Wireless Personal Communications

https://doi.org/10.1007/s11277-020-07936-5

5G Networks in the Value Chain

Abderahman Rejeb1 · John G. Keogh2

Accepted: 29 October 2020

© Springer Science+Business Media, LLC, part of Springer Nature 2020

Abstract
As Information and Communication Technologies are evolving rapidly and at an exponen‑
tial pace‚ businesses are forced to cope with the latest trends in innovation and to respond to
emerging needs and opportunities. The constant digitization and process automation (digi‑
talization) of supply chains call for the consideration of innovative services to sustain value
chain efficiency and effectiveness. Given the approaching technological developments‚ the
new network upgrades embodied in 5G networks raises several high expectations along
the value chain. This paper recognizes the critical role of 5G telecommunications to sup‑
port several value chain activities and create value propositions that would not be possible
with existing network generations. To this end‚ Porter’s value chain model is applied and
comprehensively discussed to highlight the potential areas that could be facilitated by 5G
telecommunications.

Keywords  5G networks · Value chain · Efficiency · Effectiveness · Telecommunication

1 Introduction

The information and communications technologies (ICTs) have recently spawned a wave of
change across several industries‚ disrupting value chains and creating new business mod‑
els. Adoption of ICT is not new to supply chains‚ instead, it has been recognized in sup‑
ply chain management as one of the critical driving forces in forging effective business
relationships [1–3]. The deployment of ICT and modern technologies (e.g., blockchain)
allows supply chain partners to exchange information‚ to coordinate business operations‚
and to blur geographical and physical boundaries [4]. Today‚ the majority of businesses are
fully cognizant of the fact that ICT is a critical part of their assets and enables their supply
chain [5]. ICT could also be viewed as a competitive advantage for businesses and tools
for improving the overall performance of value chains regardless of any assertions to the

* Abderahman Rejeb
abderrahmen.rejeb@gmail.com
John G. Keogh
john@shantalla.org
1
Doctoral School of Regional Sciences and Business Administration, Széchenyi István University,
Győr 9026, Hungary
2
Henley Business School, University of Reading, Greenlands, Henley‑on‑Thames RG9 3AU, UK

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 A. Rejeb, J. G. Keogh

contrary. As such‚ Fawcett et al. [6] demonstrated this empirically by finding that commu‑
nication willingness impacted operational performance and was crucial to the leverage of
information sharing capability.
As ICTs are evolving rapidly and at an exponential pace‚ existing supply chains are
forced to cope with the latest trends and to respond to emerging needs. In this context, the
evolution of digitization (information) and digitalization (process/role) in the supply chain
and the demands for innovative digital services create a requirement for a new network
upgrade envisioned in the emergence of Fifth Generation (5G) networks [7]. 5G networks
consist of an architecture that is fundamentally based on the Software-Defined Network‑
ing (SDN) and Network Function Visualization (NFV) [8] ‚ enabling dynamic and flex‑
ible programming to provide layers for various applications. As posited by Rodriguez [9]
‚ 5G is an evolution combining the convergence of Internet services with legacy mobile
network standards and leading to what is known as the “mobile Internet” over Heteroge‑
neous Networks (HetNets). This implies that this new technology goes beyond the mere
upgrade of former cellular networks, and it is bound to bring about several improvements
to the access‚ coverage‚ latency‚ performance and bandwidth of connectivity. For instance‚
the existing mobile architectures are not able to handle and manage the up-and-coming
requirements posed by 5G use cases. Moreover‚ intensive IoT (Internet of Things)-based
supply chains put mobile networks under pressure to provide connectivity to machines and
smart devices [10] because they have been initially developed to support human-type com‑
munications. Similarly‚ the recent momentum of Industry 4.0 [11] necessitates a commu‑
nication technology which has to satisfy the needs of businesses concerning network topol‑
ogy‚ timing‚ heterogeneity‚ and security [12].
The advent of wireless and mobile networks has disrupted the value chain of many busi‑
nesses and created new opportunities for customers [13] and suppliers. For example‚ the
confluence between the mobile telecommunication industry and the retailing industry has
long driven thriving e-commerce. In addition, with the borderless nature of supply chains‚
businesses could significantly benefit from the ability of mobile network systems (e.g.‚
4G LTE) to provide mobile sales support applications [14]. The ubiquity and connectiv‑
ity of mobile networks [15] facilitate information processing and advanced planning along
the supply chain and across vast geographic distances [16]. Wireless links have also made
information management easy and fast‚ despite the many challenges of supporting large
sets of data over the wireless channel [17]. Cellular networks and mobile telecommuni‑
cation systems have become dated in their ability to sustain many supply chain manage‑
ment activities‚ mainly logistics‚ tracking of assets and shipments‚ execution of transac‑
tions and processes‚ and collaboration with internal and external partners [18]. By way of
illustration‚ in some markets‚ beer producers tested the use of 3G cellular phone services
to provide real-time data of product deliveries and customer inventories [19]. Therefore‚
the impact of telecommunication networks overlays the entire business value chain. This
leads to structural improvements in the design of supply chains‚ the enhancement of inter‑
nal activities‚ and the development of sustainable relationships with various corporate
stakeholders.
Studies on the potentials of new 5G communication networks are steadily increasing in
terms of the scope of applications and variety of possible solutions. However‚ the academic
communities have taken up this research topic in a disjointed manner‚ limiting the focus
on 5G capabilities to exclusive areas in the value chain (e.g.‚ manufacturing activities).
To address this gap in literature‚ we have aggregated all value-generating abilities of 5G
network systems in the well-known Porter’s value chain framework [20]. So far, business
and management academics employ the concept of a value chain to systematically analyse

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5G Networks in the Value Chain

and investigate the interrelated set of value-creating and value-adding activities involved in
the production and delivery of products or services from the upstream to the downstream
of the supply chain. Thus‚ through the lens of the framework‚ it is easier to understand the
implications of these technologies on value chain activities‚ their promising improvements‚
and the ramifications of value chain process change.
The paper is structured as follows. Section 2 provides a general overview of 5G network
systems. Section  3 is the main body of the article, and it details the framework and dis‑
cusses how this emerging technology could affect the activities (i.e.‚ support and primary
activities) constituting the framework and disrupts in many ways the entire value chain.
The last section covers a brief conclusion and suggests future research directions.

