Innovability? and Industry 5.0

Written by Flávia Franco

We live in critical times that demand urgent actions. To deal with such a challenging, volatile, uncertain, complex, and ambiguous world, resilience, agility, and innovation capacity are central issues for better competitiveness.

The philosophy, term, or concept of Inovability? was coined by ENEL in 2014 and recently registered as a proprietary trademark of the company. According to ENEL's own definition, in the words of their Head of Innovation, Ernesto Ciorra:

"The aim of Enel's Innovability? is to foster innovation and sustainability in order to create value for the group and its stakeholders. It's a long but fruitful path, in which Enel firmly believes. It's a true story of shared value creation that allows us to lead the energy transition. If we want to make the energy sector completely sustainable, we need to continue driving innovation in the industry".

Innovability? originates from combining two English words: innovation and sustainability, associating them through collaborative action. The concept is strongly guided by the proposition of "shared value," aiming to reshape business, the economy, and its relationship with society, establishing a close relationship between stakeholders and, simultaneously, generating positive socio-environmental impacts throughout the entire chain affected by the company.

Innovability is the foundation of Industry 5.0, driving the creation of innovative and sustainable technological solutions that place humans at the center of production. This symbiotic relationship between humans and machines is essential to achieve the goals of Industry 5.0, which aim to:

1. Sustainability:

• Reduce the environmental impact of industrial production through clean and efficient technologies.
• Minimize resource waste and optimize energy consumption.
• Develop environmentally friendly products and services.

2. Resilience:

• Adapt to market changes and new consumer demands.
• Create flexible production systems capable of dealing with uncertainties.
• Ensure the continuity of operations even in adverse situations.

3. Human-Centricity:

• Value human labor and its unique skills.
• Create safe and ergonomic work environments.
• Promote collaboration between humans and machines to achieve better results.

4. Technological Innovations:

• Implement technologies such as artificial intelligence, robotics, the Internet of Things, and big data to optimize processes and increase productivity.
• Develop new products and services that meet consumers' needs in a personalized manner.
• Adopt innovative business models that generate value for society.

5. Cooperation:

• Establish partnerships between companies, universities, governments, and other institutions to promote research and development of new technologies.
• Share knowledge and experiences to accelerate innovation.
• Create an ecosystem conducive to Industry 5.0.

Innovability manifests in Industry 5.0 through:

• Organizational Culture: Open to experimentation, creativity, and the pursuit of innovative solutions.
• Processes: Agile and adaptable to changes, with a focus on collaboration and problem-solving.
• Technologies: Intelligent and connected, enabling the collection and analysis of data for more precise decision-making.
• People: Empowered and engaged in seeking innovative solutions.

Industry 5.0 is still under development, but companies that are already investing in innovability are reaping the benefits:

• Increased productivity and efficiency: Industry 5.0 technologies enable the automation of repetitive tasks and process optimization, freeing up time for workers to focus on more strategic activities.
• Improved quality of products and services: Real-time data collection and analysis allow for quicker identification and correction of flaws, ensuring the quality of products and services.
• Cost reduction: Process optimization and reduced resource waste contribute to lower production costs.
• Enhanced competitiveness: Companies investing in innovability are better prepared to face market changes and stand out from the competition.

It's undeniable and widely acknowledged how crucial leadership commitment is for a company's transformation journey. This aspect is evident in the case of Enel, which spared no effort or resources to achieve this goal.

The concept of ideal leadership has significantly evolved in recent years. Today, it's understood that good leadership isn't tied to organizational structure but to behavior, influencing and fostering collaboration so that everyone consistently contributes over time. Leadership isn't a position; it's an exercise in initiative, impact, and influence (Haraca, 2023).

In today's world of exponential change, the characteristics of a leader extend beyond the basics. The leader of today needs to be adept at quickly understanding these changes, adapting, charting a new course, and seeking the necessary resources for it.

Leaders of a sustainable and innovative company are essentially driven by a sense of purpose, duty, and service. They demonstrate empathy, with a high level of compassion, humanity, and humility. Moreover, they not only have a great capacity to inspire and demonstrate ethical leadership but also to seek transformative partnerships.

The Blueprint for Business Leadership highlights five fundamental characteristics, including those mentioned above: Intentionality (Purpose), Ambition, Consistency, Collaboration, and Accountability.

In addition to a great deal of courage - identified as a key factor for success and likely the one that governs all other factors. After all, a company can only move towards positive impact if it has leaders brave enough to challenge the traditional way of doing business (Polman and Winstow, 2022), as clearly demonstrated in the case of Enel.

Impactful leaders seek the greatest challenges. At Enel, the most profound and catalyzing change of all subsequent changes was the company's central business strategy shift, namely, abandoning the focus on fossil fuels and embracing renewable generation. It was a moment when the company shifted from a vision of a "selfish system" to a more open and ecosystemic perspective, at the intersection of strategy, sustainability, and innovation. Based on the group's sustainable strategy, innovation becomes an empowering and accelerating factor: sustainability is the goal, and open innovation is the means to get there, i.e., Innovability?.

In summary, Innovability? is the key to Industry 5.0 success. Companies aiming to thrive in this new landscape must invest in research and development, cultivate an organizational culture conducive to innovation, and empower their employees to explore the full potential of available technologies.