# Industry 5.0 – Making It Happen in the Agri Industry.
The Core Product Service Platform

Bjørnar Henriksen, Carl Christian Røstad, Maria Kollberg Thomassen

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Bjørnar Henriksen, Carl Christian Røstad, Maria Kollberg Thomassen. Industry 5.0 – Making It Happen in the Agri Industry. The Core Product Service Platform. IFIP International Conference on Advances in Production Management Systems (APMS), Sep 2022, Gyeongju, South Korea. pp.424-431, 10.1007/978-3-031-16407-1_50 . hal-05386104

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# Industry 5.0 – Making It Happen in the Agri Industry. The Core Product Service Platform

Bjørnar Henriksen, Carl Christian Røstad(✉), and Maria Kollberg Thomassen(✉)

SINTEF Technology Management, S.P. Andersens vei 5, N-7465 Trondheim, Norway
{carl.c.rostad,Maria.Thomassen}@sintef.no

**Abstract.** There is a gap between the “radical” visions for Industry 5.0 and the practical solutions, which are mainly based on enabling technologies, we have seen so far. We still need more practical guidelines and cases to get an understanding of how, or whether Industry 5.0 could be relevant as an approach for manufacturing companies to meet the challenges they are facing. This paper investigates how Industry 5.0 can be the reference for developing capabilities needed for meeting the increasingly challenging market and sustainability requirements. To be able to capture all facets and effects of Industry 5.0, the sustainability, resilience and human centricity principles have to work jointly together aligned with roadmaps. This paper presents a platform for industry 5.0 capability development based upon literature that is tested in two firms in the agricultural industry. “The Core Product Service Platform” describing the products and services to deliver and capabilities needed to become an Industry 5.0 company.

**Keywords:** Human centricity · Sustainability · Resilience · Innovation capability

## 1 Introduction

### 1.1 Background

Manufacturing companies deal with an increasingly complex business environment that requires innovation capabilities. Industry 5.0, at least in theory, addresses this complex business environment, but requires development of certain capabilities.

Industry 5.0 is based on three core principles; resilience, sustainability and human centricity. Even though human centricity to some extent represents a new perspective, these principles are well-known within manufacturing. But as we dig deeper we see that when these three elements create synergies, the result could be companies heading for societal goals and not pure financial profit, hence representing something new. Industry 5.0 focuses on humans (workers, customers etc.) where their motivation for sustainable and responsible manufacturing could even trigger new broader perspectives in manufacturing resulting in new innovation capabilities.

How to succeed in achieving this is challenging as over time, principles, methods and solutions must be developed and become capabilities that enable companies to move
purposefully in the desired direction. The challenge of being able to operationalize Industry 5.0 is something that is high on the research agenda also in the EU [1].

The literature is dominated by the overall theoretical perspectives and studies primarily focusing on enabling technologies. There is limited research addressing how principles may be adopted in a joint manner with focus on the value creation in the intersection between them to enhance competitiveness, based upon enabling technologies. There is a need to develop new solutions, methods and approaches for increased practical uptake of Industry 5.0 principles in industry, especially among SMEs.

## 1.2 Scope and Research Approach

This paper introduces a new concept, “The Core Product Service Platform”, that can help manufacturing companies enhance their innovation capabilities by adopting Industry 5.0. The concept illustrates how Industry 5.0 can be further developed and applied, focusing on the interrelatedness of principles and capabilities.

Cases from the agricultural technology (agritech) sector are used to illustrate the platform concept in a specific context. This paper is based on the research in two R&D projects “WRAPID” and “Feed Carrier”, both aiming to improve product development and long-term competitiveness. The importance of Industry 5.0 has increased during the projects’ timelines, although the concept had little focus at the start of the projects.

# 2 Theoretical Perspectives

## 2.1 Core Principles of Industry 5.0

Academics have brought forth the ideas of putting sustainability into practice, integrate human values with technology [3, 4], and the European Commission has released the important document “Industry 5.0: Towards a Sustainable, Human-centric, and Resilient European Industry” [5]. Industry 5.0 is based on human orientation, sustainability and resilience, with emphasis on considering elements in context, building culture, practical routines and solutions for creating synergies. It emphasizes employees as important drivers for change and the successful profit realization of technology. At the same time, the concept implies stronger focus on social responsibility, shifts focus from shareholder value to stakeholder value and reinforces the role and contribution of industry to society. Moreover, technology is highly integrated with organizations to develop a more competitive, sustainable and green industry, in healthy, robust and sustainable welfare societies.

