1、1|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric futureDecoding the Fifth Industrial RevolutionMarching towards a resilient,sustainable and human-centric future2|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustain

2、able and human-centric futureContents2.1.4.3.Six transformational shifts07PwC India research highlights03Steps for a resilient and responsible tomorrow23Industry 5.0 readiness:How companies can make these transformational shifts18According to PwC Indias latest research,93%of senior executives across

3、 six industries would like to be known for their sustainability initiatives,and yet achieve 2x to 3x profitable growth over the next three to five years.This is the Industry 5.0 paradigm.Sudipta Ghosh,Anirban Mukherjee and Raghav Manohar Narsalay give the lowdown.Prabha,an engineer in a heavy engine

4、ering plant,is at the control room.She receives a sudden alert on her cellphone about a potential machine failure on the shop floor and is informed that she has approximately 4 hours to handle the issue.The next instant she alerts her colleagues on the shop floor and schedules a call with them withi

5、n the next 30 minutes.On the call,her colleagues telecast the condition of the machine.The parameters of the machine are fed into its digital twin.With the help of the digital twin,Prabha simulates the scenario to find out what could happen,and course corrects accordingly to preempt the failure.Prec

6、isely 30 minutes prior to the machine failure,Prabha and her team succeed in taking corrective action and normalcy is restored.Simulation helps resolve the problem without any exposure to the hazardous site,and the swift action at the command centre helps increase the overall equipment effectiveness

7、.The prompt actions not only help save time but also reduce overall scope 2 and scope 3 emissions.A decade ago,this may have been probable;today,it is possible.1.PwC India research highlights3|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric fut

8、ure4|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric futureWelcome to Industry 5.0 or the Fifth Industrial Revolution that goes beyond efficiency to build resilience and sustainability with human-centric technology.While Industry 4.0 technologi

9、es helped achieve efficiency-driving automation,the focus of Industry 5.0 is on fruitful collaboration between humans and technology to drive sustainability and to make production and manufacturing systems more resilient to external shocks,and ready to respond to business challenges with agility.In

10、the past,the primary goal of industrial revolutions was to harness the power of technology to increase output and drive efficiency,often at the expense of human well-being and environmental sustainability.Industry 1.0 introduced mechanisation through water and steam power;Industry 2.0 brought mass p

11、roduction and electricity;Industry 3.0 ushered in the age of computers and automation;while Industry 4.0 integrated cyber-physical systems,the internet of things(IoT),and big data analytics to further automate and optimise industrial processes.Industry 5.0 builds a symbiotic relationship between hum

12、ans and advanced technologies such as artificial intelligence(AI),robotics and IoT,helping raise human productivity and opening new production possibilities that are automated,safer,sustainable and resilient.The automation it entails is in collaboration with humans to make the environment safer,sust

13、ainable and efficient for the human worker and for society at large.By making technology more human-centric both from a workforce and consumer standpoint Industry 5.0 paves the way for widespread adoption of digital technologies with a human touch,driving impactful collaboration among a wide group o

14、f stakeholders across businesses.Embracing Industry 5.0 necessitates that the C-suite especially heads of manufacturing,operations and supply chains prioritise the long-term wellbeing of their workforce,consumers and/or end-users along with environmental impact,while achieving both short and long-te

15、rm business goals.The questions that then arise are:Are leaders ready for this mindset change that places business goals on par with workforce sustainability and consumer expectations?Are businesses ready to invest and move to the next level to ensure a fine balance between business interests and wo

16、rkers safety?Are business leaders willing to factor in environmental impact in all that they do?5|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric futurePwC Indias research,conducted between May and July 2024 and covering 180 manufacturing senio

17、r executives from the automotive,cement,chemicals,industrial goods,metals,and textiles and clothing industries attempts to find answers to such questions.Though most industries in the manufacturing space are,to varying degrees,keen to maintain a fine balance between business interests,workforce resi

18、lience and overall sustainability of the ecosystem,not all have begun the Industry 5.0 journey.Executives were candid about their vision for their respective industries in the long term and highlighted the subtle but significant changes they have been observing among stakeholders in the ecosystem.Th

19、ey stated that consumers along with the workforce want them to prioritise sustainability in unequivocal terms.Most executives agree that their readiness pertaining to Industry 5.0 capabilities relevant for their customers,workforce,supply chains,business models,and ESG commitments would help enhance

20、 their revenues by 6.42%on an average over the next one to two years.Executives from the chemicals,cement,and textiles and clothing sectors believe that their sectors would,on adoption of Industry 5.0,be the most significant gainers with potential revenue expansion amounting to more than 7%.Most exe

21、cutives from the automotive and metals industries highlight that their customers are ready to pay a premium for innovative products and services.In textile and clothing,executives note consumer readiness to pay a premium for sustainable products.More than 95%of the respondents in the chemicals and i

22、ndustrial goods sectors are prioritising investments in real-time inventory tracking to optimise inventory levels,reduce stockouts,and minimise excess inventory,this year and the next.Inability to provide secure access to GenAI and similar such technologies to enhance workforce productivity is a cha

23、llenge for many executives across industries such as chemicals,textiles and clothing,cement and automotive.The following are the key findings that emerged from our research:6|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric futureFigure 1:The ne