2 Overview of 5G Network: Evolution and Characteristics

Telecommunication technologies have witnessed several changes, and many generations of

technology have emerged from these changes‚ transforming it into an unprecedented means
of global connectivity. The latest trend in these technological innovations is 5G technol‑
ogy. 5G is an umbrella term that describes the next generation of mobile network technol‑
ogy and responds to the worldwide demands for enhanced mobile broadband‚ ultra-low
latency‚ and massive machine-type communications (MTC) [21–23]. Initially‚ telecom‑
munication technologies have experienced an evolutionary path since the inception of the
analogue systems in the 1980s‚ known as the first-generation or 1G [24]. Subsequently‚
wireless mobile communication systems are continually being developed with one genera‑
tion being introduced every decade. The second-generation (2G) arrived in 1990 [25] ‚
bringing with it improvements in terms of network capacity‚ the possibility of messag‑
ing (i.e.‚ short message service (SMS) and multimedia messages (MMS))‚ and economical
power consumption as a result of the digital transmission [26]. The third-generation (3G)
network system appeared in 2001, and it is characterized by its high-speed data service
and the usage of packet switching for the transmission of data [27]. The 3G family pro‑
vides users with particular services such as the streaming of high-quality audio‚ video‚ and
media content. The arrival of the fourth-generation (4G) represented a distinct transition
from the previous generation because it overlays on existing 3G networks and significantly
supports the voice over internet protocol (VOIP) or video call with minimal delay or jitter
[28]. Moreover‚ 4G is an extension of 3G network systems that are capable of providing
between 100 Mbit/s and 1 Gbits/s speeds both indoors and outdoors‚ with premium quality
and high security [29] (Fig. 1).
5G is not a mere step forward of mobile wireless communications. Instead‚ 5G is a
significant evolutionary advancement that supports the ever-growing data requirements
and complements previous mobile networks with new service capabilities [31]. Indeed‚
this entails a user-centric and heterogeneous network that opens the door to a plethora
of applications and integrates 4G‚ millimetre wave‚ and other wireless access technolo‑
gies [32]. Furthermore‚ 5G is expected to be the unifying fabric that will be able to con‑
nect billions of devices‚ while ensuring high-speed‚ more enhanced data reliability‚ and
exceptional efficiency levels. Considering the advantages of these capabilities, a mar‑
ket research study by IHS Markit predicted that the potential global business activities
across several industry sectors enabled by 5G could amount to US$12.3 trillion in 2035‚
representing about 4.6% of all global output in the same year [33]. The reasons for these

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 A. Rejeb, J. G. Keogh

Fig. 1  The mobile wireless evolution ( Adapted from Surantha et al. [30])

high expectations are mainly justified by the specificities of 5G networks and the unique
features of the new communication infrastructure. These revolve around the following
considerations.

• High network throughout

A key feature of 5G networks is their ability to improve the connectivity of several

applications that require high-speed. As such, 5G networks respond to the mounting
demands for communication quality [34]. For instance‚ recent tests conducted in the 5G
Innovation Centre [35] have demonstrated that this telecommunication technology could
exceed 1 Tbit/s in a laboratory environment‚ meaning‚ a speed that is able to transmit
33 HD films (with a duration between 2.5  and  3 h) in one second. In other words‚ 5G is
expected to significantly improve connectivity, bandwidth, and speed of transmissions
by eliminating latency. This throughput is highly appealing for environments supported
by IoT devices, which are dense, highly connected and integrated with industrial infra‑
structures that require high traffic demands and low latency.

• Ultra-low latency requirements

Latency is defined as the duration of time it takes for a frame to pass through a network
[36]. Given this‚ 5G networks are a critical enabler for ultra-low latency in a massively
connected environment. The ultra-low latency enabled by 5G is expected to be one mil‑
lisecond or less and ten times lower than that in 4G [37]. This low latency serves many
applications and services that are, by nature, time-sensitive (e.g.‚ precision medicine‚
augmented reality‚ driverless vehicles).

• High network reliability

Besides the ultra-low latency‚ 5G networks are distinguished by their ultra-high reli‑
ability [38]. Packets transmitted across the network are 99.999% reliable [39]. 5G offers
extremely reliable networks that are suitable for ecosystems, which depend entirely on dig‑
ital communications and require elevated levels of trust and confidence in data transmis‑
sions and data exchange. The ultra-reliability is also enticing for industrial use cases that
require instant optimization and real-time monitoring of devices and the performance of

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5G Networks in the Value Chain

component‚ collaboration between the cyber-physical systems (CPS)‚ and the introduction
of ubiquitous wearable sensors and augmented reality [40].

• High efficiency (Low power consumption)

Along with the ultra-reliability of data, 5G networks support high-efficiency levels in

terms of power consumption in mobile devices [41]. The minimum energy consumption is
expected to generate cost savings and prolong the longevity of battery life by up to 10 years
for devices that transmit only a few bytes per day [42]. The network upgrade could result
in a 90% reduction in energy usage, according to ACMA [43]. The emerging ecosystems
based on the IoT and exhibiting heavy reliance on massively ubiquitous and wirelessly con‑
nected sensors and devices would achieve several economic benefits from this approach, as
they would no longer need to recharge these components or replace them frequently.

