The Impact of Private LTE and Industrial Edge
One of the most prominent misconceptions about private wireless networks – or PLTE networks – surrounds the need for clarity regarding the return on investment (ROI) associated with implementing and deploying one. To gain clarity, Nokia gathered insights from early adopters of industrial digitalization and inquired about the ROI they observed when incorporating solutions like private wireless/PLTE and industrial edge into their operations.
To facilitate this, Nokia collaborated with the analyst firm GlobalData, which aided them in conducting interviews with 79 early adopters across various sectors, including manufacturing, energy, and transportation hubs. These organizations had either already deployed or were in the process of deploying private wireless and digitalization solutions.
Top Three ROI Categories: Collaboration, Material Flow Efficiency, and Production Quality
When asked about the results following a private wireless deployment, most respondents reported improvements of more than 10% in their internal metrics across a wide range of performance areas, with many reporting more than a 20% improvement.
Nearly all of the individuals interviewed (95%) reported an increase in worker collaboration and decision-making, followed by optimized internal material flow efficiency, production quality (both 74%), emission reductions (70%), and operational cost reduction (69%).
Video analytics supported by a low latency environment increase the ability to monitor sites and equipment for efficiency, maintenance, security, and safety. Connected workers enable an improved allocation of personnel and safety. Asset tracking was also mentioned to reduce loss and increase efficiency.
Sustainability, Reduced Energy Costs, and Enhanced Worker Safety
In many cases, when organizations present a business case for digitalization solutions like private wireless/PLTE or industrial edge, they must come equipped with compelling arguments, especially when dealing with innovative technologies that don’t lend themselves well to direct comparisons. Since the “rip-and-replace” approach is often impractical, data on things like ROI is particularly valuable to making their case.
To gather these statistics, Nokia surveyed early adopters to gauge the impact on the total cost of ownership resulting from their deployment of private wireless and industrial edge technologies and the time it took to realize cost benefits. Notably, 85% of the organizations reported cost reductions following deployment. Among this group, over 50% achieved cost reductions of 6% or more, with 29% experiencing reductions exceeding 10%. Additionally, a significant number – 79% – of those surveyed saw an ROI within just six months, and within this subset, 21% achieved an ROI in as little as a month.
These findings underline the potential for substantial cost savings and rapid ROI, providing a strong case for adopting such technologies, even when faced with unique challenges and security concerns.
The Comprehensive Approach to Digital Transformation
Early adopters of digital transformation – especially in industrial settings – approach the process with a comprehensive strategy beyond merely establishing reliable connectivity.
Below is a breakdown of a common strategy:
Deployment of Private Wireless and Wi-Fi Networks
An overwhelming 94% of early adopters have implemented private wireless and/or Wi-Fi networks in conjunction with new applications such as predictive analytics, augmented reality/virtual reality (AR/VR), and industrial twins. This combination of network infrastructure and cutting-edge applications forms the foundation for digital transformation.
Integration of Connected Industrial Devices
More than 63% of early adopters are already utilizing various connected industrial devices, including worker handhelds, work pads, and wearable cameras. These devices enhance operations and data collection, contributing to improved efficiency and decision-making.
Utilization of Industrial Edge Computing
Industrial edge computing plays a pivotal role in this transformation. It allows the execution of digital applications, local processing and storage of data, and the orchestration of interactions between LTE/5G, Wi-Fi, wide area networks, and public cloud ecosystems. This localized computing capability enhances real-time decision-making and reduces latency.
End-to-End Vendor Partnerships
An incredible 79% of early adopters recognize the advantages of collaborating with vendors capable of providing an end-to-end approach to digital transformation. The reasons for this preference include reduced supplier management complexity (46.8%), increased return on investment (45.5%), and lower total cost of ownership (TCO) (39%). Additionally, the quicker deployment time, owing to pre-integrated solutions, is acknowledged by 32.5% of respondents.
This approach emphasizes the importance of combining robust network infrastructure with a range of digital applications and devices while seeking holistic vendor solutions to streamline implementation and maximize the benefits of digital transformation.
To read Global Data’s Report full report, click here.
About Infinity Technology Solutions
Infinity Technology Solutions specializes in broadband and critical communications infrastructure development. We help our channel partners create and deploy private wireless, microwave backhaul, IP/MPLS, and optical networking technologies.
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