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DOI: 10.4324/9781003404682
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Quality Management, Value
Creation, and the Digital Economy
In the conditions of the modern market economy, in which globalization and
competition are rife, quality is of great importance for determining a company’s
position in the market. The changing and complex economic reality is shaping new
market patterns while modern technologies influence purchasing decisions. This
book presents an effective and novel framework for creating value in Industry 4.0
conditions by building a smart enterprise model using quality management theories.
The book explores tools and platforms that can be utilized to contribute to the
creation of the ideal quality for demanding customers, using case studies from
international contributors. It proposes novel architectures that drive economically
viable production and services businesses, addressing unique Industry 4.0 and 5.0
solutions in Internet of Things (IoT) that involve the entire spectrum of analysis,
with a special focus on lean methodologies and cybersecurity.
This original book will be valuable reading for researchers and scholars in the
areas of quality management, manufacturing, production, and operations management.
Joanna Rosak-Szyrocka is Assistant Professor at the Częstochowa University
of Technology, Faculty of Management, Department of Production and Safety
Engineering, Poland.
Justyna Żywiołek is Assistant Professor at the Częstochowa University of
Technology, Faculty of Management, Department of Production and Safety
Engineering, Poland.
Muhammad Shahbaz is Professor of Economics at the Beijing Institute
of Technology, China, and Visiting Research Fellow at the University of
Cambridge, UK.
Routledge Advances in Production
and Operations Management
This series sets out to present a rich and varied collection of cutting-edge
research on production and operations management (POM), addressing key topics
and new areas of interest in order to define and enhance research in this important
field. Bringing together academic study on all aspects of planning, organizing and
supervising production, manufacturing or the provision of services, subject
areas will include, but are not limited to: operations research, product and process
design, manufacturing strategy, scheduling, quality management, logistics and
supply chain management. Highly specialised and industry-specific studies are
actively encouraged.
Real-time Simulation for Sustainable Production
Enhancing User Experience and Creating Business Value
Edited by Juhani Ukko, Minna Saunila, Janne Heikkinen, R. Scott Semken and
Aki Mikkola
Quality Management, Value Creation, and the Digital Economy
Edited by Joanna Rosak-Szyrocka, Justyna Żywiołek and Muhammad Shahbaz
For more information about this series, please visit: https://www.routledge.com/The-Routledge
Philosophers/book-series/RAPOM
Quality Management, Value
Creation, and the Digital
Economy
Edited by Joanna Rosak-Szyrocka,
Justyna Żywiołek and Muhammad Shahbaz
First published 2024
by Routledge
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© 2024 selection and editorial matter, Joanna Rosak-Szyrocka, Justyna
Żywiołek and Muhammad Shahbaz individual chapters, the contributors
The right of Joanna Rosak-Szyrocka, Justyna Żywiołek and Muhammad
Shahbaz to be identified as the authors of the editorial material, and of the
authors for their individual chapters, has been asserted in accordance with
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All rights reserved. No part of this book may be reprinted or reproduced or
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Trademark notice: Product or corporate names may be trademarks or
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without intent to infringe.
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
ISBN: 978-1-032-51965-4 (hbk)
ISBN: 978-1-032-51969-2 (pbk)
ISBN: 978-1-003-40468-2 (ebk)
DOI: 10.4324/9781003404682
Typeset in Times New Roman
by Apex CoVantage, LLC
Contents
List of Contributors vii
Preface ix
Introduction x
1 The Phenomenon of Industry 5.0: Challenges, Trends in
Globalization Conditions 1
MAHMUDUL HASAN LASKAR
2 Advantages and Disadvantages of Industry 5.0 in the
Twenty-First Century 20
SIMONA BIGERNA, SILVIA MICHELI, AND PAOLO POLINORI
3 Industry 5.0’s role in achieving sustainability in multiple sectors 44
SUMANTA BHATTACHARYA
4 Client and Value in the Quality Management:
A Case of Society 5.0 56
ZAFARULLAH SAHITO, RAJA BAHAR KHAN SOOMRO, AND
ANNA-MARIE PELSER
5 Transformation Customers Needs in the Aspect of Client Value 82
ADITYA HALIM PERDANA KUSUMA PUTRA
6 Industry 4.0 on the Way to Companies’ Performance 99
NAVEED R. KHAN, MUHAMMAD RAHIES KHAN, AND
ARSALAN MUJAHID GHOURI
7 The Influence of Industry 4.0 on Client Value Added 121
RAVI KUMAR GUPTA AND UDIT MAHESHWARI
vi Contents
8 Quality Management for Assurance Value of the Customer in
Industry 4.0 Times 129
HANA ŠTVERKOVÁ AND MICHAL POHLUDKA
9 Good Management and Deploying New IT Tools in Industry
4.0 in the Value-Creating Direction 142
ELSHAN AHMADOV, ESRA SİPAHİ DÖNGÜL, AND SHAJARA UL-DURAR
10 The Ideal Quality in Industry 4.0 Model for the Company
and Its Meaning in the Client Value Perspective: A
Systematic Review 153
FARHAN MIRZA, SHAJARA UL-DURAR, AND ABDUL JABBAR
11 Quality and Value Management in Education in the
Digitalization Era 167
SHASHI KANT GUPTA AND JOANNA ROSAK-SZYROCKA
Index 181
Contributors
Mahmudul Hasan Laskar Assistant Professor, Department of Sociology, University
of Science and Technology, Meghalaya, India
Simona Bigerna Department of Economics, University of Perugia, Via A. Pascoli
20, 06100, Perugia, Italy,
[email protected]Silvia Micheli Department of Economics, University of Perugia, Via A. Pascoli
20, 06100, Perugia, Italy
Paolo Polinori Department of Economics, University of Perugia, Via A. Pascoli
20, 06100, Perugia, Italy
Sumanta Bhattacharya Research Scholar at MAKAUT Public–Foreign-Defence
Policy Analyst, CE, CHE, CCIO, MTech, MA, in Development Studies, LLB,
MA, in Security and Defence Law, DIA&D, DG&GS, PGDESD, MPI (Oxford
University)
Zafarullah Sahito Department of Education, Sukkur IBA University, Sukkur,
Sindh, Pakistan Faculty of Economic and Financial Sciences, North-West
University, South Africa
Raja Bahar Khan Soomro Department of Education, Sukkur IBA University,
Sukkur, Sindh, Pakistan
Anna-Marie Pelser Faculty of Economic and Financial Sciences, North-West
University, South Africa
Aditya Halim Perdana Kusuma Putra Assistant Professor, Faculty of Economics
and Business, Department of Marketing Management, Universitas Muslim
Indonesia, Indonesia
Naveed R. Khan UCSI University, Malaysia
Muhammad Rahies Khan Department of Management Studies, Bahria Business
School, Bahria University, Pakistan
Arsalan Mujahid Ghouri Universiti Pendidikan Sultan Idris, Malaysia
viii Contributors
Ravi Kumar Gupta Assistant Professor, Department of Humanities and Management
Science, Madan Mohan Malaviya University of Technology, Gorakhpur, India
Udit Maheshwari Research Assistant, Department of Humanities and Management
Science, Madan Mohan Malaviya University of Technology, Gorakhpur, India
Hana Štverková Senior Lecturer, Department of Business Administration, Faculty
of Economics, VSB-Technical University of Ostrava, Ostrava, Czech Republic;
and University of Johannesburg, School of Public Management, Governance &
Public Policy, Auckland 2006, Johannesburg, JAR
Michal Pohludka CEO, mikeVision, s.r.o., Prague, Czech Republic
Assoc. Prof. Elshan Ahmadov, The Academy of Public Administration under the
President of the Republic of Azerbaijan/Faculty of Administrative Sciences;
andVisiting Assoc. Prof. at the Azerbaijan State University of Economics, Baku/
Azerbaijan.
