5G and Procurement: Ushering in a Revolutionary Change in Internet Connection

Posted: 02/10/2020 - 03:17
5G and Procurement

Advancements in new technologies always assure to crop up with proficiency gains, high throughput and lower costs. When it comes to such advancements, the job for procurement is to have a clear understanding about how they function, what they are and what exactly they will make over for the greater cause of the business.

Well, there’s no doubt that despite the wide implementation of 4G services, a more accelerated and consistent Internet service is needed. With engineers overseeing and regulating internal trials of 5G technology on a constant note, there is substantial potential that in the near future, there will be a huge transformation in business activities across the world.

Speed is not the only benefit 5G technology offers. When lower dormancies will guarantee fewer Internet dropouts, it is also projected to be more power-competent and more broadly accessible than that of 4G. These features will let procurement work with its suppliers at a higher speed, creating a wealth of opportunities for value which, in turn, will prove to be cost-efficient.

Needless to say, procurement has always kept an eye on the cost factor. However, the technology is still in its nascent stage and thus, it is quite tough to imagine the additional costs. It is likely data demands will experience a significant rise and, with mobile data levying a considerable charge, costs could swell significantly.

Impacts of 5G on Procurement

  • With every new technology in use, it paves the way toward extra costs. According to procurement experts, as this technology is new, innovative and under progress, they are waiting to see how much this is going to cost consumers and how exactly it would be beneficial to the business. Simultaneously, current mobile data costs are expected to pile up since 5G is going to have significant impact on both business and consumers alike.
  • The push and plug on 5G has been cited by procurement professionals a number of times before. When it would provide data 100 times faster than a 2G or 3G network, it would also help scale up both business operations and procurement activities, thereby jacking up their development requirements in more than one way.
  • Due to its high speed, this technology would certainly make communication easier than ever before, which would result in economical approaches and ensure efficacy.
  • Along with the desired speed, this advanced technology comes with a lower dormancy rate as well, which means that this will be much more effectual than 4G, and users should rarely experience connection drops.
  • In today’s fast-paced milieu when we have to deal with piles of media and software, it would definitely be a great help if the amount of time taken to download data is reduced to halves. For this, nothing can be better than a 5G network.
  • Also, the high speed would allow the quality of video conferencing to improve substantially.  

Nonetheless, 5G always demands recycled outdated devices. Despite the convenience and readiness of the new technology, companies should ask themselves if they really need 5G in their supply chain. There are also instances where organizations have stood over 5G adaptation at least until the next hardware refresh.

According to Allied Market Research, the global 5G technology market is expected to grow at the fastest CAGR of 122.3% from 2021to 2026. Increase in the number of IoT devices, implementation of edge computing and demand for low remission connectivity in industrial automation are the major factors propelling the growth of the market. On the other hand, adoption of fiber backhaul is expected to impede the growth to a certain extent. Nevertheless, a surge in investments in smart cities has almost downplayed the restraining factor and set forth a number of opportunities in the industry.

5G technology is expected to transform communication around the world. With greater speed and reliability than other prevailing technologies, 5G technology would offer limitless potential for both consumers and industries alike. With the growing craze for connected cars and industrial automation, the importance of a 5G network has never been more felt.

It’s not the end though. 5G technology is also projected to offer socio-economic change, thereby paving the way for a hyper-connected society. When a number of applications powered by 5G technologies are being highly assessed under the industry 4.0 initiatives worldwide, this advanced science is also expected to help drive advancements in automobiles-to-infrastructure, automobiles-to-automobiles, peer-to-peer and vehicle-to-stroller connectivity.

To sum up, we can assert that the 5G technology market is growing rapidly, and it’s anticipated to thrive even more in the next few years.


About The Author

Koyel Ghosh's picture

Koyel Ghosh is a blogger with a strong passion and enjoys writing on miscellaneous domains, as she believes it lets her explore a wide variety of niches. She has an innate interest for creativity and enjoys experimenting with different writing styles. A writer who never stops imagining, she has been serving the corporate industry for the last three years.