• Network flexibility

Aside from offering higher efficiency levels‚ 5G is poised to bring a highly flexible network
that can cater to a multiplicity of needs and industrial expectations. The software-defined
functions (SDF) along with the network function virtualization (NFV) allow for the crea‑
tion of a programmable infrastructure and facilitate the migration to newer technologies
while supporting legacy technologies by isolating part of the network [44]. More simply‚
the harnessing of 5G into a fully programmable and digitized/digitalized ecosystem would
enable it to respond to the various needs of applications in terms of latency‚ reliability‚
and computational power. This is also possible through network slicing, which enables
the telco operators to create virtual networks over a shared physical network infrastructure
and to tailor services to the unique requirements of every single customer (i.e.‚ businesses)
while utilizing network resources most efficiently and securely [45].

3 5G in the Value chain

Introduced by Porter [20] ‚ the value chain framework is a well-known tool that helps
understand the sources of the competitive advantage. It is a method that distinguishes
between the business activities‚ dividing them into smaller and more manageable pieces
and then analysing each activity’s impact on cost and value in order to optimize the value
chain [46]. It aggregates a company into strategically relevant and interconnected activi‑
ties. The choice of the framework is justified by its instrumental usefulness as an analyti‑
cal tool to diagnose and improve the firm’s competitive position. In our present research,
the framework will explicitly represent the possible 5G application areas within the value
chain. Moreover‚ it will appeal to managers and decision-makers who seek to understand
how 5G networks could disrupt not only the company itself‚ but also the entire supply
chain.
A simple visualization of the framework shows that the activities of a firm are split into
two main groups (as presented in Fig. 2).

• Support activities These activities support the primary activities and help differentiate
the product or service offers. They include the firm’s infrastructure‚ human resource
management‚ technology development‚ and procurement.

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 A. Rejeb, J. G. Keogh

Fig. 2  Porter’s value chain model ( Adapted from Porter [20])

• Primary activities They involve inbound logistics‚ operations‚ outbound logistics‚ mar‑
keting and sales‚ and services. They revolve around the creation and generation of value
across the supply chain.

To get a better insight into the way in which 5G networks can disrupt the value chain, we
take a closer look at how the different activities of the firm will be affected and changed
accordingly.

3.1 The Support Activities

• Infrastructure

A firm’s infrastructure is an essential enabler for supply chain management [47]. It involves
the physical premises of the company, such as the company’s main building‚ warehouses
and distribution centres. The infrastructure is regarded as the ‘lubricant’ for performing
many activities within the value chain. According to Lev and Daum [48] ‚ the infrastruc‑
ture is not static; instead, it needs to be continuously adapted to new market and business
conditions to sustain the company’s effectiveness for value creation. More often than not,
transforming businesses entails a significant change in the sophistication level of the infra‑
structure. Unlike in the past‚ where the transformations coalesce around the improvement
and rejuvenation of the underlying infrastructure (e.g., roads‚ railways‚ and ports)‚ these
transformations are today applied to telecommunications as well [49].
The proliferation of wireless IT applications has created a need for providing suitable
telecommunication infrastructure to support these applications. In this context, 5G net‑
works have the potential to facilitate the integration of IT-systems and leverage processes
and actions. 5G could cover all nodes and modes used in the supply chain [50]. It could
handle the strain on existing communications infrastructure caused by the growing num‑
ber of IoT devices and the need for common standards necessary for machine-to-machine
communication [51]. Moreover, 5G networks can empower the mobile end-user devices
with location and broadband services‚ facilitating the interaction with voluminous content
anytime‚ anywhere‚ and from any device. This, in turn, has a strong appeal to advanced
personal users and businesses. For instance‚ the higher bandwidth of 5G can accommodate
up to a million sensors within a square kilometre at speeds of at least ten times greater
than anything else available [52]. In addition‚ 5G user equipment is capable of tackling

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several issues related to the unpredictable channel conditions‚ the high density of nodes
per cell, and the frequent starvation of spectrum conditions [53]. This is because the 5G
network could be decomposed and disaggregated into separate slices‚ resulting in a sig‑
nificant architectural shift to a user-centric or even human-centric network‚ rather than an
operator-centric one [54]. Therefore‚ firms would be able to establish an improved infor‑
mation infrastructure [55] that is necessary to absorb the latest technological developments
and grab several economic benefits from introducing a new technological infrastructure
bundled with value-added features and changes to work practices‚ organization of the busi‑
ness‚ and the socio-cultural environment in which the business exists [56, 57].

• Human Resource Management

Human resources are a critical strategic function, and any strategy employed must be built
on a robust human resource foundation [58]. Today‚ with fast-growing digitalization‚ the
potential of economic growth depends profoundly on the quality of human resources more
than ever before [59]. Previous research results confirm the criticality of interdependence
between human resources‚ technology and business strategy in driving better organi‑
zational performance [60, 61]. IT infrastructure creates value for the firm and serves as
mutual support for organizational and human resources [62, 63].
Since the organizational focus has shifted from working with materials to working with
knowledge [64] ‚ 5G has a high potential for furthering this trend and ensuring seamless
and on-the-move connectivity for businesses and human resources. In fact‚ new technology
could significantly facilitate workforce fluidity and helps people redeploy human resources‚
while minimizing the time and cost of displacement [65]. For example‚ the 5G-aided work‑
force would have access to a high-speed internet connection and consistent and uninter‑
rupted services that enable instant and wireless voice-over-IP (VoIP) conversations. The
bandwidth and low latency characterizing 5G networks are also suitable for virtual real‑
ity applications where the physical presence of human resources (i.e.‚ mainly executives
and managers) is simulated by computer graphics, and users can interact with interactive
displays and a range of simulated elements [66]. This approach is useful for training sce‑
narios‚ assisting in communication between teleworkers‚ and creating a conducive and
immersive working environment [67]. Through 5G technology‚ firms could develop an
entirely different workplace experience for employees that are mobile‚ more sociable and
interactive‚ and visual by design as businesses trend toward a more globalized ecosystem
[68]. Moreover‚ 5G could assist firms in having better insight over their connected work‑
force. Combined with IoT devices (e.g.‚ RFID)‚ the network could provide high visibility
of the health and fatigue of workers‚ facilitate their tracking‚ and produce precise analytics
and business insights regarding the movement of people and process issues that could be
ameliorated.
Therefore‚ the transformations induced by 5G are very likely to ease the communication
of business processes to mobile employees through services like planning‚ connectivity
and collaboration [69]. As argued by Ray et al. [70] ‚ an investment in information tech‑
nology could bring several improvements to the productivity of enterprises in general and
human resources in particular.

