6 keys to digital transformation with the arrival of 5G

Digital transformation has been on the scene for more than a decade. However, a new scenario opened up for industries with the arrival of 5G. The invention of fifth-generation networks brought possibilities previously thought far-off. By 2025, five billion devices will be connected to the cellular network with unprecedented potential. 

Today, with the arrival of 5G in the market, which is no longer a trend or a pilot, but the standard in which applications run to optimize processes and provide greater security to the operations of all types of companies. It is the platform that generates and enables new businesses and catalyzes new dynamics in societies. Because, as happened with the emergence of 4G, the adoption of the fifth generation of networks will lead to an evolution and a gradual change in the customs and ways in which communities relate, work, do business, study and entertain themselves. And no one will be left out of this great transformation. 

What is certain is that companies must be clear, whether they are startups, SMBs or large companies, that the networks of the present - 5G networks are no longer a future, but a now - show truths that are fundamental to ensure their passage to complete digital transformation and adaptation to the new 4.0 Industry. Technologies such as Business Intelligence, Edge Computing, Cloud and Artificial Intelligence are the drivers that are inter-feeding to create implementations that enrich the lives of people on earth. And the evolution of all of them are driven by a great enabler: the 5G. Becoming a reality, cellular technology will transform industries and enable business growth around the world.

In this context, Ericsson developed 6 keys that all companies should consider for their digital transformation.

1. Transformation: Getting first to the market with a digital product can make a huge difference in capturing market share. The wealth of customer data that is gathered provides information that companies can use to improve their product, foster customer intimacy and stay one step ahead of the competition. Reinventing oneself is essential to win in business, at the speed needed to keep pace with digitally native companies. The so-called fourth industrial revolution seeks to make operations increasingly intelligent and autonomous. This began with the transformation processes that had already begun long before the pandemic, understanding that this transformation is not only due to the technological part but also -and with a very strong component- to a cultural issue. Smarter industries mean that they will operate better and safer, for workers and for the environment, due to the applications and new developments made possible by the low latency and high speed provided by 5G networks.

2. Optimization: Using digitization to drive productivity and minimize inefficiencies is key for businesses. In fact, productivity and efficiency are the main drivers of most IoT projects today. While digitization is helping businesses optimize operations, information about the performance of their products and services and how consumers use them helps deliver better service quality, proactive customer engagement and personalization.

3. Sustainability: More and more companies are committing to the UN Sustainable Development Goals in response to global challenges and consumer expectations. Digital transformation is playing an important role for companies to reduce consumption and drive a smart and sustainable environment. For example, in logistics, IoT is helping to reduce food waste by 30% worldwide. In that sense, 5G is helping to mitigate the carbon footprint, save water and fuel usage in many industries. How? By optimizing processes, they become more efficient and generate savings in resources of all kinds. This, in turn, can be measured to improve indices and thus make companies increasingly sustainable in their practices. 

 4. Digitalization: Automating and making intelligent use of data is key to alleviating the work of the most complex processes. Today, digitally driven automation is replacing labor-intensive manual work with systems that are more accurate and cost-effective while creating new business models, from connected products to service offerings in markets where they did not exist before.

5. Security: Security is the most important concern when it comes to digital transformation. Companies need to ensure that their entire business can be kept safe from threats and they need to be able to protect their customers' privacy, something that consumers, businesses and a growing number of laws are demanding. Whatever form digitalization takes, security must be an inherent part of the transformation. Likewise, 5G makes it possible to improve the safety of workers performing their duties in critical work environments. A worker in a mine or port, a diver, a person working on subway levels, all of them have one thing in common: their safety is at risk when performing their tasks. 5G not only allows many of these tasks to be teleoperated - that is, the worker operates the machinery from a safe location - but also improves connectivity. This means that today, in places where communications do not reach because they are far below sea level or because the signals are blocked, 5G reaches and connects securely.

6. Flexibility: The business world moves quickly, so it is critical for companies to move quickly from the initial idea to the launch of a new product or service. Moreover, in our increasingly globalized world, connected products must scale quickly and work anywhere. Therefore, flexibility is the basis for getting to market first, scaling quickly and potentially growing the business. This comes from the possibility that the technical characteristics of fifth-generation networks provide, creating a whole new scenario to make things possible that today seem remote.