“To understand the promise of Industry 5.0, corporations must move beyond cost and efficiency to concentrate on growth, resilience, and human-centric outcomes,” says Sachin Lulla, EY Americas industrials and energy transformation leader. “This requires not only recent technologies, but recent ways of working—where people and machines collaborate, and where value is measured not only in dollars saved, but in recent opportunities created.”
An MIT Technology Review Insights survey of 250 industry leaders from all over the world reveals most industrial investments still goal efficiency. And while the information shows human-centric and sustainable use cases deliver higher value, they’re underfunded. The research shows most organizations usually are not realizing the complete value potential of Industry 5.0 as a result of a mixture of:
• Culture, skills, and collaboration barriers.
• Tactical and misaligned technology investments.
• Use-case prioritization focused on efficiency over growth, sustainability, and well-being.
The barrier to achieving Industry 5.0 transformation isn’t only about fixing the technology, based on research from EY and Saïd Business School on the University of Oxford, it is usually about bolstering human-centric elements like strategy, culture, and leadership. Firms are investing heavily in digital transformation, but not all the time in ways in which unlock the complete human potential of Industry 5.0.
“We’re not only doing digital work for work’s sake, what I call ‘chasing the digital fairies,’” says Chris Ware, general manager, iron ore digital, Rio Tinto. “Now we have to be very clear on what pieces of labor we go after and why. Every domain has a novel roadmap about the way to deliver the most effective value.”
