South Africa

The impact of 5G on business operations

3 mins

We’ve been hearing about 5G technology for a few years, but the groundswell is finally here, and it’s more than just an upgrade in mobile networks; it represents a seismic shift in how businesses operate, communicate, and innovate. As global 5G subscriptions reached 1.9 billion by mid-2024, this new generation of connectivity is set to redefine how businesses operate across various sectors. Understanding the implications of 5G is essential for B2B companies aiming to thrive in this transformative landscape. 

Driving efficiency and productivity 

At the core of 5G’s impact lies its ability to enhance operational efficiency. A 2022 study highlighted that 5G could boost manufacturing productivity by as much as 10%. This increase is primarily due to real-time data processing, enabling instantaneous communication between machines and systems. For instance, manufacturers can now adjust production lines dynamically based on immediate feedback from sensors, leading to optimised workflows and reduced downtime. In practical terms, this means fewer costly machinery breakdowns and improved product quality, all key factors that contribute to a more reliable supply chain. 

In more remote areas outside of manufacturing hubs (such as mining), 5G’s high-speed connectivity and low latency means remote workers can access network resources with ease, creating a seamless virtual workspace. Video conferencing tools benefit immensely from this technology, offering high-quality, lag-free interactions that foster collaboration. 5G also enables immersive experiences through augmented and virtual reality applications. These tools enhance remote collaboration by allowing teams to engage in interactive meetings and training sessions, making distance less of a barrier. It also means engineers or tech experts can sit in offices in Sandton, troubleshooting an issue in Sishen in the Northern Cape. 

The Internet of Things (IoT) and accelerating digital transformation 

The capacity of 5G to support up to a million devices per square kilometre opens up vast possibilities for IoT integration. This surge in connected devices allows businesses to collect and analyse data like never before. In a B2B context, real-time tracking of goods enhances supply chain management while predictive analytics optimises inventory levels. Smart factories become increasingly viable as interconnected machinery operates autonomously. For service-oriented businesses, IoT facilitates predictive maintenance, ensuring higher service quality and customer satisfaction. 

5G serves as a catalyst for digital transformation across industries, with AI and machine learning (ML) joining IoT, and supported by immersive experiences like AR and VR. These technologies are not merely theoretical; they have practical applications that can revolutionise customer interactions and internal processes. For example, AI-driven insights derived from real-time data enable businesses to swiftly adapt their offerings to meet evolving customer needs. 

Economic growth and job creation 

The economic implications of 5G are profound. Projections suggest that by 2035, 5G will create approximately 22 million jobs and generate up to $12.3 trillion in goods and services globally. This anticipated growth presents B2B companies with opportunities for expansion and increased competitiveness, particularly in South Africa, where we have a large youth demographic eager to learn new skills.  

To navigate the complexities introduced by 5G, businesses must focus on acquiring and developing specific skill sets within their workforce. Key areas for talent acquisition include: 

  • Network specialists: As the backbone of 5G infrastructure, network engineers with expertise in software-defined networking (SDN) and network function virtualization (NFV) will be crucial. 
  • IoT experts: Professionals who understand IoT integration and management will be essential for optimizing interconnected systems across various applications. 
  • Data scientists and AI specialists: With an influx of data generated by 5G devices, data scientists who can analyse this information for actionable insights will be invaluable. 
  • Cybersecurity professionals: As connectivity increases, so does vulnerability. Cybersecurity experts familiar with protecting high-speed networks are critical for safeguarding business operations. 
  • AR/VR developers: With the rise of immersive technologies enabled by 5G, developers who can create engaging AR and VR applications will play a pivotal role in enhancing customer experiences. 
  • Cloud computing experts: Understanding cloud architecture in conjunction with edge computing will be vital as businesses leverage both technologies to maximize their operational capabilities. 
  • Strategic business leaders: Beyond technical expertise, strategists who comprehend the broader implications of 5G on business models will guide organisations toward sustainable growth. 

Upskilling existing workforce 

While attracting new talent is important, upskilling current employees is equally vital. Organisations should implement training programs focusing on: 

  1. Fundamentals of 5G technology and its operational impacts. 
  1. Data analytics tailored for high-speed environments. 
  1. IoT management strategies. 
  1. Cybersecurity best practices relevant to 5G. 
  1. Cloud computing principles integrated with edge computing solutions. 

Looking ahead 

As we approach 2025 and beyond, the influence of 5G on business operations will continue to deepen. With projections indicating that one-third of the global population will have access to 5G by then, businesses must prepare for an environment rich with opportunities for innovation. Companies that invest strategically in both technology infrastructure and talent development today will be well-positioned to harness the full potential of 5G tomorrow.  

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