The Evolution of Industrial Revolutions: From Industry 4.0 to the Emergence of Industry 5.0

Introduction

The industrial landscape is undergoing rapid transformation with the advent of Industry 4.0, a technological revolution marked by the integration of Cyber-Physical Systems, the Internet of Things (IoT), and artificial intelligence (AI). These innovations promise significant improvements in manufacturing, logistics, and supply chain management. However, while Industry 4.0 drives efficiency and automation, it is already evolving into the next stage—Industry 5.0—where human creativity and collaboration with robots are central. This paper examines the impacts of Industry 4.0 on the supply chain, explores the key technologies driving this transformation, and looks ahead to the potential shifts that Industry 5.0 may bring.

Industrial Revolution 4.0

Industry 4.0 is a broad term that refers to the technological innovations being implemented in the company's value chain. It is based on the characteristics of various innovations, such as network collaboration, transparency, and mobility. The mind map enabled the identification of the various technologies and concepts relevant to the industry (Figure 1). Industry 4.0 does not significantly affect the sales processes. However, implementing the Smart Factory and Smart Logistics will affect the supply chain structure.

The implementation of Machine-to-Machine Communication (M2M) is expected to impact the supply chain as it enables the automatic recording of various process information and provides new services such as the maintenance of machines. The emergence of smartphones is expected to impact the way employees perform their tasks in the supply chain. In the future, they will be equipped with these devices and will be able to interact with their colleagues. The supply chain will also undergo a technological change if companies implement the concepts and practices of Industry 4.0. Some of the critical factors that will influence this include the emergence of new technologies such as BI (Business Intelligence) technologies, smartphones, the miniaturisation of electronics, and the Automatic Identification and Data Capture (AIDC) e.g., RFID (radio frequency identification) technologies. In addition, the creation of specialised apps for the production process is also expected to be carried out. These apps will help improve the efficiency of the various processes within the company.

Despite the changes brought about by Industry 4.0, the core activities of the supply chain will not be affected. The most significant impact of Industry 4.0 concepts and technologies on the supply chain will be seen in procurement, production, and distribution activities. The impact will be felt by those creating Smart Data tools and apps. The individuals hired to implement Smart Data tools will also need to have the necessary knowledge in various fields, such as cyber-security and statistical analysis. The organisation of the supply chain will change due to the various technological innovations that are being implemented in Industry 4.0. However, structural changes are expected to be experienced in manufacturing processes. The interactions between sales and customer representatives will also be significantly affected by the implementation of Industry 4.0. Social networks are also expected to play a role in this process (Pfohl et al., 2015).

According to Weyer et al. (2015), the three main elements of industry 4.0 are the smart product, the machine, and the augmented operator. With the help of smart products, manufacturers can store and analyse the operational data of their machines. They can then inform the system about the production process and the requirements of the finished product. A smart machine is a type of device equipped with artificial intelligence (AI) and cognitive computing technologies. Through these tools, it can solve problems and make decisions autonomously. It can also replace the traditional production hierarchy. The third component of the industry 4.0 concept is the augmented operator. This system supports workers by providing them with the necessary tools and training to perform their duties effectively. They may also have to intervene in the system to resolve issues. Through the help of smart devices and apps, augmented operators can also help manage the increasing technical complexity in the production process.

Koh et al. (2019) believe that Industry 4.0 should have six principles based on the principles mentioned above. These include interoperability, virtualisation, decentralisation, real-time capability, service orientation, and modularity. Interoperability refers to the ability of systems to communicate and understand each other. It enables systems to exchange and share information and knowledge. This is expected to be a key advantage of Industry 4.0 as it allows them to work seamlessly together.

Virtualisation enables Machine-to-machine communication and process monitoring are possible. It allows devices to monitor and record the physical process. Through virtualisation, each device can be added to a plant model and become part of its simulation. This allows operators to monitor and analyse the data collected by the devices and take immediate action if something goes wrong.

Decentralisation refers to the ability of devices and operations staff to make their own decisions without relying on centralised decision-making. This can be achieved using embedded computers. As the manufacturing process becomes more flexible due to the development of new products and the increasing number of customisation options, the need for overall control is expected to decrease. However, an embedded control system can help devices make their own decisions.

Collecting and analysing real-time data is a vital component of smart factories. It allows manufacturers to monitor and analyse the data collected by their devices continuously. Big data technology can help gather and analyse the data. Big data is generated from various sources, such as social media and the data collected by machines and equipment in factories. It can help manufacturers make informed decisions and improve their profitability.

The concept of service orientation is related to the idea that devices should be able to provide the necessary services to their users. This can be done through the design of products that are user-friendly and provide convenient maintenance.

