Digital Transformation for Sustainability: Industry 5.0 in UK SMEs

Abstract

In the era of Industry 5.0, digital transformation presents a critical opportunity for UK small and medium-sized enterprises (SMEs) to enhance sustainability while driving business growth. This paper will explore how SMEs can leverage advanced technologies, such as artificial intelligence (AI), the Internet of Things (IoT), and collaborative robots (cobots), to achieve sustainable operational practices and meet Environmental, Social, and Governance (ESG) goals. By examining case studies of successful digital transformations within UK SMEs, the research will highlight strategies for integrating green manufacturing techniques, optimising resource use, and reducing carbon footprints. The study will also address the challenges SMEs face in adopting these technologies, including financial constraints, skill gaps, and regulatory compliance. Furthermore, it will discuss the role of government initiatives and support programs in facilitating this transition. The expected outcomes include a strategic framework for SMEs, policy recommendations, and insights into the positive impact of Industry 5.0 on workforce inclusivity and ESG performance. This research aims to provide a practical roadmap for UK SMEs seeking to navigate the complexities of digital transformation and underscores the importance of adopting innovative, sustainable practices to remain competitive in a rapidly evolving market landscape.

Keywords: Digital transformation, Industry 5.0, sustainability, SMEs

DOI: 10.54941/ahfe1005516