The Industry 5.0 framework: viability-based integration of the resilience, sustainability, and human-centricity perspectives

Abstract

Industry 5.0 is a combination of organisational principles and technologies to design and manage operations and supply chains as resilient, sustainable, and human-centric systems. While the general notion of Industry 5.0 has been elaborated, its implications for future operations and supply chains remain underexplored. This paper contributes to the conceptualisation of Industry 5.0 from the perspective of viability. We contextualise a framework of Industry 5.0 through the lens of the viable supply chain model, the reconfigurable supply chain, and human-centric ecosystems. Our study uncovers the major dimensions that characterise Industry 5.0 as a technological-organisational framework. First, the major technological principles of Industry 5.0 are collaboration, coordination, communication, automation, data analytics processing, and identification. Second, Industry 5.0 covers four areas: organisation, management, technology, and performance assessment. Third, Industry 5.0 spans three levels: society level, network level, and plant level. Last but not least, Industry 5.0 frames a new triple bottom line: resilient value creation, human well-being, and sustainable society. We provide a definition of Industry 5.0 and discuss its implications by elaborating on the understanding of value in Industry 5.0, which spans the dimensions of profit, people, and society. We also discuss open research areas.

KEYWORDS:

• Industry 4.0
• supply chain resilience
• industry 5.0
• viable supply chain
• reconfigurable supply chain
• digital supply chain

1. Introduction

Industry 5.0 is a term coined by the European Commission (EC 2021a). According to the EC (2021b), ‘Industry 5.0 complements the existing Industry 4.0 paradigm by highlighting research and innovation as drivers for a transition to a sustainable, human-centric and resilient European industry. It moves focus from shareholder to stakeholder value, with benefits for all concerned. Industry 5.0 attempts to capture the value of new technologies, providing prosperity beyond jobs and growth, while respecting planetary boundaries, and placing the wellbeing of the industry worker at the centre of the production process’.

While Industry 4.0 took on a technology-centred approach (Olsen and Tomlin 2020, Ivanov et al. 2021, Zheng et al. 2021), Industry 5.0 triangulates and consolidates resilience, sustainability, and human-centricity as key components of the value-creation systems supported by advanced technology. Kusiak (2020, 2021) elaborates on the notions of resilient, open, and universal manufacturing by combining resilience and Industry 4.0 perspectives. Xu et al. (2021) underline the value-adding perspective that is taken by Industry 5.0. The European Commission (2021a) states that Industry 5.0 comes ‘to make workplaces more inclusive, build more resilient supply chains and adopt more sustainable ways of production’. These visions are echoed by Choi et al. (2022), who point to human-machine interactions in the coming Industry 5.0 era and the concept of ‘sustainable social welfare’.

The literature contains a large body of knowledge on resilience (Aldrighetti et al. 2021, Altay et al. 2018, Blackhurst et al. 2011, Hosseini et al. 2019, Pettit et al. 2019, Ivanov 2021a, Qin et al. 2021), sustainability (Brandenburg and Rebs 2015, Dubey et al. 2015, Sarkis 2021), and human-centricity (Battaïa et al. 2020, Battini et al. 2016, Grosse et al. 2017, Katiraee et al. 2021). However, these studies either examine these topics individually or in pairwise combinations, such as resilience and sustainability, sustainability and digital technology, and resilience and efficiency (Chopra et al. 2021, Fahimnia et al. 2018, Pavlov et al. 2019, Dolgui et al. 2020, Hosseini et al. 2022, Ivanov 2018, Lücker et al. 2021, Sawik 2020). As such, Industry 5.0 suggests a distinctive context for triangulating resilience, sustainability, and human-centricity.

While the technological aspects of Industry 5.0 have started gaining research attention (Maddikunta et al. 2021, Thakur and Sehgal 2021), its comprehensive understanding and conceptualisation across management, organisation, and technology perspectives remains underexplored. We contribute to the literature with a conceptualisation of Industry 5.0 from the perspectives of operations and supply chain management. Our framework of Industry 5.0 combines society, network, and plant levels, and it is contextualised through the lens of the viable supply chain model, reconfigurable supply chains, and human-centric ecosystems. We provide a definition of Industry 5.0 and discuss its technological, organisational, management, and performance implications, spanning the perspectives of operations and supply chain management, industrial engineering, computer science, and robotics and automation. The potential utility of our framework can be seen in creating a structured view of the organisational principles and technologies of Industry 5.0, along with an analysis of its implications on operations and supply chain management transformation from the perspectives of resilience, sustainability, and human-centricity.

