Business Challenges and Opportunities in the Era of Industry 5.0

Cover of Business Challenges and Opportunities in the Era of Industry 5.0

Synopsis

Business Challenges and Opportunities in the Era of Industry 5.0 discusses the development and current technologies within Industry 5.0 and how these apply to various disciplines and sectors such as education, health, finance, production, automotive and construction.

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Table of contents

(14 chapters)
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Abstract

Purpose: Industry 5.0 is a revolution building on the fourth industrial revolution, adopting human-centred production. It aims for a future that enables people to live with high welfare power by combining the power of the technologies it supports and uses with human creativity and skill. The study explores how Industry 5.0 differs from the industrial revolutions that preceded it, highlighting the challenges, benefits, and possible future trends of Industry 5.0 systems.

Need for the study: Industry 5.0 differs from Industry 4.0 – it represents a human-centred and sustainable approach along with the innovations it brings. Examination of the still emerging concept of Industry 5.0 and to investigate the driving forces behind the emergence is needed.

Methodology: The characteristics that distinguish the Industry 5.0 system from the fourth industrial revolution are explored in detail. The areas in which the technologies used in Industry 5.0 provide benefits and the challenges in implementing the system are analysed. The measures to be taken to overcome these difficulties and the deficiencies were investigated.

Findings: The most important principle of Industry 5.0 is human-centred production and technology. In addition, sustainability, personalised production, new business opportunities, more environmentally friendly and renewable energy use, and bioeconomy are shown as innovations brought by Industry 5.0.

Practical implications: The adoption of Industry 5.0 appears to be a mandatory change. In addition, the study emphasises the measures that businesses should take in terms of sustainability, sustainable economy, the importance of the use of renewable energy sources, and much more environmentally friendly and waste-free production.

Abstract

Purpose: In this chapter of this book, the role and contributions of blockchain in Industry 5.0 are examined. Especially, the advantages offered by blockchain in mass customization, hyper-personalization, human–robot collaboration and cognitive systems, which constitute the main theme of Industry 5.0, are mentioned.

Need for the study: With developing technology, revolutions are taking place in the industry. While these revolutions are occurring, various technologies serve as enablers. In this chapter, one of these technologies, blockchain, is examined.

Methodology: Industrial revolutions represent important technological developments for societies. In this chapter, Industry 5.0, one of these revolutions, is discussed. In the first section, the main themes of Industry 5.0 were examined. Afterward, the transition from Industry 4.0 to Industry 5.0 was analyzed. Then, the opportunities offered by Industry 5.0 were reviewed. Subsequently, the contributions of blockchain to Industry 5.0 were examined. Finally, the role of blockchain in Industry 5.0 is summarized.

Findings: The main themes of Industry 5.0 enable customized processes and smart production approaches. Blockchain makes significant contributions to these processes with its security and traceability features. In addition, smart contracts can increase transparency, traceability and security among stakeholders in the production process with their distributed ledger structure and immutability features. In blockchain networks, each transaction is carried out and approved by consensus. This consensus, provided by smart contracts, also secures transactions by reducing administrative costs. With these contributions, blockchain meets the security and smart management requirements of Industry 5.0.

Abstract

Purpose: Industry 5.0 is characterized by a revolution in the industrial field where humans collaborate with machines. This study aims to highlight the role of the concept of the “Digital Twin” (DT) within Industry 5.0, aiming to predict the effects of natural disaster scenarios in advance and to take preventive measures more effectively.

Need for the study: The innovations brought by Industry 5.0 demonstrate the possibility of creating DTs of cities to predict and minimize the effects of natural disasters. This is of great importance in terms of preparation for future natural disasters and risk management.

Methodology: This study was conducted by analyzing the fundamental principles of Industry 5.0 and the concept of DTs. Scientific literature and industry reports were examined to explore how DTs can be used in the field of risk management related to natural disasters.

Findings: The use of DTs has significant potential in simulating natural disaster scenarios in advance and predicting potential damages. For example, through DTs of cities, the effects of disaster scenarios such as earthquakes, tsunamis, and floods can be analyzed in advance, and necessary measures can be taken accordingly.

Practical implications: These findings offer important practical implications for decision-makers working in areas such as urban planning and infrastructure management. The use of DTs can assist in the development of preparation and risk management strategies for natural disasters, thereby minimizing the impact of disasters and ensuring the safety of individuals.

