Why Leadership 5.0?

Technological advances have during the last centuries shaped the way the world changes. But the pace at which these changes occur is increasing exponentially.

 

To gain some perspective on the speed of advancement, the time lapsed during the beginning of the First Industrial Revolution in the 18th century and the start of the second industrial revolution was roughly a century. Then another 100 years passed before the beginning of the third industrial revolution in 1969. However, placing the start of the so-called Industry 4.0 in 2011, it only took approximately 40 years to start, and it is currently underway.

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Being consistent with this acceleration, Industry 5.0 is already being discussed and defined, and it is expected to come at great speed, accelerated by global events like the COVID-19 pandemic, which we have recently experienced. 

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With “smart manufacturing” and new technology in cyber-physical systems at its core, the main objectives of the current Industry 4.0 stage, are increased efficiency and flexibility of production. These are enabled by increased automation, digitalization and connectivity. The most relevant technologies that allow these changes are IoT, Cloud Computing, Big Data, Robotics, and AI.

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Nevertheless, the improvements in efficiency come along with important shortcomings. These inadequacies include a concern for environmental sustainability, through lack of environmental considerations, safety and invasion of privacy, global prosperity in spite of local inequality, potential loss of jobs due to automatization; and small and medium enterprises being at a disadvantage with big corporations due to more difficult access to the new technologies.

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Industry 4.0 representation:

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These issues have started the discussion on Industry 5.0. 

By definition, sustainability should be at the centre of the next revolution. And its goal is to increase collaboration between humans and smart systems, unlocking the potential of industrial human–robot collaboration. “Industry 5.0 is human-centric, sustainable and resilient.”

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Organizations such as the Directorate-General for Research and Innovation of the European Commission gather that “Industry 5.0 recognizes the power of industry to achieve societal goals beyond jobs and growth to become a resilient provider of prosperity, by making production respect the boundaries of our planet and placing the wellbeing of the industry worker at the centre of the production process”.

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

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Bearing that the pace at which the world changes is constantly increasing, corporations will only be as successful as their leaders are fast to adapt to new technologies, trends and global events. Success will come to industries that are more innovative and responsive to market changes. Future leaders will have to acquire the skills that allow them to meet the demands of Industry 5.0, such us enhancing the capabilities of human workers to complement technologies.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In view of the developing and ever-changing world landscape, economics and society, the government of Japan is exploring various resources to solve societal and environmental problems and achieve a more secure, smart and modern human-centered society, which they refer to as Society 5.0. Japan has already started a discussion and they are also developing a strategy to develop Leadership 5.0 in Industry 4.0 for Society 5.0.

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The basic principle of Society 5.0 is to keep human beings at the heart of the innovation and change. Thus, to have a more resilient society, the leaders will not only have to adapt to new technological advancements, but they will also have to change the way they lead in the organizations. The demands will get more complex, and ever evolving, which would mean that the leaders will have to adapt to agile methodologies and not rely on traditional approaches.

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Leadership 5.0 representation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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The business environment is a very challenging and evolving sphere. The last 2 years have been the most recent and living proof of the uncertainties that lies in the Global Market of business. To cater to the new and changing market, ENI Corporate University on behalf of the World Economic Forum developed a program to target young industry leaders who would be leading the business to Leadership 5.0 in Society 5.0. This program is called “Leadership 5.0: An Agile Mindset for a Digital Future” and it incorporates four core principles into the learning:

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1. Diving deep into Context: Mastering and learning about all the driving factors in the business is important. These driving forces include Environmental factors, internal organizational factors, personal individualistic factors. All of these factors combined together affects the way an organization is run with all the internal and external stakeholders.

2. Skills and Competencies: Leaders will not just have to learn technical skills and competencies, but will also have to develop interpersonal skills to strike a balance between people and technology.

3. Constant learning and development: Leaders of tomorrow will have to constantly learn, unlearn and update their knowledge to evolve as a person. This will involve upskilling and reskilling.

4. Maintaining and creating connection to people: It will be important for the leaders to connect with the people so that the mission of the organization resonates equally through them. Since people will be at the heart of the Leadership 5.0, it is thus important to show the passion that the leaders have towards their mission.

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