• Technological Development

Across the supply chain‚ each company is impacted by technological innovations in its
past and harnesses the internally accumulated technology to develop and absorb new

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technologies [71]. As the satisfaction of today’s customers is challenging and confronted

by the increasingly global competition and technological changes [72] ‚ firms have to
develop organizational capabilities to sustain their competitive position. Where it is recom‑
mended to pool the dispersed knowledge across businesses‚ 5G networks could speed up
the learning and innovation processes of the firm. For instance‚ multimedia content is con‑
siderably simplified when sharing information over 5G networks [73], leading to an open
organizational structure that spurs innovation and steers the development of technology-
based new products [74]. More importantly‚ the advances until now in wireless technolo‑
gies and decreasing costs of wireless communications [75] are compelling for 5G networks
to unleash their full potential and spur industrial applications. For example‚ the technical
characteristics of 5G networks could be harnessed for newly emerging applications such as
location-based services‚ product locating and searching‚ mobile advertising‚ and wireless
re-engineering [76]. What firms could glean from these 5G network-based applications is
massive streams of information that serve to assess the performance of products and equip‑
ment‚ provide a starting point for potential product improvements and technological devel‑
opments. As a result‚ 5G communication networks have the potential to offer significant
data bandwidth‚ infinite capability of networking and extensive signal coverage that enable
forward-looking enterprises to fetch maximum benefits from technologies and therefore
create a rich range of high-quality personalized offerings [9].

• Procurement

Procurement is an essential component in the field of operating resource management

[77]. This essential organizational function represents a strategic part of all supply chains‚
amounting up to 80% of the business’s overall costs [78]. According to Waters and Waters
[79] ‚ procurement is a complex activity that involves several tasks ranging from perfor‑
mance feedback and evaluation of a buying decision [80]. Throughout the procurement
process, pressure is exerted from the need to streamline procurement activities, balance
demand and supply, ensure competitiveness‚ and assist in deepening and building differ‑
entiation capability [81]. To attain these multiple goals‚ the digitization (information) and
digitalization (process/role) of supply chains has led to the adoption of e-procurement and
the introduction of technology systems in the procurement stages (i.e.‚ ordering‚ sourcing‚
tendering‚ auctioning‚ and negotiations) [82]. The reason why procurement is well suited
for information technology support and automation is the continuously growing number
of transactions that involve a large amount of information processing and communication
[83]. For example‚ e-ordering reduces order transmission times‚ drives down inventory
levels‚ and therefore indicates the positive association of e-procurement with organiza‑
tional supply chain performance [82].
5G networks could significantly impact the procurement function. In fact, the technical
aspects of 5G, including the ultra-low latency and its remarkable bandwidth and through‑
put speed (10-100× faster than 4G networks) [84] support the transmission of demand data
between supply chain trading partners. As such‚ the greater capabilities of 5G assist the
procurement function in that they allow a coordinated approach to procurement and mate‑
rial management. For instance‚ the incorporation of 5G into existing business processes
promises ubiquity and a permanent connection to the mobile network to get access to con‑
tent repositories [85]. The procurement professionals would be able to use this repository
for database information to guide buying decision-making and associated operating pro‑
cesses. Moreover‚ the procurement repository would benefit from 5G networks to provide
not only static records (e.g.‚ past or fulfilled transactions) but also dynamic information

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such as purchase order status and active supplier and sourcing files. The higher capacity of
5G ensures that this information is complete and accurate‚ laying the groundwork for more
integrated procurement activities [86]. This approach would perfectly align with the tenets
of procurement 4.0, which necessitates a high level of practical and rapid cooperation and
coordination beyond organizational boundaries [87]. Alongside the degree of integration
brought by Industry 4.0 technologies‚ and particularly industrial IoT‚ 5G could sustain the
ultimate digitalization and automation of procurement processes by reinforcing an autono‑
mous ordering system. For example‚ a system combining the usage of IoT and autonomous
guided vehicles (AGVs) proves to be practical for the automation of tactical tasks related to
procurement (e.g.‚ monitoring the movement of goods and inventory levels for reordering‚
tracking of products in transit‚ inbound replenishment). The role of 5G in this regard is to
optimize the connectivity of these technologies while responding to the needs of latency-
sensitive systems, as we have previously discussed. Therefore, this suggests that these tech‑
nologies would scale up to a system with high resolution and near-to-perfect information
visibility over the inbound and outbound procurement and enable a pull-based approach
that rapidly issues a purchase order if the quantity of raw materials reaches a specific reor‑
der level [88].

