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“Always forward, never backwards” has seemingly become the motto of the 21st century. We’ve witnessed firsthand how Industry 4.0 brought about the power of the Internet of Things (IoT), artificial intelligence (AI), automation, and Big Data in the business realms.
This era was the foundation for stepping into Industry 5.0, where we transition towards a more personalised and human-centric approach. Simply put, we’re entering a world where humans and technology can create greater synergy, blending human creativity and craftsmanship with the unparalleled capabilities of technological advancements.
This article delves into a brief overview of what you need to know about Industry 4.0, Industry 5.0, what this means for E-commerce, and everything in between. Let’s dive in.
Over the past few years, we’ve seen how advancements in AI and IoT have equipped e-commerce businesses to tailor an optimised customer shopping experience while streamlining operational processes through real-time data collection, asset tracking, and remote software updates, to name a few.
In addition, blockchain technology has also surfaced to level out the playing field for transactions by bolstering transparency and security in the supply chain by creating immutable ledgers to record transactions. This ledger, only accessible by designated parties, has been pivotal in building stakeholder trust and improving data integrity.
These are the key innovations in Industry 4.0 that shaped the E-commerce world we have been in for the past few years.
Consider Industry 5.0 as a better, upgraded version of Industry 4.0, which uses the same foundation that Industry 4.0 built with an emphasis on personalisation and sustainability. Here are the top key changes in e-commerce platforms that you should watch.
To give customers a more “in-store” experience, technologies within Industry 5.0 are harnessed to use data analysis, IoT, and generative AI to add the personal touch to customer service. This enables e-commerce companies to tailor product/service recommendations based on consumer preferences and behaviour.
Sephora’s utilisation of generative AI in beauty and cosmetics exemplifies this. They used conversational AI to bridge the beauty company’s Beauty Advisors and customers shopping online. This enabled customers to receive the product knowledge, recommendations, and order management they would get if they shopped in-store, emphasising intuitiveness through these technologies.
A highly digitalised marketplace also means higher risks of cyber threats as companies worldwide combat threat actors. There has been ongoing concern over data privacy and security when adopting AI, especially in the past year.
“AI is very much about trust, and trust and data cut across everything from security to data analytics to privacy to ethics,” says Alain Francq, director of innovation and technology at the Conference Board of Canada. This notion indicates the global movement towards a wider acceptance of AI adoption.
This would also mean we could expect new regulatory environments, safety standards, ethics, environmental sustainability, and guidelines for successfully and ethically adopting AI. Hence, this highlights how critical it is for companies to monitor regulations and policies regarding the practical use of artificial intelligence.
In the past, we’ve seen how a blend of machines, IoT, and AI can now perform mundane jobs involving repetitive tasks. This begs the question: How can humans adapt and evolve from this change? The answer lies in job transformation.
One thing machines can’t replicate from humans is fostering an organizational culture that emphasises innovation and continuous improvement. The resurgence of Industry 4.0 prompts companies to rethink ways to optimise their employees’ skills, strengths, and interests to promote their critical thinking skills and tackle more complex challenges.
The ongoing pace of technological advancements requires businesses to remain agile and regularly review and update their practices. This includes policies, staff training, budget distribution, and so on. It’s all about investing in the workforce to enable them to seamlessly adopt new technologies as we gradually shift to Industry 5.0.
Finding the sweet spot between technological leverage and the human touch is no walk in the park for e-commerce companies. It takes identifying the strengths and weaknesses of technology and humans to eventually complement one another, where you get efficiency out of technology and an enriched customer experience through the human element.
The growing shift towards localized production and distribution, with the facilitation of IoT and AI, enables companies to minimize their carbon footprint and enhance product delivery speeds. Today’s consumers are evolving, and so are their demands for more eco-friendly practices.
This prompts e-commerce businesses to rethink how to deliver products to customer doorsteps in a way that fulfils Industry 5.0’s sustainability goals and meets consumer demands.
As the world slowly shifts toward Industry 5.0, we see an enhanced harmony between humans and technology. When you read this, you know it’s no longer about who can buy and sell the most and the fastest; it’s about putting customers at the forefront through personalisation and sustainability.
Knowledge is not power but the potential to power; it becomes power when it’s used correctly. Learn more about how we at Lab42 can help you set up your business to thrive in Industry 5.0. After all, tomorrow belongs to those who prepare for it today, so prepare.