Assist. Prof. Esra SİPAHİ DÖNGÜL, Aksaray University, Faculty of Health
Sciences, Department of Social Work, Aksaray, Turkey
Shajara Ul-Durar, Associate Professor of Management and Leadership, University
of Sunderland, The School of Business, Edinburgh Building, Chester Road,
Sunderland, United Kingdom SR1 3SD
Farhan Mirza Lecturer, Business & Management, University of Management and
Technology, Sialkot campus, Malaysia
Abdul Jabbar Associate Professor, Data Strategy and Analytics, Deputy Direc
tor of the MBA, School of Business, University of Leicester, Leicester, UK
LE1 7RH
Shashi Kant Gupta Ph.D. & Researcher, Integral University, Lucknow, UP, India
Preface
At least 40% of all businesses will die in the next 10 years . . .
if they don’t figure out how to change
their entire company to accommodate new technologies.
—Cisco Chairman, John Chambers
In the twenty-first century, we are dealing with a prosumer who is well-versed
in the goods and services associated with a particular brand and who shares this
knowledge with others. The function of the customer in interactions with manufac
turers is now well understood. The formal system validation phase of this aware
ness has given way to the real market and organizational expectations. In today’s
market, which is becoming more and more competitive, consumers anticipate con
stant product/service improvement. From an enterprise’s perspective, it is crucial to
demonstrate that the firm is fulfilling its social responsibility and treating both its
internal and external clients—consumers and employees—in a fair and equitable
manner. This is in addition to achieving financial success. Because of this under
standing, businesses now need to pay attention to consumer preferences, tastes, and
lifestyle changes.
The aim of the book is to present the issues related to Industry 5.0, which were
discussed, taking into account its threats, opportunities, and challenges in the era of
digitization, with particular emphasis on the client and his requirements. The book
also discusses the issue of quality 5.0 in creating value for the customer and how
Industry 4.0 shapes added value for the customer.
We hope that the readers will like the book because it was written with passion
and love for the value issue as well as quality management aspects.
Introduction
Quality is crucial in today’s market economy since it affects not only how a firm
is positioned on the market but also how it develops organizationally. Whether
pervasive digitization is gaining momentum and how dynamically e-Commerce
is developing will determine how drastically trade will alter. This unquestionably
influences the need to provide a customer experience that meets their individual
needs and helps to boost brand recognition and business competitiveness. The book
consists of 11 chapters. Chapter 1 looked at how various civilizations were dif
ferentially impacted by Industry 5.0 as a worldwide phenomenon. The viability of
Industry 5.0’s adoption by Indian society is examined. This chapter made an at
tempt to contribute to the Industry 5.0 framework’s sociological analysis of India’s
labor force. Through a review of the literature, Chapter 2 gives an analysis that
identifies both the benefits and drawbacks of Industry 5.0, which is important for
creating a society where sustainability and resilience are top priorities. Chapter 2
also provides an overview of the drawbacks that may occur, particularly in the near
term, ranging from challenges with business efficiency to labor concerns. Chap
ter 3 analyzes how Industrial 5.0 will help many sectors achieve sustainability. In
Chapter 4, the link between “Society 5.0,” “client,” “value,” and “quality manage
ment” is examined through the lens of “educational management and leadership”
in order to address the difficulties now facing higher education institutions (ELM).
Chapter 5 identifies which determinants are involved in shifting consumer behav
ior. Chapter 6 discusses Industry 4.0 technologies and their fundamental concepts.
Chapter 7 analyzes the influence of Industry 4.0 on client value added. Chapter 8
aims to propose a process for quality management in the Industry 4.0 era to main
tain customer value, based on literature background and research. Chapter 9 ana
lyzes the role of digital technologies in management in a value-creating direction.
In Chapter 10, 18 main applications of Quality 4.0 in manufacturing were identi
fied and studied, and several key aspects and enablers of Quality 4.0 for manufac
turing were investigated. Chapter 11 investigates how professors and deans may
learn to use technology to evaluate their students effectively in the post-4.0 era.