2. Dimensions of Industry 5.0

In order to understand the topics and associated literature related to each of the pillars of Industry 5.0, we performed an automated search in scientific databases. Specifically, we used the SCOPUS database and VOS software to identify the clusters that might be associated with the three major pillars of Industry 5.0 – resilience, sustainability, and human-centricity, as declared by the EC (2021b). We stress that we are not performing a classical structured literature review following standard protocols; rather, we use the standard software (i.e. VOS) to deduce literature clusters and form a general picture of topics related to the different pillars of Industry 5.0.

Accordingly, we organised our search using the following keywords and logic: [Supply chain OR Production OR Logistic* OR Sourcing OR Manufactur* OR Transport*] AND [Resilien* OR Sustainab* OR Human]. We ran three independent searches for [Resilien*], [Sustainab*], and [Human], respectively. We filtered the results to exclude disciplines not directly related to management and engineering. Business, management and accounting, engineering, computer science, mathematics, and decision sciences were selected as relevant categories for further analysis. Moreover, we manually checked the keywords and excluded irrelevant ones. The SCOPUS search results were exported into an Excel file that was used for cluster analysis in the VOS software, which is a common tool for literature reviews (Ivanov et al. 2021). We detail the results in the next sections.

2.1 Resilience and Industry 5.0

Figure 1 illustrates the cluster analysis results for the resilience area.

Figure 1. Cluster analysis results for the resilience area.

Analysis of Figure 1 allows for the identification of 7 major clusters, which are marked blue, orange, red, purple, azure, green, and light green. The azure and purple clusters can be considered as context clusters: they accumulate keywords related to supply chain resilience, such as uncertainty, risks, and disruptions (Azadegan and Dooley 2021, Gupta et al. 2021, ElBaz and Ruel 2021, Ivanov 2021b, 2021c, Namdar et al. 2021). The red cluster is the technological one. It is comprised of the keywords characterising automation and information technology– e.g. robotics, Internet of things, and big data (Panetto et al. 2019, Pirola et al. 2020). The blue cluster is related to communication and collates keywords in the areas of data transmission and security. The orange cluster is devoted to intelligence – i.e. intelligent manufacturing and intelligent transportation (Fragapane et al. 2020, Frazzon et al. 2021). The green cluster is comprised of the keywords related to costs and investments in resilience, as well as associated analysis methods (Aldrighetti et al. 2021). Finally, the light green cluster accumulates the advanced methods of machine learning and smart manufacturing, which can be generalised as the implementation of reconfigurable supply chains and manufacturing systems (Brintrup et al. 2020, Cavalcante et al. 2019, Dolgui et al. 2020, Dolgui and Ivanov 2022, Kosasih and Brintrup 2021, Rai et al. 2021, Yoon et al. 2020).

The cluster results provide us with some interesting observations. First, the composition of clusters covers the major dimensions of supply chain resilience – i.e. organisation, technology, performance analysis, and management. Second, the keywords ‘reconfigurability’ and dynamics’ play central roles in many inter-cluster relations. Third, the keyword ‘sustainability’ intersects with ‘resilience’, which is in line with the findings presented by Ivanov et al. (2021) on Industry 4.0 analysis and with the viable supply chain model (Ivanov 2020b). Fourth, the network effects and associated systemic risks are characteristic for resilience, raising the challenges of managing the ripple effect (Ivanov et al. 2014, Dolgui et al. 2018, Pavlov et al. 2020, Ghadge et al. 2021, Ivanov 2020a, Ivanov and Dolgui 2021b, Li et al. 2021, Park et al. 2021). Finally, a clear dominance of digital supply chain technologies can be seen across the clusters.

2.2. Sustainability and Industry 5.0

Figure 2 illustrates the cluster analysis results for the sustainability area.

Figure 2. Cluster analysis results for the sustainability area.

Analysis of Figure 2 allows for the identification of 6 major cluster, which are marked blue, red, purple, azure, green, and light green. The red cluster can be considered a context one: it accumulates keywords related to sustainable development, the triple bottom line, closed-loop supply chains, and sustainable supply chains. The green and azure clusters are comprised of energy efficiency aspects – e.g. energy-efficient manufacturing and alternative energy sources (Alaouchiche et al. 2021). The blue cluster is related to transportation and collates keywords in the area of sustainable logistics – i.e. CO₂ emission reduction (Homayoonia et al. 2021). The purple cluster is devoted to materials and recycling. Finally, the light green cluster accumulates the keywords associated with environmental impact assessment – e.g. life cycle assessment.

