Industry 5.0 is rapidly transforming practices across businesses and industries. Digitalisation is breaking down barriers between sectors, eroding previous sources of competitive advantage and creating new markets and market competitors.
Businesses must act and respond faster than ever before, all the while dealing with ambiguity and constant change. Identification and capture of the productivity potential of new technologies will be critical to businesses’ competitive advantage, as will collaboration across value chains.
Manufacturing will become increasingly data-driven and the trend towards manufacturing businesses offering an ongoing service relationship beyond point of sale will intensify.
When everybody's job is likely to change to some degree, the characteristics of agility, resilience, and flexibility in people will be the key to successful organisations. Workers will need different skills, not just more skills. While some existing jobs may need to be reshaped, if adopted successfully and combined with positive organisational change and effective managerial practices, digital transformation itself will not necessarily be negative to the workforce.
Advancements in artificial intelligence, unprecedented computer power, the Internet of Things (IoT) and big data (among other technological progressions) are changing the nature of employment. While innovation may reduce labour demand in discrete industries and occupations, it also triggers a rise in labour demand in others.
To remain competitive and sustainable, it is essential that businesses retain the ability to utilise the most efficient organisational structures and methods of organising work, including retaining the flexibility to engage the forms of labour needed to compete effectively with ‘digital disruptors’.
Industry 5.0 necessitates a re-evaluation of traditional workplace relations strategies. Businesses must consider how the shift in workplace form, function and demographics may call for an entirely different strategic workplace relations framework.
Given the significant use of Enterprise Agreements within the manufacturing sector, businesses must also carefully consider the renegotiation of their agreements and consider opportunities for increasing flexibility in order to facilitate a new generation of industrial processes and technologies.
We know that innovation is about new and existing businesses creating new products, processes and business models. It is also about creating cultures that back good ideas and learn from taking risks and making mistakes.