1 The Phenomenon of Industry 5.0
Challenges, Trends in Globalization
Conditions
Mahmudul Hasan Laskar
1.1 Introduction
Globally industrial revolution now reached the advanced phase where industrial
production, market, business model, society, and consumer services are structurally
transformed. Technological advancement took a momentum shift in the industrial
strategy. Developed European nations took lead in this, and today others are adopt
ing it as a model of transformation. In 2019, European Commission instituted a new
industry strategy, namely Industry 5.0 to offer an alternative model of development
(European Commission, 2021). It is structurally the continuation of the concept of
Industry 4.0. One focus area is integrating other aspects like environment, ecol
ogy, society, and people besides technology into Industry 5.0. It has been a sub
ject of debate for around 4 years and later took momentum trend because of the
European Commission’s proposed idea of the “Green Deal” or “Industry 5.0” or
“Green Industry.” It offered a plan for developing more human-centric, social and
environment-friendly innovation, research, and industrial policy (Banholzer, 2022).
Previous industrial strategy Industry 4.0 began in 2011, initiated by Germany but it
failed to impress the European Union and other developed economies because of its
overemphasis on AI or robot technology and less on human-centric technology. In
dustry 5.0 recognized three main focus areas: sustainability, human-centric techno
logical advancement, and resilient mechanism. It gives due emphasis to industrial
workers’ well-being and takes it as the core element of the process of production.
Industry 5.0 transformed many fields in developed countries such as corporate
systems, market networking, artificial intelligence-based work environment, digi
tal supply chain, and healthcare and education. Today, living of people changed
along with the digitalization of the world. But there is an uneven impact of Industry
5.0 on the various regions of the world. Developed countries like European nations
and Western nations are more prominent in taking the advantage of Industry 5.0 be
cause these societies are already attained the highest socio-economic development.
A developing country like India is much lagged in human-centric technological
transformation because of its socio-economic divide and imperfect physical infra
structural transformation. Large sections of the workforce are yet to receive techni
cal education, technical skill, and even a humane work environment. It is argued in
the paper that Indian society is not yet ready for Industry 5.0 because of extremely
DOI: 10.4324/9781003404682-1
2 Mahmudul Hasan Laskar
uneven technological impact, digital access, technical education, and skill. There is
even a lack of proper physical infrastructure though certain cities have emerged as
technologically smart. This chapter aims to examine how Industry 5.0 as a global
phenomenon has an uneven impact in different parts of the world. This chapter has
also focused on whether Industry 5.0 fits India’s situation and what challenges it
faces in the global situation as well as in India. It analyzed India’s labor market or
workforce in the context of Industry 5.0.
Methods: This chapter is part of an ongoing interpretive sociological research
on Industry 5.0 and its impact on Indian society. The present study employed
mainly quantitative data and qualitative analysis of the cases. The study used a
literature review and a case study among workers in Guwahati city of Assam
state, India. For the case studies, 50 workers were interviewed to understand
their overall work condition and their readiness for technical workplaces or
technology-driven work environments. These workers were chosen from sec
tors like mining, construction, manual sweeping, and manual drain cleaning
based on snowball sampling.
1.2 Industry 5.0: A New Global Industrial Phenomenon
The concept of Industry 5.0 emanated from Industry 4.0, which installed new-age
industrialization at the beginning of the twenty-first century. In the year 2011, the
idea of Industry 4.0 developed in Germany to augment the high-tech industrial strat
egy and as a future project for production, trade, and science. It mainly focused on
economic advancement with ecological protection or “green production” that will
develop green energy and eco-friendly industry. In 2013, Acatech (the German Acad
emy of Engineering Sciences) offered recommendations for a research plan and ex
ecution that highlighted the impact of the Internet of Things (IoT) on the organization
of production. This is the interplay of machines and human workers in production
and a trend toward the digitalization of manufacturing. Professor Klaus Schwab,
founder and executive chair of the World Economic Forum, described that Industry
4.0 is structurally different from the preceding concept of industrialization because
the advancement of technology was a priority. But Industry 4.0 mainly concentrates
on the innovative doctrine of sociability and sustainability. It emphasized digitaliza
tion and AI-driven technologies to enhance the effective and resilient production
system. Industry 5.0 made the new idea that realized the importance of human and
society-centric research and innovation (European Commission, 2021, p. 8). Exten
sion of the Industry 4.0 and attempts to integrate aspects other than technology under
Industry 5.0 has been a subject of debate for around four years. This debate has taken
momentum trend because of the European Commission’s approach “Green Deal”
or “Industry 5.0” or “Green Industry” for human-centric, social and environmental-
friendly innovation, research, and industrial policy (Banholzer, 2022, p. 8).
European Commission in 2019 introduced the “Green Deal” which was a seri
ous commitment to making a climate-neutral European Union by 2050. Certain
The Phenomenon of Industry 5.0 3
climate-neutral technologies such as electrification, green hydrogen, and biofuel
were developed, but it is realized that there is a need for reeducation of non-renewable
energy consumption. European Commission then started looking for adopting an
industrial strategy parallel “Green deal” (Renda & Schaus, 2021, p. 2). In 2020,
European Commission adopted an agenda “a new Industrial strategy for Europe,”
which focused on the notions of “green” and “digital.” European Commission has
the view that Industry 5.0 may lead the EU to achieve the goal of climate neutral
ity by 2050. The European Commission sets the agenda to articulate and develop
indicators covering dimensions of economic, environmental, and governance for
Industry 5.0. This idea of Industry 5.0 aimed to achieve well-being (alternative
measures of GDP) resilience and sustainability (Renda, 2021, p. 137). European
Commission considers Industry 5.0 as a key medium of recognizing the role of in
dustry in realizing societal goals (the primary focus of the production process is the
well-being of the industrial workers apart from employment and growth), resilient
prosperous system, and sustainability (production process takes into account the
boundaries of our planet) (European Commission, 2021, p. 14).
