5G+ marks the next big shift for Asia’s industry

COVID-19 has been one of the biggest disruptors in recent history. As the world economy continues to adapt to the new normal – especially in terms of digitalization – some industries have emerged as leaders, while others remain considerable laggards.

Industries that were already largely digital were able to quickly adapt to changing demands and market conditions. E-commerce is an example, where disruption has been mostly positive as more consumers and businesses have moved online. In contrast, more physical industries such as manufacturing and supply chains are more exposed, as many of the companies involved have only fully accelerated their digital transformation during the crisis.

We have now reached a tipping point for digitalization - for businesses of all types and industries. However, for physical industries, the need for transformation is even more urgent; they must make more large-scale and strategic investments in Industry 4.0 to help them survive and withstand future shocks.

With broader 5G deployments just around the corner, the time has come for industries to evaluate and implement next-generation connectivity acting in concert with a broad ecosystem of key technologies, collectively known as 5G+. This will lead to the next big turnaround in industrial digitalization – one that will help restore parity between digital investments and their broader economic contribution.

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What is 5G+?

Despite the pandemic, the 5G revolution has only slightly abated. In Asia, governments have been doubling down on 5G investments, to the point where the region’s deployment is even ahead of other mature markets like Europe. As a result, 5G will soon become more widespread, but real industries seeking to realize its full potential must catch up and accelerate adoption, in addition to having the underlying 5G networks in place.

Application of digitalization in the sports industry

This is what it takes to be truly ready for 5G+, where companies will not only have any 5G network infrastructure, but will also achieve the convergence of enterprise ICT (information and communication technology) and industrial OT (operational technology). This means advancements in digital systems and physical systems, and then the two systems will work together to bring benefits to the organization.

However, there are so many elements that belong to industrial digital and physical systems that figuring out which 5G+ technology solutions to prioritize can be a daunting task.

Nokia Bell Labs has therefore identified a set of technology enablers that will drive the industry’s 5G+ transformation: ubiquitous 5G networks, edge infrastructure and cloud platforms, augmented intelligence and machine learning systems, private networks, advanced sensors and robotics, end-to-end (E2E) security, and network-as-a-service business models.

In addition to the enablers, 5G+ also includes enterprise applications, services and platforms that are impacted by the above technologies. These include enterprise computing platforms, general and vertical-specific applications (including application development and business intelligence solutions), as well as professional and managed services and projects impacted by 5G+ technologies.

These component solutions will help enterprises across industries optimize their use of 5G+ as they build out infrastructure infrastructure to digitize their operations. The convergence and interaction of 5G and its related technologies have a wide range of applications and hold great promise for achieving a purposeful future.

How 5G+ can achieve strategic flexibility through SPE benefits

Both physical industries that are leading in digitalization and those still catching up are now expected to make more significant ICT investments in the coming years. However, to ensure that they can reap the maximum benefits at a faster pace and scale, they must optimize their use of 5G+ technologies to digitally enhance themselves along the lines of SPE (security, productivity and efficiency) improvements.

But what does 5G+ SPE improvement mean? Let’s use augmented intelligence and machine learning (AugI/ML) as enablers of 5G+ and apply it to these areas, namely in manufacturing environments.

First, safety improvement can be defined as measuring the reduction in safety-related incidents. For example, a factory using augmented intelligence and machine learning (AugI/ML) can combine it with smart video sensing to detect incidents before they occur, thereby improving the safety of workers and equipment.

At the same time, increased productivity (the primary determinant of SPE’s overall profitability) means an increase in the number of goods or services produced from the same asset base. Using the AugI/ML system, plants can better anticipate specific market demands and thus anticipate operations, while also reducing response times and maximizing the organization’s operational capabilities.

Additionally, AugI/ML can help optimize product and/or system designs to facilitate mass customization and streamline operational processes.

Finally, increased efficiency refers to the ability to reduce resource consumption for the same level of output. For example, innovative sensory technologies powered by AugI/ML can detect factory machine failures before they occur.

This helps to minimise unexpected disruptions, as video analytics can provide advance warning of potential quality issues to prevent wasted resources, while enabling real-time control of factory operations to ensure inventory is minimised.

In summary, realizing SPE benefits can help industries do more with less, at a faster pace and scale. This is because 5G+ enabling technologies can provide enhanced operational flexibility.

They can also be further enhanced with network-as-a-service business models (i.e. those that are programmable and specific to 5G technology) and better network redundancy, in addition to enhanced business intelligence through digital acceleration tools.

Our facility in Oulu, Finland, provides multiple use cases on how 5G+ enablers such as E2E 5G networks and cloud automation can enhance applications, services and platforms.

We are also introducing 5G+ in real-world scenarios, such as in Japan, by deploying an industrial-grade private wireless network in a manufacturing design center to innovate production processes.

5G+-driven SPE benefits in the real industry

5G+ is defining the new normal for the industry

In the wake of the pandemic, ICT spending across Asia, especially for more traditional technologies, fell. However, there was an opposite reaction towards technologies that could help businesses better navigate the challenges of the current crisis. This was to be expected once industries and businesses adapted to the crisis, leading to the current rebound in IT spending. This, along with increasing 5G deployments in the region, means we have reached a critical turning point for mass adoption of 5G+.

The journey towards a new normal

We expect that once regional economies align with the new normal, 5G+ deployment will be larger and the adoption of such technologies will stabilize ICT investment. This will be how the great turnaround of Asia’s industry will occur, when it will be dominated by physical industries – those that are both ahead and behind the broader digital transformation of their industries.

However, there is still much work to be done. As businesses emerge from the COVID-19 pandemic, industries must start planning their ICT investments on the 5G+ front as soon as this year. By taking a more proactive stance, industries and businesses can take advantage of the wave of initial adopters and gain a competitive advantage by realizing the benefits of SPE. Once Asia continues to adopt 5G+ at scale, these gains will be further amplified, resulting in broader impacts and contributions to the broader economy and GDP.