Abstract

Purpose: This piece delves into the transformative potential of artificial intelligence (AI) in the healthcare field within the emerging realm of Industry 5.0, highlighting a people-focused and eco-friendly approach.

Need for the study: While Industry 4.0 set the foundation for digitization in healthcare, it frequently overlooked the human factor and concerns about sustainability. Industry 5.0 tackles these deficiencies by giving importance to human welfare, efficiency in resource usage, and societal consequences alongside technological progress.

Methodology: This research utilizes a survey of existing written works on Industry 5.0, AI in healthcare, and associated empowering technologies. It also leans on insights from recent investigations and business actions to pinpoint current patterns and future paths.

Findings: This chapter showcases how AI-driven solutions can greatly alter various facets of healthcare. Some of these healthcare facets encompass personalized medicine and treatment, intelligent diagnostics and decision support, robot-supported surgery and care, and enhanced availability and affordability.

Practical applications: This piece offers valuable perspectives for healthcare investors. These investors cover healthcare suppliers, technology creators, rule creators, and patients. By embracing the standards of Industry 5.0, the merging of AI into healthcare brings significant potential for crafting a more competent, sustainable, and people-centered healthcare network that benefits both patients and society as a complete unit. This research investigates the stance, viewpoints, and potential impacts of machine intelligence (MI) in health with an emphasis on Industry 5.0.

Abstract

Purpose: To examine the effects of Industry 5.0 on distance education.

Need for the study: As educational institutions worldwide strive to adapt to rapid technological advancements and shifting educational demands, this research provides actionable insights on integrating these technologies to not only augment learning outcomes but also to ensure inclusivity and accessibility in education. Exploring the convergence of Industry 5.0 and distance learning is imperative for shaping future educational practices and policies.

Methodology: Systematic analysis: 18 articles obtained from ScienceDirect, Scopus, Web of Science (WoS), ERIC, and Google Scholar databases.

Findings: The findings highlight the need for in-depth research into the relationship between Industry 5.0 and distance education, revealing the importance of technological integrations and educational methodologies in these fields. It has been determined that certain countries, such as Indonesia, are pioneers in this field, but a global spread and participation has not yet been realised. Frequently used keywords and methodological trends in the studies indicate that the research field needs to expand and diversify. The codes and categories obtained from the studies were categorised under the following themes: (1) Transformation in Education, (2) Technological Innovations and Applications, (3) Pandemic and Digital Transformation, and (4) Next-Generation Communication Networks.

Practical implications: Implications of this study are profound, offering educators, policymakers, and technology developers a blueprint for integrating Industry 5.0 technologies into distance learning frameworks. Demonstrating how artificial intelligence (AI), robotics, and human–machine interfaces can be leveraged to tailor educational experiences, this research highlights pathways to enhance learner engagement and achievement across educational contexts.

Abstract

Purpose: This chapter explores the role of advanced control systems in Industry 5.0, focusing on their potential to enhance human–robot collaboration (HRC) and intelligent manufacturing. The research investigates how these systems can optimize interactions between humans and robots, leading to improved efficiency and safety in manufacturing environments.

Need for the study: The transition to Industry 5.0 necessitates a balance between human creativity and automation. This study addresses the need for advanced control systems that not only enhance efficiency but also align with the human-centric principles of Industry 5.0. It aims to fill the knowledge gap by examining the integration of these systems in collaborative human–robot settings.

Methodology: The research involves a comprehensive literature review and analysis of recent advancements in control systems within the Industry 5.0 context. Case studies and theoretical frameworks are employed to illustrate how these systems improve human–robot interactions (HRIs), drawing from practical experiences and academic research.

Findings: Advanced control systems significantly enhance the accuracy, safety, and efficiency of HRIs. Through predictive algorithms and real-time data analytics, these systems enable robots to adapt to human inputs, minimizing risks and maximizing productivity. The research also highlights the effectiveness of technologies like artificial intelligence (AI)-driven predictive control, adaptive robotics, and sensor integration in improving human–robot interfaces.

Practical implications: Integrating advanced control systems offers practical benefits such as improved operational efficiency, reduced downtime, and enhanced worker safety. These benefits enable industries to align their technological infrastructure with Industry 5.0 principles. The insights gained can also guide policymakers and industry leaders in developing regulations and standards for intelligent manufacturing technologies.

Abstract

Purpose: In this study, monolith analysis methods, microservice identification, and decomposition methods proposed for the transition to microservice architectures that enable the development of appropriate solutions by adapting to the complex demands that will shape the technological infrastructure of the future are evaluated.