The cluster results provide us with some interesting observations. First, the composition of clusters covers the major dimensions of supply chain sustainability: organisation, technology, performance analysis, and management (Dubey et al. 2020). Second, we can observe three major levels of analysis: the society level (e.g. sustainable resources and energy usage), the network level (e.g. supply chain sustainability), and the plant level (e.g. energy-efficient manufacturing). Finally, a large number of keywords deal with performance and environmental impact assessment (e.g. life cycle assessment) across different clusters.

2.3. Human-centricity and Industry 5.0

Figure 3 illustrates the cluster analysis results for the human-centricity area.

Figure 3. Cluster analysis results for the human-centricity area.

Analysis of Figure 3 allows for the identification of 5 major cluster, which are marked blue, red, purple, green, and light green. The red cluster is comprised of automation technology (e.g. robotics) and human-machine and machine-to-machine collaboration – e.g. cyber-physical systems, Internet of things, human-robot interactions, and human factors (Panetto et al. 2019, Sgarbossa et al. 2020). It also contains the human resource management and sustainability keywords. The green cluster is comprised of data analytics, artificial intelligence, computer simulation, algorithms, and pattern recognition (Battini et al. 2020). The blue cluster is related to transportation and collates keywords in the area of safety, which frequently intersect with the statistical analysis. The purple cluster is devoted to organisation and leadership (Calzavara et al. 2020). Finally, the light green cluster accumulates the keywords associated with biological models and bioengineering.

The cluster results provide us with some interesting observations. First, we can observe a high importance of technology – i.e. artificial intelligence, human-machine collaboration, and cyber-physical systems. Second, the technology aspects identified are multiple and consider collaboration, communication, identification, coordination, automation, and data processing technologies. Finally, we can observe intersections with sustainability keywords, especially in the red cluster.

3. Industry 5.0: Connecting resilience, sustainability, and human-centricity through a viability paradigm

The results of the literature analysis allow us to conceptualise Industry 5.0 from the perspectives of operations and supply chain management. Based on a cluster analysis of the existing literature on supply chain and operations resilience, sustainability, and human-centricity, we derive a framework of Industry 5.0 and contextualise it through the lens of the viable supply chain model, the reconfigurable supply chain, and human-centric ecosystems.

3.1. The viable supply chain model, viability of intertwined supply networks, and business ecosystems

Viability is a specific capability at the scale of survivability to avoid supply chain and market collapses and to secure the provision of goods and services (Ruel et al. 2021). According to Ivanov and Dolgui (2020), ‘viability is a behavior-driven property of a system with structural dynamics. It considers system evolution through disruption-reaction balancing in the open system context. The viability analysis is survival-oriented at a long-term scale’. Ivanov (2020b) defines viability as an ‘ability of a supply chain to maintain itself and survive in a changing environment through a redesign of structures and replanning of performance with long-term impacts’.

In light of Industry 5.0, viability is comprised of the supply chain itself; the intertwined supply network (ISN), which is an ‘entirety of interconnected supply chains which, in their integrity secure the provision of society and markets with goods and services’ (Ivanov and Dolgui 2020); a digital supply chain (Cavalcante et al. 2019, Ivanov and Dolgui 2021a, Frazzon et al. 2021); and a human-centric ecosystem responsible for securing society’s needs in line with natural, economic, and governance interests.

Angles of sustainability and resilience are integrated within the Viable Supply Chain Model and extended toward survivability. Moreover, viability takes an ecosystem perspective. For example, it is concerned with intertwined supply networks ‘that encapsulate entireties of interconnected supply chains, which, in their integrity, secure the provision of society and markets with goods and services’ (Ivanov and Dolgui 2020). From the position of viability, the ISNs as a whole provide services to society (e.g. food service, mobility service, communication service) that are required to ensure society’s long-term survival. The example of the COVID-19 pandemic illustrates viability as a new and distinct construct.

