Human-Centric Approach
Human-centric organizations are based on ISO standards, promoting employee health, well-being, and values, which helps attract and retain talent.
Resilience
Building organizational resilience requires anticipating crises, fostering collaboration within the value chain, and adaptive management to enhance stability and competitiveness.
Sustainability
Industry 5.0 and sustainability integrate climate neutrality, green technology innovations, and energy efficiency to reduce the industrial impact on the environment.
Approach Human-Centric
The fifth transformation focuses on implementing management methods that create human-centric organizations. Detailed guidelines for this approach can be found in ISO 27500:2016 (Human-Centered Organization – Rationale and General Principles) and ISO 27501:2019 (Human-Centered Organization – Guidelines for Managers). These standards define key criteria, required competencies in ergonomics and human factors, and provide guidance for board members.
ISO standards also define seven principles of a human-centered organization:
Appreciating employees' individual differences and utilizing their talents and unique perspectives as a foundation for innovation and organizational growth.
Prioritizing the physical and mental health of employees, which translates into their satisfaction and work efficiency.
Formulating business objectives in a way that is understandable and accessible to everyone, enabling their effective implementation and team engagement.
Considering the connections between various organizational elements to achieve coherence in actions and effectively respond to changing conditions.
Building an environment where employees feel valued and their work holds personal meaning, increasing motivation and engagement.
Promoting transparency in organizational actions, which builds trust among employees and stakeholders and fosters collaboration.
Carrying out actions in line with ethical principles and responsibilities toward society, the environment, and future generations.
Industry 5.0, based on a strategy that shifts focus from treating people as resources to recognizing them as real assets, adds a new dimension to this approach. Instead of serving organizations, it means that organizations start serving people. Rather than utilizing talents solely for gaining competitive advantage and creating value for customers, Industry 5.0 focuses on adding value for employees to attract and retain the best specialists. Integrating this approach with human-centered organization principles is a key element for success in a dynamic and competitive business environment.
Resilience
With the globalization of the world, we increasingly recognize the widespread impact of global issues, such as the Covid-19 pandemic and international supply chain shortages. Although many companies strive to improve efficiency and optimize profits, these factors alone do not increase resilience. In fact, there is a belief that focusing solely on efficiency and flexibility may make companies less, rather than more, resilient. Instead of focusing solely on growth, profits, and efficiency, more resilient organizations will aim to anticipate every potential crisis and respond to it to ensure stability in challenging times.
The value chain model describes the comprehensive actions necessary to develop a product or service - from the conceptual stage, through raw material sourcing, production processes, and marketing activities, to distribution. The value chain-based approach aims to understand the needs of companies and entities within a given industry, such as raw material suppliers, end customers, and entities providing technical, business, and financial support for the industry and business environment. Below are general principles for implementing value chain development programs:
Technology Description
Facilitating changes in the company: facilitating the implementation of changes aimed at increasing the competitiveness of the chain and generating revenue for all participating companies, contributing to economic and social growth. Understanding the financial and non-financial incentives of different stakeholders is crucial.
Transforming Relationships
Through the benefits of win-win relationships in stakeholder cooperation, some companies find motivation to change their adopted methods of operation and forms of contact used with other chain participants. The effectiveness of simple appeals to self-interest is limited by conflicting incentives and a high level of distrust.
Leverage Pointing
Value chain project implementers should focus on leverage points that have a significant impact on interventions to maximize the impact and scope of actions. Leverage points may include economic and social structures, trade incentives, and norms and social incentives.
Strengthening the Private Sector's Position
The value chain-based approach aims to enable the private sector to act on its own through the modernization of companies and the co-creation of a competitive value chain, thereby contributing to economic growth and poverty reduction. Value chain analysis and strategy development should be based on participation and collaboration.
Learning and Adaptive Management
In a dynamic market environment, achieving success requires continuous learning and adaptation to change. Identifying operating mechanisms is crucial for achieving positive results.
Changing the way of thinking about advanced manufacturing leads to technological transformation, management, and work rules. Addressing the challenges associated with the described issues will contribute to the full implementation of the smart factory. Collaborating with industry partners who have also adopted this model will help build an ecosystem that meets the requirements of Industry 4.0.
Sustainable Development
Industry 5.0 transforms the concept of sustainable development from simply mitigating climate damage to actively seeking positive change. This goal, also referred to as 'net positive', aims to make the world a better place where companies are part of the solution, not the problem. It's not just about declaring sustainable development goals but also about real commitment to them.
Sustainable development has played a key role in European policy for a long time, finding its place in the European Treaties. The European Union has fully committed to achieving the 2030 Agenda for Sustainable Development, consisting of 17 sustainable development goals, established by the UN General Assembly in 2015. The Green Deal, announced in December 2019, sets clear directions for Europe towards a sustainable economy. Several effective tools have been identified to help the EU achieve carbon neutrality goals. Innovations in green technologies, combined with EU initiatives regarding the digitalization of the European industry (such as better use of big data and artificial intelligence), are becoming a reality and are increasingly accepted by the industry. Faced with growing social and environmental concerns, companies are integrating sustainable development into their business models. As industry recognizes the benefits of a better corporate image and savings in energy and material costs, resource efficiency becomes a natural choice.
Increased industrial production typically entails higher energy consumption and increased carbon dioxide emissions. However, innovations can reverse this trend through smarter production planning and the use of more energy-efficient technologies.
Since 2005, the net growth in industrial energy efficiency has slowed. Understanding the relationship between energy consumption and economic growth at the sectoral level, especially in energy-intensive industrial sectors, is essential. Such sectoral analysis can help identify industry-specific issues, leading to more targeted research and innovation in energy efficiency, as well as specifically targeted energy policy.