Need for the study: Decomposition from monolithic architectures to microservices has become a popular approach in organizations and companies with Industry 5.0. This transformation of Industry 5.0 enables businesses to gain a competitive advantage and can provide a quick solution to personalized problems such as personal service systems.

Methodology: The study, decomposition from monolith to microservice, initially includes monolith analysis, followed by microservice decomposition review. Various classification methods have been proposed for microservice identification and decomposition and are aligned with Industry 5.0 principles, focusing on artificial intelligence (AI)-based approaches, especially human-centered AI.

Findings: Four analysis methods (domain, static, dynamic, and version) are identified for monolith analysis, with static and dynamic being the most common. Version analysis is not typically used alone. In the decomposition phase, clustering-based methods are prevalent due to the uncertain dimensions of microservices. Rule-based and unsupervised methods are identified for decomposition, with AI algorithms like affinity propagation, Kmeans clustering, hierarchical clustering, Hungarian algorithm, genetic algorithm, latent Dirichlet allocation (LDA), and minimum spanning tree (MST) being employed.

Practical implications: Microservice architecture enables flexibility, scalability, and resilience compared to monolithic structures. Decomposing large-scale monolith projects into microservices is challenging, requiring selection of appropriate monolith analysis methods based on project details (e.g., domain analysis for detailed Unified Modelling Language (UML) diagrams) before proceeding with decomposition. This transformation improves deployment, maintenance, fault isolation, and scalability, while allowing for diverse service-specific databases and programming languages.

Abstract

Purpose: To investigate the impact of integrating artificial intelligence (AI) techniques, particularly deep learning, into bankruptcy prediction models within the banking sector.

Need for the study: With the historical development of bankruptcy prediction models, there is a growing recognition of the potential for AI to enhance the accuracy of these models. This study addresses the need to explore how AI can improve the prediction of financial failures in banks.

Methodology: Using data from banks spanning from 2020 to 2023, this study applies well-established bankruptcy prediction models including the Altman Z model, Altman Z’ model, Springate model, Zmijewski model, and Taffler model. Deep learning techniques are employed to teach these models to AI. Evaluation of the results is conducted using a majority voting decision-making system, incorporating algorithms such as KNN, naive Bayes, and decision trees.

Findings: Integrating AI techniques into bankruptcy prediction models has the potential to enhance the accuracy of forecasts. Evaluation criteria encompass both accuracy and precision, with promising results observed through the majority voting decision-making system. This study suggests a shift toward more sophisticated techniques for bankruptcy risk assessment within the banking sector.

Practical implications: Improved bankruptcy prediction models facilitated by AI techniques could enhance risk management strategies within banks, leading to more informed decision-making processes. This, in turn, could contribute to the overall stability and efficiency of the financial system. Moreover, the importance of considering contradictory results when applying AI-driven models in practice, highlighting areas for further research and refinement in the field of financial risk assessment.

Abstract

Purpose: This study examines the integration of smart agriculture and supply chain management systems within Turkey’s agricultural sector under Industry 5.0.

Need for the study: With global challenges like the COVID-19 pandemic and climate change, ensuring safe food production and accessibility is critical. However, there is a gap in understanding the readiness and awareness of Industry 5.0 technologies in agriculture and logistics. This study aims to fill this gap by investigating the adoption and implications of smart agriculture and logistics in Turkey.

Methodology: Drawing on secondary data from regulators, farmers, and supply chain experts, this study employs coding methods, particularly theoretical coding, to develop a framework for assessing the sector’s readiness for smart technologies and Industry 5.0 awareness.

Findings: This study reveals insights into the adoption and impacts of smart agriculture and supply chain systems in Turkey. It identifies factors shaping institutional logics within the sector and explores how Industry 5.0 technologies influence these logics. Additionally, it offers theoretical insights into Turkey’s agricultural future in the Industry 5.0 era.

Practical implications: Practically, this study informs policymakers, regulators, farmers, and supply chain stakeholders about Industry 5.0 technology readiness and awareness in Turkey’s agricultural sector. It guides strategies for smart technology adoption, improving productivity, food safety, accessibility, and sustainability. Furthermore, it contributes to institutional logics literature, shedding light on the independent logics driving organizational settings in smart agriculture and supply chain management.

