Article: How lighthouse companies are pioneering Indonesia's Industry 4.0 and 5.0 revolution? A soft system methodology approach Journal: International Journal of Services and Operations Management (IJSOM) 2026 Vol.53 No.5 pp.1 - 38 Abstract: As industries transition toward Industry 5.0, organisations face challenges in balancing automation and digitalisation with human-centric and sustainable principles. Existing Industry 4.0 readiness frameworks primarily emphasise technological adoption while overlooking the role of operational excellence in facilitating structured transformation. This study develops a comprehensive transformation model integrating Soft System Methodology with the INDI 4.0 framework. The proposed model introduces a novel approach by embedding waste elimination, defect reduction, autonomous processes, and total productive maintenance as foundational enablers. This framework establishes a structured sequence for implementation, ensuring that operational excellence serves as a prerequisite for sustainable and adaptive digitalisation. The study highlights the interplay between management commitment, workforce adaptability, and digital integration, offering a pathway toward Industry 5.0. The findings provide actionable insights for policymakers and industry leaders in emerging economies, demonstrating how operational efficiency and human capability development can drive sustainable and socially responsible industrial ecosystems. Inderscience Publishers - linking academia, business and industry through research

Title: How lighthouse companies are pioneering Indonesia's Industry 4.0 and 5.0 revolution? A soft system methodology approach

Authors: Totok Kurniawan; Gatot Yudoko; Yuanita Handayati

Addresses: School of Business and Management, Institut Teknologi Bandung, Ganesha 10, Bandung, West Java, 40132, Indonesia ' School of Business and Management, Institut Teknologi Bandung, Ganesha 10, Bandung, West Java, 40132, Indonesia ' School of Business and Management, Institut Teknologi Bandung, Ganesha 10, Bandung, West Java, 40132, Indonesia

Abstract: As industries transition toward Industry 5.0, organisations face challenges in balancing automation and digitalisation with human-centric and sustainable principles. Existing Industry 4.0 readiness frameworks primarily emphasise technological adoption while overlooking the role of operational excellence in facilitating structured transformation. This study develops a comprehensive transformation model integrating Soft System Methodology with the INDI 4.0 framework. The proposed model introduces a novel approach by embedding waste elimination, defect reduction, autonomous processes, and total productive maintenance as foundational enablers. This framework establishes a structured sequence for implementation, ensuring that operational excellence serves as a prerequisite for sustainable and adaptive digitalisation. The study highlights the interplay between management commitment, workforce adaptability, and digital integration, offering a pathway toward Industry 5.0. The findings provide actionable insights for policymakers and industry leaders in emerging economies, demonstrating how operational efficiency and human capability development can drive sustainable and socially responsible industrial ecosystems.

Keywords: Industry 5.0; Industry 4.0; operational excellence; soft system methodology; INDI 4.0; Lean Six Sigma; LSS; readiness model; maturity model; digitalisation; sustainability; human-centric; resilience.

DOI: 10.1504/IJSOM.2026.151635

International Journal of Services and Operations Management, 2026 Vol.53 No.5, pp.1 - 38

Received: 01 May 2025
Accepted: 29 Jul 2025
Published online: 10 Feb 2026 *

Title: How lighthouse companies are pioneering Indonesia's Industry 4.0 and 5.0 revolution? A soft system methodology approach

Keep up-to-date