24、ed to embrace Industry 5.0 is being experienced across industriesAutomotive,chemicals and metals:Over 80%of executives across automotive and chemicals envision that their industries will be admired for their actions to drive sustainability and employment and become one of the safest and most secure

25、industries for customers to engage with.That is because they see their workforce and customers becoming sensitive about the environmental and social friendliness of goods and products they produce and consume.Most automotive and metals executives highlight that their customers are ready to pay a pre

26、mium for innovative products and services.Cement:Executives in this industry over 90%are slightly more eager to be admired for actions taken to drive sustainability and employment.They believe it is only then that they would be able to align with a workforce that would,in turn,become increasingly co

27、nscious about health and safety standards while completing their tasks.Industrial goods and textiles and clothing:Nearly all executives within the industrial goods,and textiles and clothing foresee their industries becoming one of the safest and most secure industries for customers to engage with.Al

28、l those interviewed in these sectors agree that they see their customers demanding constant value addition and innovation.Six transformational shifts Delivering on the near-term financial and business goals while building a more sustainable,resilient and productive business with human-technology ent

29、ails making transformational shifts across the enterprise.Some companies have started the journey,while others are keen to invest,as our research indicates.2.7|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric future8|PwC Decoding the Fifth Indus

30、trial Revolution:Marching towards a resilient,sustainable and human-centric futureWhile the historical focus was on the ability to personalise products and workflow,organisations are now customising the entire experience to meet dynamic customer and workforce needs that include services,interactions

31、 and user experiences.1.From product personalisation to experience customisationFigure 2:Percentage of organisations for whom providing a seamless customer experience is a top investment priority for this year and the next 57%62%52%57%39%45%43%29%38%33%48%35%0%10%20%30%40%50%60%AutomotiveTextiles an

32、d clothingCementChemicalsMetalsIndustrial goodsNext year(%)This year(%)On an average,for 52%of executives across industries,providing seamless and connected customer experience across various touchpoints through automation and integration of technologies such as artificial intelligence(including Gen

33、AI and IoT)is an investment priority this year(see Figure 2).The lead taken by the automotive industry towards making this shift is well documented.A large Indian auto OEM started a pilot programme using GenAI capabilities for its product campaign,targeting the tech-savvy Gen Z user pool via an inst

34、ant messaging platform.Once the campaign was scaled up for key products,30%of the lost leads were recovered.The firm further integrated GenAI into its dealership experience,allowing customers to scan a QR code and connect with an AI bot to have engaging,human-like conversations to know more about va

35、rious products.The GenAI-based customer relationship management(CRM)and dealer management 9|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric futuresystem(DMS)applications provided substantial value to the sales team by generating custom sales pi

36、tches based on customer profiles.When it comes to experience customisation for the workforce,nearly 52%of executives on an average,across industries,said that their respective companies Figure 3:Percentage of organisations keen to prioritise investments in automating mundane tasks for this year and

37、the next 43%63%67%50%27%60%53%33%30%40%57%37%0%10%20%30%40%50%60%70%AutomotiveTextiles and clothingCementChemicalsMetalsIndustrial goodsNext year(%)This year(%)were prioritising investments in automating repetitive and mundane tasks this year.This is to allow employees to focus on more meaningful an

38、d value-generative work requiring creativity,problem solving,and critical thinking,leading to higher job satisfaction and engagement(see Figure 3).Predictive analytics has been a hallmark of Industry 4.0,enabling businesses to anticipate trends and make data-driven decisions.Industry 5.0 goes a step

39、 further by becoming preemptive as much as prescriptive,using intelligent algorithms and real-time data to model and simulate multiple corrective scenarios,helping businesses address potential issues before they arise.This proactive approach will enhance operational and supply chain efficiency,and r

40、educe downtime,leading to more resilient and responsive systems and in turn reduce human stress and improve shop floor safety.2.From predictive to preemptiveFigure 4:Percentage of organisations investing in responsive supply chains with real-time data and analytics for this year and the next 43%54%5

41、9%54%48%52%54%35%26%38%44%41%0%10%20%30%40%50%60%AutomotiveTextiles and clothingCementChemicalsMetalsIndustrial goodsNext year(%)This year(%)On an average,nearly 50%of executives in our research are channelising their investments to build responsive supply chains by factoring in real-time data and a

42、nalytics so as to check for potential disruptions and adopt prescriptive measures to mitigate risks,this year.Fifty-nine per cent in cement and 54%in chemicals and textiles and clothing industries are investing in building a responsive supply chain this year already(see Figure 4).10|PwC Decoding the

43、 Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric futureSome companies have already started on this journey.An Indian company,for instance,has embraced a data-driven approach to decision making and integrated IoT to accelerate its digital transformation.With thi

44、s setup,real-time deviations in process safety are detected and notified,allowing teams to take preemptive measures to avoid any potential safety incidents.Additionally,the incorporation of digital twins for its plants ensures that all information,specifications and processes linked to the equipment

45、 are digitised.By utilising real-time and historical data,market intelligence,and advanced Figure 5:Percentage of organisations prioritising investment in real-time inventory tracking and optimisation for this year and the next43%50%59%23%44%52%50%38%26%73%37%44%0%10%20%30%40%50%60%70%AutomotiveText