The European concept of Industry 5.0 (Green Deal) has the potential of re
sponding to the question of how to find the social structural foundation of govern
ance in the network society. Another concept of Society 5.0 was propounded by
Japanese Prime Minister Abe in 2016, who suggested that the combination of In
dustry 4.0 and Society 5.0 could bring solutions to many problems of industrialized
countries (Banholzer, 2022, p. 9). The European Union commission even launched
plans to support other nations with financial assistance. Some of these initiatives
were Industrie 4.0 in Germany, Fabbrica Intelligence in Italy (focused on sustain
ability, adaptive, intelligent, and high-performance manufacturing), Industrie du
future in France, and Production 2030 in Sweden. Industry 4.0, in its most recent
conceptual development, focused on the combination of information technology
and operational technology in the production process that eventually leads to smart
decision-making. So, Industry 4.0 means information and communication
technology-oriented transformation of the industry to deal with and optimize
various dimensions of the process of manufacturing and supply chain (Alexa,
Pislaru & Avasilcai, 2022). Industry 4.0 focused on the automation that has been
intimidating workers in the factory. It has many elements such as big data and
analytics, simulation, horizontal and vertical system integration, cybersecurity
and cyber-physical systems (CPS), cloud technologies, additive manufacturing,
autonomous and collaborative robotics, and augmented reality (Banholzer, 2022,
pp. 13–14). It was realized that there is a need for advancement in the industry
from Industry 4.0 to Industry 5.0 in terms of sustainability and reduction of waste.
The Directorate-General for Research and Innovation stated that after the deadliest
pandemic, Europe is looking for building a better economy and society and making
a vision plan of three vital elements, to protect, prepare, and transform. It is also
looking for a better plan to deal with the greatest challenge of humanity climate
change and biodiversity collapse (European Commission, 2021, p. 3). So Industry
4.0 with the objectives of automation and technical efficiency may not be suitable
to meet the said challenges (Banholzer, 2022, p. 16).
4 Mahmudul Hasan Laskar
Industry 5.0 is defined on the basis of wider purposes and scopes beyond the
system of production and services. The larger scope of the Industry 5.0 encom
passes three key elements: human-centricity, sustainability, and resilience. Simply
profit-oriented framework has become irrelevant today. It is important to look into
environmental and societal costs and benefits instead of making a narrow focus
on profit. The industry as a medium of prosperity has to take into account social,
environmental, and societal factors. So, the notion of responsible innovation came
into being that implies the prosperity of all: investors, workers, consumers, society,
and the environment (European Commission, 2021, p. 13).
Industry 5.0 focused on a human-centric approach to industrial production and
prioritized the needs and well-being of the people involved instead of giving mere
emphasis on technology and increasing the efficiency of technology. It is more
important to what technology can do for humans not what humans can do with
technology. Instead of giving importance to industry workers to adopt the skills
of rapidly evolving technology, Industry 5.0 focuses on providing technology to
support the workers. This idea intends to maintain human–technology reciprocal
relations and does not want to intervene in the fundamental rights of workers like
the right to privacy, self-sufficiency, and human dignity. For maintaining the limit
in human-made development, sustainability is the ultimate necessity, which Indus
try 5.0 has taken up as one objective. The prime idea of sustainability is to develop
a circular practice, reuse, re-purpose, and recycle natural resources to minimize
waste and environmental degradation. Sustainability refers to judicious consump
tion of energy to reduce greenhouse emissions, abandon the activities of natural re
source depletion and degradation, and most importantly ensure the needs of present
generations without jeopardizing the needs of future generations. Technologies
such as AI and additive manufacturing can optimize resource efficiency and reduce
waste. Industry 5.0 embraced the idea of resilience in industrial production which
implies a higher degree of robustness in production and preventive mechanism
in case of critical situations and crises. The present global world has been facing
geopolitical and natural crises, including the recent COVID-19 pandemic that led
to the fragility of industrial systems. So, there must be a sufficient resilient strategy
in production, business, and supply chain of basic needs of humans in the forms of
security and healthcare (European Commission, 2021, pp. 14–15).
Key Focus
Core principles and the key focus of the idea of Industry 5.0 can be grasped from
the following explanation (Figure 1.1.):
Industry 5.0 recognizes the potential of the industry to accomplish societal
goals apart from employment and growth; and recognizes the capability of
industry in sustainably making prosperous production system. It enables the
industry to see the well-being of the industrial worker and consider them the
core of the production process.
(European Commission, 2021, p. 14)
The Phenomenon of Industry 5.0 5
Industry 4.0 Industry 5.0
Focused on enhancing efficiency Industrial framework and strategy of
through digital connectivity and combining competitiveness and
artificial intelligence sustainability that also realises its
Technological development
potential of being agent of transformation
objectives
Technological advancement for
Optimization of business model sustainability and resilience developed
developed, which means
minimization of costs and
minimization of profit for
shareholders Human-centric approach of technology
ensures empowerment of workers through
the use of digital devices
Absence of focus on negative
environmental, climate, and social Created transitional ways toward
impacts environmentally sustainable uses of
technology
Focus on industry's responsibility to their
whole value chains
Indicators developed to show for each
industrial ecosystem, the progress achieved
toward well-being, resilience, and overall
sustainability
Figure 1.1 Evolution of industrialization
Source: Banholzer, 2022, p. 22
Industry 5.0 is a future-oriented industrial strategy mainly focused on the regen-
erative industrial transformation that has inherent attributes of social and environ-
mental dimensions (Figure 1.2). For European Union, Industry 5.0 approach, a new
industrial strategy, addresses recent knowledge experiences from the COVID-19
pandemic and plans set to build up resilient mechanisms and secure human life and
livelihood in a sustainable manner. It has the aim of providing a more resilient system
to overcome future disasters and shocks and to integrate social and environmental
dimensions that Industry 4.0 overlooked (European Commission, 2021, p. 7).
Industry 5.0 identified six enabling technological developments (Table 1.1,
Banholzer, 2022, p. 23):
• Technologies of individualized human–machine interaction to integrate the
strength of humans and machines.
• Bio-inspired technologies and smart materials were developed to facilitate re-
sources with entrenched sensors and better features to be recyclable.
• Digital twin and simulation technologies to form whole systems.
6 Mahmudul Hasan Laskar
Human-
centric
Industry
5.0
Resilient Sustainable
Figure 1.2 Focus of Industry 5.0
Source: European Commission, 2021
Table 1.1 Industrial paradigm
Industrialization Industry 1.0 Industry 2.0 Industry 3.0 Industry 4.0 Industry 5.0
Workers Manual work Computer- Workers trained Same as 3.0 and Workers trained
assisted work for digital began pattern to work with
transformation of 5.0 augmented
technologies
Technology Age of Age of Age of Age of smart Age of cyber
mechanization electrification Digitalization manufacturing physical
systems
Source: Crnjac Zizic et al., 2022, Energies
• Transmission of data, storage, and analysis technologies to deal with data and
system synergy.
