The industrial world is undergoing an unprecedented change, radically transforming how companies design, produce, and distribute their products. After moving through various industrial revolutions—from mechanization to mass production, then to automation—we now stand at a decisive crossroads between the fourth industrial revolution and the emergence of a fifth paradigm.
While the previous model emphasized digitization, interconnection, and process automation, the new approach introduces a fundamentally different dimension: reintegrating humans at the heart of advanced technological systems. This evolution doesn’t represent a break but rather an enrichment that aims to create optimal synergy between machine capabilities and human creativity, while placing environmental sustainability at the center of concerns.
For business leaders, the question is no longer whether to undertake this transformation, but how to orchestrate it effectively to ensure their organization’s future competitiveness. In this article, we’ll explore the foundations of this crucial transition and how a robust ERP solution like JD Edwards EnterpriseOne, combined with specialized integrator expertise, can provide the ideal technological foundation for successfully navigating this strategic shift.
Understanding Industry 4.0 – Foundations and Limitations
The Technological Pillars of Industrial Digital Transformation
The concept of the fourth industrial revolution, born in Germany in the early 2010s, rests on four fundamental technological pillars that have revolutionized the manufacturing sector. The first pillar, the Industrial Internet of Things (IIoT), has enabled the connection of millions of sensors and smart devices capable of collecting and transmitting data in real-time. According to Gartner, the number of connected objects in industry exceeded 4.8 billion in 2024, offering unprecedented visibility into operations.
The second pillar, Big Data and advanced analytics, has transformed these massive volumes of data into actionable insights, enabling predictive maintenance and continuous process optimization. Automation and robotics constitute the third pillar, with increasingly autonomous and adaptive production lines capable of operating 24/7 with minimal human intervention. Finally, cloud computing and cyber-physical systems have created an environment where virtual and physical worlds intertwine, enabling advanced simulations and decision-making based on digital twins.
The convergence of these technologies has allowed companies to achieve unprecedented levels of operational efficiency, with productivity gains often exceeding 20% according to a World Economic Forum study. However, this evolution has sometimes come at the expense of other essential dimensions of industrial development.
Benefits of Digital Transformation
The adoption of advanced digital technologies has generated considerable competitive advantages for companies that have successfully integrated them. Process optimization has reduced downtime, with efficiency gains of up to 35% according to a Deloitte study. Reduced operational costs represent another major benefit, particularly through inventory reduction (20% on average) and lower energy costs (15-30%).
Quality improvement and traceability also represent significant advances, with manufacturing defect reductions reaching 60% in certain industries such as electronics or automotive. The ability to quickly identify the source of quality problems has drastically reduced product recalls and their associated costs. Finally, flexibility and mass customization have made it possible to respond to growing consumer demand for customized products while maintaining high productivity.
These benefits have transformed numerous sectors, from automotive to food processing, pharmaceuticals, and consumer goods. However, after more than a decade of deployment, the limitations of this technology-centered approach are becoming increasingly evident.
Limitations and Challenges of the Current Model
Despite its undeniable advantages, the current approach presents several structural limitations that have motivated the emergence of a new paradigm. The disconnection between humans and technology is perhaps the most fundamental criticism. According to a Gallup study, only 14% of employees feel engaged in highly automated environments, creating a paradox where technical optimization is accompanied by increasing dehumanization.
The ethical and social questions raised by massive automation remain insufficiently addressed. The International Labour Office (2023) identified that nearly half of industrial jobs will be significantly transformed by automation, requiring in-depth reflection on retraining and developing new skills. The environmental dimension constitutes another major limitation, with insufficient attention paid to the ecological impact of deployed technologies.
Finally, integration complexity and rapid technological obsolescence represent significant challenges for companies. More than two-thirds of them encounter major difficulties integrating their legacy systems with new technologies, compromising their return on investment and slowing their digital transformation. These limitations have led to a fundamental rethinking of the industrial transformation approach, paving the way for a new model.
The Advent of Industry 5.0 – A Human-Centered Revolution
Definition and Fundamental Principles
The new industrial model, formalized by the European Commission in 2021, represents a fundamental paradigm shift in the vision of the industry of the future. Unlike the previous approach that placed technology at the center, this new vision refocuses humans at the heart of industrial systems. According to the European Commission’s official definition, it “complements the existing approach by specifically highlighting the importance of research and innovation to support industry in its transition toward a sustainable, human-centered, and resilient model.”
