Industry 4.0, 5.0, and Society 5.0
Industry 4.0, 5.0 and Society 5.0
Industry 4.0, also known as the digitalization era, transforms industries with smart machines/assets, sensors, and smart data collection processes. The Internet of Things (IoT) is leading this era, along with other technologies like Artificial Intelligence (AI), big data, cloud computing, and Cyber-Physical Systems (CPS). It improves automation, connectivity, and achieves higher productivity, quality, and efficiency. Smart factories have the ability to predict failures before they occur and accomplish tasks autonomously. They can also make decisions within minutes to hours based on real-time data, achieving a competitive advantage.
Society 4.0 is not a widely recognized term or concept in the same way that Industry 4.0 is. However, it can be interpreted as an extension or evolution of these ideas in the context of society and the broader implications of technological advancement.
Industry 5.0
Industry 5.0 focuses on humans and machines working together. Based upon personalization and the use of collaborative robots, workers are free to deliver value-added tasks for customers. This goes beyond manufacturing processes to include increased resilience, a human-centric approach, and a focus on sustainability.
Advantages:
- Creation of higher-value jobs.
- Greater personalization for customers.
- Improved design freedom for workers.
By allowing manufacturing processes to be handled through automation, workers can focus more of their time on tasks that require creativity and critical thinking.
Industry 3.0
Industry 3.0 was a huge upswing. Industries were administered by computers, electronic systems, information systems, and automation. This era was known for robotics because human tasks were highly performed by robotics, but the involvement of humans was also there in automation.
Society 4.0
Society 4.0 could be seen as the convergence of various technologies and their integration into all aspects of daily life and social systems. Key themes in Society 4.0 include:
- Digital transformation: A fundamental shift toward a digital, data-centric society where information and technology play a central role in shaping how people live, work, and interact.
- Hyperconnectivity: An interconnected world where people, devices, and systems communicate seamlessly, enabling new possibilities for collaboration and efficiency.
- Automation and AI: The widespread use of automation and artificial intelligence to perform tasks and make decisions, potentially transforming the job market and workforce.
- Data privacy and security: The need for robust data protection and cybersecurity measures to safeguard individuals and organizations from data breaches and privacy violations.
- Sustainability: A focus on leveraging technology to address environmental challenges and create more sustainable practices in energy, transportation, and resource management.
Society 5.0
In Society 5.0, cyberspace is not just a space for exchanging vast volumes of data. It also means a space created by computer networks for analyzing problems and modeling practical, real-world solutions. Key aspects of Society 5.0:
- Human-centered approach: Strong emphasis on the well-being and quality of life of individuals. It seeks to address societal challenges and improve the human experience through technology.
- Integration of physical and digital worlds: It envisions a seamless integration of the physical world and the digital world, often facilitated by IoT, AI, and big data analytics. This integration allows for real-time data collection and analysis to make informed decisions.
- Technological enablers: It relies on a range of advanced technologies, including AI, robotics, and more, to create new solutions and services that enhance daily life.
- Problem-solving and sustainability: One of the main goals is to address pressing societal challenges, such as aging populations and environmental sustainability, through innovative technology and data-driven approaches.
- Cross-sector collaboration: It encourages collaboration between various sectors, including government, industry, academia, and civil society, to drive innovation and develop holistic solutions.
- Economic growth and innovation: It is seen as a driver of economic growth and innovation, as it creates opportunities for new businesses and industries to emerge while improving the efficiency of existing ones.
Ethical and regulatory considerations: As advanced technologies become more integrated into society, there is a growing emphasis on addressing ethical and regulatory concerns, such as data privacy, security, and AI ethics.
Global perspective: Society 5.0 is not limited to Japan. It aligns with global trends in digital transformation and the adoption of technology to improve society.
Data and Information
Data consists of raw facts and figures. These have very little meaning until they are used to make calculations. The process of sorting or calculating data is called data processing. The result of data processing is information. Data only has value when it is served in the right format so that it can be read or consumed in another way, and more importantly, made accessible for people who need it, when they need it. This started to accelerate with the digital era. Since the first days of computers, methods were developed to make information readable and accessible.
Difference between data and information: Data is raw, unorganized facts that need to be processed. Data can be something simple and seemingly random and useless until it is organized. When data is processed, organized, structured, or presented in a given context so as to make it useful, it is called information.
Data is put into the information system (INPUT). The data is processed (PROCESS). Information comes out of the information system (OUTPUT).
Data Characteristics and Types
7Vs:
- Volume: Size of the data.
- Variety: The different types of data.
- Velocity: The speed at which the data is generated.
- Veracity: The trustworthiness of the data.
- Variability: Data flow inconsistency.
- Visualization: Making data readable.
- Value: Making data useful in decision-making.
Types:
- Quantitative: Measurable numbers.
- Discrete
- Continuous (Interval and Ratio)
- Qualitative: Non-numerical.
- Nominal
- Ordinal
Other Concepts
Collaborative economy: A marketplace where consumers rely on each other instead of large companies to meet their wants and needs.
Digital ecosystem: A network of interconnected digital technologies, platforms, and services that interact with each other to create value for businesses and consumers. Various elements such as software, hardware, data, and people work together to facilitate digital transactions, communication, and collaboration.
Customer Experience Management (CXM): The process of surveying, analyzing, and enhancing customer interactions with your business. CXM evaluates how you can improve the experience related to each interaction. It is a fundamental component of a customer-first strategy because it demonstrates a clear investment in customer needs.
Measuring CXM:
- Analyze customer satisfaction survey results.
- Identify the rate of and reasons for customer churn.
- Ask customers for product or feature requests.
- Analyze customer support ticket trends.
Marketing Concepts
Target Audience vs. Target Persona:
- Target Audience (TA): A traditional approach to identifying ideal customers. It points to a group of people that may be interested in your products or services.
- Buyer Persona (BP): An audience segmentation approach that uses real data to identify and define customers interested in your product. It gives your ideal customers a face, names, occupation, etc.
Archetypes: Used in marketing to define the personality of a brand connected to its consumers and to solidly communicate its value proposition. Archetypes in marketing refer to widely recognized and common patterns, symbols, or character types that represent certain qualities, values, or emotions.
Personas vs. Archetypes: Used for UX work, they contain similar insights, are based on similar kinds of data, and differ mainly in presentation. Personas are presented as a single human character, whereas archetypes are not tied to specific names or faces.
6 Laws on the Operation of the Customer Experience:
- Every interaction creates a personal reaction.
- Focus on the customer.
- Understanding the customer and sharing it encourages internal alignment.
- Uncommitted employees fail to engage customers.
- Generate a good atmosphere.
- Commit to the customer experience.
Phases of Digital Customer Journey Map:
- Awareness
- Consideration
- Purchase
- Service
- Loyalty
- Advocacy