With the rollout of 5G in the consumer market continuing to take shape (as of October 2019, 84 operators have deployed 5G networks and there have been 1,137 5G deployments worldwide), in this article Leo Gergs of ABI Research talks about how Communications Service Providers (CSPs) also begin to mention enterprise verticals as a potential use case for 5G connectivity and tentatively present their Business-to-Business (B2B) business models, which are expected to kick off with the 3rd Generation Partnership Project (3GPP)’s freeze of release 16 in 2020.
This is a positive development, as it shows CSPs’ growing awareness of the importance of enterprise verticals for the success of 5G. However, the way network operators talk about enterprise verticals as an area of application illuminates another fundamental misconception: it creates the impression of the enterprise vertical domain as homogenous in terms of use cases and technology requirements, therefore suggesting a “one size fits all†kind of deployment solution to target different enterprise verticals.
However, targeting enterprises is far more complex and potential use cases (and the resulting technology requirements) far more heterogenous than what CSPs are used to from targeting the consumer market, where supplying connectivity is comparatively easy. Not accounting for this complexity would inevitably lead to dissatisfaction with 5G technology and therefore endanger overall deployment, which is why they need to address this from day zero.
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The heterogeneity of the enterprise verticals:
To understand the full extent of the complexity involved when it comes to enterprises, it is sufficient to consider just one vertical—take Industrial Manufacturing, for example. In total there are around 50 use cases for connectivity on the factory floor, each of which has different network requirements: while the establishment of massive wireless sensor networks requires a high density of connected sensors, but has non-stringent requirements in terms of bandwidth or latency, Augmented Reality (AR) use cases require particularly high bandwidth. Additionally, motion control applications require particularly low latency (ideally around 1-2 milliseconds) and the ability to connect a large number of devices, and mobile robot applications and mobile control panels require a much higher bandwidth (with specific requirements varying even within this particular area of application). Process automation use cases, in contrast, can make do with higher latency and lower bandwidth, but need a considerably larger coverage area.
Looking at the large number of use cases (even within the same enterprise vertical) underlines the complexity of the issue at stake and leads to the realization that, in order to be able to address enterprise vertical use cases appropriately, CSPs need a thorough understanding of the applications and expectations of the implementer. Providing a “one size fits all†kind of solution (and therefore failing to understand the heterogeneity) would not be able to live up to the expectations of, for example, a manufacturing company, and would only lead to dissatisfaction with the technology as such and ultimately result in the manufacturer turning away from 5G as a connectivity solution, therefore endangering the deployment of 5G within the enterprise verticals.
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Time to count for this complexity:
This puts network operators into a difficult position: on one hand they should not neglect the fragmentation of use cases within the enterprise verticals, but on the other hand they cannot deploy a completely different network for every single use case. The key therefore is to find a sensible way of grouping use-cases with similar technological requirements to offer enough simplification to give operators a clear understanding of the requirements of each use case’s group without oversimplifying the domain by suggesting a “one size fits all†connectivity solution.
One way of doing this is by looking at the different areas with automation potential in the industrial manufacturing context. This will give you five distinct areas for automation within a factory:
- Factory Automation (considering the automated monitoring and optimizing of workflows within a single factory)
- Process Automation (the handling of production material and substances to enhance production processes)
- Human-Machine Interfaces (HMIs) and Production Informational Technology (such as mobile control panels)
- Logistics and Warehousing
- Monitoring and Predictive Maintenance
A grouping like this can offer operators a more systematic understanding of the domain while still acknowledging the heterogenous requirements of the different automation areas. For example, while factory automation use cases are usually confined to a relatively small service area in which interaction with a public mobile network is not necessarily required, process automation applications could require interaction with a public mobile network because production processes are not limited to one single factory anymore. Furthermore, logistics and warehousing use cases generally require a particularly high bandwidth, whereas mobile control panels require particularly high reliability and low latency.
While such a schematic understanding certainly simplifies the understanding of each of the enterprise verticals, it does not substitute dialogue that is necessary between CSPs and enterprise-specific organizations such as 5G Alliance for Connected Industries and Automation (5G-ACIA) or 5G Automotive Association (5GAA). In fact, network operators should use the association’s knowledge about their respective domains to build up this metric, as trying to build up its own knowledge-base from scratch might be too resource- and time-intensive for a single CSP to engage with.
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