Bernardo Nicoletti - Supply Network 5.0: How to Improve Human Automation in the Supply Chain

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I have studied and researched: operations and supply chain management. In the last few years, my interests have been very much in artificial intelligence (AI), machine learning , sustainability, and agility. When Bernardo asked me to write the foreword for his book on supply network 5.0, I was perplexed. After reading some chapters of his manuscript, I found it extremely interesting and was able to generate challenging ideas.

The supply network 5.0 approach can provide integrated Human Automation Machine Collaboration (HAMC) solutions to address emergent challenges. This approach requires a systematic consideration of a human-centric approach, advanced solutions (like AI), sustainability, and agility. Specifically, HAMC professionals should take a leading role in the human-centered design of the supply network 5.0 framework by providing explainable, comprehensible AI and useful, usable AI. Supply network professionals can also contribute to ethical AI design and AI technological enhancement. This book marries very well with the lessons to be learned and actions to be taken from my research.

The deep involvement of the HAMC community in these areas has yet to be fully realized but is necessary and urgent. To provide full disciplinary support for HAMC solutions, the work of the HMAC community should include research on human-machine integration/teaming, user interface (UI) modeling and HMAC design, transference of operations theories, enhancement of existing methods, and development of HMAC design standards. HMAC professionals should proactively participate in AI research and development to increase their influence, enhance AI knowledge, and integrate methods between the two fields to promote practical cooperation. It is crucial to research the applications of these theories to specific segments, like supply networks, as in Bernardos book.

Human-automation-machine interactions, mainly based on artificial intelligence and physical robots, are becoming a trend in the manufacturing industry. However, the development of the operations also demands effectiveness and flexibility in operations. The book by Bernardo moves in this direction by analyzing most of these ideas in the supply network.

Enterprise management theories about the so-called Industry 5.0 organization currently face a significant funding gap. Digital transformation has originated relevant advancements in Industry 5.0 research, which allows discussing Industry 5.0 organizations for the first time as business realities in which humans and automation, especially robotic process automation systems and artificial intelligence tools, cooperate in executing operations or support decision-making in sustainable and agile ways.

This book presents an extended Supply Chain Operations Reference (SCOR) design implementation for achieving a unified experience in advanced solutions. It aims to enhance comprehensively current design approaches (for instance, user-centered design, or UCD, approach) in delivering digital solutions to supply network organizations. It considers business process design in an integrated way; integration of design across data, platform, devices, and applications; and finally, sustainability and agile design that best allocates capabilities between humans, automation, and machines.

From the point of view of the supply network solutions, the book and the case studies presented on implementing the extended SCOR design approach provide supporting evidence. The book contains quantitative metrics demonstrating the return on investment regarding operational and unified experience benefits. Implementing the Industry 5.0 design approach requires a mindset change among operations managers and operators. They need to approach design from an end-to-end experience perspective, considering business processes, integration, and intelligent design in the early stages instead of employing the traditional approach that focuses on the interaction design portion of a solution. Additionally, supply network professionals need to seek more opportunities for collaboration across different disciplines.

This book aims to determine how an Industry 5.0 organization can be defined and its fundamental elements in the case of the supply network. Specifically, it investigates the pillars of Industry 5.0 enterprises: automation and humans, and the core objectives and outcomes. To provide an exhaustive overview, the book proposes a new conceptualization of the business model of an Industry 5.0 organization based on an extended SCOR framework. Ultimately, the study of Industry 5.0 organizations aims to discover how they are evolving in the new normal phase due to the disruptive events generated by the spread of the pandemic and the new socio-political-economic environment.

I suggest reading this book from start to end or going through some chapters, learning the proposed approach, and researching or applying its concepts and tools. This reading will help you in your professional and personal life.