Flevy Management Insights Q&A
What are the implications of 5G technology on the deployment and effectiveness of AR applications?
     David Tang    |    Augmented Reality


This article provides a detailed response to: What are the implications of 5G technology on the deployment and effectiveness of AR applications? For a comprehensive understanding of Augmented Reality, we also include relevant case studies for further reading and links to Augmented Reality best practice resources.

TLDR 5G technology significantly enhances AR applications by providing faster speeds, lower latency, and increased capacity, enabling real-time, immersive experiences and supporting a vast number of connected devices for Strategic Planning and Innovation.

Reading time: 5 minutes

Before we begin, let's review some important management concepts, as they related to this question.

What does Strategic Planning mean?
What does Digital Transformation mean?
What does Operational Excellence mean?
What does Innovation mean?


The advent of 5G technology marks a significant milestone in the evolution of internet connectivity, promising to revolutionize various sectors including the deployment and effectiveness of Augmented Reality (AR) applications. This next-generation wireless technology is set to offer unprecedented speed, lower latency, and greater capacity, enabling AR applications to reach their full potential. As organizations look to harness the power of 5G, understanding its implications on AR applications is crucial for Strategic Planning, Digital Transformation, and Innovation.

Enhanced Speed and Reduced Latency

The hallmark of 5G technology is its ability to deliver significantly faster data speeds compared to its predecessor, 4G. According to a report by Ericsson, 5G networks are expected to offer data speeds up to 100 times faster than 4G. This leap in speed is not just a numerical increase but a transformational shift that allows for the real-time rendering of complex AR visuals without any perceptible delay. For AR applications, this means that users can experience more detailed, immersive environments that respond instantly to their interactions.

Moreover, 5G technology dramatically reduces latency, which is the time it takes for a data packet to travel from source to destination. Gartner highlights that 5G aims to reduce latency to as low as 1 millisecond, compared to 50 milliseconds or more on 4G networks. This reduction in latency is critical for AR applications where timing and synchronization are essential for maintaining immersion and ensuring a seamless user experience. For instance, in AR-guided surgeries, the near-zero latency can facilitate real-time feedback and guidance, significantly improving precision and patient outcomes.

The combination of enhanced speed and reduced latency underpins the Operational Excellence of AR applications across various sectors. In retail, for example, AR can provide customers with immersive virtual try-on experiences that require high-resolution imagery and real-time interaction capabilities. The speed and responsiveness enabled by 5G ensure that these experiences are smooth and realistic, thereby enhancing customer engagement and satisfaction.

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Increased Capacity and Connectivity

One of the less discussed but equally important aspects of 5G is its increased capacity and the ability to connect a significantly higher number of devices simultaneously. This is particularly relevant for AR applications in dense urban environments or large-scale events where thousands of devices may be in use at the same time. The capacity to support a vast network of connected devices without degradation in performance is crucial for the scalability of AR solutions.

Accenture's research on 5G highlights its potential to support up to one million devices per square kilometer, a substantial increase from the limitations of current 4G networks. This capability opens up new possibilities for AR applications in smart cities, industrial IoT, and large public events, where the ability to deliver consistent, high-quality AR experiences to a large number of users concurrently is essential.

For example, in a smart city scenario, AR can be used for navigation, information overlay on landmarks, and real-time public transport updates to enhance the urban experience for residents and visitors. The increased capacity of 5G networks ensures that these services can be delivered efficiently, even in densely populated areas, thereby supporting the Innovation and Digital Transformation goals of urban planners and policymakers.

Real-World Examples and Implications for Organizations

Several organizations have already begun to explore the potential of 5G in enhancing AR applications. For instance, Verizon partnered with the NFL to deliver AR experiences to fans in stadiums. Using 5G's high speed and low latency, the app allows fans to view real-time stats, replays, and different camera angles directly on their smartphones, enriching the game-day experience. This example illustrates how 5G can be leveraged to create differentiated, immersive customer experiences that were not feasible with previous technology generations.

In the industrial sector, companies like Boeing are utilizing AR for assembly and training purposes. 5G's low latency and high reliability support the use of AR glasses by technicians, providing them with real-time, hands-free access to assembly instructions and diagrams. This application not only improves operational efficiency but also enhances the accuracy and quality of the assembly process, showcasing the impact of 5G on Performance Management and Operational Excellence in manufacturing.

