INNOVATE INTO THE

5G ERA
How companies can harness the reduced opportunity cost of an
economic downturn to innovate and reinvent for the 5G era.

First published on DIGIT.fyi

Preface
Innovations built upon 5G will render traditional products, services and business
models ever less relevant.

This change is likely to spell the end for the non-tech enterprise. Organisations must
prepare to be part of the vanguard or fall behind.

An economic downturn will reduce the opportunity cost for businesses to explore and
innovate with 5G. Companies and governments that capitalise on this opportunity will
thrive in the 5G era.

As Thomas Friedman asks in his book, Thank You for Being Late, what happens when
someone does something clever that makes you or your company look obsolete?

Gary Crawford
Group Director, Technology & Transformation

February 2020
The new world disorder looks set to continue into the ’20s. And with
no time to catch our breath, we must now turn our attention to a
potential global economic downturn1.

The weeks and months ahead will bring anxious calls to batten down the hatches and conserve
resources while thrifty leaders sharpen the cost-control scythe. They will institute hiring freezes,
across-the-board cuts and mobilise hit-squads to target process efficiencies and cut low-value work.

”Economic progress in capitalist intelligence (AI), augmented reality (AR) and virtual
reality (VR).

society means turmoil.”

 Joseph Schumpeter
5G, the next generation of mobile communication
technology, addresses these challenges. Qualities
such as ultra-low-latency, high-speed and high-
Surviving an economic downturn requires deft
capacity offer a step-change improvement over
financial management, but it doesn’t come without
existing technologies. They have the potential to
its opportunities. Economists such as Schumpeter
ignite technologies that have struggled to move past
have highlighted the link between market volatility
the conceptual stage and live up to the hype.

and growth. Recessions are known to bring reduced

opportunity costs; as production demand drops,
Mats Granryd, Director General of the GSMA, claims
smart leaders will re-appropriate operating budget.
that 5G forms a significant part of the world’s move
Such funds can be used for innovation and
towards an era of Intelligent Connectivity2. He
reinvention to prepare for a recovering economy.

believes that, when combined with developments in

the Internet of Things (IoT), big data and artificial
Through this lens, effective cost restructuring
intelligence (AI), it could be a key driver of economic
provides an essential source of fuel to invest in
growth in the coming years.

innovation and growth to secure a winning position.

In short, recessions favour the prepared.

An economic downturn will create the ideal

conditions for the emergence of 5G powered
So where should leaders look invest in an upcoming
businesses that innovate and extend into areas we
downturn? Since the Great Recession, connectivity
haven’t yet imagined. Forward-looking companies
has become the fabric of the digital economy. But
will investigate how 5G can solve real-world, non-
that fabric itself has become stretched. The speed,
trivial problems for them and their customers. To do
latency and bandwidth limitations of mainstream
so, they require clear vision, smart strategy and
communications technology hinder the
focused investment in the exploration of new
advancement, and meaningful application, of so-
business models, services and products.
called disruptive technologies such as artificial

1 The Financial Sector in the 2020s: Building a More Inclusive System in the New Decade, International Monetary Fund, January 2019.

2 The Mobile Economy 2019, GSMA Intelligence, February 2019.

What can we expect to see with the birth of 5G enabled businesses?

Until now, missions that need intelligent, split-second Reduced latency

responsiveness have demanded expert humans to Real-time situational awareness for emergency
be in close physical proximity. But the speed and services, homeland security and industry will
latency improvements brought by 5G reduces this become the new normal. Mission-critical and
constraint.
business-critical operations will recognise
efficiencies, cost reductions and improved
Real-time remote control of connected devices could effectiveness as the high-reliability and ultra-low
increase worker safety by removing employees from latency of 5G allows digital technologies to play a
hazardous environments. It could enable remote more significant role.

surgery via haptic feedback gloves and live video,

increasing the availability of expertise and reducing
the need to move critically ill patients.
”what happens when someone does
something clever that makes you or
Machine-to-machine communication your company look obsolete?”
The Internet of Things (IoT) promised to automate
Thomas L. Friedman
the monitoring of infrastructure, transport systems,
the environment and even personal health. But
today’s communication technologies cannot offer the The end of the non-tech enterprise
scale needed to support this. 5G’s Massive Machine Innovations built upon 5G will render traditional
Type Communications (mMTC) will enable machine- products, services and business models ever less
to-machine (M2M) communication at scale3, bringing relevant spelling the end for the non-tech enterprise.

efficiencies and reduced costs while catalysing new

business models.
Organisations must prepare to be part of the
vanguard or fall behind; an economic downturn will
Increased device density reduce the opportunity cost of such exploration.

Increased device density — up to 1 million devices

per square kilometre versus 60 thousand devices per
square kilometre with 4G LTE4 — will deliver social
advantages in crowded areas and reduce overload
during times of emergency.
look obsolete?
As Thomas Friedman asks in his book, Thank You for
Being Late5, what happens when someone does
something clever that makes you or your company

3 Internet of Things in the 5G Era, GSMA, November 2019.

4 Serving the 5G powered business, Ericsson, January 2020.

5 Thank You for Being Late: An Optimists Guide to Thriving in the Age of Acceleration, Thomas L. Friedman, 2016.
Increased device density
Up to 1 million devices per square km

Reduced latency
Real-time information for emergency services,
homeland security and industry

Machine-to-machine
Automated monitoring of infrastructure,
transport systems and the environment
Images
All photos from Unsplash:

- Monochrome tower camera by Dave Redfern

- Praça da bandeira by Sergio Souza

- Set electro 2018 by Maxime Lebrun

- Ambulance by Camilo Jimenez

- Wind turbines by Jason Blackeye

 INNOVATE INTO THE

5G ERA
How companies can harness the reduced opportunity cost of an
economic downturn to innovate and reinvent for the 5G era.

First published on DIGIT.fyi