Abstract

Purpose: To examine the hotel industry’s evolutionary journey, charting it from the era of digital manufacturing to the current epoch of Industry 5.0, the emergence of the digital society. Industry 5.0 signifies a fundamental change, where the physical and digital aspects merge to establish a more engaging and integrated hospitality experience.

Study design: Using secondary sources, the transformation’s complex difficulties and possibilities are analyzed. We have designed this chapter based on the importance of trust, ethical data use, and teamwork in successfully navigating the complexity of digital production to the digital society based on the Industry 5.0 era. The industry deals with rising cybersecurity threats, ethical concerns about artificial intelligence (AI), and the critical need for a highly skilled digital workforce. This chapter emphasizes the importance of cross-industry collaboration and knowledge exchange as strategic imperatives.

Findings: The importance of developing a highly skilled workforce capable of effectively navigating the complexities of Industry 5.0. Promoting cross-industry collaborations and knowledge exchange is part of the suggested answer. These collaborative efforts are necessary to create a sustainable and fully connected future for the hospitality sector. This chapter promotes a comprehensive approach to implementing Industry 5.0 in the hotel sector.

Originality: The value of this chapter is that amid a growing dependence on digital connections, this chapter emphasizes the pressing requirement for the hotel industry to confront cybersecurity issues and maintain ethical principles when implementing AI in the hospitality industry.

Abstract

Purpose: To systematically identify and critically analyse the challenges and opportunities for the development of internal controls in the insurance industry within the new technological revolution Industry 5.0.

Need for the study: Effective internal controls are essential for maintaining financial integrity, protecting policyholder interests and complying with regulatory requirements. Covering risk, the insurance industry helps to protect companies and households from financial losses resulting from adverse situations. Financial stability of these institutions is crucial for financial well-being of society, reinforced in the current period of technological revolution Industry 5.0.

Methodology: Detailed review of current literature and existing practices regarding traditional internal controls in the insurance industry including the framework analysis for further development related to a technological shift. We also use the impact analysis of Industry 5.0 characterised by the integration of novel technologies and cyber–physical systems that alters the landscape for internal controls.

Findings: The impact of Industry 5.0 on the insurance industry can be summarised in three areas: (1) changes in risk leading to changes in demand for insurance, (2) changes in internal processes and (3) changes in competition in the insurance industry. While insurance companies are complex institutions, developments in all these areas are closely linked to business success. We conclude that this technological shift could help insurers to reduce costs associated with previously manual and repetitive activities.

Practical implications: Adaptation of internal controls in insurance industry by technological innovations in Industry 5.0 could increase the transparency of financial integrity, following the increase in the protection of policyholders’ interests.

Abstract

Purpose: To investigate the key technologies facilitating the transition towards Industry 5.0 and analysing the contributions of Nvidia, a prominent leader in this field, to these technological advancements.

Significance of the study: Technology companies such as Nvidia play a critical role in this transformation through their innovative solutions. This study addresses the need to understand this evolving landscape and the significant impact of the Nvidia.

Methodology: This study is a qualitative approach that examines the existing literature and secondary case studies pertaining to Industry 5.0, and Nvidia. This study examines Nvidia’s high-performance graphics processing units (GPUs), the digital twin platform Omniverse, and the humanoid robot technology development platform, Isaac.

Findings: The next generation of GPUs with the Blackwell architecture is expected to further advance the development of large language models. The Nvidia Omniverse platform contributes significantly to the development of digital twins, a crucial technology for Industry 5.0. The Nvidia Isaac platform focuses on the development of humanoid robot technology, which is a key component of Industry 5.0. Utilizing realistic simulations with Isaac Sim, imitating human behavior with GR00T, and leveraging the high-performance processing power of Jetson Thor, the platform facilitates the creation of robots capable of safe and effective human–robot collaboration. Nvidia has emerged as a leader in the artificial intelligence (AI), robotics, and gaming sectors because of its innovative and agile company culture.

Practical implications: Companies can leverage Nvidia’s technological solutions to optimize production processes and enhance both efficiency and sustainability. The human–machine collaboration emphasized by Industry 5.0 will necessitate the reshaping of workforce skillsets and operational approaches.

Cover of Business Challenges and Opportunities in the Era of Industry 5.0
DOI
10.1108/9781835496763
Publication date
2025-02-14
Book series
Emerald Studies in Finance, Insurance, and Risk Management
Editors
Series copyright holder
Emerald
ISBN
978-1-83549-677-0
eISBN
978-1-83549-676-3