For organizations looking to deploy AR applications, the advent of 5G technology presents a unique opportunity to redefine their Digital Transformation strategies. By understanding and leveraging the capabilities of 5G, organizations can enhance the effectiveness of their AR applications, creating more engaging, immersive, and responsive experiences for users. Whether in retail, healthcare, industrial, or entertainment sectors, the synergy between 5G and AR holds the promise to drive significant Innovation, improve customer satisfaction, and achieve competitive advantage.

In conclusion, the implications of 5G technology on the deployment and effectiveness of AR applications are profound and multifaceted. From enabling real-time, immersive experiences to supporting a vast number of connected devices, 5G is set to significantly enhance the capabilities of AR applications. Organizations that strategically invest in and adopt this technology will be well-positioned to lead in the era of digital innovation and transformation.

Best Practices in Augmented Reality

Here are best practices relevant to Augmented Reality from the Flevy Marketplace. View all our Augmented Reality materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: Augmented Reality

Augmented Reality Case Studies

For a practical understanding of Augmented Reality, take a look at these case studies.

Augmented Reality Integration for Aerospace Maintenance

Scenario: The organization is a leading aerospace company facing difficulties in maintaining high operational standards due to complex machinery and a global workforce.

Read Full Case Study

Augmented Reality Deployment in Construction

Scenario: A mid-sized construction firm specializing in large-scale commercial projects is facing challenges integrating Augmented Reality (AR) into their workflow to enhance precision and efficiency.

Read Full Case Study

Augmented Reality Deployment for Industrial Equipment Manufacturer

Scenario: The organization is a leading industrial equipment manufacturer seeking to incorporate Augmented Reality (AR) into their assembly and maintenance processes.

Read Full Case Study

Healthcare Provider Innovates Patient Engagement and Training with Augmented Reality

Scenario: A mid-size healthcare provider implemented an Augmented Reality strategy framework to address its patient engagement and training challenges.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

What metrics should executives use to measure the ROI of AR initiatives in their organizations?
Executives should measure the ROI of AR initiatives through metrics like Revenue Enhancement, Cost Reduction, Customer Engagement (CSAT, NPS), Operational Efficiency, and Employee Performance, to inform Strategic Decisions and foster Innovation. [Read full explanation]
How can companies ensure data privacy and security when implementing AR technologies?
Companies can ensure data privacy and security in AR technologies through Strategic Planning, Risk Management, implementing a robust data privacy framework, advanced security measures, and enhancing user awareness and control. [Read full explanation]
What are the key challenges in scaling AR solutions across different departments within an organization?
Scaling AR solutions involves overcoming Technological Integration challenges, executing effective Change Management, and ensuring Scalability and Performance Management to drive innovation and efficiency. [Read full explanation]
What role does AR play in enhancing the interconnectivity and automation of smart factories?
Augmented Reality (AR) is revolutionizing Smart Factories by improving Interconnectivity and Automation, offering real-time data, enhancing operational efficiency, and integrating with automated systems for better productivity and quality. [Read full explanation]
How are AI and machine learning being integrated with AR for smarter, more adaptive applications?
Integrating AI and ML with AR is transforming industries by revolutionizing customer engagement, operational efficiency, and driving Innovation, offering significant Strategic and competitive implications for organizations. [Read full explanation]
How can AR be leveraged to train workers on new technologies and processes in the context of the Fourth Industrial Revolution?
Augmented Reality (AR) significantly improves workforce training in the Fourth Industrial Revolution by enhancing learning retention, customizing experiences, providing real-time feedback, and enabling scalable, cost-effective training solutions across industries. [Read full explanation]

 
David Tang, New York

Strategy & Operations, Digital Transformation, Management Consulting

This Q&A article was reviewed by David Tang. David is the CEO and Founder of Flevy. Prior to Flevy, David worked as a management consultant for 8 years, where he served clients in North America, EMEA, and APAC. He graduated from Cornell with a BS in Electrical Engineering and MEng in Management.

To cite this article, please use:

Source: "What are the implications of 5G technology on the deployment and effectiveness of AR applications?," Flevy Management Insights, David Tang, 2024




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.