• Artificial intelligence detects side effects in complex and dynamic systems that
lead to functional intelligence.
• Technologies for eco-friendly energy production, storage, and autonomy.
The Phenomenon of Industry 5.0 7
1.3 Industry 5.0 and Global Trend of Transformation
Industry 5.0 has instituted transformation in various realms such as manufacturing,
healthcare, education, food, textile, and others. One of the major transformations
that brought about the new-age revolution is smart manufacturing. Industry 5.0
initiated an innovative production system by integrating machines and humans.
Now affords have been going on to establish collaboration among machines and
the innovative potential of the human workforce. The target is to make manufactur
ing sustainable, so Industry 5.0 developed a system of recycling resources to avoid
environmental damage. It has taken away the repetitive work of humans. Smart
robots and systems have led to the highest upgradation of manufacturing shop
floors and supply chains (Adel, 2022, pp. 5–6). Industry 5.0 has also focused on
making smart hospitals through various creative applications. The smart hospital
ensures real-time capability. Remote monitoring system developed by Industry 5.0.
Under this new industrial strategy, machine learning (ML) has made use of medi
cal imaging, natural language processing, and genetic data. The focus is on smart
technological intervention in the process of diagnosis, detection, and prediction
of diseases. Medical specialists are now embracing artificial intelligence technol
ogy to measure various problems. It also led to the manufacturing of personalized
smart implant properties, medical devices, and tools. These technologies are very
useful for performing surgery (Adel, 2022, pp. 5–6). Another important area that
was transformed remarkably by Industry 5.0 is supply chain management. Robots
make it possible to establish a consistent and uninterrupted mechanism of the sup
ply chain in the form of selecting raw materials and figuring out the personalization
and customization of the needs of consumers. Hyper-personalization is enabled by
human intelligence empowered by cognitive computing and intelligent automa
tion. The technologies such as machine learning, robotic automation, and others
are serving employees to augment business skills and ensure the satisfaction of
customers. Industry 5.0 further developed a digital supply chain that provides cus
tomization of the supply chain, customer satisfaction, an efficient organization of
business, and market limitations (Adel, 2022, pp. 6–7). Globally, Industry 5.0 has
brought smart transformation and advancement in terms of human-centric techno
logical innovations, sustainable technological advancement, and resilient industrial
mechanisms. If this industrial strategy is adopted principally, workers will never
be replaced by technology and society will be secured from technological disaster.
Amr Adel (2022) stated that the enabling technologies related to Industry 5.0 are
cloud computing, blockchain, analytics of big data, IoT, and 6G networks (Adel,
2022, p. 6). These technologies fundamentally transformed the work environment,
production process, and market network.
Industry 5.0 redefined labor or workforce with a new narrative and concepts.
New narratives of Industry 5.0 describe labor or workforce as an investment posi
tion instead of cost, which ensures the well-being of both company and workers.
The industry now focuses on investing in the skills, capabilities, and well-being
of the workers to accomplish goals. It replaced the old idea of equating labor
or worker as a mere cost of production. Industry 5.0 has the aim of creating an
8 Mahmudul Hasan Laskar
industrial system where technology serves people. Manufacturing technology must
meet the requirements of the workers instead of workers’ continuous adaptation
to ever-evolving technologies. To attain this working condition, workers need to
be part of the design and deployment of new industrial technologies like robotics
and AI (European Commission, 2021, p. 15). Industry 5.0 instituted the system
of collaborative robots that changed the idea of working humans and robots inde
pendently promoted by Industry 4.0. Industry 5.0 aims to develop a system where
highly skilled humans and AI robots work together to generate personalized and
customized products. Humans and robots used to work individually and indepen
dently in Industry 4.0. There was a clear demarcation of work between humans and
robots though they had a common station of work. But Industry 5.0 blurred this
demarcation, and its endeavor is that the intelligible skills of the human brain can
be accompanied by robots. In short, we can say collaborative robots or “cobots” are
a fundamental element of Industry 5.0 and smart factories. Cobots have ensured the
collaborative work of human–robot and robots may assist humans. User-friendly
cobots provide real-time technical assistance to humans and carry out unpleas
ant and risky activities. Another real-time technology and data-driven innovation
instituted by Industry 5.0 are “Shop floor Trackers,” which can keep track of the
production process in real time. This is useful for the reduction of waste material
and mismanagement (Bhandurge & Bhide, 2021, pp. 2–3). Robots make the work
place safer and ensure the simplest way of completing work. The worker can take
the help of AI and other smart technologies instead of going for specific training for
specialized tasks. AI-based technological tools help workers undertake specialized
tasks. Physically hard tasks are now carried out by mobile robots and exoskeletons.
Women can participate more in these tasks which were earlier limited to men due
to the requirement of physical strength. Digitalization further developed the system
of remote work that allows workers to perform their duty from distant locations
(European Commission, 2021, p. 17).
Industry 5.0 through an open global phenomenon is more suitable for developed
countries because they have already achieved technology-driven societal and eco
nomic transformation. Societal development of these countries is well maintained
in terms of capability and access of people in the realms of education, work, skill,
living standard, the digital world, and the new smart society. India has a serious
problem of societal and economic divide in education, work, income, skill, and
digital access. The digital divide further augmented the grave problem. Human–
robot integration and interaction are emphasized in Industry 5.0, but India is yet
to develop human-centric technological adaptations in many sectors such as coal
mining, construction, agriculture, street sweeping, and drain cleaning. There is a
lack of technical skills among large sections of people in India because of low edu
cational attainment. There are about 8% of graduates in India, out of which only
technical graduates have market demand in technical fields. So their skill enhance
ment may be undertaken but workers who are in informal sectors cannot adopt the
technology and cannot even get the opportunity to skill themselves for upgrading
their status in growing industrial fields. This issue is discussed in the following
sections in detail.
