Understanding How 5G Can Benefit your Business

Small and Medium Businesses (SMB's) took a significant hit when the world shut down due to the COVID-19 pandemic. Many companies adapted through technology such as remote video, home broadband, and omnichannel sales software. But many SMB's could not pivot to a new framework. Now, 5G is set to facilitate the technology deemed as essential for business. 5G is a wireless standard used in the the latest generation of broadband cellular networks. One of 5G’s three main benefits, along with massive machine-type communication, is increased bandwidth. Early 5G implementations achieved up to 10 gigabits per second – 100x faster than current cellular data speeds. 5G makes crucial Internet of Things (IoT) technology accessible for SMB's.

The Time to Plan 5G supportive business architecture is NOW

As the recent Covid-19 pandemic bluntly demonstrated to small and mid-sized businesses: it takes a great deal of time, effort, and planning to implement information system infrastructure.  A company cannot switch from brick-and-mortar to e-commerce overnight. However, the past 18 months have shown that technology-driven businesses could quickly adapt succeeded during the pandemic. Planning for 5G adoption creates an advantage for companies: it leverages IoT to become more effective and productive.

Leveraging IoT

IoT connects devices and autonomous vehicles to industrial supply chains and machines. Companies looking to leverage IoT start first by identifying areas of opportunity such as customer retention, enhanced process efficiency, or organization-wide automation. Next, highlight data that is difficult to manage and analyze. Typically, this data is generated in large variety and volumes; and at great speed. Collecting this data is critical and can be challenging. Therefore, it is essential to recognize the right IoT technologies and detail how they fit into the business strategy.

IoT makes it possible to bring digital technologies together for SMBs and transform their businesses. The value of IoT, much like software, lies in the tangible benefits it can provide to the business. Therefore, one should ask oneself, how could a connection to technology and the internet elevate the existing processes in my business?

Cloud service providers

 The capabilities that 5G presents, specifically for data capture and dissemination, bring a requirement for cloud computing. IoT tools like wearable devices or remote sensors lack internal storage and gather vast data quantities. Cloud computing enables low-storage tools to function independently via 5G's low to zero latency. The combination of 5G and cloud technologies enriches the capacity, functionality, and flexibility of several industries. This combination allows network carriers to offer solutions in a way non-cellular IoT  network providers cannot replicate.  Here is how 5G's improvement of cloud technologies will benefit some innovations.

Managing 5G costs

Assessing the costs of 5G on a macroeconomic level shows that, according to PWC, "5G infrastructure is expected to cost Canadian telecom operators from 23% to 71% more than 4G. However, the broader economy will realize economic benefits, estimated to be "$40 billion in incremental annual GDP contribution by 2026, and around 250,000 permanent jobs." Connectivity is expected to account for 11% of the direct value generated from 5G. The remainder of growth will come from how businesses leverage new business models made possible by 5G.

On a Microeconomic level, 5G's high speeds, low latency, and ability to support applications such as augmented reality and 360-degree video means data consumption will increase. According to a consumer study done by Ericsson, "Future 5G average mobile cellular data usage could be 10-14 times that of today." The same survey noted that respondents average a mobile data usage of 8GB a month with current-generation technology. The respondents asked to use a 5G device averaged approximately 39GB a month, four times the original data average. This means that companies looking to reap the benefits of 5G need to ensure they have data plans that support their new infrastructure.

Making Artificial Intelligence/Big Data analysis for SMB's Accessible

5G's speed, low latency and capacity, support exponentially more wireless devices than ever before. This brings about Industry 4.0 and the true Internet-of-Things era, where any electronic device can become a data collector providing valuable insights. Individually, 5G and AI are game-changing technologies; together, they become truly transformative. With scalable bandwidth and remote computing power, 5G facilitates more data collection, while the proliferation of AI should harness this information to generate business intelligence.

SMB organizations can segment voice and video data from sensor data, so everything comes in at once when using 5G.  SMB’s can also store and analyze the data using cloud-based artificial intelligence and applications. SMB’s won’t need to install these technologies on-premises - or add information technology staffers to its payroll. 5G and AI will be invaluable for enhancing customer experiences. As a result, according to Research and Markets, global AI in the retail industry is forecast to grow annually by 34.4% from 2020 through to 2027. The result is more accessible communication, better visibility and insight into customer and industry trends, and increased productivity, which levels the playing field for SMBs.