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5G will change businesses for the better

Blog: Capgemini CTO Blog

Indeed, the introduction of 5G allows for industrial applications that are otherwise impossible. However, it has its own set of problems that might deter companies from adopting it quickly. Therefore, it is essential for business leaders to fully understand the impact of adopting 5G on business operations.

One of the ways that 5G can change businesses for the better is by providing timely and comprehensive data. A few capabilities that 5G technology boasts of are increased capacity and high speed in commercial launches compared to its predecessors. This capability will lead to greater industrial operations use cases, one being real-time analytics leveraging on edge computing.

With real-time analytics, companies can reap the benefit of having information flowing in from a large set of devices instantaneously. As a result, with a wealth of data from a larger set of consumers, leaders can make better decisions using real-time insights from current consumer trends.

Another example of using large sets of data can be found in usage-based insurance. As opposed to using traditional and static criteria, such as age and experience in driving, more dynamic insights about a driver’s risk score can be derived with insurance telematics. A clearer insurance profile of the driver is generated based on their driving behavior. This helps insurance companies better manage risk, leading to significant cost savings. Hence, with fast and accurate data facilitated by 5G technology, businesses are equipped to make better business decisions.

Another way that 5G can change businesses for the better is by propelling sustainability efforts within the company. Environmental sustainability is increasingly a concern for many companies due to cultural shifts in consumers. Hence, it is vital for companies to internalize changing trends and adjust their business strategy or operations accordingly.

5G-enabled solutions such as smart grids and other smart city products can not only help companies be greener but save costs as well. Smart grids have digital information and control, dynamic optimization of grid operation and resources, smart integration, and many more. As a result, the solution is a more robust and efficient system that conserves energy and helps the delivery company decrease costs. With demand reduced due to more efficient usage, there will be a decrease in wholesale market prices. Overall, it benefits all stakeholders including the environment. As 5G technology can be employed in environmentally focused solutions, businesses will be able to reduce their bottom line and meet the changing demands of consumers.

Although there are myriad other benefits that 5G can bring to companies, it does not come without concerns. Of which, the most pressing one is consumer privacy. With 5G shifting solutions to user-centric applications, one key challenge for realizing the vision is seeing how user data is handled by the technology system. This is especially crucial for companies to answer as they tiptoe along the line between ethical decisions and profits.

As 5G continues to roll out in various industries, companies need to take a proactive approach in setting up an infrastructure that safeguards the data that they are receiving. This can take the form of setting up better cybersecurity measures or having a privacy policy that only uses the data of consumers within certain premises. Hence, even though there are valid concerns surrounding 5G and the negative consequences of its application, the onus lies in the company to ensure that the privacy of their customers is being upheld.

In conclusion, 5G is a much-awaited technology that presents many use cases that can change businesses for the better. It is essential for companies to understand which areas of their businesses can use the enhanced connectivity to drive their business forward and stay at the forefront of technology.



Li Yun Ng

Senior Analyst – Sales & Business Development

Capgemini Singapore

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