Ruel et al. (2021) elaborated in detail on the commonalities and differences between the resilience and the viability of supply chains. In particular, they noted that ‘supply chain viability can be viewed from an overarching adaptation perspective that extends the supply chain resilience notion of a closed-system, “bounce-back” view, with a viable, open supply chain system perspective incorporating “bounce-forward-and-adapt” options’. Moreover, Ivanov (2021a, Chapter 5) provided a structured comparison of supply chain resilience and viability, concluding that viability is an extended resilience perspective. A supply chain can be considered viable if it is able to maintain an ecosystem balance (i.e. to achieve homeostasis) at different uncertainty exposure levels.

The Viable Supply Chain Model is based on adaptable structural network designs for situational supply-demand allocations and, most importantly, the establishment and control of adaptive mechanisms for transitions between the structural designs (Ivanov 2021e). Moreover, supply chain viability and the ecosystem view have been synthesised in the lens of the human-centred ecosystem perspective by Ivanov and Dolgui (2021) and extended by Feizabadi et al. (2021) and Wang and Yao (2021).

Finally, the reconfigurable supply chain framework can be considered a part of future Industry 5.0 developments (Dolgui et al. 2020, Ivanov 2021d). Supplementing the reconfigurable manufacturing concept (Koren et al. 1999, Zennaro et al. 2019, Battaïa et al. 2020, Ivanov et al. 2021b), the reconfigurable supply chain adds three specific features: active behaviour of network elements, networking effects across multiple structures and their dynamics (i.e. organisational, information, financial, technological, energy), and network complexity (i.e. multi-echelon supply chains). The reconfigurable supply chains are characterised by structural and process variety, which is beneficial for supply chain resilience.

3.2. Industry 5.0 framework

Since viability integrates resilience, sustainability, and human-centricity, it can be considered as a convenient category to approach the conceptualisation of Industry 5.0 from an academic perspective. The analysis of the literature and principles of the Viable Supply Chain Model, the viability of intertwined supply networks and ecosystems, and the reconfigurable supply chain allows us to identify some generalised notions associated with Industry 5.0. First, the major technological principles of Industry 5.0 are collaboration, coordination, communication, automation, data analytics processing, and identification. Second, Industry 5.0 covers four areas: organisation, management, technology, and performance assessment. Third, Industry 5.0 spans three levels: society level, network level, and plant level. Figure 4 illustrates the integration of these notions as the framework of Industry 5.0.

Figure 4. Industry 5.0 framework.

At the society level, Industry 5.0 aims to build viable intertwined networks that are able to secure the provision of society with products and services during periods of disruption and crisis. This perspective is complemented by the human-centric contextualisation of ecosystems such as food and agriculture, communication, energy and water, education, mobility, textiles and housing, healthcare, education, and leisure, sport, and culture (Ivanov and Dolgui 2021). The design and operation of such intertwined networks and ecosystems presumes the sustainable usage of resources and energy available on the earth.

The network level is mostly comprised of designing and managing supply chain resilience and sustainability capabilities. It is also involved with building reconfigurable, cyber-physical, and digital supply chains. In order to ensure the development of resilience in a sustainable way, the costs and investments in resilience need to be considered toward lean resilience (Aldrighetti et al. 2021, Ivanov 2021e). Indeed, a traditional way of designing efficient supply chains and then extending them by some redundancies (e.g. risk mitigation inventory, capacity buffers, backup suppliers) frequently results in high costs and resource consumption. This way of building resilience is expensive since many of these redundancies will just be waiting for use in an emergency case, without creating any value in business-as-usual times.

An alternative approach, the active usage of resilience assets (AURA; Ivanov 2021e), calls for considering resilience from a value-creation perspective. Agile, flexible, and reconfigurable supply chains can be efficient, and they are also resilient through structural and process variety (Shekarian et al. 2020). In this setting, resilience is not built upon efficiency – resilience is embedded into every business-as-usual operation and is a part of efficiency (i.e. lean resilience). Examples include omnichannel distribution systems, multiple sourcing, diversified logistics networks, and flexible production lines, which are good both for efficiency and resilience. One can also explain the AURA framework as follows. An expensive alarm system can be installed to protect your home against burglary; this is a big investment that will not generate any profit and can only pay off if there is a real danger. Alternatively, you can get a dog – you will have a lot of fun every day, and it will protect you from burglars better than any alarm system.

