President and CEO of Vodafone US Inc., leading Vodafone Business commercial operations throughout North America.
Viewers of Netflix’s The Last Dance will understand my admiration of the legendary ’90s Chicago Bulls squad, with Scottie Pippen, Dennis Rodman and Michael Jordan a triumvirate that swept all before them.
What does this metaphor have to do with manufacturing? Bear with me: While industrial technology isn’t likely to get a high-profile documentary series anytime soon, it’s just as important to our everyday lives, even for NBA fans. And three key players are poised to be game changers for the industry, with next-gen 5G networks the playmaker alongside the Internet of Things (IoT) and artificial intelligence, enabling a revolution in factories and businesses all over the world.
AI And IoT
Today, it’s IoT, AI and 5G which, combined, enable game-changing infrastructures and processes to flourish.
The Internet of Things has dramatically improved output for manufacturers over the last decade. IoT enables systems to support connected assets, critical for smart manufacturing and connected logistics; it’s no surprise then that Statista predicts there will be 22 billion connected IoT devices by 2025.
AI, meanwhile, supports IoT by enabling analysis of the vast data lakes generated by connected devices. AI can be used to analyze sector data, schedule maintenance of hardware and drive higher levels of productivity at a lower cost. Artificial intelligence can also support data security: 23% of all cyber threats are directed at manufacturers, but AI tools can study vast data sets, automate repetitive security screening tasks, identify potential threats and implement antivirus measures. Accordingly, the global artificial intelligence manufacturing market size is predicted to grow to $22.6 billion by 2030.
AI and IoT are crucial in an era of high energy and material costs and disrupted supply chains as they enable manufacturers to adapt and be predictive. Predictive maintenance deploys data-driven analytics to optimize capital equipment and avoid costs associated with unscheduled downtime. According to McKinsey, manufacturers’ savings from predictive maintenance will total $630 billion in 2025.
These technologies also help to address the traditional problems that have dogged manufacturers. Among these are an inefficiency in inventory supply chains and production schedules. These can be remedied by IoT and AI-backed ERP (enterprise resource planning) software to automate inventory management, scheduling projects to satisfy fulfillment rates. But another nascent technology can help unlock even more value for manufacturers today.
Enter 5G
If IoT and AI are Rodman and Jordan, the Scottie Pippen in this equation is 5G, the go-between allowing them to really shine. AI and IoT are highly dependent on 5G to provide the data capacity to support smart manufacturing and digital supply chains and deliver emerging technologies such as AI, virtual reality and robotics—so much so that super-fast mobile 5G networks are expected to unlock $740 billion worth of value for manufacturing by 2030.
Fifth-gen mobile networks can connect everyone and everything, including machines, objects and devices; the market for IoT wearable healthcare devices alone is expected to grow to $30 billion by 2027. Why that matters for manufacturing: latency, or the lack thereof. 5G delivers low latency, which brings faster upload speeds. 5G speeds can reach 10 gigabits per second, 100 times faster than 4G, supplying the level of performance needed for the high-resolution, embedded sensors used in modern manufacturing.
But it’s the ability to enable your own, private, short-range 5G networks that will revolutionize manufacturing in the 2020s. Mobile private networks (or MPNs) deliver 5G cellular connectivity for private networks, private businesses and third-party providers and municipalities. The advantage of an MPN is that it enables high levels of connectivity for authorized devices. This reduces security threats because data can be processed on-site.
Private 5G (P5G) also enables greater connectivity for automated guided vehicles (AVGS) and high-powered communication tools for staff in outdoor environments. It also delivers better connectivity and “remote vision” capabilities to factories operating in remote locations.
5G can modernize factory operations and supports efficiency by enabling real-time data monitoring, analysis and predictive maintenance delivered by IoT. 5G also helps with security; through network slicing, multiple virtual network slices run on a single physical network, with users authenticated for only one network area to ensure data and security isolation. 5G authentication meanwhile improves upon 4G authentication through a unified authentication framework that can support identity protection and enhanced home-network control, something that has helped Vodafone commercialize a 5G standalone MPN product for businesses.
Putting It Into Practice
The future could be characterized by the evolution of 5G standalone, a separate network independent of the 4G network the current 5G is built on. Users may see higher speeds, increased reliability and security and more devices connected simultaneously. It will even support AR and VR technologies so that engineers can assist customers when they are not able to visit factories in person and deploy wearable technologies to communicate with remote teams.
Once we saw The Bulls in all their glory, each win was a no-brainer. 5G is the same way. When it comes to making it a reality, follow this mantra: Think big, start small but scale fast.
• Think Big: Lay out your vision and showcase how 5G, AI and IOT are the ingredients to business success. Paint the picture that this is bigger than operations. It’s about future-proofing the business against challenges.
• Start Small: Identify where the biggest opportunity in the company is first. Think about any hazards or challenges you will need to overcome and build these into your road map so you can properly prepare.
• Scale Fast: The same with any new technology, it’s likely you’ll hit roadblocks at the start of the implementation but don’t lose momentum. To see the business ROI requires scaling quickly.
The next industrial revolution will need high-speed 5G connectivity to securely process vast amounts of data. Without Pippen to make the high-speed connections for his team, the Bulls would not have been the same force, even with Jordan dominating the court. In the excitement surrounding AI and IoT, we must continue to invest in 5G, the lifeblood of emergent technologies and the manufacturing of the future.
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