CEO & Co-Founder at Shabodi. Helping CIOs and CTOs monetize their Advanced Network deployments- LTE, 5G/6G, Wifi and accelerate ROI.
As we step into the 5G era, industry spending on 5G services is predicted to reach $331.1 billion by 2027.
Private advanced networks (LTE, 5G and Wi-Fi 6) go beyond faster connectivity. They play a vital role in Industry 4.0 transformation and provide highly reliable and secure public sector communication. The pertinent question in such times is how to maximize returns from private 5G.
Since founding a platform built to unlock the full potential of advanced networks like 5G, I have had insightful conversations with enterprise 5G customers and connectivity providers. This has given me a unique vantage point on the challenges and opportunities in 5G deployment and ROI.
Build a compelling business case.
A progressive private 5G deployment strategy appreciates it as an intelligent, programmable asset capable of solving mission-critical problems that have long persisted. It focuses on extending 5G’s influence beyond being just a Wi-Fi replacement, capitalizing on its potential to introduce innovation.
However, there are valid concerns about the return on investment (ROI) of private 5G deployment, given the complexity of managing enterprise 5G networks, spectrum, backend network integrations and security. How does one get executive buy-in and stay assured of ROI in a space most are just starting to understand?
1. Identify critical pain points.
The first step is to develop use cases and applications tailored to address specific and unsolved pain points.
Our customers and partners deploying 5G report some common issues they look to solve with this investment: Latency in mission-critical workflows, especially in healthcare and industrial environments, tops that list. They also look to address inconsistent connectivity in remote environments like mines. Far-sighted manufacturing leaders seek flexible reconfiguration of production lines with wire-free connectivity.
To optimize your 5G deployment:
• Understand existing challenges: Are there any bottlenecked processes due to existing network limitations? Are any real-time or prioritized data transmission needs not being met?
• Evaluate resources and processes: Do you have machinery or operations that could benefit from prioritized data transmission? Could your applications perform better by prioritizing specific data transmissions over others to optimize network utilization?
• Consider scalability and future needs: Do you foresee investing in technologies like AR, VR, edge computing or IoT? What data and connectivity needs might arise when you do? What kind of burdens might they put on your existing network resources?
2. Tailor private 5G connectivity to mission-critical use cases.
Traditional enterprise applications, incapable of tapping into 5G’s network features, become the roadblock in fully utilizing this advanced network. Network-aware applications can help prioritize mission-critical communications and data transmission using 5G’s programmability.
For example, AR/VR communication in a factory setting may not require high-priority data transmission when used for training. However, a similar application would need to communicate with high urgency during a machinery breakdown. Network-aware applications understand the difference and tailor priorities to match the urgency.
But, a notable challenge in building network-aware applications here is that application developers are often inexperienced in network complexities to deliver such solutions at scale. This is where simple APIs come in handy. They make it simple for developers to integrate advanced network features into applications and solutions. API-led application development can reduce application development costs and time-to-market.
After identifying the use case and required application behaviors, measure success with metrics like:
• Operational process efficiency: Evaluate improvements in process times or reduction in manual interventions due to 5G application deployment.
• Cost savings: Quantify reduced expenses from optimized 5G applications versus legacy solutions.
• ROI: A long-term indicator, this helps measure gains from improved efficiencies against the total cost of 5G and application deployment.
3. Build for the future with intelligent application development.
With 6G and Wi-Fi 6 underway, what happens to enterprise 5G investment and applications ecosystem when the next generation network arrives?
The need to future-proof applications by staying network vendor agnostic is important for successful 5G deployment. It is the foundation of economic prudence.
With future-proofed applications, enterprises can save recurring time, effort and resources on re-engineering or refactoring applications with each new network evolution. This ensures that they extract maximum value from their investments.
4. Foster strategic partnerships.
Enterprises have the choice to deploy a do-it-yourself private wireless network. The allure of control can be hard to resist. But, deploying and maintaining the entire network lifecycle, coupled with the challenges of building network-aware applications, can cause the cost and complexity of private 5G deployment to escalate.
Effective 5G transition involves collaboration among internal stakeholders and the external ecosystem. A robust network of partners must work together to deliver solutions and business outcomes. However, building such partnerships can be a long and complex process.
A pragmatic solution is choosing implementation partners with strategic alliances with operators, systems integrators, network equipment providers, application vendors and other stakeholders in the 5G ecosystem, making the transition smoother, more efficient and more rewarding. Such collaborations bring diverse expertise, resources and understanding of risks.
In selecting 5G deployment partners, look for:
• Real-world expertise: 5G is new in the enterprise landscape, and few are yet to gather practical experience. Prioritize those who have demonstrated success in going beyond connectivity with 5G applications.
• Ease and flexibility: Private 5G deployment for enterprises already has many moving parts. Your application partners should reduce, not add to, the overheads. Make sure they also prioritize customization and flexibility over one-size-fits-all solutions.
• Security posture: 5G applications transcend the boundaries of functional teams and open new bridges for enterprise-wide collaboration and connectivity. This makes stringent security measures crucial to protect sensitive business data.
Steer clear of partners with opaque or overly complex pricing structures. When trying to solve for 5G ROI, businesses must have clarity on current and potential costs.
Create a future-proof deployment strategy.
5G is more than just a tick on the tech evolution timeline. Deployed right, it can be a leap toward the future.
But for that to happen, enterprises must view 5G as more than just faster connectivity. It’s time to rethink your 5G deployment strategy with an application-led, ROI-first mindset. That is where it all begins.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Read the full article here