3.2 The Primary Activities

• Inbound Logistics

Inbound logistics is comprised of the activities associated with receiving‚ storing‚ and
disseminating inputs to the product (material handling‚ warehousing‚ inventory control‚
transportation scheduling‚ and returns to suppliers) [89]. The overall purpose of inbound
logistics is to develop effective alliances with suppliers and logistics service providers for
current and novel situations [90]. This implies that there is a need for continually opti‑
mizing the costs‚ time‚ and quality of logistical operations. To achieve these goals‚ sev‑
eral technological applications have been harnessed to leverage inbound logistics, such as
Radio Frequency Identification (RFID)‚ WSN (Wireless Sensor Networks)‚ and Global
Positioning Systems (GPS). For example‚ the use of RFID could allow supply chain mem‑
bers to automate manual tasks‚ reduce human errors‚ and improve the traceability and
availability of items (e.g., products‚ boxes‚ pallets) [91] ‚ resulting in cost savings for all
supply chain partners [92].
Besides these technological applications‚ 5G could support inbound logistics in many
areas. The 5G standard is expected to bring several improvements to logistics systems by
upgrading their speed and performance‚ providing low latency‚ extended battery longev‑
ity for IoT‚ greater storage capacity‚ and higher efficiency. The substantial enhancements
in the technical capabilities that 5G will enable beyond connectivity manifest in the abil‑
ity to tailor the networking infrastructure according to the tenants’ needs; thus allowing a
single network to support a range of networks with different requirements such as the IoT
networks (limited computational power and storage memory)‚ Mobile Broadband (MBB)
applications and ultra-low latency applications (e.g.‚ warehouse AGV). In light of these
enhancing features‚ it is conceivable to set an intelligent warehouse management system
where the reduced jitter and delay times entail instant updates on cargo movements, accu‑
rate localization of 5G-powered AGV‚ minimum error rates in picking and packaging‚
and precise validation of the source of destination of picking orders in real-time. While
inefficient routing‚ driving‚ and unnecessary movement, have been confirmed as a reason

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for resource inefficiency‚ damage of goods‚ and waste [93] ‚ the ubiquity of 5G networks
could improve the performance of picking technologies by enabling a highly precise posi‑
tioning and routing within the warehouse‚ streamlining the workflow of material handling‚
and ensuring enhanced visibility. For instance‚ the leveraging of 5G for warehouse man‑
agement could speed up the fulfilment of tasks by reducing the time necessary for the
transmission of information to Augmented Reality (AR)-enabled devices. In turn‚ the order
pickers equipped with smart glasses (i.e.‚ a new wearable AR device used for capturing
and processing a user’s physical environment and augments it with virtual elements [94])
could rely on this granular visibility to execute all the necessary instructions that are dis‑
played on the lenses instantly‚ saving both order picking time and related manpower costs.
Considering that safety is a critical priority in warehousing activities‚ the frequent ware‑
house management issues such as accidents and collision during the order picking could
be significantly reduced by the 5G-enabled IoT sensors because they will drive an unprec‑
edented higher level of situational awareness [95]. In this context, a report by Transparency
Market Research stated that 5G would drive the adoption of robotics platforms and make
them faster and safer [96]. Therefore, 5G technology is expected to provide safer working
conditions and to harmonize all activities in connection with inbound logistics.

• Operations

A manufacturing firm’s operations involve the development‚ production and delivery of

products to customers. During the last decades‚ businesses have witnessed an increase in
demand for ‘mass-customization’, which implies the provision of custom products in low
volume [97]. The industrial transformations are reflected in the management of on-demand
manufacturing services for the whole life cycle of manufacturing [98] ‚ the increased
efficiency of supply chain and logistics operations‚ the emergence of data marketplaces
[99] ‚ and the servitization of products [100]. Much of these trends are backed up by the
wave of technological developments that epitomize the Industry 4.0 era. For instance‚ the
improvements in cyber-physical systems‚ the introduction of artificial intelligence‚ and the
use of big data analytics significantly reshape the design and operations of manufacturing
units. These technologies contribute to the organization of smart manufacturing processes
[101, 102] and allow businesses to obtain more control over their operations. Besides these
trending technologies‚ telecommunications play a crucial role by providing spatial flexibil‑
ity in terms of mobility and the ability to coordinate and control the activities of the organi‑
zation [103]. They are among the backbone services as they affect efficiency and growth
across a wide range of industries [104]. In this context‚ 5G telecommunication networks
have the potential to disrupt manufacturing operations by addressing several limitations of
existing wireless networks and bringing about several improvements.
The improved telecommunication enabled by 5G could allow for better connectiv‑
ity within the production sites and drive more flexibility in manufacturing processes.
For instance‚ network slicing enabled by 5G could meet several needs and could also
change the way manufacturing processes are engineered and orchestrated (digitalized)
in the factory. The time-critical processes could possibly be optimized inside the fac‑
tory to support lean manufacturing (i.e.‚ minimization of waste)‚ total quality man‑
agement (i.e.‚ zero-defects manufacturing)‚ increase process efficiencies‚ improve the
working conditions‚ and leverage the incorporation of latency-sensitive applications
(e.g.‚ context-aware sensors‚ 3D printing manufacturing‚ virtual reality wearables‚
integrated robotics). For example‚ 5G-powered sensors and connected cameras could
assist in providing feedback to control centres allowing operators to monitor and guide

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manufacturing processes remotely, thus resulting in an increased efficiency‚ productiv‑

ity and flexibility. Moreover‚ the timely flow of the M2M and H2M (human-to-machine)
communications is crucial for maintaining digital data quality‚ security‚ availability and
consistency [105]. The deployment of 5G would also buttress manufacturing automation
by coping with the high expectation of mobility and digital inputs from sensors and urge
manufacturers to proactively respond to potential changes and disruption in the man‑
ufacturing processes instead of embracing an event-based execution model [106]. As
such‚ 5G ultra-low latency and large bandwidth would provide manufacturers with more
visibility and monitoring for future machinery failures‚ leading to more sophisticated
predictive maintenance. 5G helps properly synchronize the virtual manufacturing pro‑
cesses (e.g.‚ simulation) with the physical counterparts (e.g.‚ machine operations), and
the resulting visualization of this capability allows for the making of a well-grounded
decision on predictive maintenance intervals [107]. Moreover‚ the physical-to-digital
synchronization of digital twins (i.e.‚ an exact virtual replica or copy of a physical
system) would serve to extract more information from the manufacturing process and
ensure more advanced planning processes‚ including plant simulation and virtual com‑
missioning [108]. As a result‚ 5G supported manufacturing would create sophisticated
and smart factory settings that could free up manufacturing operators from several tasks
since the production system is able to modulate itself and make informative and smart
data-driven decisions based on the real-time aggregation of data.

