There are many opportunities for manufacturers that adopt 5G. But to do so successfully requires new infrastructure, the right skill sets among the workforce and stronger relationships with their service providers. Only with this mix can they consider 5G, and will service providers receive a boost from new revenue streams for assured 5G performance. A 5G advanced network provides decreased latency, higher reliability and increased security, making it an ideal option for businesses and consumers who want enhanced experiences. With the ability to deliver premium-priced secure “real-time” services, service providers hope to extract new 5G revenue streams from many industries that are looking to 5G to introduce completely new services that were impossible before.
But a successful 5G implementation requires significant orchestration of backend infrastructure to support the advanced applications it can power, like augmented reality (AR), artificial intelligence (AI) and the increased flexibility to operate drones and robots remotely. As it stands, most sectors don’t yet have the foundation that can support this. Except for manufacturing. As an industry almost entirely reliant on the connection between man and machines or in between just machines, the manufacturing sector is completely ready and ripe, to be transformed by 5G. Here’s how:
Increased productivity
When you picture a factory, what do you see? Likely a room full of machines, large and small, connected and working in tandem to produce output or a product like a shoe. With this image in mind, it’s easy to understand why 5G can make such an impact in manufacturing. The lowered latency of the network means that the information being shared between tools will actually be in “true” real-time - no lags or delays and increased efficiency. For humans, it means an increase in safety and reduced travel to remote locations, which is particularly helpful for hazardous environments. Human intervention in these processes can be largely eliminated, with machines working almost entirely autonomously. Employees will be freed up to spend time on more value-added, complex tasks, rather than having to manage the daily monitoring and troubleshooting of the machines.
Smart, AI-driven sensors will be able to predict when machines need maintenance; AR headsets will give the employees the option to check in on machines remotely, offering diagnostics from afar, rather than making individuals travel onsite; robots will take over mundane tasks that traditionally eat up significant employee time.
In essence, 5G promises to truly liberate the link between man and machine, and technology will become truly autonomous. Because employees won’t be tied to machine monitoring and check-ins, they’ll have more flexibility, increased productivity and engagement for process improvements such as reviewing production versus plan since immediate feedback from the factory floor will be available. Improved processes and more satisfied employees will lead to improved outcomes; a win across the entire business.
Assured performance
While the current state of manufacturing will be transformed, there will also be opportunities brought on by 5G that are entirely new. Drones, for example, could be a huge new asset for factories, conducting aerial site visits or transporting goods. But the current network infrastructure of LTE doesn’t allow for drones to be used, since they can be easily interfered with, particularly when traveling across long distances. With 5G’s network slicing capabilities, however, drones can conduct business within a non-interceptable field, and employees don’t have to monitor their progress as closely.
Privacy and security
Also, manufacturers get the added benefit of being better prepared for potential bad actors in the face of rising ransomware attacks. Although 5G doesn’t provide everything to manage security - more specific security tools and policies are needed for that - it does enable dedicated secure and private slices. “My line” - or communication path - will finally be mine and only mine.
Guaranteed output
Finally, in addition to transforming the factories themselves, 5G adoption will change the relationship between manufacturers and service providers as the network becomes a huge part of business success. It will shift the dynamics from a vendor-customer relationship to one of more strategic partnerships. To meet the heightened performance KPIs, manufacturers will require better transparency from telcos, specifically for dropped packets, or jitter in communication links and latency. How service providers deliver this information on network performance will determine if they become key players in the business outcomes of manufacturing firms. The good news is that research from Analysys Mason shows most manufacturers experimenting with 5G will turn to telcos for support: 70% of manufacturers are interested in working with managed service providers with the expertise to deploy private 5G networks. Service providers will need to develop joint business models and partnerships to support this demand as manufacturers increasingly depend on them for their network performance.
