ARTICLES — July 14, 2021

Is Your Company Ready to Transition Into 5G?

5G is an exciting technological leap in telecommunications. The low-latency and ultra fast internet connection it provides may seem to be something that everyone ought to get their hands on as soon as possible. This is especially true if your company already has a strong Internet of Things (IoT) structure. Yet is it necessary for you to make this transition swiftly?

Like any other new technology, it would take some time to integrate 5G into the communication infrastructure. Based on a recent study, 5G will less likely be distributed en masse until 2025. The current technology still heavily relies on the 4G network and it will continue to do so. As 5G slowly integrates into the communication infrastructure, there will be more 5G compatible devices available in the market. However, it is better for you to utilize IoT devices that are still compatible with 4G during this transitional period. Or, if possible, utilize devices that are compatible with both 4G and 5G. This will allow a smooth transition when the time comes. Additionally, if there is a malfunction in one network, you’ll have a backup network connection.

When should your company transition into 5G?

You should identify your company’s capacity to make the transition into 5G based on some of its aspects namely financial, worker’s skill, and a strong communication infrastructure. It goes without saying that you should be able to afford new technologies before making the transition. However, you do not need to rush this process. It is better for your company to utilize the resources that you have and consult an expert on when you should start investing in 5G technology. The next step would be to make sure your workers have adequate technological literacy. Have you digitized your company yet? If not, then you may start the process by integrating the latest technology and training your employees to use it. Finally, You need to make sure that you already have a strong communication infrastructure. This also depends on how far your company has implemented digitalization. Communication infrastructure includes methods and devices(including IoT devices) that your company uses to communicate efficiently. A strong communication infrastructure allows a smooth transmission of media in various forms namely audio, video, and data. If your company doesn’t have a strong communication infrastructure, the implementation of 5G would only be a superficial inclusion.

The 3 Horizon of Growth Model

Another way to determine your IoT 5G solution is by identifying your company in the McKinsey’s 3 Horizon of Growth model:

-      First Horizon illustrates a company which in its current stage is focusing on the daily activities such as cash flow, marketing, selling, and customer service. It concerns itself with maintaining and defending its core business.

-      Second Horizon consists of companies that are getting many new opportunities. At this stage, the company may attempt to expand its business or create new products.

-      Third Horizon represents companies who are well-off and bold enough to venture into a different type of business. Because of its stability, at the surface they may seem to be doing something unprofitable. However, they are strengthening their capability to diversify their business.

By identifying your company based on the Horizon of Growth models, you can determine the right course of action for your IoT solution. If your business identifies with the first horizon, then you want the solution that can strengthen your core business. But if our company is at the second or third horizon, then your IoT solution would concern your company’s future. It is especially different if your company identifies with the third horizon as you may be practising different types of project.

It is essential to make calculated steps before plunging into the most advanced technology available. It may be best if you have experts to guide you in your transition into the 5G technology.

Learn more about our 5G-ready NB-IoT connectivity right here.

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