• Outbound Logistics

Outbound logistics is considered one of the most complex and expensive activities in sup‑
ply chain management [109]. It is associated with all actions necessary for the prepara‑
tion and distribution of goods. Throughout these tasks, several gaps exist, especially for
real-time tracking and tracing inventories within outbound logistics paths. In addition‚
outbound logistics is continuously challenged by the pressure of dealing with customers
directly [110]. It still needs to be systematically approached and deeply analysed as a stra‑
tegic issue to maintain and control the level of customization [111]. In this respect, the
shift to flexible manufacturing [112] and the sophistication and customization of the pro‑
duction process [113] require the need to adapt to the changing market conditions and cus‑
tomer demands.
To better perform these outbound logistics activities‚ the rapid development and avail‑
ability of technological systems have allowed for reliable and more efficient handling of
products across different points in the supply chain. Such improved conditions could ben‑
efit from the emergence of 5G since outbound logistics tasks such as shipment tracking
would be provided by efficient and low-powered battery wireless sensors attached to high-
value products or mounted on pallets or containers. By way of supporting the power-con‑
strained devices or sensors‚ supply chain partners would gain end-to-end visibility, as all
relevant information regarding the goods is shared on a real-time basis and over several
echelons in the chain [114]. This is because the application of 5G technology in the logis‑
tics information collection system expands the collection space of logistics information‚
shortens the time of information collection and transmission‚ and creates the conditions
of real-time collection‚ visualization and intelligence that meet the supply chain partners’
personalized needs [115]. Furthermore‚ the ubiquitous connectivity of 5G networks mostly
suffices for the coverage of a spacious warehouse area‚ instead of dealing with disjointed
short-range wireless networks‚ and establishes a single wireless access unit, which can
secure and handle all the networking privacy issues.

13
 A. Rejeb, J. G. Keogh

In the distribution of products to the customers‚ 5G could support transportation activi‑

ties by improving vehicle-to-vehicle communications (V2V) [116], which represent a key
component to address road safety issues given the expected proliferation of autonomous
vehicles. As such‚ 5G will play a pivotal role in enabling efficient and safe transportation
by allowing vehicles to communicate with each other or with a roadside infrastructure to
warn drivers or autonomous vehicles of hazards by establishing a real-time machine-to-
machine communication (M2M) and meeting the stringent needs for low latency levels [9].
Apart from achieving safe and sustainable transportation activities‚ 5G will further scale
the IoT and evolve to incorporate more and more connected products, which will allow
data to be exchanged between the product and its environment‚ manufacturer‚ and other
devices or systems [117]. Therefore‚ 5G promises innovative business models that centre
around creating and capturing value through multi-partnerships within the collaborative
value system [118].

• Marketing and Sales

Marketing and sales are service-driven activities that provide a means through which buy‑
ers can be induced to purchase a product, such as advertising‚ promotion‚ direct sales
force‚ quoting‚ channel selection‚ channel relation‚ and pricing [119]. Arguably‚ effective
marketing is and will always be hinged on a simple premise that customers are attracted by
personalizing the communication between the seller and the buyer and by customizing the
product and service offerings, so they directly satisfy the needs of individual consumers
[120]. In consideration of these goals‚ the marketing field has been boosted by new tech‑
nologies and ever-improving digital-first strategies [121]. For instance‚ the marketing and
sales activities are supported by mobile and web technologies, which can enlarge the reach
to potential customers and create an inclusive conversation space between brands and con‑
sumers. Critical for keeping abreast of the trend towards smart products and services‚ 5G
networks could unlock many new opportunities in marketing and sales activities.
When supporting the business customer experience‚ 5G networks underpin an interac‑
tive marketing design [122] that enables the communication of offerings instantly via large
broadband mobile marketing channels. What is appealing for marketers is the possibility
of 5G to provide on-demand access to massive marketing datasets. More than ever before,
marketing is challenged by managing streams of data flooding in from various channels
[123]. However‚ this no longer would be an issue since 5G ensures consistent data com‑
munication among devices and various communication mediums. Given this enabling fea‑
ture‚ brands could use 5G to gain real-time decision-making capabilities and value-adding,
as well as actionable data-driven insights [124]. The ubiquitous 5G connectivity of users’
devices could be an insightful tool for marketers to quickly identify consumers’ specific
locations‚ their interactions with in-store beacons‚ social media platforms‚ digital enter‑
tainment‚ as well as smart city service‚ thereby communicate marketing messages accord‑
ingly. What this means for marketing professionals is the ability to acquire an ever-deeper
understanding of customer profiles‚ behaviour and interaction preferences, which enable
increased personalization‚ improved targeting‚ and the delivery of individualized offers
[125]. Indeed, 5G connectivity could deliver real-time contextually aware and personalized
experiences through leveraging location-based marketing or push notifications. The high-
bandwidth generates granular‚ in-depth‚ hyper-targeted and more effective location-based
advertising [126]; thus removing potential geographical and information barriers between
consumers and marketplace offerings [127]. For example‚ the high-speed broadcasting
ability of 5G would make it possible to transform any surface into an interactive marketing