The first fundamental principle is based on human-machine collaboration, where robots and intelligent systems are no longer intended to replace workers, but to augment them by taking over repetitive or dangerous tasks. This approach recognizes the irreplaceable value of human creativity, intuition, and emotional intelligence. According to the OECD (2023), this collaboration could increase productivity by 40% while significantly improving job satisfaction.
The second principle concerns integrating sustainability as a strategic imperative. Beyond energy efficiency, the new paradigm promotes a circular and regenerative approach. In line with European Green Deal objectives, industries must profoundly transform their processes and information systems to drastically reduce their carbon footprint in the coming years. Finally, advanced personalization and customer value constitute the third pillar, enabling real-time adaptation to consumer needs while maintaining productive efficiency.
Key Technologies of the New Paradigm
To realize this vision, the new industrial approach relies on a set of advanced technologies that transcend the capabilities of the previous model. Collaborative and explainable artificial intelligence plays a central role, with systems capable not only of making complex decisions but also of explaining their reasoning to human operators. According to IDC, investments in explainable AI are expected to grow by 25% annually until 2027, signaling the growing importance of this dimension.
Cobotics and intelligent assistance systems are transforming the work environment, with collaborative robots that adapt in real-time to human actions. According to a Boston Consulting Group study, the global cobotics market will reach $14.9 billion by 2027, with an annual growth rate of 41.8%. Advanced digital twins are also evolving, moving from simple virtual replicas to genuine simulation and prediction tools capable of anticipating problems before they occur.
Intuitive and immersive human-machine interfaces constitute another essential technological pillar, with augmented and virtual reality systems that facilitate training, maintenance, and complex operations. According to ABI Research, the adoption of these technologies in manufacturing will increase by 66% by 2026. Finally, green technologies and circular economy solutions are now natively integrated into production systems, enabling precise monitoring of environmental impact throughout the product lifecycle.
Expected Benefits of the New Model
The transition to this new paradigm promises significant benefits across multiple dimensions. Improved employee well-being and engagement represents a major advantage, with a reduction in repetitive or dangerous tasks and a valorization of specifically human skills. According to a Harvard Business Review study, companies that have adopted these new principles see an increase of 28% in employee engagement and a 32% reduction in turnover.
Significant reduction in environmental footprint represents another crucial benefit. According to the World Economic Forum, adopting new industrial technologies could contribute to a 20% reduction in CO2 emissions from the manufacturing sector by 2030. This dimension is particularly important in a context where environmental regulations are tightening, and consumers increasingly favor brands committed to sustainable development.
Accelerated innovation and value creation constitute a third major benefit. By freeing human capacities from repetitive tasks, the new model allows talent to be redirected toward innovation and complex problem-solving. Finally, increased resilience to global disruptions has demonstrated its importance during the COVID-19 pandemic and various supply chain crises.
Challenges in Transitioning to the New Paradigm
Technological Challenges
This transformation presents considerable technological challenges that companies must overcome. The first concerns integrating existing systems with new technologies. According to an Accenture study, 78% of current ERP systems are not natively designed to support the principles of the new model, requiring significant adaptations or complex migrations. This integration must occur without disrupting daily operations, constituting a major challenge for business continuity.
Data management and interoperability represent another significant obstacle. The new industrial vision requires perfect fluidity in information exchange between different technological layers—from IoT sensors to decision systems and human-machine interfaces. According to Gartner, only 32% of industrial companies currently have a data architecture mature enough to support this seamless integration.
Cybersecurity and sensitive data protection constitute a third major challenge. With the increasing interconnection of systems and the deeper integration of operational technology (OT) and information technology (IT), the potential attack surface is considerably expanding.
Organizational and Human Challenges
Beyond technological aspects, this transition raises fundamental organizational and human challenges. Developing new skills and continuous training of employees constitute a priority issue. According to the World Economic Forum, 50% of manufacturing sector employees will need to acquire new skills by 2025 to remain relevant in this new industrial environment. This massive upskilling requires substantial investments and an adapted training strategy.
Transforming corporate culture represents an equally crucial challenge. Moving from a techno-centered vision to a human-centered approach implies a profound revision of values, management practices, and work methods.
