2022 Predictions: Savvy CEOs Right Innovation Playbook for Edge Computing Win
Edge computing opportunities using IoT 5G networks are increasing, but most innovation playbooks lack insight into their potential for ROI. Each enterprise transformation business case requires savvy CEOs to understand today’s edge computing ecosystems and platforms. CEOs should drive the transformation in their enterprises to fully realize the gains edge computing can bring.
- By 2023, most CEOs will better understand and appreciate the optimum Return-on-Investment (ROI) from innovative enterprise uses of edge computing.
- By 2024, over 60% of C-Suite executives will adopt and leverage cloud-based 5G edge-computing services.
- By 2025, more than 25% of global data will be real-time, with 95% of that from edge computing’s real-time data services.
Today, many CEOs are overlooking innovation transformation models, such as those using IoT edge and 5G network computing, which can substantially increase ROI. Upwards of 85% of CEOs are not approving the suitable business cases, and the board directors are failing to ask the right questions about innovation models and their expected ROI.
“5G is fast becoming the network of choice due to its performance and reliability. In the future, enterprise use cases will become a primary driver for 5G growth.” – JPMorgan Research, April 2021.
CEOs tend to focus on annual performance bonus metrics for profits, revenue growth, and Return-on-Equity (ROE) without factoring in the correct ROI from strategic innovation investments. The ROI of corporate innovation models ranges from 10X with novel services to 2% with business-as-usual efficiencies and improvements.
CEOs are well-advised to learn about the different ROI that can be gained from 5G edge computing using the appropriate innovation playbooks with platforms and ecosystems.
- Reset the Board and C-suite for an enterprise-wide IoT/edge-centric organizational transformation and innovation ecosystems-platforms adoption workout sessions.
- Reshape the edge-computing innovation design with strategic enterprise playbooks for appropriate ROI in 2022-2024.
- Appoint a lead C-suite executive accountable for enterprise business edge computing with comprehensive organizational change management, including data compliance, cybersecurity, governance, and privacy.
- Reset enterprise workforce for new edge processes, practices, solutions, and future data management surge.
- Develop strategic partnerships with primary cloud-computing and Telco 5G-network providers for complementary-interoperable services.
Why Innovative Edge Computing?
IoT should generate up to $12.6T in value globally by 2030. More than 65% of edge-computing value will be for enterprise business applications, such as smart cities, factories, vehicles, healthcare and hospitals, offices, security, and retail e-commerce. Consumer applications make up the rest of the market, and these will continue to increase with 5G mobile units. All signs point to the fact that, without edge computing, companies will not be future-proofing their business opportunities to keep up with their competes.
“IoT stands at the forefront of our ability to bring together the digital and physical worlds…could have profound implications for both society and the economy” – McKinsey Digital Insights, November 2021.
To achieve revolutionary business results, CEOs will demand business capabilities that depend on advanced 5G telecommunications, cloud-dased services, AI/ML applications, and supporting automation, AI, and analytics services (A3).
Massive Data Management Plan is Critical
CEOs should expect an explosion in global data growth over 60% to 175 zettabytes by 2025. In addition, enterprise edge computing usually requires vast data sets with little latency to the user’s and customer’s satisfaction to complete work anywhere/anytime. Data management forecast planning expands to support the new edge services and the enterprise edge data surge. Think of selecting the correct data to perform the job at hand very quickly! To handle big data edge sets anywhere and anytime, corporations will need an enterprise cloud strategy at global headquarters, country hubs, and regional offices.
Telco Private 5G Networks and Integration Value
Edge computing also requires Telco’s private 5G network to extend services to users and customers in their regional areas and services to the last mile. In 2022, there will be a massive demand for ultra-reliable, low-latency connectivity with a highly secure network that transforms business operations and mission-critical applications. Simultaneously, the continued deployment of corporate, private 5G infrastructure will increase, improving the operational efficiencies in more IoT edge business cases. Both B2B and B2C are driving the technology and accelerating demand.
“The global private 5G network market size is estimated to reach $14.3B by 2028, with a CAGR of 39.7% from 2021 to 2028” – Businesswire, August 2021.
Most importantly, corporations will need to architect and integrate all enterprise clouds, including hybrid and edge and Telco 5G network-enabled A3 computing services, for new or reshaped 5G edge strategic transformations.
Moving to Edge Computing – Here’s How
CEOs will require new business capabilities that depend on advanced 5G private networks, AI’s ML, and innovative applications to achieve revolutionary business results. To achieve these capabilities, corporations need to drive an enterprise-wide organizational transformation of culture, processes, and workforce. They should appoint one C-suite executive as ‘owner’ of the edge computing transformation; this individual will also oversee its data, cybersecurity, governance, and privacy.
