Boosting the Firm Transformation in Industry 5.0: Experience-Agility Innovation Model

Abstract

Industry 5.0 brings collaborative and automatic environment, thus creating a new paradigm for companies in doing business. The way organizations manage resources and capability, especially in relationship with people, culture and process in creating new business models have changed. Previous studies on developing innovation based on customer experience and agility of organization focus on the concept, relationship among variables and the implication. However, in the context of industry 5.0, the study on those topics has not been revealing. Hence, this study aims to assess the concept of experience-agility innovation model to support transformation in the context of digital transformation to face Industry 5.0. The proposed model was assessed with 195 Indonesia ICT firms using SEM-PLS statistical tools. The findings demonstrate that the firm that offers compelling value proposition from customer experience while concurrently developing agility in the organization to create business model innovation could boost the transformational performance. For further researches, the study can be enhanced through expanding the model, sample, and time

Industry 5.0 Beyond Technology: An Analysis Through the Lens of Business and Operations Management Literature

“…Some concerns started to grow, such as the lack of knowledge and skills to operate and manage a technological world leveraged by I4.0 initiatives (Correia Simões, Lucas Soares, & Barros, 2020;Nahavandi, 2019). How to build a business model and implement human-centricity as a cultural mindset while guaranteeing organizational agility in the context of digital transformation has intrigued some authors (Mihardjo, Sasmoko, Alamsyah, et al, 2019). This study has investigated the literature on I5.0 and its study and discussion, until the present.…”

“…The literature that relates to this theme illuminates (though without answers) how a firm could innovate its business model and adopt human-centrism as its cultural mindset (Mihardjo, Sasmoko, Alamsyah, et al, 2019). It also presents some challenges that could influence business models-challenges in improving people competence, a culture of innovation and process regarding the use of technologies, customer experience based on collaborative platforms, and organizational agility .…”

“…Despite the articles in this review, recent research on I5.0 reveals gaps that still require study. The literature shows scant discussion of how a firm could innovate its business model and put humans at the center, as a cultural mindset that enables the firm to generate new business opportunities (Mihardjo, Sasmoko, Alamsyah, & Elidjen, 2019). This idea of human-centrism as a cultural mindset can change the experience of customers from the personalization of customization into mass customization (Mihardjo, Sasmoko, Alamsyah, et al, 2019).…”

“…The literature shows scant discussion of how a firm could innovate its business model and put humans at the center, as a cultural mindset that enables the firm to generate new business opportunities (Mihardjo, Sasmoko, Alamsyah, & Elidjen, 2019). This idea of human-centrism as a cultural mindset can change the experience of customers from the personalization of customization into mass customization (Mihardjo, Sasmoko, Alamsyah, et al, 2019). In this paradigm, enterprises have a new role for workers, namely, using technologies to serve people rather than the other way around (Breque et al, 2021).…”

Disruptive technologies for the transition of digital economies towards sustainability

“…Their significance is growing, and Europe leads in many scientific and technological areas. Many publications (Rada (2018); Vollmer (2018); Rossi (2018); Østergaard (2019); Mihardjo et al (2019)) conventionally called it the Fifth Industrial Revolution (Industry 5.0). This direction foresees the formation of a synergetic unity of a man and cyber-physical systems.…”