In developing society 5.0 everything is interconnected. This type of society relies on series of concepts: automation, dematerialization, digitization, industrialization and servitization, which shake up economic and political life.
Society 1.0 was hunting and gathering society (sustainability), 2.0 is agricultural (inclusion), 3.0 is industrial (effectiveness), 4.0 is informational (knowledge) and 5.0 is intelligence with integration of physical and cyber space. The term first appeared in Japan in 2016. Society 5.0 will be based on industrial revolution 4.0 that is based on technologies like AI, robotics and 3D printing. New economy is characterized by the passage from a possession-oriented economy to a new economy, featuring a form of servitization. Sharing economy is even upgraded with platform economy.
If society 5.0 is to be build according to Japanese plan of super smart society, emphasis should be on science and technology. Even France had plan to build Factory of the future under Macron, plan that was wind down from 34 to 10 plans and then to 9. It would be build based on new resources, sustainable city, ecological mobility, transport of the future, medicine of the future, data economy, intelligent objects, digital trust and intelligent food.
Society 5.0 is closely connected to industry 4.0, city 3.0, communication technologies 2.0 and humanity 2.0. Important element of this transition is cybernetics (science of governing and managing information, with the goal of driving systems. It relies on: the notion of control, energy regulation and entropy reduction.
The decision variables in society 5.0 are information, distractions, identity, alienation and action. Information is deployed on two levels: the informational context and that of basic knowledge. We should look at the chain: need-desire-expectation-demand. Another important distinction we should be aware of is distinction between code-information and signal-information. A computer is a set of signals managed by algorithms, with a pre-established purpose. The information code is also called cognitive share of information. The signal information is an indication or a stimulus.
Distraction as one of the means for fighting boredom is also a source of activity in society 5.0. One of the characteristics of society 5.0 is the development of a distraction economy. The economy of entertainment is a real industry.
Globalization has sought to produce the same product for everyone. Society 5.0 is characteristic for the adaption of products to individuals via their identity and/or address. An address or an identity is a feature or a group of features whose function is to help locate information (particularly in memory) to identify a recipient or to locate a person or an object. In the case of identity, we are mainly in the domain of code-information.
Alienation, and particularly technological alienation is frequently put forward by those who oppose society 5.0. The question of action is important in society 5.0 because power is no longer derived from the possession of information, but stems from the ability to act. In society 5.0, acting becomes a source of happiness, pleasure and freedom.
Singularity is one of the concepts that is questioned in society 5.0. It means an unprecedent and irreversible mutation and is usually connected with development of machines. Humanity 2.0 will feature a fusion between man and machine.
Coexistence with nature as a popular concept of society 5.0 is bringing back bio. It is not ecological doctrine, but it is related to society 5.0 and features significant economic effects.
Two types of economies are leading the Internet:
- The relocation of traditional industries (3D printing).
- A social and solidarity economy (“Co” society).
Adaptability, agility, mobility and reactivity are key words in the life of society 5.0. Infrastructure, knowledge and skills are key resources.
We can talk about three level of any model. Strategic, tactical and operational. Strategy is the definition of objectives and goals. The tactic is the definition of the means to achieve these goals. The operational level refers to carrying out operations, with knowledge of the means and objectives, or goals, to be attained.
Current states have problems with financial deficit, obsolete social regimes and the distance of elites from the rest of population. But development of society 5.0 is blocked by walls (groups of people). Types of wall are:
- Government and its agencies
- Legal system
- Technological innovation
- Human resources
- Access costs
- User acceptance
For Fukuyama political decay is the result of the repartimonalization of government institutions. Repartimonialization is due to sponsorship within public service, political clientelism and industrial patronage (distribution of jobs to friends).
Main question in development is could individualism be a cause of democratic disintegration. Democracy is fragile because its functioning requires learning. Institutions and organizations should be simultaneously strong and flexible. This is why agility is important. This is why economy of knowledge is important.
Factory of the future will be a factory, not a virtual idea. From 1990 to 93 advanced countries went into recession. Political choices were to help consumption and real estate and politicians lost interest in industry and its factories. Globalization influenced power of industrial groups, some of them being taken over, production moving to cheaper Asian countries, China joining WTO, all those factors influenced decline of industry in advanced countries.