46、iles and clothingCementChemicalsMetalsIndustrial goodsNext year(%)This year(%)statistical models,including machine learning algorithms,the company generates accurate estimates at the depot stock keeping unit(SKU)level.Such optimisation ensures material availability while minimising procurement and c

47、onsumption costs.Nearly half of the executives surveyed on an average,with cement and industrial goods in the lead,are also prioritising investments in real-time inventory tracking to optimise inventory levels,reduce stockouts,and minimise excess inventory this year(see Figure 5).11|PwC Decoding the

48、 Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric futureWhile basic safety measures are usually adopted in industrial environments,it is efficiency that is often the driving factor.Industry 5.0 is designed to make the human-machine symbiosis deliver safer and su

49、stainable experiences for the workforce,consumers and the environment across the value chain.Figure 6:Percentage of organisations prioritising investment for this year and the next towards building mechanisms facilitating adoption of renewable energy sources,implementing energy-efficient practices a

50、nd reducing waste generation 37%57%70%70%40%67%60%33%23%30%50%27%0%10%20%30%40%50%60%70%AutomotiveTextiles and clothingCementChemicalsMetalsIndustrial goodsNext year(%)This year(%)3.From basic safety to overall sustainabilityMore than half of the executives in our research are prioritising investmen

51、ts this year towards building mechanisms to facilitate adoption of renewable energy sources,implement energy-efficient practices,reduce waste generation,and manage water usage responsibly through digital and other technologies(see Figure 6).12|PwC Decoding the Fifth Industrial Revolution:Marching to

52、wards a resilient,sustainable and human-centric futureA case in point is a large industrial engineering company that has outlined a vision for itself to ensure that 100%of its new products are more eco-friendly than the previous generation through effective collaboration with buyers,less waste,bette

53、r design for remanufacturing/rebuild,reduced emissions or higher efficiency.The company has already built many products that meet these criteria.Its new heavy earth moving equipment helps boost fuel efficiency and productivity,helping mines cut down greenhouse gas emissions.Diesel engines operating

54、the machines manufactured by this organisation can operate on bio fuels.With hydrogen showing promise as an effective alternative fuel for electricity generation applications,this company continues to be a part of projects that demonstrate the potential viability of hydrogen.In parallel,it continues

55、 to invest in infrastructure R&D to support the availability of renewable hydrogen.Its digitally connected assets enable its workforce and customers to work more smartly,productively and safely by using machine and engine data.The company has started harnessing connectivity technologies to provide r

56、eal-time smarter and sustainable solutions for itself and the industries it supports.13|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric futureA metals and mining company demonstrates its commitment towards training and skilling.The companys sys

57、tematic efforts have helped it set up geotechnical engineering teams at each site.These teams are essential in defining key mining parameters such as infrastructure location,excavation size and stopping sequence.They also monitor the rock masss response to mining activities,integrating closely with

58、the mining teams.To ensure the availability of mining geotechnical engineering expertise,the company has partnered with an engineering institute to train engineers and geologists in this specialised field.It is this collaboration that reflects the companys commitment to investing in its professional

59、 workforce and ensuring the sustainability of these critical skills for future mining operations.Functional maturity refers to the optimisation of specific processes and operations within an organisation,with a focus on efficiency.Industry 5.0 focuses on building organisational excellence,which mean

60、s reskilling and upskilling the workforce and talent to develop the ability to adapt to changing circumstances,and continuously innovate.This may also at times require efficiency to take a back seat to attain the desired level of long-term organisational excellence.The research findings reveal that

61、52%of senior executives,on an average,across industries are prioritising their investments this year towards building a culture of lifelong learning,providing opportunities for upskilling and reskilling employees to encourage experimentation and innovation at speed and scale(Figure 7).4.From functio

62、nal maturity to organisational excellenceFigure 7:Percentage of organisations prioritising investment for this year and the next towards building a culture of lifelong learning and providing employees with opportunities for upskilling and reskilling to encourage experimentation and innovation37%60%4

63、7%70%43%53%60%30%37%20%50%17%0%10%20%30%40%50%60%70%AutomotiveTextiles and clothingCementChemicalsMetalsIndustrial goodsNext year(%)This year(%)14|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric future15|PwC Decoding the Fifth Industrial Revolu

64、tion:Marching towards a resilient,sustainable and human-centric future16|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric futureA case in point is one of the leading companies crafting circular supply chains for strategic minerals such as cobalt

65、,lithium,molybdenum and tungsten.Rather than only achieving improved efficiencies through sustainable mining of such metals,it decided to consciously take an unorthodox route towards ensuring resilience and Traditional value creation entails identifying and exploiting opportunities for profit within

66、 existing frameworks.Industry 5.0 emphasises rapid value reinvention that implies continuously seeking new ways to create value in response to evolving market conditions and technological advancements.5.From punctuated value creation to rapid value reinventionFigure 8:Percentage of organisations who

67、 have prioritised investments into building capabilities towards driving rapid value reinvention,integration of advanced technologies and human expertise50%57%60%40%47%43%40%37%27%47%43%47%0%10%20%30%40%50%60%70%AutomotiveTextiles and clothingCementChemicalsMetalsIndustrial goodsNext year(%)This yea

