as well [26][48]. Additionally, firms can improve resilience and sustainability by using renewable energy sources that will contribute to the whole industry [46]. These changes are also significant for the human-centric approach, because they impact the customer’s decision when buying products, and they can improve customer loyalty [5][41].
The parameters used for measuring resilience in this research are: (1) the use of an internet/network connection in real time for automated data exchange; (2) the use of standardized and detailed work instructions; (3) the use of mobile industrial robots; (4) the use of collaborating robots (co-bots); (5) the implementation of activities raising employees’ awareness of data security; (6) the use of software specifically; (7) the use of hardware solutions specifically; (8) the use of organizational measures specifically; and (9) product revamping or modernization.

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