Unlocking enterprise agility with 5G
Secure, flexible and reliable connectivity is the foundation for enhancing operational efficiency in enterprises. 5G unlocks enterprise agility, enabling a more dynamic response to shifting market conditions.
Key findings
Enterprises anticipate that their investments in digital transformation will yield positive outcomes.
Foundational technologies that utilize 5G’s benefits include WWAN, zero-trust security and SD-WAN, private cellular networks and neutral-host networks.
Manufacturing and retail are two key industries where 5G’s benefits are having a positive impact on operations.
Enterprises anticipate that digital transformation will yield concrete and measurable outcomes, particularly when it comes to operational efficiency. However, the business environments where these improvements must be realized are often challenging. Commonly cited obstacles include rising customer demands, supply chain constraints, insufficient operational insights and risks associated with competency, safety and security. In such scenarios, the selection of digitalization initiatives profoundly impacts the way enterprises operate, deliver value and foster new business opportunities.
An IDC survey (see Figure 22) of enterprise digital decision makers showed that improving operational efficiency was the top business outcome they expected to result from investments in connectivity technology as part of their digital transformation strategies. It was noted by 77 percent of the surveyed enterprises (that had invested in connectivity to drive operational efficiency) that key metrics improved by 11–50 percent.
This suggests that enterprise connectivity solutions, increasingly powered by 5G and coupled with AI automation and innovative applications, have the potential to contribute significantly to achieving increased operational efficiency.
Efficiency is enhanced through a wide range of successfully executed initiatives, which involve selecting and implementing the connectivity solutions that best meet specific needs. In this context, 5G – with its inherent capabilities providing low latency, high reliability and robust security – is effectively an enabler of enterprises’ transformations to becoming more agile, intelligent and innovative.
Foundational technologies that utilize the benefits of 5G include wireless wide-area networks (WWAN), zero-trust security and software-defined wide-area networks (SD-WAN), private cellular networks and neutral-host networks. WWAN enables connectivity at the edge of public and private networks, connecting people, places and things via routers, adapters and gateways.
A zero-trust security model protects access to the enterprise network from the internet, cloud services and private applications with SD-WAN optimized performance. Private cellular networks provide indoor and outdoor coverage supporting the most business-critical applications, offering new levels of control, reliability and integration into existing local-area networks (LAN). Neutral-host networks extend public 5G coverage in public-facing enterprise environments.
Figure 22: Results from Future Enterprise Connectivity Survey
Agile and intelligent operations advance businesses
Enterprises strive to boost productivity, drive efficiency, gain situational awareness and improve safety across their operations. Increasing operational efficiencies is at the heart of what can be viewed as an “internal domain” of digital transformation within enterprises. This is coupled with an “external domain” that centers around business growth, differentiation and premium customer experiences.
The key elements of digital transformation are mobility, AI, cloud and enterprise security. However, deploying these technologies at scale is impossible without a robust network. This is where 5G becomes essential.
5G networks offer the predictable latency, reliability and security necessary to deploy these technologies at scale. These networks increase operational efficiencies and enable enterprises to bring new products and services to market faster. For example, AI-powered automation can streamline supply chain processes, while 5G-enabled IoT devices can provide real-time operational insights.
With the right connectivity solutions, enterprises can become more intelligent and reactive to changing market conditions.
5G-powered manufacturing
It is increasingly important for manufacturers to access seamless, reliable wireless connectivity to reduce labor costs, boost productivity and track assets continuously, all while meeting sustainability goals. Traditional wired and Wi-Fi networks, however, are no longer sufficient to meet the growing need for speed, mobility, flexibility and security. As a result, manufacturers are turning to private 5G cellular networks.
Private 5G networks provide a host of advantages over traditional wireless networks, especially in challenging industrial environments, offering tangible benefits such as:
- Faster decision making and productivity: The ability to collect and process data more quickly enables manufacturers to make better decisions and optimize their operations in real time. Experiences from commercially deployed private 5G networks show that asset condition monitoring can lead to savings of up to 36 percent in maintenance and 51 percent reduction in downtime.
- Improved communication for real-time applications: Private 5G networks support applications like robotics and autonomous vehicles that require immediate feedback and action. Autonomous mobile robots (AMRs) can reduce labor costs by up to 46 percent and the 5G networks can increase AMR uptime by up to 49 percent.
- Enhanced worker safety and communication: Reliable connectivity improves safety protocols and ensures that critical communications can be transmitted without delay.
- Security: The use of dedicated spectrum and end-to-end encryption offers greater security than with Wi-Fi networks, making it easier to integrate with existing security infrastructures.
Real-world applications in manufacturing
Manufacturers worldwide are already reaping the benefits of 5G. For instance, a large global forklift manufacturer has transformed its production operations with private 5G and neutral-host solutions, improving efficiency and flexibility on the factory floor where Wi-Fi was suboptimal. At first, private 5G was used to connect scanners on the shop floor. However, over time this helped the company to prioritize the development of their overall digital transformation strategy, with 5G as the foundation for connectivity. Similarly, a large engine manufacturer in the US deployed a neutral-host and private 5G network to support advanced industrial operations across multiple facilities, with use cases ranging from automated guided vehicles (AGVs) to IoT and connecting workers. These examples highlight how 5G enables manufacturers to achieve greater agility and intelligence in their operations.
Retail business growth with 5G
Retailers are equally impacted by the need for seamless connectivity. From small stores to e-commerce hubs, the sector depends on connected devices, cloud applications and secure networks to manage customer interactions and business operations. Agile, reliable and secure network connectivity is no longer optional; it is a critical driver of success.
Traditionally, stores relied on wires for primary connectivity, but cellular-based solutions such as WWAN have proven to be more flexible, secure and reliable. These cellular solutions allow retailers to create robust primary, hybrid, or backup connectivity for fixed and temporary locations. In many cases, cellular is comparable to wired connectivity for speed and quality, making it an attractive option for retailers looking to enhance the customer experience.
Real-world applications in retail
Poor and unreliable connectivity can lead to loss of business. 5G ensures a robust network capable of managing high-traffic periods, supporting retailers’ seamless business continuity. It provides swift data access and enables real-time, efficient operations. A US-based fast-food restaurant franchise has deployed 5G-based connectivity to streamline business operations, creating a more responsive and flexible customer experience. Using 5G, they were able to place stores in locations that their competitors weren’t able to because of their reliance on fiber.
For big-box retailers, neutral-host networks bring another advantage: Seamless indoor coverage from all major carriers. This improves customer and worker experience while ensuring critical services, such as emergency communications, are always available. Many retailers are also expanding their services outside of traditional storefronts, with offerings like curbside pickup, where reliable connectivity is essential. Private cellular networks step in where Wi-Fi coverage may falter, ensuring that business-critical applications and devices can continue to operate smoothly.
Cases like these highlight how 5G can drive operational efficiency while enhancing business growth in the retail sector.
5G is the key to driving digital transformation in today’s fast-paced business environment. Private networks, WWAN, and neutral-host solutions provide the flexibility and security necessary to meet modern challenges head on. By embracing 5G, enterprises can unlock new opportunities for innovation, growth, efficiency and agility, ensuring they stay competitive in an increasingly connected world.