Reorganizing decision-making processes and management constitutes the third component of this transformation. The new model favors more horizontal structures, where decision-making is partially decentralized and teams have greater autonomy. This evolution disrupts traditional hierarchies and requires adopting new leadership models. According to Boston Consulting Group, organizations that successfully achieve this transformation observe a 34% improvement in decision-making speed and a 29% increase in innovation.
Economic and Strategic Challenges
The economic and strategic dimension of this transition also presents considerable challenges for business leaders. Necessary investments and return on investment constitute a major concern.
Reevaluating business models and value propositions constitutes another major strategic challenge. The new paradigm opens the way to economic models based on servicization, advanced personalization, or sustainability as a competitive advantage.
Regulatory compliance and adaptation to new standards represent a third challenge of growing importance. The European Commission has already announced several regulatory initiatives under the Green Deal and digital strategy that will directly impact industrial actors. The AI Act, the extended producer environmental responsibility directive, and new ESG reporting standards (CSRD) impose additional constraints that information systems will need to integrate. Non-compliance could result in fines of up to 6% of global turnover according to the AI Act, highlighting the importance of anticipating these regulatory developments.
JD Edwards EnterpriseOne – The Ideal ERP Solution for Industry 5.0
Architecture and Flexibility
Faced with the multidimensional challenges of this transition, companies need a particularly robust and flexible ERP system. JD Edwards stands out precisely for these characteristics. Its deployment flexibility constitutes a major asset, offering multiple installation options: on-premises, private cloud, public cloud (Oracle Cloud Infrastructure), or hybrid. This adaptability allows companies to adopt a progressive transformation strategy, migrating certain functions to the cloud while maintaining others on-premises according to their specific constraints.
Compatibility with various databases and infrastructures represents another significant advantage. This solution works with the main database platforms (Oracle, Microsoft SQL Server, IBM DB2), offering essential technological choice freedom in a constantly evolving environment. This independence from underlying infrastructures also allows optimizing costs and adapting to each organization’s specific technical constraints.
The system’s modularity and scalability perhaps constitute the most strategic assets in the context of the new industrial vision. With more than 80 functional modules covering all business processes—from finance to production, supply chain, and human resource management—this solution enables progressive and targeted implementation. Companies can thus concentrate their efforts on priority domains while preserving the overall coherence of their information system. This modular approach proves particularly relevant for managing the complexity inherent in this industrial transition.
Key Functionalities for the Industry of the Future
EnterpriseOne integrates advanced functionalities that directly respond to Industry 5.0 requirements. Specialized modules such as Manufacturing Management, Quality Management, and Environmental Accounting and Reporting are particularly relevant for collaborative production, integrated quality, and sustainability issues. The IoT Orchestrator module enables easy integration of data from sensors and connected equipment, creating an essential bridge between the physical world and information systems.
Advanced reporting and analysis capabilities constitute another major asset for this transformation. Thanks to its native integration with Oracle Analytics Cloud and its One View Reporting functionalities, the solution transforms operational data into strategic insights. These analytical capabilities are essential for effectively piloting environmental, social, and economic performance in a holistic approach characteristic of the new industrial model.
Mobile solutions, based on Oracle Mobile Platform, perfectly respond to the operational agility needs of this industrial vision. They allow employees to access information and interact with the system from anywhere, thus facilitating decentralized decision-making and real-time collaboration. This mobility is particularly valuable in an environment where human-machine interaction transcends traditional spatial constraints.
Finally, customization tools such as Form Extensions, Orchestrations, and Extensibility Framework allow fine-tuning the solution to each company’s specific needs without compromising system maintainability. This adaptation capability is crucial for developing the differentiating competitive advantages sought by companies engaged in this transformation.
Competitive Advantages for Industrial Transition
This solution offers several determining competitive advantages for companies engaged in this evolution. The stability and longevity guaranteed by Oracle Corporation ensure companies a secure long-term investment. With a continuous support commitment until at least 2031 and regular updates via the Continuous Delivery model, JD Edwards constitutes a solid foundation for a transformation that necessarily extends over time.
The ecosystem of partners and integrators constitutes another significant advantage. Specialized integrators like BHI Consulting bring essential business and technical expertise to align implementation with strategic transformation objectives. This combination of powerful software solution and targeted integration expertise allows considerably accelerating return on investment.