**The human centricity principle** means that people are put at the center and take control of technology and innovation processes. Regarding employees, the principle implies not only to provide better processes and working conditions, but also so that employees as citizens are central for that the company becomes a positive contributor to sustainability and social development. This includes e.g. accountability and qualification of employees to take on new roles, and collective social processes and structures, which may refer to the «Norwegian Working Life Model» [2]. An important prerequisite is that the enabling technologies used in production are adapted to the needs and diversity of workers, instead of the worker continuously adapting to technology in constant
development. The human-centricity principle may be represented by digitally enhanced work, which is typically based on cognitive support systems such as decision support and context-based guidance, technology-supported learning, and sensor systems.

**The sustainability principle** implies that companies contribute to a positive societal development beyond the purely (short-term) financial results. The UN's 17 sustainability development goals provide definitions and guidelines for how to drive societal development. Sustainable production means reducing resource use, environmental damage and greenhouse gas emissions in manufacturing. In the long run, this will lead to economic growth, limit climate change and increase the quality of life for people. This means contributing positively to the local environment, but also regionally and globally, looking beyond the company's own production, also taking responsibility for value chains, supplier systems, usage patterns. It is thus stressed that a company's profit may have to give way to what serves society as a whole. Succeeding to do so not only require decision support systems capturing sustainability, but also people with motivation, skills and ability to decide and perform.

**The resilience principle** addresses a company's ability to adapt to adverse situations with positive results. Geopolitical changes and natural crises such as the Covid-19 pandemic reveal how fragile industries and supply chains may be. Resilience is also important for the individual company's ability to deal with changing market conditions. Adaptability, mass customization, modularity and product platforms are keywords. This principle reflects to a large extent enabling technologies defined in Industry 4.0. However, there is strong focus on technologies that support human-driven processes and more societal goals.

## 2.2 Innovation Capabilities

To succeed in creating values based on the core principles of Industry 5.0, a company needs to develop its capabilities. Capabilities reflect a company's ability, including for instance knowledge, skills, resources, motivation, and so on. The resource-based view of the firm highlights the importance of the use and configuration of resources available for a company's performance. A company may enhance its capabilities by using its resources for superior performance and Industry 5.0 can help to strengthen capabilities.

The innovation capability reflects a firm's ability to identify new ideas and transform them into new/improved products, services or processes that benefit the firm [17]. This is typically based on elements related to knowledge management, organisational learning, organisational culture, leadership, collaboration, creativity, idea management, and strategy [18]. When developing the innovation capability for a certain purpose or context, specific elements may be emphasized. For example in product-service systems innovation, key elements may include collaboration, innovation methodology, customer interaction, innovative climate, cross-functionality, network partners and competence building [20]. Within these dimensions, capabilities related to technology, organization, processes, routines and so on, provide a more concrete idea of how they become enablers and prerequisites for innovation.
# 3 A New Industry 5.0 Platform Concept

## 3.1 The Core Product-Service Platform (CPSP)

A company adopting Industry 5.0 needs a systematic and structured approach, encompassing not only the management team, but the entire organization and key stakeholders such as customers and other partners in the supply chain. A new platform concept is proposed to support the adoption of Industry 5.0 in the context of new products and services. The platform concept is based on the following elements:

* Establishment of a vision and objectives of future products and services based upon Industry 5.0 including sustainability, resilience and human centricity

* Identification of context-specific enabling methods, technologies and tools

* Identification of key capabilities required to fulfil the established vision

* Development of key capabilities to meet defined objectives by utilizing e.g. knowledge, skills, resources, enabling technologies

The proposed Industry 5.0 platform aims to serve as an engine for developing a company's innovation capability. Hence, the human centricity principle where employees are central driving forces in innovation and development is especially critical (Fig. 1).

<figure><img src="image_3.png" /><figcaption>Fig. 1. Overview of the core product-service platform (CPSP) concept in the agritech sector</figcaption></figure>
## 3.2 The Context – Creating a Vision for the Future Product and Services

To be able to move towards a sustainable, resilient and economically healthy future business, the case companies define clear visions and objectives that are common for the organization and stakeholders. A thorough understanding of the context and of future products and services is necessary to define relevant key capabilities and roadmaps.

