Industry 5.0 and the digitalization of SMEs: a strategic imperative

January 12, 2024

digitalizzazione delle pmi, retuner, industry 5.0, digitalization of SME

The 5.0 transformation of production demands a new approach, accompanied by new technologies and methodologies. Setting an effective path for the digitalization of SMEs is thus possible.

Table of Contents:
  1. Digitalization and Industry 5.0
  2. Challenges
  3. Conclusions

In recent years, the world has witnessed an unprecedented digital transformation that has significantly impacted various economic sectors. Small and medium-sized enterprises (SMEs) play a crucial role in the evolution of the economic landscape as central actors in this technological revolution. The digitalization of SMEs has become a strategic imperative for competitiveness in an increasingly dynamic and technologically advanced environment.

SMEs represent the backbone of global economy. For example, approximately 211,000 small and medium-sized Italian enterprises account for 41% of the total revenue generated in Italy and constitute 33% of the workforce (source).

However, these enterprises often face challenges related to the lack of financial and human resources, hindering their path toward digitalization. In this context, the advent of Industry 5.0 emerges as a transformative element, offering innovative and sustainable solutions for SMEs.

Digitalization of SMEs and Industry 5.0

Industry 5.0 represents the fifth phase of industrial evolution, characterized by an increasingly close collaboration between humans and machines. Unlike previous phases, which primarily focused on automation and process efficiency, Industry 5.0 emphasizes synergy between human workers and advanced technology. This new paradigm is particularly suitable for SMEs, allowing them to fully exploit the potential of digitalization without sacrificing the human aspect of work.

Digitalization offers several key advantages for SMEs, contributing to improved operational efficiency, flexibility, and the ability to adapt quickly to changing market conditions. Digital transformation enables SMEs to optimize internal processes, enhance the quality of products and services, and reduce operational costs. Furthermore, digitalization opens up new market opportunities, allowing SMEs to reach global customers through online channels and digital platforms.

Industry 5.0, with its emphasis on human-machine collaboration, provides a balanced approach to the digitalization of SMEs. In this context, technology does not replace humans but supports and enhances their capabilities. SMEs can benefit from the implementation of advanced technologies such as edge computing, the Industrial Internet of Things (IIoT), and collaborative robotics to improve productivity and the quality of work.

Challenges in the Digitalization of SMEs

Despite the numerous advantages, SMEs face several challenges in adopting Industry 5.0:

  1. It is essential to have a clear understanding of the actual digitalization needs to avoid dissipating investments in unstructured initiatives.
  2. Identifying the most suitable technologies and solutions for the specific industrial sector is crucial.
  3. Structuring a coherent and effective transformation plan involves engaging partners with high vertical specialization


In conclusion, the digitalization of SMEs is an essential process to ensure their survival and prosperity in an increasingly interconnected and technologically advanced world. Industry 5.0 emerges as a key paradigm in this context, offering SMEs the opportunity to combine the power of technology with human creativity and skills.

With the right support and commitment from businesses and institutions, SMEs can fully embrace digitalization and thrive in the evolving industrial landscape.

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