The Phenomenon of Industry 5.0 9
Though officially, it has not yet been adopted in India, a certain trend of trans
formation was instituted as part of Industry 4.0. The major means of transforma
tion is digitalization. Digitalization has fundamentally transformed the consumer
market. People’s digital presence is quite well but when it comes to education, job,
income, and business, digital access is still limited. The work environment in the
sectors such as mining, construction, and factory production is still vulnerable to
manual workers or informal workers. Fatal risks are associated with the nature of
work performed by manual workers or informal workers. Why there is yet to cre
ate an environment of Industry 5.0? A critical analysis of the transformation trend
in India needs to be highlighted. Human–machine integration is the key focus but
here major sections of the human population are out of work. Sociologically speak
ing, this transformation is one-sided and has caused advantages for developed na
tions because they have already an educated and knowledgeable population as a
workforce. But in India, a small section of technical professionals and a large sec
tion of informal workers constitute the workforce. Technical skilling is going on
for those who are technical graduates and already working in the fields of artificial
intelligence, robot technology, information communication, automation, digital
business, and the service industry. There is a very low improvement or upgradation
of the manual worker’s life situation. Questions arise if Industry 5.0 is adopted in
principle, whether it would be able to bring transformation in such a society with a
wide education gap, skill gap, and uneven economic conditions.
1.4 Is Indian Society Ready to Adopt Industry 5.0?
India is still in the transitional phase of adopting Industry 4.0. There is also the
question of whether India is ready to implement Industry 4.0. Since Industry 5.0
is the extension of Industry 4.0, we may look into India’s readiness for Indus
try 4.0, which will provide a relevant assessment. The major nine technological
components that constituted the foundation of Industry 4.0 are autonomous robots,
big data, augmented reality (AR), additive manufacturing, cloud computing, cy
bersecurity, IoT, system integration, and simulation. Industrial strategy augmented
the advancement of technology that created global connectivity smarter than ever
before among people, businesses, and the market. This trend is getting accelerated
over time (Grant Thornton, 2017). World Economic Forum (WEF) assessed the
Network readiness among all the countries and made an index based on the net
work readiness of various countries. India’s position in the index and its compari
son with developed and neighboring countries are highlighted here.
Network readiness is a key indicator of assessing a country’s performance in the
digital world (Figure 1.3). The world is growing toward a more networked system,
so a country must perform for a better economy and society. The network readiness
Index shows the performance of the countries in the digital world (Figure 1.4). It
measures whether countries possess the drivers essential for digital technologies
to meet up their potential and makes sure to what extent technologies affect the
economy and society. India’s rank in the Network Readiness Index has gone down
from 61 in 2013 to 91 in 2016 (World Economic Forum, 2016).
10 Mahmudul Hasan Laskar
Drivers
Infrastructure
Readiness Affordability
Skills
Environment
Individual
Usage Business
Government
Economic
Social
Impacts
Figure 1.3 Network readiness framework consists of drives and impacts
Source: Breene Keith (2016), World Economic Forum
It has been very clear from the report of the World Economic Forum that there
is a wide gap between developed and developing nations based on the digital econ
omy. Developed countries such as the United States and Singapore which topped
the ranking are performing consistently well but developing countries like India
dropped in ranking over time. The readiness for Industry 4.0 and digital technolo
gies varies from developed to developing nations (World Economic Forum, 2016).
According to Network Readiness Index 2021 by the Portulans Institute, India
ranks 67th out of the 130 economies included in the NRI (Table 1.2). The Index
model is very diverse and inclusive:
The Phenomenon of Industry 5.0 11
Network Readiness
Index
Technology People Governance Impact
Access Individuals Trust Economy
Quality of
Content Business Regulation
life
Future Governments Inclusion
SDG
Technologies Contribution
Figure 1.4 Framework of network readiness index
Source: Portulans Institute, 2021
India’s network readiness in different domains is presented in Table 1.3. Data show
that India’s network readiness is the poorest in quality of life, individual life, SDG
contribution, and inclusion. There is a disparity in the access to the network or the
advantage of the digital world. India’s performance is very deplorable in this aspect.
Digital India policy was introduced by the Government of India to transform the
economic infrastructure, which is a way forward toward Industry 4.0. The Digital
India program has the objective of transforming India into a digitally empowered
society and knowledge economy. Eventually, it comes to the notice of sociological
discourse that there is a wide digital divide in India. The emergence of the digital
divide is large because of the prevalent socio-economic divide in India. The trend
of the digital divide in India at the time of globalizing Industry 5.0 is a serious is
sue that needs to be critically analyzed through a sociological lens. The prevalent
socio-economic disparity is further reinforced by the digital divide in new India.
The digital divide is defined as inequalities between the digital haves and have-nots
in terms of their access to the internet and the ICTs. Different indicators are used
12 Mahmudul Hasan Laskar
Table 1.2 Ranking of selected countries in network readiness index
Network Readiness Index
Countries Global rank
Singapore 1
Finland 2
Sweden 3
Norway 4
United States 5
Netherlands 6
Switzerland 7
United Kingdom 8
Luxembourg 9
Japan 10
Hong Kong SAR 12
Korea, Rep 13
Canada 14
Germany 15
Malaysia 31
China 59
Thailand 62
Sri Lanka 63
India 91
Pakistan 110
Source: World Economic Forum, 2016
Table 1.3 India’s rankings by sub-pillar in network readiness index
Sub-pillar Rank
Economy 24
Access 40
Governments 46
Future Technologies 56
Content 63
Trust 70
Businesses 76
Regulation 84
Quality of Life 92
Individuals 93
SDG Contribution 95
Inclusion 99
Source: Portulans Institute, 2021
to measure the digital divide such as availability, affordability, and digital literacy.
Dimensions like usage and physical access can measure availability and afford-
ability. There is a grave digital divide in India in internet use and access to digital
infrastructure based on rural–urban, gender, caste, and age. According to ITU’s
The Phenomenon of Industry 5.0 13
World Telecommunication/ICT indicators database, 43% of India’s total popula
tion uses the internet. There also exists a gender gap in internet usage. Data show
that 58% male population uses the internet and 42% female population uses the
internet. According to the GSMA report, 79% adult male population and 67% adult
female population own a mobile phone in India (Chandola, 2022). Digitalization
has affected the employment scenario in India in both positive and negative ways.