The agricultural industry has a major role in contributing to a wide range of sustainability objectives related to for instance food security, animal welfare and soil conservation. EU's Farm to Fork strategy [8] points at sustainable food production, and how digitization of products and services must be able to be used by small and medium-sized farms in a sustainable, productive way that creates smart and flexible agricultural systems. The case companies' feed solutions are crucial in this regard. To succeed, they must take into account an increasingly complex interaction between nature, technology, organization and society's perspective, as well as how the current portfolio can be improved while realizing the next generation of feed product service solutions. Norway's work life is known for close collaboration between employees, unions and managers. The case companies are acutely aware of the importance of involving employees and customers in innovation and improvement activities.

When the companies jointly develop new feed systems in line with overall societal goals, a unique market position is created. However, they also need to have technology and processes that meet market needs that require close interaction with the customers (farmers). This is a major motivation for developing new product service feed systems based on Industry 5.0.

## 3.3 Industry 5.0-Driven Innovation Capability Development

The platform concept suggests to prioritize innovation capability elements where the Industry 5.0 core principles are jointly combined. Key elements including e.g. knowledge management, organisational learning, organisational culture, leadership, collaboration, creativity, idea management and strategy, that can be developed to enhance sustainability and resilience are thus important.

Creating sustainable agricultural product service feed systems based on Industry 5.0 requires the development of the innovation capability including key elements such as collaboration, innovation methodology, customer interaction, innovative climate, cross-functionality, network partners and competence building. These elements are typically represented in the Norwegian Working Life Model and in innovation processes in the case companies, where the whole organization is motivated and involved in development and improvement activities.

## 3.4 Enabling Technologies, Tools and Methods

The innovation capability should be developed so that it contributes to the company's desired future direction. The human centricity principle may provide support in the development of new sustainable products, e.g. in the design of new methodologies that employees can use for identifying environmental challenges, collecting and analysing
facts, and defining market opportunities. Another example is the involvement of cus-
tomers in the product-service development of new feed systems. To efficiently involve
production and shop-floor employees in the design for sustainable production is another
key element, as well as the motivation and ability of the whole organization to drive the
development of product-service systems including new technologies.

Industry 5.0 is associated with a wide range of enabling technologies that may support the development of a company’s innovation capability. Javaid and Haleem [6] list technologies considered particularly relevant in Industry 5.0, but mainly cover production and personalized products. The European Commission [9] highlights six key categories of technologies:

1. Human-centric solutions and human-machine-interaction

2. Bio-inspired technologies and smart materials

3. Real time based digital twins and simulation

4. Cyber safe data transmission, storage, and analysis technologies

5. Artificial Intelligence (AI)

6. Technologies for energy efficiency and trustworthy autonomy

Digitally enhanced work is also about the use of cognitive support systems, such as decision support and context-based guidance, technology-supported learning, sensor systems. Tools and technologies such as decision support systems, Life Cycle Assessments and predictive analytics, can offer knowledge, increase sustainability and foresee possible contingencies for instance related to the offered products, unexpected events or demand variations etc.

A company's processes, organization, roles and responsibilities of employees, knowledge management and performance management may be included in the development of Industry 5.0 innovation capability. The prioritization of sustainability and resilience in the entire company and among stakeholders may be challenging. This is due the complexity of adding social, cultural and to some extent political aspects in addition to human centricity to the manufacturing context. This means that enabling technologies are not enough. Instead, companies need a variety of tools and solutions to adopt Industry 5.0. Patience is also required as changes of human, social and cultural elements is a maturation process.

The case companies seek to adopt Industry 5.0 in practice supported by the proposed Core Product Service Platform concept. This work involves different ways of using available data, technology, tools and solutions. However, even more importantly is defining specific principles, procedures and processes, based on human centricity, sustainability and resilience, that are adjusted to the companies’ contexts. It is also important to take into account that Industry 5.0 is about building a culture where the entire organization sees their activities, and contributes to decisions, in a broader societal perspective. Building such a business culture is challenging and takes time.

4 Conclusion

Industry 5.0 is relevant for many manufacturing companies to meet the challenging com-
petitive situation where resilience and sustainability are critical prerequisites. It is critical
to move from theory to practice to see how companies can take advantage of the concept. The proposed platform concept and approach emphasizes the development of a company's innovation capability, i.e. its ability to innovate and develop sustainable products and services. Capability elements related to human centricity is of particular importance to the adoption of Industry 5.0. The Core Product Service Platform is developed in two R&D-projects as a concept for developing companies' innovation capabilities in line with Industry 5.0 thus positioning the companies in a position to meet the challenging competitive situations. The new platform concept is developed to support concretization and adoption of the Industry 5.0 concept. Further research is needed to increase the uptake of Industry 5.0, especially how the concept can be applied for dealing with many of the challenges that manufacturing companies are facing, as well as its implications.

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