This platform’s innovation roadmap is particularly aligned with the new paradigm’s trends. Recent evolutions toward intelligent automation, native IoT integration, advanced analytical capabilities, and sustainability functionalities demonstrate Oracle’s commitment to evolving the solution in phase with emerging needs. According to a Nucleus Research study, companies using this solution obtain an average ROI of 188% over three years, with a payback period of 17 months, demonstrating concrete value in an industrial transformation context.
BHI Consulting’s Methodology for Successful Implementation
Strategic Approach
The success of a transformation project toward the new industrial model relies not only on choosing the right technological solution but also on the implementation approach. BHI Consulting distinguishes itself with a strategic methodology that begins with identifying pain points and transformation opportunities. This in-depth preliminary analysis allows targeting domains where the transition’s impact will be most significant, whether operational processes, business models, or user experience.
Our strength lies in our ability to align your strategic objectives with technical implementation. Thanks to our consultants’ dual business and technical expertise, we ensure effective translation of strategic ambitions such as carbon footprint reduction, employee experience improvement, or product innovation into concrete configurations and customizations of your system. This approach guarantees that each implementation aspect directly contributes to global transformation objectives.
The catalog of standard processes and best practices we’ve developed constitutes another major asset. This repository, built on the experience of more than 200 projects completed since 2010, allows significantly accelerating the design phase and reducing implementation risks. By presenting these standard processes during collaborative workshops, we facilitate identifying the “greatest common denominator” between your company’s practices and industry standards, thus maximizing system adoption while preserving value-creating specificities.
Project Management Methodology
Our methodology rests on proven principles, adapted to the specificities of your digital transformation. Collaborative workshops and user-centered design constitute the cornerstone of this approach. By actively involving end users from the project’s early phases, we foster system appropriation and early identification of necessary adaptations to optimize user experience—a critical factor in the new human-centered industrial philosophy.
Convergence toward best practices and standard adoption represents another fundamental principle. Rather than reproducing existing practices in the new system, we encourage constructive questioning of current processes in light of international best practices and the solution’s native capabilities. This approach not only maximizes technological investment value but also accelerates implementation and reduces future maintenance costs.
Agile governance and iterative implementation cycles we adopt are particularly adapted to complex transformation projects. By dividing the project into coherent phases with tangible deliverables, this approach allows quickly demonstrating added value, adjusting trajectory based on experience feedback, and maintaining stakeholder engagement throughout the project. This agility is essential in a context where technologies and needs rapidly evolve.
Finally, change management and team support are integral parts of our methodology. Recognizing that the human dimension is often the critical success or failure factor of a transformation project, we systematically integrate communication, training, and support activities, adapted to different user populations and their digital maturity level.
Specialized Support Services
We offer a range of specialized services that complement our implementation expertise. Our sector knowledge and mastery of business issues constitute a major differentiator, with consultants specialized in key sectors such as manufacturing, construction, pharmaceuticals, consumer goods, and luxury. This specialization allows fine understanding of each sector’s specific challenges and adapting implementation accordingly.
Our services of version upgrade and existing system modernization are particularly relevant for companies that already have the solution but want to evolve toward advanced functionalities necessary for their digital transformation. We accompany these transitions with a proven methodology that minimizes risks and ensures operational continuity, while enabling benefit from the most recent innovations.
International deployment and process harmonization constitute another expertise domain. Thanks to a structured approach and collaborative work tools, we facilitate deploying your structure globally, judiciously balancing respect for the central core model and necessary adaptations to local specificities, particularly regulatory and fiscal.
Finally, our Application Maintenance Services (AMS) and continuous support ensure the implemented systems’ sustainability and evolution. We offer different formulas, from on-demand support to AMS contracts with service level agreements (SLAs), allowing companies to maintain alignment between their system and evolving needs in the context of new industrial requirements.
Preparing Your Roadmap to the Industry of the Future
Digital Maturity Assessment
The first crucial step for any company wishing to engage in this transition consists of conducting an objective assessment of its digital maturity. This analysis must cover several dimensions: information systems and technical infrastructures, operational processes, employee skills, and organizational culture. We have developed a structured assessment framework that allows quickly identifying strengths to capitalize on and gaps to fill.