The concept of modularity refers to the ability of devices and components to be assembled, modified, and expanded as needed in a production system. This allows smart factories to handle fluctuating production needs. Industry 4.0 is expected to transform the way products and manufacturing systems are designed and produced. It is expected that this technology will positively impact the various sectors of the economy. It allows the production elements to be highly autonomous, triggering actions and responding to changes independently. Due to the increasing number of smart machines and robots in the workplace, the physical world is becoming more integrated with the virtual one. This is expected to transform the working environment. To prepare workers for the changes brought about by Industry 4.0, they should have the necessary skills and knowledge. These include interdisciplinary thinking and technical expertise (Koh et al., 2019).

Industry 4.0 has the potential to transform the way SCM processes are conducted. Its various applications can help organisations improve their efficiency and enhance their customer-centricity. To effectively implement Industry 4.0, decision-makers need to understand the various factors that affect the decision-making process. Due to the availability of data, Industry 4.0 has allowed managers to improve the efficiency of their existing processes. With the increasing number of data sources and the availability of advanced technologies, Industry 4.0 is expected to gain widespread acceptance. However, it will also face various challenges, such as increasing concerns about data privacy and security (Chauhan and Singh, 2019).

The fifth industrial revolution is expected to include more personalisation and customisation, with humans returning to production lines alongside collaborative robots to support mass customisation (Sarfraz et al., 2021); these changes will affect supply chain processes, making them more responsive and distributed.

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Industrial Revolution 5.0

(Coelho et al., 2023) discusses the emerging concept of "Industry 5.0" (I5.0) and its application in the context of industrial and technological advancements. It presents a critical review of I5.0's concepts and explores how they relate to and build upon Industry 4.0 (I4.0).

Industry 5.0 Concepts: Initially, Industry 5.0 is presented as a potential disruptive shift involving advances in bionics, synthetic biology, and bioengineering, leading to synthetic metabolisms and novel raw material production. This concept suggests a transformative revolution, similar to past industrial and agricultural revolutions. I5.0 is also seen as an evolution of I4.0, emphasizing safety, sustainability, and global well-being.

Comparison with Industry 4.0: Industry 4.0 focuses on the integration of Cyber-Physical Systems (CPS), the Internet of Things (IoT), and smart factories, where machines and humans collaborate to optimize production. However, I4.0 is still evolving and may need to incorporate social aspects more comprehensively. A key vision within I4.0 is the "Operator 4.0" framework, which emphasizes human-machine collaboration, adaptive automation, and creating sustainable work environments.

Human-Robot Collaboration: One of the core ideas of I5.0 is the return of humans to industrial work alongside robots, in a collaborative, symbiotic manner. This concept is akin to "Operator 4.0," which fosters trusting relationships between humans and machines to enhance productivity and work systems. The article notes that while this collaboration concept is widely discussed, only a few studies explicitly link it to I5.0.

Governmental and Societal Influences: The concept of I5.0 is closely tied to initiatives like Japan's Society 5.0, which aims to integrate cyberspace and physical space to balance economic progress with social issues. The European Union also embraces similar values, focusing on human-centric and sustainable industry goals, rather than introducing disruptive new technologies.

Disruptive Nature of I5.0: While I5.0 is often portrayed as a fifth industrial revolution, much of the research connects it to existing technologies associated with I4.0 (e.g., IoT, Big Data, collaborative robots). The article raises the question of whether I5.0's true disruptive nature has been realized yet, as it primarily appears to be a set of values (human-centricity, sustainability) rather than groundbreaking technologies.

Conclusion

The article concludes that "Industry 5.0" emerged as a concept in the literature around 2020, linked to the idea of new technological revolutions. However, much of the research associates it with a more collaborative, socially sustainable evolution of I4.0, rather than a radically new industrial revolution. The future development of I5.0 may depend on new technological breakthroughs that combine these values with tangible innovations, helping to define its potential as a transformative force in industry and society.

References

Chauhan, C. and Singh, A., 2019. A review of Industry 4.0 in supply chain management studies. Journal of Manufacturing Technology Management.

Coelho, P., Bessa, C., Landeck, J. and Silva, C., 2023. Industry 5.0: the arising of a concept.?Procedia Computer Science,?217, pp.1137-1144.

Koh, L., Orzes, G. and Jia, F.J., 2019. The fourth industrial revolution (Industry 4.0): technologies disruption on operations and supply chain management. International Journal of Operations & Production Management.

Pfohl, H.C., Yahsi, B. and Kurnaz, T., 2015. The impact of Industry 4.0 on the Supply Chain. In Innovations and Strategies for Logistics and Supply Chains: Technologies, Business Models and Risk Management. Proceedings of the Hamburg International

Sarfraz, Z., Sarfraz, A., Iftikar, H.M. and Akhund, R., 2021. Is COVID-19 pushing us to the fifth industrial revolution (society 5.0)? Pakistan journal of medical sciences, 37(2), p.591.

Weyer, S., Schmitt, M., Ohmer, M. and Gorecky, D., 2015. Towards Industry 4.0-Standardisation as the crucial challenge for highly modular, multi-vendor production systems. Ifac-Papersonline, 48(3), pp.579-584.