Telco 5G Networks and AI/ML Services
Corporations need both Telco’s 5G networks with newer adoptive disruptive technologies for operations A3 services for Automation, AI, Analytics with big data, and complementary cloud-based using AI and Machine Language (ML) applications. The 5G private network market will grow almost 40 percent yearly through 2028. IoT operations and customers are transforming expectations, especially the surge of global 5G mobile devices, smart factories, and core operations, leaving the traditional CEO strategy playbooks outdated in today’s real-time everything world.
Best of Platforms Applied
Enterprise edge-computing platforms drive mainstream companies and everyday businesses. CEOs must capitalize on these new platform strategies to innovate new products/services and hold a leadership position to compete going forward.
Platforms can be from anywhere, and corporate platforms don’t belong exclusively to Big Tech. For example, Amazon’s AWS platform. The C-suite innovation teams can apply industry expertise with customer relationships and a willingness to collaborate with partners to build a robust marketplace.
Open Ecosystem Innovation Applied
Consider an enterprise “open ecosystem” approach that accelerates edge-computing transformation and innovation models. To have open ecosystem innovation, it must not be just your R&D and internal IP/knowledge but instead should include different idea combinations for innovative products/services and business models. Approach edge-computing by combining 5G and the edge-computing work of other specialized partner teams working closely on a common problem. Your ecosystem may include an appropriate mix of entities, from startups to universities. By combining all ecosystem ideas, the yield will be novel innovation services with much higher ROI-10x.
“Companies whose dominant business model is ecosystem driver — in both B2B and B2C — experienced revenue growth approximately 27 percentage points higher than the average for their industries” – MIT, 2020.
CEO’s Edge Playbook Goal
To sum, the CEO’s enterprise 5G edge-computing business cases require “innovation design” by levering both ecosystems and platforms. For most enterprise IoT/edge use cases, affordable disruptive technology products and services exist that enable deployment to scale up. The corporate strategy should consider significant IoT/edge computing innovations and services. For example, many services with edge multi-cloud and 5G telco network platforms and sensor hardware are now available with A3’s support services. Together, the enterprise solution enables faster, more targeted insights and automated decision-making from edge computing data for improving ROI. Think to leverage open, proven, and cost-effective everything first!
CEOs should consider strategic global enterprise cloud provider(s) and Telco provider(s) partnerships for 5G edge computing services in 2022. CIOs should apply Cloud Continuum-IoT 5G edge networks and services to unlock CEOs’ ROI value in edge computing business cases.
Into the Future
Enterprise edge data management will be a massive problem without planning now! CEOs are well-advised to push to reshape a strategic, comprehensive data strategy that includes 5G Edge computing services plans. These plans will help manage and support the creation of enormous real-time data with accompanying cybersecurity and privacy controls.
Maintain the long view on innovation types to understand the ROI gained from being highly agile in a real-time world.
Deloitte Insights Report, “A new language for digital transformation,” September 23, 2021. Accessed November 15, 2021.
JPMorgan Insights Research Report, “The Future of 5G Adoption”, May 24, 2021.
McKinsey Digital, “IoT value set to accelerate through 2030: Where and how to capture it”, November 9, 2021.
MIT Sloan Management Review, “Does Your C-Suite Have Enough Digital Smarts?,” Spring Issue, Weill, Peter, Woerner, Stephanie L., Shah, Aman M., March 3, 2021. Accessed November 15, 2021.
MIT Sloan Management Review, Magazine, “Driving Growth in Digital Ecosystems,” Sebastian, Ina M., Weill, Peter, Woerner, Stephanie L., August 18, 2020.
ResearchAndMarkets.com, “Global Private 5G Network Market Size, Share & Trends Analysis Report 2021-2028: Growing Demand for Ultra-reliable Low-latency Connectivity and Deployment of 5G to Enhance Industry Productivity,” April 2021.
ResearchAndMarkets.com, “Global Internet of Things (IoT) Market 2021-2026 by Component, Application, and Geography”, July 2021.
S&P Global Market Intelligence, Special Report 451: “The Edge-to-Cloud Continuum,” Renaud, Christain, 2021.
Seagate Blog, “Enormous Growth in Data is Coming — How to Prepare for It and Prosper From It,” Paulsen John, 2021.
Copyright @ 2021, STEVE HAWALD CEO CIO ADVISORY LLC. DISCLAIMER: This article is entirely my opinion without financial payments. The peer review was by Tom Austin. The editor review was by Regina Lapierre.