68、r(%)Nearly 50%of senior executives,on an average,across industries are prioritising investments for integrating advanced technologies and human expertise to rapidly reconfigure and accommodate changes in product design or customer requirements,allowing for more customised and personalised manufactur

69、ing during the present year(see Figure 8).sustainability of the strategic mineral value chain.Combining the power of human intellect and digital intelligence,it developed digitally-enabled solutions to reclaim value from industrial waste with catalyst companies,helping eliminate end-of-life impact o

70、f its products.17|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric futureTodays smart cars are a case in point.They have 100 million lines of code and by 2030,this is predicted to reach 300 million.With cars evolving into sophisticated container

71、s of software providing mobility,entertainment and buying,they have become prime targets for cyberattacks.The Government of India has made it mandatory for automakers to install a cybersecurity management system in both passenger and goods carriers,in order to secure vehicles against potential cyber

72、attacks.The IT-OT convergence that began with Industry 4.0 will continue to grow in terms of scope and intensity in Industry 5.0 to form the extended IoT.More connected assets,workforce,consumers and enterprises through their lifecycle and across different product and service value chains will warra

73、nt intelligent and preemptive cybersecurity measures to ensure resilience,reliability and integrity of businesses,especially vis-vis their manufacturing processes and operations.Recognising these concerns,46%of executives on an average across industries are prioritising investments in the current an

74、d following year towards building capabilities aimed at protecting from cyberthreats manufacturing systems,data and intellectual property embedded in products manufactured to ensure the integrity and reliability of operations(see Figure 9).Figure 9:Percentage of organisations prioritising investment

75、s during the current and following year towards building capabilities for protecting manufacturing systems,data,and intellectual property from cyberthreats to ensure integrity and reliability29%42%63%58%33%52%50%46%15%31%56%37%0%10%20%30%40%50%60%70%AutomotiveTextiles and clothingCementChemicalsMeta

76、lsIndustrial goodsNext year(%)This year(%)6.From enterprise-wide protection to lifecycle cybersecurity measuresMoreover,emergence of as-a-service models within different industries(such as automotive,industrial goods)will create more IT touchpoints and endpoints needing 24x7 cybersecurity protection

77、.A large presence of unorganised players,across the value chain of industries such as textiles and clothing,and automotive components,with limited funds to invest in cybersecurity of their manufacturing and other operations,makes the larger supply chain of these industries susceptible to shocks due

78、to cyberattacks.18|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric futureOur research indicates that companies have already started building and deploying capabilities at scale towards driving these transformational shifts shaping the Industry

79、5.0 opportunity.While companies in each industry are prioritising the scaling up of relevant capabilities,there are certain capabilities that are a priority for businesses across most industries.Across industries,companies are building platforms and applications to facilitate sustained customer list

80、ening and feedback.Similarly,companies are seen to be actively scaling up technologies such as machine learning and IoT to enable real-time monitoring and feedback,allowing the workforce to adjust and improve their work,thereby building their continuous feedback muscle.In addition to the automotive

81、and metals industries,companies across the remaining four industries in our sample are scaling up mechanisms to facilitate the adoption of renewable energy.They are also implementing energy-efficient practices,reducing waste generation,and managing water usage responsibly using digital and other tec

82、hnologies,strengthening themselves in the space of environmental sustainability.Recognising the importance of freeing up workforce bandwidth to focus on more strategic and creative aspects of production,companies across industries are leveraging technologies such as robotics to streamline and optimi

83、se manufacturing processes at scale building their advanced automation capabilities.Industry 5.0 readiness:How companies can make these transformational shifts3.19|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric future1 The top three capabiliti

84、es against each of the seven pillars are the ones with highest ratios:(Percentage of respondents from each industry piloting and/or testing the capability)(Percentage of respondents from each industry deploying the capability at scale).Towards aligning supply chains to the changing consumer,workforc

85、e and ESG landscape,companies are scaling up the use of real-time analytics and AI to identify areas of improvement in terms of environmental impact,ethical sourcing,and social responsibility,to make informed decisions to reduce carbon emissions and optimise transportation routes.In response to the

86、increasing demand of customers and workforce for sustainable products and processes,companies across industries are designing human-centric value propositions at scale.This includes conceptualising products,services and experiences based on sustainable design principles,eco-friendly manufacturing pr

87、ocesses,and responsible supply chain management to minimise environmental impact.Recognising the need to reinvent for building human-centric value proposition-based products,services and experiences,companies seem focused on building operating models to provide opportunities for upskilling and reski

88、lling employees and create a lifelong learning environment that encourages experimentation and innovation at speed and scale.While companies are busy scaling up a host of capabilities,there are areas where they are finding it difficult to scale up and are stuck with pilots tested or not tested1 for

89、instance,digital twins and human-machine collaboration(see Table 1).Scaling up these capabilities is equally critical to succeed at driving transformational shifts shaping the Industry 5.0 journey and secure a return on investments.20|PwC Decoding the Fifth Industrial Revolution:Marching towards a r