Self-diagnosis and identification of technological gaps constitute the first component of this assessment. This involves analyzing the existing application architecture, evaluating its integration level and its capacity to support advanced functionalities required by new industrial approaches. This analysis often reveals disparate systems, information silos, and obsolete technologies that constitute obstacles to transformation. Sector benchmarking and strategic positioning then allow contextualizing this assessment by comparing your maturity to that of your competitors and sector best practices.
Prioritizing transformation initiatives represents the culmination of this assessment phase. By cross-referencing gap analysis with your strategic objectives, it becomes possible to identify high-impact projects that will constitute the first steps of your roadmap. This prioritization must balance expected benefits, required investments, and risks associated with each initiative. Selected projects should ideally generate tangible short-term results while contributing to your long-term industrial transformation vision.
Building a Transformation Strategy
Based on the initial assessment, you must develop a coherent and ambitious transformation strategy. This approach begins with defining a clear vision and measurable objectives for the short, medium, and long term. This vision must precisely articulate your ambition: what place for humans in your industrial processes? What sustainability objectives? What differentiating value proposition for your customers? It must be sufficiently inspiring to mobilize the organization while remaining anchored in operational and economic realities.
Investment planning and resource allocation constitute the second component of this strategy. This involves establishing a multi-year investment plan covering not only technological aspects (ERP modernization, deployment of new technologies) but also skills development, change management, and process transformation. This plan must incorporate flexibility mechanisms allowing trajectory adjustment based on obtained results and context evolution.
Identifying technological partners and implementation specialists represents the third key element of your strategy. The complexity of this digital transition generally requires relying on an ecosystem of specialized partners. Choosing an experienced ERP integrator like BHI Consulting, with specific expertise in these new industrial challenges, often constitutes a critical success factor for your transformation.
Practical Recommendations to Start the Transition
To quickly concretize your strategy, several practical recommendations can be formulated. The first consists of identifying and implementing quick wins and high-impact pilot initiatives. These targeted projects, with limited scope but demonstrated value, allow generating positive momentum and reinforcing stakeholder adhesion. For example, automating a particularly time-consuming process or implementing a mobility solution for maintenance technicians can generate rapid benefits while concretely illustrating your future vision.
Team constitution and skills development represent a second priority action axis. This transformation requires new skills, at the crossroads of technical and business domains. It is often relevant to constitute multidisciplinary teams, associating business experts, IT specialists, and “digital champions” capable of bridging these two worlds. A structured training program must accompany this evolution, relying on innovative formats (micro-learning, virtual reality, reverse mentoring) adapted to different profiles.
Identifying performance indicators to monitor and measuring success constitute the third component of these practical recommendations. Beyond traditional operational and financial performance indicators, this new industrial approach requires monitoring metrics related to employee engagement, environmental impact, innovation capacity, and customer satisfaction. Implementing a balanced scorecard, integrating these different dimensions, allows effectively piloting the transformation and communicating on achieved progress, thus reinforcing organizational mobilization.
Conclusion
This transition toward the new industrial paradigm represents much more than a simple technological evolution; it’s a profound transformation of manufacturing philosophy that reinvents the relationship between humans, technology, and environment. This metamorphosis opens immense perspectives in terms of innovation, sustainability, and value creation, while posing considerable challenges to companies, on technological, organizational, and strategic levels.
To successfully navigate this decisive turning point, you must rely on solid and flexible technological foundations. EnterpriseOne, with its proven robustness, deployment flexibility, and functional richness, constitutes a particularly adapted platform to support this transformation. Its capacity to integrate emerging technologies, adapt to sectoral specificities, and evolve at the pace of innovations makes it a precious ally for your digital evolution.
However, technology alone is not sufficient. BHI Consulting’s expertise, built on more than 200 projects completed and a deep understanding of sectoral challenges, constitutes a determining success factor. Our proven methodology, combining execution rigor and agility, allows accelerating your transformation while minimizing risks. As our CEO Raphaël Samoun highlights: “A successful project ensures high data quality made available to decision-makers.”
In a world where innovation accelerates and societal and environmental expectations strengthen, this evolution is not an option but a strategic necessity. Companies that will embrace it, relying on adapted solutions and expertise partners, will not merely survive—they will thrive, creating sustainable value for all their stakeholders.
Ready to begin your transformation toward the industry of the future? Our experts are at your disposal to accompany you in this strategic approach.