Location is losing importance in setting up industrial production. That is getting even worse with digital revolution, that of information technology 2.0. Society 5.0 might belong to a new industrial religion, an industry whose symbol might be the absence of a symbolic place, but also that of production carried out closer to the consumer.
Economic purpose of firm is profit. Profit = (price * quantity) – fixed costs – (variable costs x quantity).
The market is a meeting point between supply and demand. The economic purpose of the firm and of management does not make sense unless a market exists, even in society 5.0. Management is about means, structures and principles.
The hierarchical structure is the historical structure of the firm. It is characterized by the absence of economic logic in its organization and rather reflects a historical or family logic. The functional structure is an evolution of the hierarchical structure. The function serves as a foundation for the structure. Improved structures appeared in the early 1970s. The model of the matrix structure was promoted by Anglo-Saxson consulting firms in the 1970s. The Staff and Line structure is a combination of the functional and the hierarchical structure. The network structure is also called Structure Task Force. It is ideal structure for society 5.0.
Three visions (environment, function and structure) must be coherent. The determinants of the factory of the future are digitization and direct manufacturing. Four basic elements of industry 4.0 are:
- Decision decentralization
- Interoperability and automation
- Information transparency and virtualization
- Technical assistance
When we talk about direct manufacturing, we have in mind: 3D printing, continuous extrusion, numerical control programmable machines, automatisms and programmable robots.
Five types of factories of the future are:
- Factory 4.0 – integrated logistic chain
- The Key-Technology factory – highly differentiating process
- The Craft-Industrial factory – tailor-made production becomes industrialized
- The Client Drive factory – customer launches the process
- The Low-Cost factory – mostly operated in Open Source
Many current factory locations will be abandoned with factories of the future.
The transition from the product to different types of services is the decisive economic factor. Servuction, servitization and servicing are future terms that will be used a lot. CPPS means A Cyber-Physical Production System in which IT and telecommunication elements collaborate to control physical entities. Two important concepts of society 5.0 are information exchange and that of platform.
Cities 3.0 are often called smart cities, which is often a misnomer. Hypermodernity concept is talking about individual and his metropolitan condition, as well as his displacement. Transit-City is a program for reflecting upon the future city and lifestyles. The program aims to build bridge between areas as diverse as urban planning and marketing, retail and sociology and real estate development and transportation.
The link between vehicles and infrastructure is important for future development, especially for electric vehicle and autonomous one. 5G will play important role for exchange of information between connected objects and for passenger services. Some change in behavior can be expected. Like no need for driver license, buying a car or learn how to park.
Society 5.0 is about triple phenomenon: freedom, more control and the importance of communities. Freedom is one, but manifest itself differently depending on the circumstances according to Sartre. One of the goals of setting up society 5.0 is to focus more on facilitators rather than on resistance. The digital man or homo numericus, is a person, but does not represents all aspects of this digital world, because, as Sartre taught us, the digital is bound to situation. The notion of schema is one of the fundamental points of the construction of society 5.0. A single schema is made up of several data concerning an individual or a person. Mathematically, a schema can be represented by a vector. Three transformation of digital environment are based on: automation, dematerialization and intermediation. What characterizes the machine of society 5.0 is that handles data, at the time that it detects knowledge. One of the major elements of future management is the importance of data. Virtual reality, AI and robotics are also important parts of society 5.0.
Marketing will also evolve in society 5.0. In an industrial society, it is necessary to take not only the market’s influential forces into account but also the firm’s strengths and weaknesses, as well as the market’s threats and opportunities. There were four historical periods of marketing. First is when demand is bigger than supply and company is only focused on production. Second is when company needs to place itself in the market and marketing becomes important. Third is when market is saturated and competition fierce and differentiation is important. Fourth is use of data and consumer driven business.