90、esilient,sustainable and human-centric futureSectorsAddressing changing consumer behaviourAddressing changing workforce behaviourAddressing the changing ESG landscapeAligning manufactur-ing and op-erations with the changing consumer,workforce and ESG landscapeAligning supply chains to the changing c

91、onsumer,workforce and ESG landscapeBuilding robust business modelsBuilding robust operating modelsPillar 1Pillar 2Pillar 3Pillar 4Pillar 5Pillar 6 Pillar 7Automotive1.New consumer insight integration2.Personalisa-tion3.Preemptive analytics1.Digitised employee well-being2.Inclusion and diversity3.Hum

92、an-machine collabora-tion1.Consistent reportage2.Governance3.Tax and regulation manage-ment1.Digital twinning2.Augmented skilling and support3.Advanced automation1.Track and trace2.Increased visibility and trans-parency3.Continuous improve-ment1.Human-machine harmony2.Collabora-tive ecosystems3.Huma

93、n-centric cus-tomer value proposition1.Open and inclusive communica-tion2.Industrial intelligence3.Ethical and responsible foundationsCement1.Preemptive analytics 2.Seamless customer experience3.Co-creation and customi-sation1.Autono-my and empower-ment2.Collab-oration platforms3.Human-machine colla

94、bora-tion1.Tech debt manage-ment2.Consistent reportage3.Inclusion and diversity1.Cobots2.Digital twinning3.Digital threading1.Demand-driven networks2.Tax respon-siveness3.Responsive supply chains1.Human-machine harmony2.Collabora-tive ecosys-tems3.Human-centric cus-tomer value proposition1.Design an

95、d innovation centres2.Open collabora-tion3.Flexible and agile processesChemicals1.Preemptive analytics 2.Consumer data lake3.Real-time responsive-ness1.Autono-my and empower-ment2.Digitised employee well-being3.Human-machine collabora-tion1.Tech debt manage-ment2.Science tech3.Consistent reportage1.

96、Cross-functional co-innova-tion2.Augmented skilling and support3.Digital twinning1.Efficient inventory manage-ment2.Demand-driven networks3.Tax respon-siveness1.Flexibility and custo-misation2.Scaling at speed3.Human-machine harmony1.Ethical and responsible foundations2.Open collabora-tion3.Industri

97、al intelligenceTable 1:Top three capabilities in which companies are struggling to scale up to become Industry 5.0-ready*The top three capabilities against each of the seven pillars are the ones with highest ratios:(Percentage of respondents from each industry piloting and/or testing the capability)

98、(Percentage of respondents from each industry deploying the capability at scale).21|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric futureSectorsAddressing changing consumer behaviourAddressing changing workforce behaviourAddressing the changin

99、g ESG landscapeAligning manufactur-ing and op-erations with the changing consumer,workforce and ESG landscapeAligning supply chains to the changing consumer,workforce and ESG landscapeBuilding robust business modelsBuilding robust operating modelsPillar 1Pillar 2Pillar 3Pillar 4Pillar 5Pillar 6 Pill

100、ar 7Industrial goods1.New consumer insight integration2.Real-time responsive-ness3.Pre-emptive analytics 1.Human-machine collabora-tion2.Autono-my and empower-ment3.Digitised employee well-being1.Tech debt manage-ment2.Science tech3.ESG-integrated business and operating strategy1.Digital threading2.

101、Augmented skilling and support3.Cross-functional co-innova-tion1.Increased visibility and trans-parency2.Responsive supply chains3.Demand-driven network1.Secure and sustainable experiences2.Human-machine harmony3.Outcome-based profit models1.Open and inclusive communica-tion2.Open collabora-tion3.Et

102、hical and responsible foundationsMetals1.Co-creation and customisation2.Customer data lake3.New consumer insight integration1.Collab-oration platforms2.Digitised employee well-being3.Inclusion and diversity1.Science tech2.Active board3.Risk manage-ment1.Cross-functional co-innovation2.Digital twinni

103、ng3.Augmented skilling and support1.Increased visibility and trans-parency2.Track and trace3.Efficient inventory manage-ment1.Collabora-tive ecosys-tems2.Secure and sustainable experiences3.Human-machine harmony1.Design and innovation centres2.Industrial intelligence3.Flexible and agile processesTex

104、tiles and clothing1.Customer data lake2.Personalisa-tion3.Preemptive analytics 1.Autono-my and empower-ment2.Rewards3.Inclusion and diversity1.Consistent reportage2.Inclusion and diversity3.Risk manage-ment1.Augmented skilling and support2.Digital twinning3.Digital threading 1.Responsive supply chai

105、ns2.Tax respon-siveness3.Demand-driven networks1.Collabora-tive ecosys-tems2.Heightened personalisa-tion3.Human-machine harmony1.Flexible and agile processes2.Open collabora-tion3.Open and inclusive communica-tion22|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainabl

106、e and human-centric future1.Pre-emptive analytics:This entails using the power of analytics to anticipate customer needs and provide proactive service by analysing customer data and patterns.Deploying this capability at scale could help companies offer personalised recommendations,enhancing customer

107、 relevance and loyalty.2.Digitised employee well-being:This entails using technologies such as AI to provide personalised support and assistance,enhancing employee well-being and work-life balance.3.Human-machine collaboration:This includes tools and technologies to build a harmonious relationship b

108、etween machines(e.g.robots)and humans.Harmony between humans and machines can help nurture a work environment that fosters continuous learning,upskilling and reskilling to adapt to technological advancements,ensuring employee well-being,augmenting employee creativity and their problem-solving abilit

109、ies.4.Autonomy and empowerment:This entails motivating employees by providing them with autonomy and decision-making authority with the help of technologies such as computer vision,GenAI,and augmented and virtual reality(AR and VR),thereby helping them take ownership of their work and contribute to

110、the organisations success.2 The capabilities highlighted in the table and identified in the list are the ones recurring across all or most of the six industries under each of the seven pillars.In case of a tie for the highest recurrence,all the relevant capabilities have been included in the list.5.