Only 8.15% of Indians are graduates as per census 2011 (Census, 2011). India after
2011 saw a major shift in technological infrastructure and structure of the economy
because of the impact of Industry 4.0 and then recently Industry 5.0. Census data
showed a remarkable increase in technical graduates but still, the proportion is very
negligible in number in terms of workforce and making up of good human resources.
Presently, India is undergoing a major reformation of employment in formal as well
as informal sectors due to rapid globalization, technocratic marketplaces, and data
based businesses. Digital transformation in the last decade affected employment on
a mass scale. There emerged many new employment opportunities with technical
skills. The new globalized advanced technological environment has transformed
organizational structures and operations. New technology-driven business models
emerged such as Byju’s, Ola, Swiggy, Oyo, Lenskart, CRED, Myntra, and numer
ous others. It is now realized that a knowledge-driven human resource is required
to connect India with the global platform. The government has taken up many plans
and programs to reskill and upskill the people. The scientific community also has
been working on developing robotics, artificial intelligence, and machine learning
for adopting a global industrial strategy. Digitalization of the market and
technology-based network of consumer and goods market instituted a new consumer
society in India (Figure 1.5). Highly required education today in the industrial
organization is a technical qualification, skill, and experience. In India’s hiring
trend, high demand is there for Pharma & Healthcare, Engineering & manufacturing,
and energy sector. There is a high market value of engineering graduates because
of the growing IT sector, Internet business, automotive sector, and other industries.
Graduates have market value based on the condition of knowledge-oriented busi
ness systems in industries. Transformation in work culture instituted by advanced
technological environment focused mainly on technical skills. Highly demanded
technical skills are Python programming, neural networks, cloud computing, supply
chain, and general statistics. Owing to the requirement for a technology-driven
business model and technological shift in company infrastructure, organizations are
now looking for skilled professionals. Automation of the supply chain has resulted
in increasing demand for knowledgeable and skilled workers in many industries.
Thus, for industries to sustain themselves, qualified professionals are recruiting the
most (India Skills Report, 2021).
But another crucial phenomenon that needs sociological attention is workers
in the informal sector and manual workers who are out of the technology-driven
organizational network and technically skilled workforce. The informal workforce
in India includes those working in private enterprises of individuals or households,
daily wage laborers, domestic helpers, and manual laborers in the formal sector
who work without any socio-economic security and benefits. India’s employment
14 Mahmudul Hasan Laskar
Digitalization in
India
People Societal and
Technological Economic
Trasformation Impact
AI, Manual and Social-
Smart Technically Inacpability of
Automation Informal economic
consumer skiled large
and Digital worker affluence of
society population
Service few
Figure 1.5 Digitalization and India’s way forward in Industry 5.0
Source: Result of field study, 2022
trend is largely informal. The total employed in India is 461.52 million, out of
which 415.23 million are in informal employment. So out of total employment,
90% of men and 92% of women are informally employed. The education of the
workers in the informal sector is very deplorable. Educational attainment is very
low among domestic laborers, street vendors, sweepers, and manual construction
workers. More than 60% of women and 35% of men among these workers have
dropped out of primary school (Raveendran & Vanek, 2020, pp. 2–3). It is stated
that Industry 4.0 implementation strategy needs a strong welfare state (Buhr, 2019,
p. 115). Social democratic welfare states like Nordic countries are better prepared in
taking on the challenge of Industry 4.0 than liberal, Mediterranean, post-socialist,
and conservative welfare states (Buhr, 2019, p. 116). Nordics have the policy
to focus more on the public sector and public services instead of dependency on
commercial interests (Buhr, 2019).
But welfarism in India is not able to ensure public services equitable and suf
ficient for all. We can here propose Amartya Sen’s capability approach (Sen, 1999)
for uplifting the lower sections. People must have the capability in access to the
digital world, technical education, technical skills, and technology usage. The state
may adopt human-centric technological infrastructure to provide a safe work en
vironment but educating people to equip them with the smart work system is even
more important. Networking, cloud computing, and digital business model have
been growing exponentially in India but are limited to a small urban populace.
Large rural populations, urban poor, and informal workers are still engaged in
physical labor, which is less productive and riskier.
Sociological Analysis of India’s Readiness for Industry 5.0
India has adopted digitalization that eventually led to industrial digitalization for
the smart organization of corporate. India showed great progress in industrial dig
italization, particularly in the service sector. We see India’s noteworthy shift in
business, market network, and consumerism. It can be argued that the untimely
The Phenomenon of Industry 5.0 15
adaptation of Industry 5.0 may lead to the alienation of manual and informal work
ers. Indian society has to be ready with the equitable socio-technological condi
tions required for Industry 5.0. The most essential part of the industry is the worker,
which has a major section in manual and informal work. Manual workers have
deplorable work conditions, education, skill, and quality of life. To understand the
phenomenon, a case study was conducted among the mining laborer, construction
workers, street sweepers, drain cleaners, and toilet cleaners from Assam, India.
Physical Work Condition
Physical work condition in mining site is extremely risky and vulnerable. Work
ers go into the rat hole in the coal mine site located at various hill tracts of Assam.
Most of the coal mining sites are deep well-like platforms, which have many small
holes called “rat holes” inside the well. Laborers go deep into the well-like under
ground platform and cut the coal with the axe and other tools. There is no machine
used in mining. Workers are fully engaged with physical strength to carry out this
work. Even they carry back coal buckets from deep down to the outside. They use
a certain rope-made stairway to climb down to the surface of the well. They often
face life risks due to fatal accidents and landslides inside the well. Apart from min
ing workers, construction workers perform hard physical labor on the construction
sites though certain technological interventions make it easy. They shared that the
physical condition of their work is risky, unhealthy, and below standard. Working
hours are customized by the contractor of the work. Street sweepers’ drains and
toilet cleaners constitute another very distressed category, which hardly gets any at
tention due to their unorganized work environment. Every city has these sections of
workers who perform degraded jobs yet are immensely significant. It is degraded
because they do all the dirty and unclean work of sweeping, and cleaning the drain,
roads, public places, and toilets physically without any technological intervention.