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5G Networks in the Value Chain

façade that offers more ad inventory opportunities through high-end and omnipresent
screens. Due to the superfast connectivity‚ intelligent management‚ and data capabilities of
5G networks [32] ‚ marketers would have the opportunity to send to consumers visuals in
ultra HD quality‚ 360º view technology‚ or using the elements of augmented VR without
delays. As a result‚ the propagation of highly involved video content and moving images
would arouse mental pleasures and generate fantasies and daydreams [128] ‚ stimulating
the recipients to engage and interact with the brand.
Aside from increasing mobile internet broadband and reducing the delays in loading
webpages‚ 5G would solve the entrenched problem of latency and create sophisticated
mobile marketing that can increase customers’ satisfaction. This is consistent with a recent
report by Google that states that 46% of consumers say they would not repurchase from a
brand if they had an interruptive mobile experience [129]. Owing to this fact‚ a faster 5G
network would not only improve the consumer experience through delivering interactive,
personalized advertising, but it could open opportunities for other innovative marketing
tools such as AR and gamified services [130]. Possibilities of achieving total marketing
cost savings are increased with the deployment of 5G networks since extreme low latency
and high-speed data transference are the factors which will decrease bounce rates (i.e.‚ the
percentage of visits where visitors left the site after visiting only its entry page [131])‚ and
maximize click-through rates (i.e.‚ the percentage of users who see a banner and then click
on it to link to the brand’s website or wherever else the advertiser wants to drive traffic
[132]); thus improving the return on investment (ROI).

• After-Sales Services

After-sale services are regarded as a critical point in product purchasing decisions [133].
These activities encompass the post-transaction elements such as warranty repair capabili‑
ties‚ complaint resolution‚ product returns and operating information [134]. These activi‑
ties’ importance stems from the impact they have on repurchase decisions and customer
satisfaction. According to Levitt [135], the after-sale services are one of the ways through
which a business could enhance the customer’s perception regarding product quality.
Today‚ more and more businesses are increasingly looking for maintaining and enhancing
competitiveness by offering quality and attractive after-sales services to customers. The
mission of these services is to meet rising customers’ expectations while creating more
value. Given that businesses are currently selling ‘products plus after-sales services’ to the
customers [136], they could tap into the several opportunities offered by newly emerging
5G telecommunication networks.
Considering the substantial technical characteristics of 5G networks‚ businesses would
operate a new business model wherein the products become ‘product-as-a-service’ [137].
This implies that 5G-powered products‚ regardless of the final customers served‚ would
benefit from a better value-in-use approach [138] that brings along more effective means
for monitoring and controlling the use of products throughout their entire life cycles.
As such‚ 5G networks could significantly facilitate the fulfilment of after-sales services
and ensure sustainable predictive maintenance‚ upgrade‚ and replacement options. For
instance‚ the massive connectivity of 5G could enable large-scale‚ real-time monitoring
and proactive maintenance of machinery. For example‚ 5G-connected sensors embedded
in industrial machines could detect levels of physical stress by measuring the machine
throughput, and utilization and the collected data could be used for scheduling mainte‑
nance appointments and estimating the residual value of the asset, as well as the number
of years it has been operating. The on-site inspection‚ maintenance‚ expeditious provision

13
 A. Rejeb, J. G. Keogh

of machine spare parts‚ and the advice and technical support could be streamlined with
5G networks‚ resulting in an accurate forecast and plan of spare parts demand and reduced
supply chain risks. Moreover‚ there is a unique advantage for 5G networks to accommo‑
date AR and gamification technologies for post-sale corporate training programs. In vir‑
tualizing field training sessions and development programs‚ 5G networks could create a
pervasive human-centric environment where such initiatives lead to enhance training per‑
formance‚ offer sustainable motivation‚ and improve learning efficiency [139]. Therefore‚
5G networks allow the service-providing business to achieve a high level of responsiveness
and agility in the case of dealing with customer complaints. The high level of connectiv‑
ity of the network enables automation and standardization of post-sale services and keeps
track of customer purchases‚ complaints‚ preferences‚ and responses to certain post-trans‑
actional elements (e.g.‚ warranties).

4 Conclusion

Communication and telecommunication networks are a crucial part of the management of

value chain activities. With the development of mobile networks, there is a need for con‑
tinuous control of information and a necessity to process and transmit data quickly in order
to gain a competitive advantage and maintain a good level of efficiency [140]. Similarly‚
the internet and other telecommunication networks have generated an information overload
and increased the amount of information exchanged between supply chain partners. This
trend is fuelled by the emergence of Industry 4.0 [141] as a manifestation of the ‘smart
shrinking’ approach in a manufacturing environment [142] and the heavy reliance on infor‑
mation technology in value chain activities. This shift is often interchangeably termed
Industrial Internet of Things (IIoT), and it involves humans and several facilitating technol‑
ogies such as robotics‚ ubiquitous sensors‚ big data‚ 3D printing‚ and it is characterized by
decentralised decision-taking using cyber-physical systems and a merging of physical and
virtual worlds [143]. Another important consideration that is critical for embarking on the
Industry 4.0 model is to sustain the digitization and automation (digitalization) of business
process activities by increasing the amount of transferred data while improving their secu‑
rity‚ performance‚ adaptability and flexibility. Hence‚ for mobile networks to deliver real-
time information in the value chain, they should be able to provide ‘anytime anywhere’
broadband access and provide strong performance in terms of availability and speed [144].
In this paper‚ we have comprehensively analysed the possibilities of 5G networks in the
value chain. The fact that 5G is being touted as a disruptive technological generation sur‑
passes the mere representation of 5G as a progressive upgrade of the previous telecommu‑
nication generations [24]. Rather‚ it is a step-change in evolutionary technology that could
significantly support the value-creating abilities of firms and formulate several opportuni‑
ties for supply chain partners. At a more specific level‚ 5G aims to expand the networking
and communication infrastructure to handle data traffic volumes, which are expected to
increase by a thousandfold by 2020 [145]. Since the growth of the IoT is expected to be
prevalent and dominant in consumer and industrial sectors [146] ‚ 5G networks advance
the incorporation of these technologies into the business value chain. This is facilitated
by network slicing, which is an effective solution for enhancing the capacity and flexibil‑
ity of the dynamic information and networking infrastructure in secure resource alloca‑
tion and management schemes [147]. In this regard‚ the implementation of 5G could result
in reducing some infrastructure costs‚ revitalizing the organizational structure‚ and more