111、Consistent reportage:This equips companies to leverage big data,machine learning and other technologies to ease the regular capture of data and its publication of non-financial ESG metrices.6.Digital twinning:This entails the creation of a virtual replica or simulation of physical assets,processes o

112、r systems using IoT,cloud computing,data analytics and visualisation tools,allowing companies to test the resilience of operations under different conditions.7.Augmented skilling and support:This is built with AR overlays providing workers with real-time instructions,visualisations,and guidance duri

113、ng complex assembly or maintenance tasks,thus improving accuracy and reducing errors.8.Demand-driven networks:These are built with real-time data and analytics,allowing companies to drive more accurate demand forecasting.They also equip companies to produce customised products in smaller batches,red

114、ucing waste and inventory holding costs.9.Open collaboration:This allows for issue-specific collaboration with external stakeholders,including suppliers,customers,research institutions and startups,resulting in the creation of different types of open innovation platforms.At a cross-industry level,co

115、mpanies seem to find it challenging to scale up the following capabilities:223|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric futureAs our research indicates,several companies have embarked on the Industry 5.0 journey,although they may be at d

116、ifferent stages of maturity.Its time now for them to build and scale up capabilities that help them deliver value and move on this path to make the journey rewarding for all the stakeholders,including society at large.By their own admission,significant quantifiable value could be left on the table b

117、y not being party to the Fifth Industrial Revolution.When asked to assess the revenue their respective companies would have foregone in FY24 due to lower maturity on capabilities relevant to Industry 5.0 readiness in the context of their customer,workforce,supply chains,business models and ESG commi

118、tments,the weighted average number obtained from senior executives across sectors was 4.37%of their revenue.Executives from the chemicals,industrial goods,and textiles and clothing sectors believed that their sectors were the most potentially impacted,claiming revenue losses of more than 5%(see Tabl

119、e 2).The executives highlighted that their readiness pertaining to Industry 5.0 capabilities relevant for their customers,workforce,supply chains,business models and ESG commitments would help enhance their revenues by 6.42%on an average over the next one to two years.Table 2:Industry 5.0 readiness:

120、Revenue lost versus revenue to be gained3Sectors Revenue foregone(weighted average)Revenue to be gained(weighted average)Automotive3.10%5.98%Cement4.95%7.00%Chemicals5.51%7.05%Industrial goods5.21%6.36%Metals2.34%5.11%Textiles and clothing5.12%7.01%Average4.37%6.42%3 In our survey,industry executive

121、s were requested to estimate the revenues they would have possibly foregone during FY24 or perhaps gained in the short term,based on lower or higher maturity of Industry 5.0 capabilities.These responses were sought in the context of categories such as changing customer and workforce behaviour,changi

122、ng ESG landscape,and the ability of their manufacturing and operations and supply chains to respond to such changes.Executives identified a particular range for revenues either foregone or gained against each of these categories.Using the median values of the range identified against each category,a

123、 weighted average figure for revenues foregone and gained for each industry was determined.Steps for a resilient and responsible tomorrow4.Executives from chemicals,cement,and textiles and clothing believed that their sectors would be the most significant gainers with potential revenue expansion amo

124、unting to more than 7%(see Table 2).24|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric future1.Embrace a comprehensive data management programme to build a secure data core Data is at the foundation of building tangible business value with Indu

125、stry 5.0-relevant capabilities.With authentic and accessible data sets,Industry 5.0 capabilities such as preemptive analytics capable of helping companies offer personalised recommendations,or demand-driven networks allowing companies to drive more accurate customer demand forecasts can be deployed

126、at scale.However,collecting authentic data and making the best use of it continues to be a challenge for companies.For 50%of executives from cement and industrial goods along with 52%from automotive and 39%from metals,consumer data gathered lacks consistency and is not accessible on time for their f

127、unctions.Further,76%of executives from the textiles and clothing industry and a whopping 65%from industrial goods say that their companies find it difficult to convert disparate data from the data lake into actionable insights at speed and scale.Also,more than a third of executives from the automoti

128、ve and cement industry underlined the inability of manufacturing,product design and innovation teams to use each others data sets.To overcome such challenges,companies need to adopt a comprehensive data management programme to build a secure data core.Under the auspices of such a programme,the compa

129、ny must design,develop and deploy:Robust data quality,data-processing and data-sharing practices that help different functions access each others data securely with minimum procedures and latency.Technology platforms and data architectures that help functions build actionable insights from diverse d