They are like outcasts with whom other does not maintain physical and social prox
imity. They even live a very low living standard.
Wage of the workers: The wage of these aforementioned categories of workers is
usually fixed by the contractors. They receive wages mostly on weekly basis
except for some exceptions. Workers do not get any other social and economic
security and facilities. Their wage is not even sufficient to maintain basic needs
like food, shelter, and clothing. Education and health are beyond their capabil
ity, so their access is limited.
Skill of the workers: They do not have any technical skills since their highest
education is primary (class VIII). Physical labor is their only asset, which they
use to earn a livelihood. These workers have not even received any skill train
ing because of their low education, unawareness regarding technical work, and
lack of opportunities. They shared that all of their co-workers are engaged in
physical labor only. The whole day they work, so do not get any time to even
think about upskilling themselves. Sweepers and drain cleaners are most vul
nerable in terms of health, income, and social status. These workers may be
16 Mahmudul Hasan Laskar
upskilled by incorporating robot and automation technologies for sweeping and
cleaning jobs. In Indian society, sweeping and cleaning jobs are considered so
cially degraded and impure, so a societal stigma gets attached to the occupation.
Technology-driven work systems may end this age-old narrative and empower
workers toward a dignified profession.
Standard of living: Workers’ living standard is extremely poor. They live in urban
slums and labor colonies in their work sites. Workers are excluded from their
rights to privacy, dignity, education, proper health, and cultural setting. Their
struggle for morning toilet calls and drinking water proves the fact that poor
living standards. Workers live a life much different than mainstream society.
So technology and smart work are just beyond their imagination, so we can
not expect a smart society by excluding a major section in grave distress and
vulnerability.
Digital access: These workers own smartphones, but internet use is limited. Their
internet consumption trend is mainly in watching films, videos, music, and other
entertainment content. They have awareness regarding Google pay and Pho
nePe but are less comfortable in use. Another problem is a lack of sufficient
amount in their bank account. Their payment of wages is made in cash, and
it generally spends on daily expenditures, so nothing is left for saving. Their
children are out of digital education because they do not know about handling
online education; they lack the capability in accessing the internet all the time
and lack of capability in spending on digital education apps. The workers even
face problems of taking many health benefits from the government due to their
poor knowledge of digital processes.
1.5 Challenges of Industry 5.0
Industry 5.0 is obstructed by certain challenges, which may be technical, indus
trial, and social. Industry 5.0 is no doubt a progressive future-oriented industrial
strategy, but it poses certain societal challenges particularly for developing so
cieties. In India’s situation, we find diverse societal stumbling blocks for Indus
try 5.0. Simply adopting Industry 5.0 is not sufficient rather enabling humans
for working with technology has to be initiated with utmost priority. Certain
technical challenges are discussed later and followed by a sociological analysis
of the challenges.
The challenges of Industry 5.0 also include (Adel, 2022, p. 9):
1. Technical skill and competency for the people: It is a great challenge in the era
of Industry 5.0 that people need to develop competency and skills for working
with advanced robots and smart machines. Present jobs require high technical
skills and efficiency in industrial robot programming and managing smart ma
chines. The technical skill of the workers is a major issue that poses a challenge
for Industry 5.0.
2. Adoption of advanced technology is time taking for human workers: For hu
man workers, adopting advanced technology is a huge challenge that needs time
The Phenomenon of Industry 5.0 17
and enormous effort. Workers in Industry 5.0 now need to adopt personalized
software-connected factories, collaborative robotics, artificial intelligence, real-
time information, and the internet of things.
3. Investment required for advanced technologies: Advanced technologies of
Industry 5.0 is very expensive. Preparing a workforce by training workers in
advanced technologies further increases the cost. Companies are now facing a
challenge to upgrade their production by following Industry 5.0. So adoption of
Industry 5.0 is costly for companies and states as it requires smart machines and
a highly skilled workforce for better productivity and high efficiency.
4. Security Issue for Industry 5.0: Industry 5.0 faces a security challenge as it is
vital to develop trust in ecosystems. People face the issue of authentication in
devices. Moreover, business and market network should be more secure because
artificial intelligence and automation in Industry 5.0 pose threat to it. Industry
5.0 focuses on the applications of ICT systems, so chances of security disrup
tions occur.
In India’s situation, the greatest challenges for Industry 5.0 are the technical skill
of the workforce, poor educational attainment of the population, physical infra
structure, and the socio-economic divide. If there are only 8% of graduates in the
population, how can we expect automation and AI in the workplace? Around 90%
of the total workers are engaged in manual or informal work, so they are out of
technology-driven work systems. In this case, only a section of the workforce takes
up advantage of digitalization, automation, and technology-driven work systems.
Physical infrastructure like road connectivity between rural–urban areas, internet
connectivity, particularly in rural areas, rural healthcare network, and market net
work between rural–urban and smart agricultural markets are yet to achieve the
milestone set for industrial society or Industry 3.0 and Industry 4.0. Computer,
internet, and digital literacy are still poor in India though certain improvements are
going on. Large sections of the village population are still illiterate about Google,
Gmail, Websites, Apps, and online businesses.
1.6 Conclusion
It can be concluded that India is not ready for Industry 5.0. Industry 4.0 is yet
to achieve by India inclusively. Globally, Industry 5.0 can be a leading indus
trial strategy for a sustainable future for the earth. Human-centric technological
advancement like Cobot is a remarkable idea that has the potential of transforming
the work environment and human resource utilization. The digital business model
is another prospering field, which will surely pull greater numbers of people in
the process of market networking and entrepreneurship. It can be argued that In
dustry 5.0 legitimizes the power of consumer society. India has grave issues such
as the social divide and the digital divide. Certain metro cities have emerged as
smart cities and hubs of AI, automation, cloud computing, and robotic technolo
gies. Many regions are out of this technological advancement. Rural areas are most
backward in this process. The main issue in India is workforce utilization, skill,
18 Mahmudul Hasan Laskar
and efficiency. The workforce is mainly engaged in manual and informal jobs, so
they lack technical skills and efficiency. Socio-economic inclusion, digital inclu
sion, higher educational attainment, and upskilling would work to empower society
toward Industry 5.0.
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