At the plant level, the human-centric perspective aims to create inclusive workplaces, foster the collaboration of human and artificial intelligence, and create health protection protocols and layouts as driven by the COVID-19 pandemic (Choi 2020, Shen et al. 2021, Sodhi et al. 2021, Queiroz et al. 2020). Sustainable manufacturing and logistics, as well as increasing the resilience of individual facilities in the networks (e.g. through a facility fortification), supplement the plant level through resilience and sustainability perspectives.

We now arrive at the definition of Industry 5.0 that we derive from the framework in Figure 4, as well as from the definition of Industry 4.0 by Ivanov et al. (2021).

Our definition of Industry 5.0:

Industry 5.0 is an integration of resilient, sustainable, and human-centric technologies, organizational concepts, and management principles for designing and managing cost-efficient, responsive, resilient, sustainable, and human-centric value-adding systems at the levels of ecosystems, supply chains, and manufacturing and logistics facilities, data-driven and dynamically and structurally adaptable to changes in the demand and supply environment to secure the provision of society with products and services in a sustainable and human-centric way through the rapid rearrangement and reallocation of its components and capabilities.

4. Implications of Industry 5.0 for supply chain and operations management

The analysis of literature and the conceptualisation of Industry 5.0 shows that Industry 5.0 is characterised by strong networking effects. In contrast to Industry 4.0, Industry 5.0 goes beyond the technological and enterprise level and expands to the level of supply chain networks, intertwined supply networks, human-centric ecosystems, and their viability.

4.1. Technology

Industry 5.0 technology covers network and physical process levels (Table 1).

Table 1. Technology of Industry 5.0.

	Infrastructure technology	Communication technology	Automation technology	Identification and alert technology	Data processing technology	Collaboration technology
Network (planning) level	Internet of things 5G Edge computing	Trace and tracking systems Blockchain		Early-warning system	Big data analytics	Collaborative supplier portals Digital supply chain twin
Plant (realisation) level	Cyber-physical systems	Real-time process monitoring Sensors	Additive manufacturing Collaborative robots Drones Mobile robots AGVs	RFID	ERP	Machine-to-machine (M2M) Augmented / virtual reality Digital twin

Digital platforms and supplier collaboration portals are used to ensure collaboration and communication in Industry 5.0. M2M (machine-machine) tools make machines collaborate with each other, while smart products facilitate machine-product collaborations. End-to-end visibility, which is so important for both proactive and reactive decision making, is supported across the supply chain by ERP systems, blockchain, and T&T systems (Choi et al. 2022, Maccarthy and Ivanov 2022). Visibility is enabled at the plant level by sensors and RFID through an infrastructure based on the Internet of things. Big data analytics and artificial intelligence are used for planning and control decision making support. Collaborative robots and drones add flexibility and efficiency to manufacturing and logistics processes. Additive manufacturing is used to quickly deploy production with a very short supply chain. Quality and safety control can be enhanced by monitoring and real-time detection systems.

The digital technologies in Industry 5.0 are also present in Industry 4.0. However, they provide additional value when considered from the resilience, sustainability, and human-centric perspectives. For example, visibility and blockchain help improve resilience through supply chain mapping (El Baz and Ruel 2021, Li et al. 2022). Additive manufacturing can help to improve sustainability through the reduction of transportation in the supply chain and the working conditions due to its technology (Peron et al. 2022).

4.2. Organisational implications

Technology determines organisation. With Industry 5.0, cloud manufacturing and collaborative human-machine networks become reality. Supply chain and operations planning is organised as data-driven analysis, modelling, learning, and control processes. Digital twins of products, manufacturing processes, and supply chain networks can be designed and help in decision making through accurate data and complete representations of real systems and objects, thus improving resilience (Burgos and Ivanov 2021, Psarommatis and May 2022). Customers become part of the digital supply chain through the use of online digital tools, apps, live streaming, and social media. Supply chains evolve into digital business ecosystems.

4.3. Operational implications

In the Plan area, supply chains and operations benefit from Industry 5.0 by using data analytics (e.g. for demand prediction and inventory control prescription). The Source area is advanced by collaborative supplier platforms, supply visibility, and real-time inventory control. In the Make area, customised assembly and modular production systems are enabled. This is especially important for enhancing sustainability through resource efficiency–oriented production and human-centric working environments (Sgarbossa et al. 2020). Delivery process management benefits from the digital technology by online routing optimisation and real-time shipment control, among others.

