STEEP Analysis - 5G Digital Transformation

12/12/2019

Social-cultural
The demand to be continuously connected, which has been driven by social media, is driving the need for businesses to digitally transform to provide the same level of connectivity and instant access to key data that the millennial's have come to be used to at home, but now in the workplace.

Technological
The demand for connectivity is growing, people are becoming more expectant on being able to connect to the internet and access their online content. The world is quickly becoming interconnected, enterprise is moving capability into the cloud, mobile network coverage is increasing, mobile devices are becoming more powerful, consumers are spending more to refresh their devices, emerging markets (such as India) are being penetrated and considered growth markets. Under pinning all this change is connectivity. Technology is driving the need to remain connected and 5G provides a seismic shift in how devices will connect in the future. This seismic shift in technical connectivity will drive an insatiable desire for businesses to re engineer their core business model around 5G to ensure they survive in the ultra-connected world that the event of 5G will embarks us on.

Ecological
As humans become more aware of the negative ecological impact that are making on the earth, many companies are putting more focus on their corporate social responsibilities. Digital transformation underpinned by 5G connectivity can assist an enterprise with their corporate social responsibilities with initiatives such as digital workplace which will analyse footfall in an office and provide opportunities to save cost and carbon footprint trough re-purposing of work space. This in turn can lead to cost savings as there are tax incentives for companies who are able to close an office floor in their buildings. Digital transformation underpinned by 5G connectivity can also provide effective telecommuting structures that provide employees with the flexibility they require to balance their home/work life, whilst proving companies with an opportunity to further save costs through workforce displaced distribution whilst providing companies with toolkit to retain top talent.

Economical
Many companies are having to change their structures, cultures and routines to remain competitive. The world changing around them and is becoming ever more connected driving the need for a local and a global focus. There are increased demands for transparency and sustainability, at the same time, economic instability is a concern. These challenges require flexibility and a decentralization of core processes to respond faster to changes in customer behavior.

Customer expectations
The level for an increased customer experience is constantly rising as consumer needs and expectations evolve. Customers want to engage using their preferred sales channel and expect organisations to understand and respond to their requirements instantly. Customers use social media to share their experiences, both to praise and complain. Operating in this new digital ecosystem is second nature to them as they refer to consumer comparisons online, and switch provider at the tap of a screen.

Managing complexity
The world is becoming far more complex, with the frequent and relentless emergence of new technologies. Traditional organisational hierarchies are leading to disconnected systems and silo-based structures that aren’t compatible with a need to be agile, competitive and cost-efficient. For those enterprises stuck by this problem, this structure must change to retain any commercial advantage.

Political
The worlds governments are hugely aware of the opportunities that an integrated 5G network will provide their country, not only in terms of technical, economic and social, but also political. 5G provides a technical platform that will ultimately make ever node on a completely integrated network visible to the control layer and governments are keen to take a leading role in the development of this network and platform.

To find out more about 5G get in touch with Virtu at info@virtuconsulting.co.uk