City 5.0

Abstract

of restrictions 1 The Notion of 4.0 and 5.0: From Smart Production to Smart ConsumptionOver the last decade, the notion of Industry 4.0 has become the overarching design paradigm for the comprehensive digitization of manufacturers.Primarily represented by the idea of smart production, Industry 4.0 symbolizes an environment in which digital technologies like robotics, the Internet of Things (IoT), advanced manufacturing, and data analytics facilitate a highly flexible production environment.This environment has led to the development of factories in which traditional limitations of production are disappearing.First, the shortfalls of human labor and their impact on production quality are largely eliminated by extensive automation.Second, the long-lasting economic restrictions related to small lot sizes evaporate, and the goal of a cost-effective 'lot size one' becomes feasible because of highly adaptive, robotic processes and machinery, as well as entirely new forms of production (e.g., 3D-printing).Third, latency costs (e.g., delayed sensing of a machine problem) are also disappearing as built-in sensors provide continuous and even predictive insights into the status of the production environment.Although Industry 4.0 (Lasi et al. 2014) can be seen as the 'industrial revolution' of the digital age, it is largely invisible from the viewpoint of a citizen.Its main benefits are new levels of cost-effectiveness in a production system and previously unseen production flexibility, but the products themselves (e.g., cars and the experience in using them), are in most cases not fundamentally impacted by Industry 4.0.While companies around the world still strive to implement (parts of) Industry 4.0, the academic and professional discourse has already extended the goalpost by introducing the new symbolic notion of Industry 5.0.There are different interpretations of 5.0 in the industrial context, including closer collaboration between robots and humans (Nahavandi 2019; Ozkeser 2018) and democratization of knowledge (O ¨zdemir and Hekim 2018).However, an even more significant difference of the next generation of design paradigms is the shift from smart production to smart consumption (Kowalkiewicz et al. 2017).While 4.0 thinking tends to focus on production time, 5.0 focuses on the time and the experiences during the consumption of a product.Digital technologies like sensors and cloud computing have facilitated a 'continuous connectivity' between a product's provider and its consumer (Siggelkow and Terwiesch 2019) such that selling a product is no longer the end of a relationship, but the beginning.Traditional production principles, such as make-to-order and make-to-stock do not sufficiently reflect this possibility.As prominent examples like smartphones and Tesla cars show, products can instead follow a make-to-evolve paradigm.These products are upgradeable and continue to develop new capabilities tailored to a changing context and the users'

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