4.4. Performance implications

Efficiency, productivity, resilience, sustainability, and viability are impacted in Industry 5.0. Efficiency and productivity benefit from increased flexibility and responsiveness, along with improved lead-time and capacity utilisation. Resilience is enhanced by visibility, collaboration, and adaptability. In the wake of the COVID-19 pandemic, firms with a digital supply chain and visibility were able to map the available supply and re-allocate it to demand (Ardolino et al. 2022, Choi 2021, Paul and Chowdhury 2021, Rozhkov et al. 2022). Additive manufacturing can be beneficial both for resilience and sustainability. In the context of viability, digital technology allows for the implementation of the viable supply chain model. Visibility, reconfigurable manufacturing systems, and additive manufacturing, along with analytics and digital collaboration tools, are vital for viable manufacturing and supply chains. In light of the increasing resource shortages in supply chains due to semiconductor shortage, workforce variability, energy blackouts, and inflation, the importance of viable supply chains and Industry 5.0 will continue to grow in the future.

5. Open research areas

Industry 5.0 brings new ideas, concepts, and technology to the debate about the future of manufacturing and logistics. We further identify some open research areas.

5.1. Understanding Industry 5.0

The first open research area is the contextualisation of Industry 5.0 as a novel and distinct paradigm. The current state of understanding for Industry 5.0 is not free of ambiguity and contradictions. First, many companies just started implementing Industry 4.0, and the appearance of Industry 5.0 just 10 years after the contextualisation of Industry 4.0 may create some questions. As such, the research should be clear about the relations between Industry 4.0 and Industry 5.0, showing that Industry 5.0 does not replace Industry 4.0 but rather supplements and extends it. In this sense, the term ‘Industry 4.1’ would perhaps be better to use in order to stress the further development of Industry 4.0 and not the fact of a completely new industrial revolution. At the same time, Industry 5.0 takes a much broader perspective than Industry 4.0, so the term ‘Industry 5.0’ is also justified.

5.2. Understanding of sustainability, human-centricity, and resilience in Industry 5.0

One of the central perspectives of Industry 5.0 is the combination of sustainability, human-centricity, and resilience. One could argue that human-centricity has been an inherent part of the societal pillar of sustainability and that a differentiation of human-centricity from sustainability is not unambiguously allocatable. The contextualisation of the human-oriented and society-oriented aspects within Industry 5.0 is therefore a new and relevant research area.

Resilience in the framework of Industry 5.0 is spread over the levels of individual manufacturing plants, supply chains, intertwined supply networks, and human-centric ecosystems. Moreover, resilience is supposed to be considered as an inherent property of efficient business-as-usual operations following the AURA framework. In addition, resilience in Industry 5.0 can be studied for different stressors ranging from an instantaneous natural disaster to long-term, global crises such as the COVID-19 pandemic. While the resilience of individual plants and supply chains is important at the level of disruptions of moderate severity, the consideration of severe crises opens the lens of viability, viable supply chains, and viable human-centric ecosystems. Resilience understanding at the viability level is a specific and new research area. Even if an individual supply chain can lose its resilience during a severe crisis, the whole intertwined supply network or the human-centric ecosystem should allow for some connectivity to secure the existence and provision of society with goods and services across different ecosystems.

Viability, sustainability, human-centricity, and resilience become integrated in Industry 5.0. This is a new and distinct context that comes with Industry 5.0 and needs further research to increase our understanding of the interconnections between sustainability, human-centricity, and resilience at the levels of organisation, management, and technology.

5.3. Business models and value creation

The principles of Industry 5.0 call for adjusting the existing business model designs and developing new ones. Novel organisational principles, management perspectives, and digital technology represent a large variety of opportunities to modify the existing business models and make them more resilient, sustainable, and human-centric. Digital technology can trigger new business model designs.

Value in Industry 5.0 spans the dimensions of profit, people, and society. In addition, value creation as a central pillar of Industry 5.0 should be aligned with the resilience, sustainability, and human-centric perspectives. First, the stage of value usage needs to be explicitly considered in the business model designs. Second, resilient and sustainable value co-creation in digital business ecosystems is an important and relevant research area.

Furthermore, the new research direction to ensure survivability on the ecosystem level can be related to the business model of supply chain as a service when large parts or even the whole supply chain can be outsourced to a third party. This model – i.e. the cloud supply chain, see Ivanov et al. (2022) – is closely linked to the digital supply chain – e.g. Amazon’s Fulfillment by Amazon business. In this setting, a Viable Supply Chain Model (Ivanov 2020b) and reconfigurable supply chains (Dolgui et al.  2020) can be considered as interesting research avenues to be applied under conditions of a shortage economy.