Need, desire, expectation and demand are the four concepts that are closely intertwined in the marketing approach. A need is a lack, felt as dissatisfaction. Desire is the wish to see such need satisfied. Expectation refers to what the consumer expects. Demand is the only observable variable and it is also the key variable of economy. Marketing does not create needs. Desire is never the result of knowledge, of awareness, but of an impulse. Schopenhauer considered that life oscillates between pain and boredom. A great deal of boredom is due to repetition. The firms in society 5.0 will have to organize themselves in order to better satisfy customers, by using relevant data.
New managerial skills will be needed in society 5.0:
- Innovation economy
- Digital writing
- Artificial intelligence
- Collective intelligence
- Lobbying and influence
- Creating attention
- “Co” planning
- Globalization terminology
- Automated work and robotics
- Competitive intelligence, economic intelligence and mash-up
New markets are moving the focus out from consumption, while exchange value is migrating toward use value. Society 5.0 is demanding better customer services, so CRM is an unavoidable tool. Information retrieval and the gleaning of informational items are new actions related to the actors of society 5.0. redesign of relational architectures including the concept of platform will emerge. Customers will be caught into system, but abuses should be sanctioned.
Society 5.0 features a holistic vision of management. Sociocracy is the oldest model of management 5.0. Sociocracy is a mode of governance, based on simple tools, which allows an organization to operate effectively without a centralized power structure, according to a self-organizing mode which disseminates decision making. Term sociocracy was invented by August Comte. Holocracy is modern mode of sociocracy. Evolution of it. It is a governance organization system, based on a formal use of collective intelligence. From an operational viewpoint, it is a method that makes it possible to disseminate decision-making mechanisms throughout an organization by forming interconnected and self-organizing adequately sized groups.
Human management will also change and organizational hackers that will challenge things will rise. Important areas will be to place human at the heart of organization, to make work meaningful and to attain effectiveness. Two ways to move things forward are power and love. Power is about mobilization, energy and problem solving. Love is about engagement, collaboration and facilitates the understanding of situations.
Generation Y contributed its tools, the smartphone and the tablet, to the workplace, the Alpha generation entered the Robot scene and the Beta generation endorsed digital tools.
Skills are an essential factor for positioning individuals in society 5.0. The distinctive skills of a firm belong to its know-how. The notion of distinctive skills has often been referred to as “competitive advantage”. But today the notion of market and that of competition seem to be distorted.
The end of major innovations could have originated due to the fact that it is more complicated to meet the criteria of the society 5.0, which are sustainability, inclusion, efficiency and the power of intelligence. Technology has an influence on the way of life. Innovation will become increasingly related to a philosophy of marketing. Development of innovation can be seen from industrial revolution to mass production and globalization to industrial delocalization. Innovation should be directed towards use scenarios. Innovation is defined as the appearance of the product-service pair, achieving balance between viability, feasibility and desirability. Innovation balance is about:
Intersections between them are: use (viability and feasibility), technology (feasibility and desirability) and value (desirability and viability). Intersection between all is innovation. New forms of innovation in society 5.0 are social innovation and frugal innovation.
We need to establish trust between science and society. Today researchers are hooked in bureaucracy. And that is why so little daring research are done.
Design thinking is seeking a compromise that will make it possible to gain competitive advantage. Is a balance between logic and intuition, or even marketing philosophy? Design thinking is a discipline that employs sensitivity, designer tools and methods which help interdisciplinary teams to innovate by meeting user expectation, technological feasibility and economic sustainability. Stages are:
- Observation phase – identifying a problem and understanding its environment.
- Ideation phase – finding the concept or idea that will make it possible to find a solution.
- Evaluation – the assessment phase.
Methodology for launching a product or a service is needed in society 5.0. It is about creativity, interaction, evidence and expertise. The balance between the digital world and the search for the human element at the heart of the firm is necessary for the business to stay innovative.
Society 5.0 is response to the society of boredom. This component of society 5.0 is result of digitization and new modes of production (IT 2.0 and industry 4.0). those two bring reduction of necessary working hours. Types of boredom are: situational, saturation, existential and creative. Transgression and transcendence are elements at the heart of society 5.0. One to one marketing and data-based activities are tools of society 5.0. design contributes to innovation, but is not its source. It is there to respond to boredom, particularly the one linked to the shape of products. The form (Gestalt) theory is a theory that separates sensation from perception.