13
5G Networks in the Value Chain

resource integration. In leveraging the firm’s assets‚ the 5G-aided workforce is expected to
be more connected than ever before. The emerging networking technology facilitates the
mobility of workers by blurring temporal and spatial barriers. Not only that‚ the high con‑
nectivity could contribute to the well-being of the employee, and this is possible through
the real-time tracking of employee productivity‚ mobility and interactions. To spur tech‑
nological developments‚ the data generated from 5G-powered devices and processed on
a real-time basis are new insights and prerequisites for potential innovations and person‑
alized offerings. 5G networks could also bring additional value in procurement by doing
more coordinating of the process of sourcing and replenishment of raw materials and by
supporting the tenets of Procurement 4.0. The high reliability and connectivity of 5G net‑
works underscore the alignment of the procurement function and its real-time synchroniza‑
tion with the processes and needs of other business units (e.g.‚ warehousing).
The adoption of 5G telecommunications in the value chain can bring about a competi‑
tive edge to the firm in that they allow several improvements for its primary activities. Due
to its ultra-low latency and high throughput‚ the inbound logistics activities, such as stor‑
age assignment‚ order picking‚ and routing, could be effectuated more efficiently‚ reducing
lead times‚ collisions and unnecessary movements. Meanwhile‚ the outbound logistics is
an area where 5G simplifies the tasks associated with the tracking of products‚ the collec‑
tion of logistics information from low-powered remote sensing sensors [148] ‚ and indoor/
outdoor transportation. It has to be mentioned here that 5G entails better-performing logis‑
tics technologies (e.g.‚ AGVs‚ smart glasses) as they would be reconfigurable in a way
that coordinates the logistics flows‚ ensures granular visibility‚ and optimizes the ware‑
house processes. Further‚ critical to encountering the rising needs of smart factories for
production automation and efficiency [149] ‚ 5G could allow better utilization of manu‑
facturing resources by reducing waste‚ defects and process disruptions. Herein‚ the high
level of M2M communications [150] is a crucial 5G-enabling capability that allows supply
chain members to interact dynamically and can initiate business processes within each oth‑
er’s information systems by pre-defining business rules (e.g., smart contracts) that trigger
events across systems [151]. Marketing is an area where the benefits of 5G communica‑
tions are tangible. The ubiquity and high connectivity of 5G-enabled persuasive technolo‑
gies emphasize a new approach of marketing that Schmitt referred to as “experiential mar‑
keting” [152]. Rather than considering consumers as passive audiences who are disjointed
from the marketing strategy and care only about the products’ functional features and bene‑
fits‚ 5G communications enable marketers to deliver pleasurable experiences to consumers.
The Ultra HD resolution of marketing visuals and the different elements of augmented VR‚
and to which 5G is a significant contributor‚ could deepen the engagement of consumers
with brands. Potential marketing cost savings could be achieved given the extremely low
latency and high-speed data transference of 5G networks. Eventually‚ to sustain the loyalty
of consumers‚ 5G telecommunications could improve the delivery of after-sales services as
they equip businesses with the necessary connectivity to guarantee prompt services (e.g.‚
maintenance‚ upgrade‚ technical support). The interplay of technological solutions for
supporting post-sale corporate training programs could be facilitated with 5G networks‚
resulting in more job satisfaction and workforce motivation.
The contribution of this paper is manifold. The newness of the topic makes it ripe for
exploration and for contributing to the continually increasing body of knowledge regarding
5G telecommunications and their applications to several fields of sciences and engineering.
Following a bottom-up approach‚ we have started from more technical jargon and eluci‑
dated to the reader the key features of 5G networks. Then‚ we have analysed how the char‑
acteristics of 5G telecommunications (i.e.‚ high network throughput‚ ultra-low latency‚

13
 A. Rejeb, J. G. Keogh

ultra-high reliability‚ high efficiency‚ high flexibility) could impact the value chain activi‑
ties of the firm. The analysis of 5G possibilities is not dictated by specific order, nor 5G
network attributes. Instead‚ we have strictly followed Porter’s value chain methodology
which is gradually being introduced as the basis for designing competitiveness upgrading
[153] and a useful tool for defining a firm’s core competence and the activities in which it
can pursue a competitive advantage of cost and differentiation [154]. In several aspects,
we have demonstrated how the emerging telecommunication technology could bring about
more efficient business processes and cost savings. However‚ we recognize that there are
several limitations in the paper which could be investigated in future research. First‚ the
analysis of the potential of this network shift in the business value chain is not exhaustive
to our knowledge. That is‚ several potential value propositions might not be examined in
our work. Hence‚ we encourage researchers to carefully investigate the gaps of our analysis
and elaborate on them more extensively. Second‚ 5G networks are not standalone, and their
integration with emerging technological paradigms could be tackled to show how the inter‑
play between these solutions impact the value chain of the firm. Lastly‚ studying the chal‑
lenges of incorporating 5G networks in the organizational structure is a possible avenue for
potential research and investigation.

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Publisher’s Note  Springer Nature remains neutral with regard to jurisdictional claims in published maps and
institutional affiliations.

Abderahman Rejeb  is a doctoral student and researcher at Széchenyi

István University. His research interests include technology applica‑
tions, supply chain management and logistics, marketing, and tour‑
ism. He published several papers in international peer-reviewed
journals.

John G. Keogh  is a former Director, VP and SVP in supply chain

management, information technology, IT consulting and supply chain
standards. He is currently a strategist, advisor and researcher for cli‑
ents in the public and private sectors. He holds a PG Diploma in
Mgmt., an MBA in Mgmt., an MSc in Business and Management
Research and is currently undertaking doctoral research on supply
chain transparency and trust at Henley Business School, University of
Reading, UK.

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