There are many definitions of Industry 5.0, but the version offered by The European Commission and restated by Forbes provides a clear and simple description, along with a historical perspective.
According to the European Union, Industry 5.0 “provides a vision of industry that aims beyond efficiency and productivity as the sole goals and reinforces the role and the contribution of industry to society. It places the wellbeing of the worker at the centre of the production process and uses new technologies to provide prosperity beyond jobs and growth while respecting the production limits of the planet.” It complements the Industry 4.0 approach by “specifically putting research and innovation at the service of the transition to a sustainable, human-centric and resilient European industry” (original emphasis).
Industry 4.0 vs. 5.0 in manufacturing
While Industry 4.0 focuses primarily on automation, data analysis, and connectivity, Industry 5.0 places human-centricity and sustainability at the core of manufacturing processes, enabling collaboration between people and machines. This shift promotes smarter, more efficient production lines through advanced technology, collaborative robotics, and improved supply chain integration.
Putting people and planet rather than profits and growth on center stage in the very definition of Industry is new. Never have we seen such radical emphasis on repurposing the core objectives of industry.
Building on the lessons of the past to embrace Industry 5.0
Even those who absolutely agree with the above definition may have reservations for its successful application across the board for companies of all sizes.
Industry 5.0 is a mix of every previous Industry version, from 1.0 through 4.0, overlayed by a human and planet-centric approach.
For many, this recalls a time when private, family-owned companies prioritized employee well-being. Leaders saw staff as extended family, getting to know them personally and understanding their goals. Business success rested not only on products and technology, but also on the dedication of employees—who often felt like part-owners, even if they weren’t.
This dynamic is harder to achieve in large publicly traded companies, though not impossible. Small departmental events, for example, could strengthen relationships with both teams and the corporate entity itself.
Financially, even a small investment can be impactful, whether for privately held or publicly traded firms.
Industry 5.0 defined by the 3Ps of people, planet, and profit
According to his article in The Harvard Business Review, John Elkington coined the term “triple bottom line” of People, Planet, and Profit, also known as the 3Ps, in 1994 as a challenge for business leaders to rethink capitalism based on a sustainability framework that examines a company’s social, environmental, and economic impact. Over time, the concept has been reduced to more of an accounting tool and less of a system change tool. Today, considering the Industry 5.0 manufacturing revolution, his original intent is coming back to light, supporting digital transformation in organizations.
What do the 3P’s really mean?
- People: The positive and negative impact an organization has on its most important stakeholders. These include employees, families, customers, suppliers, communities, and any other person influencing or being affected by the organization.
- Planet: The positive and negative impact an organization has on its natural environment. This includes reducing its carbon footprint, usage of natural resources, toxic materials and so on, but also the active removal of waste, reforestation, and restoration of natural harm done.
- Profit: The positive and negative impact an organization has on the local, national and international economy. This includes creating employment, generating innovation, paying taxes, wealth creation, and any other economic impact an organization has.
Today’s manufacturers have access to adaptable and resilient technology, and AI will continue to assist us with adopting a resilient strategy by identifying areas of concern and creating various models we can test and apply. But the role of today’s business analysts may need to evolve to fit into an equation in which the focus on margin, profitability, and the creation of corporate and investor wealth shifts to include putting people and the planet at center stage. As Forbes reminds us in this article on the triple bottom line, this concept challenges business leaders to rethink capitalism based on a sustainability framework that examines a company’s social, environmental, and economic impact.
The concept of sustainability has created confusion and disagreement in its application. But by curbing waste and reducing nonrenewable energy use, companies can lower costs. Creating sustainable supply chains and product designs can also increase profitability. Adopting corporate social responsibility enhances brand image and customer loyalty.
While implementing sustainability measures may come at a cost, consider that:
- Strategies don’t need to be implemented all at once. Prioritize based on your situation.
- Not every strategy is costly—use those that best fit your firm.
- The payback can be significant.
Sustainable manufacturing strategies: key pillars for Industry 5.0
Manufacturing Today says, “Environmental sustainability has become a cornerstone of responsible business practice, with the concept of sustainable manufacturing standing out as a pillar of progress and innovation.” The trade publication reemphasizes seven sustainable manufacturing strategies aimed at creating a clearer understanding of the concept and how to achieve it. These include:
- Renewable energy usage
- Waste reduction and recycling initiatives
- Sustainable supply chains
- Energy efficiency and conservation
- Sustainable product design
- Corporate social responsibility (CSR)
- Innovation in sustainability
Improving sustainability can take many different forms, from curbing waste in manufacturing processes to updating equipment for lower energy consumption. Research suggests that migrating workloads to the public cloud can reduce emissions by optimizing data storage and computing. For its part, Gartner projects that software sustainability will soon rank as a priority in sustainability initiatives alongside material and direct energy consumption. Download Alithya’s free 2025 Manufacturing Survey Report and Analysis to learn more about how manufacturers are responding to this and other industry trends.
Implementing Industry 5.0: bridging technology and human-centricity
Some manufacturing companies may face a long road to fully implementing Industry 5.0 concepts, but the value attained will be worth the journey. Smaller, more agile, and less restricted private companies may be the first to implement fully, while larger publicly traded companies may face a more complex and lengthy process. In some cases, full implementation may be delayed indefinitely as market analysts question whether growth and margin gains can be achieved despite the added costs of Industry 5.0.
For all companies, the 3Ps remain a key priority — but their relative importance can vary. At this point, all manufacturers should focus on completing their Industry 4.0 conversion, including AI, big data and analytics, the Internet of Things (IoT), and additive manufacturing. These advances provide a strong foundation to implement the missing components needed for Industry 5.0.
The technological advances included in Industry 4.0 can be used to address the 3Ps and the key principes of Industry 5.0:
- human-centricity
- sustainability
- resilience
One of the most valuable benefits will be an enhanced sense of loyalty between employers and employees — a connection that 5.0 could bring back. Technology should be seen as a way to empower and upskill your workforce, rather than replace it.
Use proven technologies to enhance the skills, efficiency, and productivity of your teams. This will significantly advance your goals, including those identified in Industry 5.0.
Alithya: your trusted partner for Industry 5.0 transformation
Alithya provides IT services and solutions that help manufacturers transform their operations and streamline financial processes to stay competitive. Our expertise includes 25+ years of experience with business application implementations for:
- Enterprise Resource Planning (ERP)
- Customer Relationship Management (CRM)
- Enterprise Performance Management (EPM)
- Supply Chain Management (SCM)
- Human capital management (HCM)
We know how to smartly and quicky move you to the cloud and leverage AI technologies. We’ve helped hundreds of discrete, process, and mixed-mode manufacturing clients navigate the path between earning higher revenues and budgeting new expenses, between technology and humans, and between impact on the planet and impact on your bottom line. Contact us today.