130、ata sets.Moreover,it is imperative to institutionalise responsible data governance by ensuring data transparency,protection and auditing standards.We recommend five actions:Therefore,the key question is-how do companies build Industry 5.0 capabilities to be deployed at scale?25|PwC Decoding the Fift

131、h Industrial Revolution:Marching towards a resilient,sustainable and human-centric future2.Foster data-driven collaboration across functions and within ecosystems Equipped with a robust digital core,companies must continue to build a culture of cross-functional and ecosystem-wide data-driven collabo

132、ration.With more collaborative minds scattered across distinct functions and within ecosystems,Industry 5.0 capabilities such as digital twinning,which allows companies to test the resilience of operations and supply chains,and open collaboration,which allows for issue-specific collaboration with ex

133、ternal stakeholders,including suppliers,customers,research institutions and startups,can be deployed at scale.Fostering such a culture will help companies:Thread distinct functions towards making the best use of real-time data and other technologies currently a challenge for more than half the execu

134、tives surveyed from industries such as cement,chemicals and industrial goods.Reduce and gradually end friction between ecosystem partners and internal teams,resulting in the timely launch of products,experiences and solutions currently a challenge for companies,as identified by 47%of executives from

135、 the cement industry,43%from chemicals,30%from metals and 50%from the textiles and clothing sectors.The following are some of the steps that could be taken to consciously build a culture of data-driven collaboration across functions and ecosystems:The chief executive officer(CEO)must underline data-

136、driven collaboration as a top priority for leaders driving digital transformation in their respective functions,and create KPIs such as new products built/costs saved due to cross-functional data-driven collaboration to make them accountable for driving the same.Functional leaders must come together

137、 at regular intervals to conceptualise and execute cross-functional projects aimed at solving vexed business issues.The chief digital officer(CDO)must use cross-functional collaborations to enhance the quality and stability of the digital core.The chief financial officer(CFO)must prioritise funding

138、for business projects that drive cross-functional collaboration.Employees excelling at cross-functional collaboration projects must be publicly felicitated.3.Find business opportunities to make humans,machines and technologies work in syncEinstein once said,The only source of knowledge is experience

139、.This rings true in the case of building a body of knowledge towards transforming human-machine interaction to a humane-machine one.The ideal way for the workforce to recognise the benefits of such a collaboration first-hand is to make them work with machines with adequate care and safety.Only then

140、can the capability of human-machine collaboration towards building a harmonious relationship between machines(e.g.,robots)and humans be deployed at scale.Creating a business case to start a constructive dialogue between humans,machines and technologies could be the first step.This would help secure

141、the desired investment from the CEOs office towards the same,making training more substantive a challenge currently identified by nearly 60%of executives from the chemicals,industrial goods,and textiles and clothing industries.With training becoming more substantive and on-the-job,the workforce coul

142、d start experiencing how machines and technologies have the potential to complement as well as supplement their skills,helping them do their work faster and better.This could help alleviate apprehensions around machines(e.g.robots)and digital technologies leading to job losses a point highlighted by

143、 nearly half of the executives surveyed from the automotive and cement industries.Historically,machine and technology integration on the shop floors and operations happened with a top-down perspective.In the context of GenAI,the story would differ slightly.In this case,the bottom-up innovation focus

144、 will need guidance through adequate top-down guardrails.However,inability to provide secure access to GenAI and similar such technologies to enhance workforce productivity has bubbled up to be a challenge for many executives across industries such as automotive(30%),cement(53%),chemicals(77%),and t

145、extiles and clothing(57%).Companies need to address this challenge without further delay to deploy GenAI to build the capability of augmented skilling and support towards improving effectiveness and reducing errors across operations and supply chains at scale and to strengthen employee well-being,th

146、e digital way.The following are some actions that could enable companies to secure access to GenAI and similar technologies:Engage with partners that can build a customised front-end which leverages the advancements of large language models(LLMs).There is also a need to help employees appreciate the

147、 business and security risks of these technologies.Ensure that the security and confidentiality of the data is protected by empowering the workforce with tools and techniques towards measuring,monitoring and labelling training data.Celebrate the best practices that the workforce brings to the table

148、through gamification.26|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric future4.Design agile,responsible and secure innovation architecture The interests of the workforce and stakeholders in building customer-relevant,data-driven use cases and

149、solutions through cross-functional or ecosystem-based collaboration could suffer a setback if these solutions and offerings stay untested and do not translate into scalable solutions and products.This has been identified by 50%of industrial goods executives as well as 40%of automotive and chemicals

150、executives as one of the major challenges for companies readying themselves to build value with changing consumer behaviour.On many occasions,innovation architecture built by organisations is inflexible as it is largely relevant for mechanical products and serves the market dynamics of yesteryears.I

151、n such situations,teams are compelled to test the entire solution or an offering at one go.Such systems do not allow teams to either fail-fast or fail-forward.Moreover,such rigid architectures make continuous piloting and testing costlier and prone to wastages.The following measures may be taken:Tea

152、ms must embed the principles of agility,responsibility and security in their innovation infrastructure to overcome such a challenge.In practice,agile innovation involves breaking large solutions or offerings into smaller,manageable parts.Teams work in sprints or short cycles,allowing for quick adjus

