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Leadership 5.0

Project study conducted under Professor Isabell Welpe, Chair of Strategy and Organization, Technical University of Munich

Project Team: Johan Chaparro, Meghavi Trivedi, Shivani Gaikwad

Introduction

With “smart manufacturing” and new technology in cyber-physical systems at its core, the main objectives of the current Industry 4.0 stage, are increased efficiency and flexibility of production. These are enabled by increased automation, digitalization and connectivity.

Technological advances have, during the last centuries, shaped the way the world changes. But the pace at which these changes occur is increasing exponentially. To gain some perspective on the speed of advancement, the time lapsed during the beginning of the first industrial revolution in the 18th century and the second industrial revolution was roughly a century, and then another 100 years passed before the beginning of the third industrial revolution in 1969. However, placing the start of the so-called Industry 4.0 in 2011, it only took approximately 40 years to start, and it is currently underway. Being consistent with this acceleration, Industry 5.0 is already being discussed and defined, and it is expected to come at great speed, accelerated by global events like the COVID-19 pandemic, which we have recently experienced.

Industry 5.0 strives to keep human-technological collaboration at the center while not losing its focus and welfare of all the other stakeholders such as customers, environment, organizations etc. Industry 4.0 revolutionized machines and helped companies transform the way they collected and used data from the machines to increases the productivity and numbers. It was a competitive environment where people had to compete with machines. However, in Industry 5.0, the collaborative approach takes precedence. The incorporation of human collaborators at its center is what distinguishes the industry 5.0 with industry 4.0.