Digital transformation: The impact of 5G

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The impact of 5G on digital transformation

Definition of 5G technology:

5G is the next generation of mobile networks. It includes technologies and standards that increase data speed, responsiveness (lower latency), and the massive connectivity of wireless networks. 5G differs from 4G in the way that it has the potential to offer ultra-low latency, higher throughput per connection. Also, it has the ability to connect 100 times more devices per square kilometer as networks evolve. These are just some of the reasons 5G has a high impact on digital transformation.

What are the benefits of 5G?

Once 5G is fully developed and implemented, it has the potential to offer:

  • High bandwidth capacity (high speed, high data volumes)
  • Low latency (fast response)
  • Mass/machine connectivity (low data volume, many applications)
  • High availability (reliable, strong).

With ten times faster speed, the impact of disruptive 5G technology on the digital consumer landscape will be enormous.

There will be more connected devices, new data sources, new products and services, and new ways for brands to interact with customers.

Services such as smart manufacturing, connecting car through remote device control, self-driving cars, or the intelligent management of transport and energy resources will be developed. In addition, in rural areas, broadband coverage will reach high speeds, contributing to the reduction of the digital divide and the availability of digital public services.

According to a 2020 GSMA report, the global mobile industry economic contribution will be $ 4.9 trillion by 2025, as the fifth generation takes off.

Personalized customer experience:

5G technology will allow companies to collect, analyze and use data at a speed and scale that go far beyond today’s connectivity. Artificial intelligence technology will process more data and learn at a faster rate, becoming a comprehensive tool for delivering personalized customer experiences.

Brands will be able to use consumer preferences and behavioral information to deliver a highly personalized real-time shopping experience.

Immersive experiences will come first:

While virtual and augmented realities have made significant business progresses over the past decade, get upset even if there is a delay of 20 milliseconds. While the average latency of 4G is 50 milliseconds, 5G connectivity will reduce it to less than 1 millisecond. 5G technology will be able to process images at a speed beyond the human brain, these technologies will offer new opportunities for brands to provide immersive experiences to their customers.

5G technology will see platforms rise with more data and a greater demand for immersive content. 

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Improved customer service with IoT devices:

The increased reliability and speed of 5G connectivity will lead to an increase in both the number of devices that are connected and the ability to control these devices remotely. For example, smart appliances, such as hot tubs and refrigerators, will be able to communicate and predict maintenance or service requirements. By using diagnostic information from connected IoT devices, companies can reduce downtime and maintenance costs for their products.

In terms of distribution, it will be possible to trace shipments from the factory to consumers, which will lead to better supply chain management and will help customers to track their shipments.

Real-time analysis:

A higher number of connected devices and faster data processing will allow companies to access real-time analytics. In terms of marketing, 5G connectivity and AI automation will make real-time marketing optimization a reality.

mobile speed digital transformation

To conclude, it’s important to say that in spite of all the 5G benefits, it will not completely replace 4G. It is more likely that the two networks will work together in the future.

Not sure whether your company is ready to face the digital transformation? Count on a professional like OPP to help you with that! Don’t hesitate to contact us.

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