153、tments based on what works and what does not.This approach helps organisations stay aligned with user needs and market changes part by part enhancing the chances of the larger solution or offering succeeding.Agile processes allow teams to stay flexible and responsive,helping them create value at eve

154、ry step at a lower cost and with less wastage.As a result,they keep uncovering factors that would make the solution or the offering work at scale.More importantly,agile processes are also seen to help greater stakeholder and cross-functional collaboration.As solutions and offerings both B2C and B2B

155、are becoming increasingly digital and software driven,such agile innovation architecture must be kept safe and secure.Testing of software and digital solutions on external platforms and in collaboration with partners can pave the way for intruders to sabotage the offering or the solution,as well as

156、the data core on which it is based.Companies must therefore adequately secure the innovation architecture from any digital and cyberthreats by building firewalls,intrusion detection/prevention systems,encryption protocols and incident response mechanisms.Securing the innovation architecture allows c

157、ompanies to provide their workforce with the autonomy and empowerment to take ownership of their work and take calculated risks using combinations of newer technologies such as computer vision,GenAI,AR and VR.27|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable an

158、d human-centric future5.Build a data-reporting and measurement culture around sustainabilityWhat gets measured gets managed.However,an important condition needs to be met for this principle to be put into practice,namely measurement needs to be done consistently and systematically.Unfortunately,a si

159、zeable number of executives interviewed across industries believe that this management paradigm is accepted more in spirit rather than in practice in the context of ESG data and metrics:63%of cement executives,60%of chemicals executives,and 40%of metals executives surveyed said that their companies

160、lack standardised reporting systems and tools to collate ESG data across functions.Complexities associated with consistent reporting of ESG metrics have been identified as a challenge by 63%of textiles and clothing executives,43%of metals executives and 33%of automotive executives.This challenge has

161、 a cascading effect.Inability to collate consistent ESG data across different functions and units comes in the way of functional leads integrating circular economy principles while designing products and packaging for easy recycling or repurposing a challenge encountered by 50%of industrial goods ex

162、ecutives.It does not allow them to conduct meaningful dialogue with stakeholders on embedding ESG considerations into the core business strategy and decision-making processes.That is a strategic challenge acknowledged by 40%of automotive executives.Without proper data,executives struggle to navigate

163、 the evolving regulatory landscape and comply with the same a challenge being faced by 37%of automotive executives,47%of industrial goods executives,41%of metals executives and 50%of textiles and clothing executives.28|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustain

164、able and human-centric futureThe inability to address this challenge jeopardises the collective long-term sustainability vision of these industries(see Table 1).The following actions could perhaps help address this challenge and its cascading effects.The CEO in collaboration with the chief human res

165、ources officer(CHRO)and the CDO/chief information officer(CIO)must seed a top-down data reporting and a measurement culture.This can be done by asking functional and unit leads to appoint data champions in their respective functions and units who would take ownership of ensuring that relevant data i

166、s measured promptly,stored safely,and shared with relevant teams without hurdles.Data reporting,management and application must be incorporated as a key KPI for reviewing the performance of function and unit leads.CDOs must celebrate data weeks where they can offer prizes to teams solving business c

167、hallenges associated with data measurement,management and its applications using the evolving palette of digital technologies.Typically,from an ESG standpoint,boards and CEOs must ensure that CFOs consciously allocate budgets towards collating relevant ESG data across various departments and subsidi

168、aries currently a challenge for 60%of cement executives,47%of industrial goods executives,43%of metals executives,and 57%of textiles and clothing executives.Allowing for more intuitive and efficient collaboration between humans and machines,Industry 5.0 could,in due course,usher in a clean,green,and

169、 responsible tomorrow,enhancing both economic and societal value.29|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric future30|PwC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric futureNotes31|P

170、wC Decoding the Fifth Industrial Revolution:Marching towards a resilient,sustainable and human-centric futureContributors to this report:Sudipta Ghosh,Anirban Mukherjee,Raghav Manohar Narsalay,Ankur Basu,Vishnupriya Sengupta,Arnab Chakraborty and Mohit PrasadEditorial support:Dion DSouzaDesign:Harsh

171、pal SinghSpecial thanks to:Manan TolatContact us:About PwCAt PwC,our purpose is to build trust in society and solve important problems.Were a network of firms in 151 countries with over 360,000 people who are committed to delivering quality in assurance,advisory and tax services.Find out more and te

172、ll us what matters to you by visiting us at .PwC refers to the PwC network and/or one or more of its member firms,each of which is a separate legal entity.Please see for further details.2024 PwC.All rights reserved.Sudipta GRaghav NAnkur BAnirban Mpwc.inData Classification:DC0(Public)In this documen

173、t,PwC refers to PricewaterhouseCoopers Private Limited(a limited liability company in India having Corporate Identity Number or CIN:U74140WB1983PTC036093),which is a member firm of PricewaterhouseCoopers International Limited(PwCIL),each member firm of which is a separate legal entity.This document

174、does not constitute professional advice.The information in this document has been obtained or derived from sources believed by PricewaterhouseCoopers Private Limited(PwCPL)to be reliable but PwCPL does not represent that this information is accurate or complete.Any opinions or estimates contained in this document represent the judgment of PwCPL at this t