5.4. Multi-objective optimisation paradigms

On the operational level, Industry 5.0 spans three major perspectives: resilience, efficiency, and sustainability. In this setting, further development of multi-objective optimisation paradigms can be expected. For example, when designing an optimal supply chain network, a combination of resilience, efficiency, and sustainability indicators should be considered in the objective functions and constraints of the optimisation models. The ultimate objective is to equip decision makers with working tools that can be used to assess the resilience, efficiency, and sustainability of systems and processes to select the best one with consideration of all three dimensions. On the one hand, Pareto optimal approaches can be considered. On the other hand, even single-criterion optimisation (e.g. efficiency) with simultaneous computation of other indicators (e.g. resilience and sustainability) and informing managers about the resilience and sustainability of different efficient alternatives are also of utmost importance.

6. Conclusion

Industry 5.0 is a combination of organisational principles and technologies to design and manage operations and supply chains as resilient, sustainable, and human-centric systems. This combination of resilient, sustainable, and human-centric organisation, along with technologies for resilient, sustainable, and human-centric manufacturing and logistics, is unique and goes beyond the mere technological lens of Industry 4.0. While the general notion of Industry 5.0 has been positioned as a value-driven approach, its implications for future operations and supply chains remain underexplored. This paper contributes to conceptualisation of Industry 5.0 from the perspectives of operations and supply chain management.

Based on a cluster analysis of the existing literature on supply chain and operations resilience, sustainability, and human-centricity, we derived a framework of Industry 5.0 and contextualised it through the lens of the viable supply chain model, the reconfigurable supply chain, and business ecosystems. The generalised notions associated with Industry 5.0 have four major dimensions. First, the major technological principles of Industry 5.0 are collaboration, coordination, communication, automation, data analytics processing, and identification. Second, Industry 5.0 covers four areas: organisation, management, technology, and performance assessment. Third, Industry 5.0 spans three levels: society level, network level, and plant level. Last but not least, Industry 5.0 frames a new triple bottom line of resilient value creation, human well-being, and sustainable society.

The implications of Industry 5.0 are multiple and scattered across different dimensions and disciplines. We considered technology, organisation, process management, and performance perspectives; some other areas, such as quality management and new product development, can be considered in the future. Industry 5.0 navigates the development of manufacturing and supply chains into smart, flexible, and reconfigurable networks that are (re-)configured dynamically and capture global markets. Industry 5.0 allows for data-driven and dynamically and structurally adaptable manufacturing systems and supply chains to be able to react to changes in the demand and supply environment through the rapid rearrangement and reallocation of their components and capabilities. When utilised properly, Industry 5.0 can improve efficiency and productivity while increasing the resilience, sustainability, and viability of manufacturing and supply chains. Ultimately, Industry 5.0 enables the next generation of manufacturing and logistics in cost-efficient, responsive, human-centric, resilient, and sustainable supply chain networks spanning perspectives of operations and supply chain management, industrial engineering, computer science, and robotics and automation, and thus calling for multi-disciplinary research collaborations.

Acknowledgement

The author sincerely thanks organisers of IFIP APMS 2021 and IFIP PRO-VE 2021 conferences – Prof. Alexandre Dolgui, Prof. Xavier Boucher and Prof. Xavier Delorme for inviting him for keynotes. The discussions at these conferences have greatly contributed to the development of this paper. I further thank two anonymous reviewers who provided invaluable comments and suggestions to improve the paper through two revision rounds.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Data Availability Statement

Data related with this paper is available with authors and will be available upon reasonable request.

Additional information

Notes on contributors

Dmitry Ivanov

Dmitry Ivanov is a professor of supply chain and operations management at Berlin School of Economics and Law (HWR Berlin). His publication list includes around 380 publications, including over 120 papers in international academic journals and leading textbooks Global Supply Chain and Operations Management and Introduction to Supply Chain Resilience. His main research interests and results span the resilience and ripple effect in supply chains, risk analytics, and digital twins. He co-edits International Journal of Integrated Supply Management (IJISM) and is an associate editor of the International Journal of Production Research (IJPR) and OMEGA. He is Chairman of IFAC TC 5.2 “Manufacturing Modelling for Management and Control”.