The relevance of technology use is based on criteria like: acceptability, accessibility, learnability, usability and utility.
Society 5.0 is characterized by: innovations in service or servitization, open innovation which is shared and frugal innovation. Today innovations are not only connected to existing products or services, but also to organizations. Platform economy is an example of this. Innovation processes can include ignition elements and catalysts. Catalysts can be living labs, Fab Labs and incubators.
Pathways to access new technologies:
- The internal creation of competence.
- Outside acquisitions
- Cooperation agreements
- External research contacts
- The outright copy and adaptation of products or services
Innovation is a synergy. Co-construction and co-acceleration are interconnected. Innovation sharing is a necessity for implementing “co” society.
Social networks and Internet websites are tools for accelerating business. Social networks are both a key element from business strategy and communication and a source of information.
In human resources co-working is one of the fundamental elements in “co” society and of society 5.0. It is based on a shared workplace and a network of organized workers.
“Co” society where co-construction, cooperation and coordination dominate, is a characteristic stage of society 5.0. Evolution of man through society:
- Society 1.0 – prosthetic man
- Society 2.0 – civilized man
- Society 3.0 – rational man
- Society 4.0 – information society man
- Society 5.0 – augmented man, improved man
Strategy is the way the firm chooses its battlegrounds and invests its resources in them. This helps it to maintain or improve its competitive position, based on current or future changes in the environment. The value chain refers to activities that create value (main and support activities) and the margin. Main activities according to Porter: internal logistic, production, external logistics and marketing and sales. Support activities: the firm’s infrastructure, HR management, research and technological development and supply. Three basic strategies are: cost advantage, differentiation advantage and concertation on a target-segment.
Focus strategy is based on segmentation. Variables could be: the different varieties of products, different types of customer, different distribution channels and geographic placement of the customer.
Since cooperation is important, we have three specific forms of strategic alliance: acquisitions, mergers and agreements. Agreements can be: R&D, production, distribution, licensing and cooperation agreements.
Every social revolution is characterized by a change in social relationships, which is a consequence of technical innovation. Society 5.0 seeks to detach itself from need for volume. Electricity, robotization and information technology have made the choice of location truly obsolete.
Knowledge and skills are important for society 5.0. Intellectual capital is made up of three elements: human capital, social capital and organizational or tactical capital. Human capital is based on creativity, education, expertise, intelligence and talent. Tactical capital is represented by patents, licenses, databases, procedures, organizational culture and systems, particularly, information systems. Social capital is the ability to cooperate, share information, learn from each other, interact and exchange, create alliances and use knowledge from unusual and diverse sources. Intellectual capital helps to characterize radical and incremental innovations, as well as frugal and social innovations. Formalized knowledge can be classified according to the following three approaches: demos, digests and automation.
With higher involvement of consumers or users in the production of goods and services. And when data are collected, they should really be handled properly. In order to create trust, the actors of society 5.0 transfer confidence to the relationship. A miraculous solution became generalized: rating. Commitments of user towards service platform and employees to organization are critical for society 5.0.
On-demand society finds its origins both in servitization and in a response to boredom. Society 5.0 is essentially an on-demand society. Servuction is a term that specifically refers to the production of services. It is essential element of marketing. Services design is now taking place of servuction. Servicizing means selling services rather than a product. Reducing transaction costs is the main advantage. Since many sectors have reached their limits in cost reduction, this concept is so popular. Rental rather than purchasing logic is gaining momentum. Rental is bringing the logic of availability and immediate pleasure.
Two models of companies’ EMS (enterprise manufacturing services) and ODM (original design manufactures). The two main points of servitization are visualization and virtualization, two techniques related to information and communication technologies.
European Commission project is SPREE part of Seventh Framework Program (FP7).
Separate wide audience platforms, destined to the largest number, from business platforms, which are introduced as a kind of service. The best platform is not the most efficient one, but the one that inspires the highest trust. Trust in the platform takes the place of trust in the brand.
The State should also access the logic of “co” society. Free economy is a recent characteristic of economy. Free opposed to advertising, free against data and a mix of two.
Forecasting is not applicable, because society 5.0 means disruption.