5G Revolution: Unlocking the Digital Age
Imagine if you were to jump straight from using a typewriter one day, to typing on a laptop the next. The speed and ease at which it would improve your tasks is undeniable.
With 5G, we’re on the cusp of a similar transition in the global communications system. Total connectivity could soon be at our fingertips.
Today’s infographic breaks down the potential that 5G promises, and the immense opportunities stemming from its implications for smart tech and the Internet of Things (IoT).
A Timeline of Wireless Generations
The world’s appetite for wireless speed has been insatiable. We’ve powered through five generations of wireless connectivity in just 40 years.
- 1982-1990s: Analog 1G
1G only supported voice calls, and little else.
Data bandwidth: 1.9 kbps
- 1990s: Digital 2G
2G supported text, picture, and multimedia messaging (SMS, MMS).
Data bandwidth: 14.4 kbps – 384 kbps
- 2000s: 3G Smartphone Era
The first 3G networks go online, supporting high-quality audio and video, and international roaming.
Data bandwidth: 2 Mbps
- 2010: 4G Streaming Era
4G and LTE supported HD video streaming, and is deployed in Europe, and later in the U.S.
Data bandwidth: 2 Mbps – 1 Gbps
- 2019-Present: Full Speed Ahead to 5G?
South Korea first launches 5G across the country, followed by 50 cities in China. The U.S., UK, and Germany also roll out 5G on a limited basis.
Data bandwidth: 1 Gbps – >10 Gbps
*k/M/Gbps: kilobytes/ megabytes/ gigabytes per second.
The global 5G market is projected to reach $668 billion at a 122% compound annual growth rate (2020-2026), with nearly half this growth coming from Asia-Pacific.
4G versus 5G: What’s the Difference?
5G is on the verge of taking off. What sets it apart from its predecessor?
For starters, 5G’s speed improvements are something to behold—it is up to 20x faster than 4G. On 4G, an average movie takes 6 minutes to download. With 5G, it will take less than 20 seconds.
Peak data date
|125 megabytes/second||2,500 Mbs|
Devices supported per km²
|100,000 devices/km²||1,000,000 devices/km²|
Delay/ lag time
|50 milliseconds||<2 ms|
In other benefits, 5G supports 10x more devices per square kilometer. As a result, 5G will be able to seamlessly handle many more devices, within the same area as before. This is pivotal for its use in the imminent Internet of Things (IoT).
Finally, latency is the delay (lag), or the time that it takes to send data from point A to point B. With 5G, latency plunges 25x compared to 4G. This results in almost instantaneous data transfers.
5G will go from promise to roll-out in 2020.
Beyond the Smartphone
5G is one of the most anticipated technologies of our time, and with good reason. In the coming years, the partnership between 5G and the IoT could bring about a boom in smart tech, and this effect could trickle into growth for the economy and investor portfolios.
The 5G network is the perfect backbone for the IoT—supporting increasing device numbers, facilitating growing data transfers, and improving response time among connected devices.
According to McKinsey, 5G will likely speed up the mainstream adoption of the IoT across multiple industries:
5G enables self-driving cars to make “split second” decisions, making them safer. These cars can also connect to buildings, street lights, other cars, and even pedestrians in smart cities—responding rapidly to any issues and improving traffic flow.
These two use cases are estimated to bring a $170-$280 billion global GDP boost to the mobility sector by 2030.
5G could usher in high-tech industry, using AR/VR to boost productivity and precision. Analytics and advanced robotics in smart factories can streamline manufacturing processes, leading to efficiency gains and cost savings. Altogether, the impact could be a $400-$650 billion GDP boost to the industry by 2030.
While robotic surgeries are not new, 5G could allow these procedures to occur remotely.
Wearables and other smart medical devices provide real-time updates on patients, and make accurate diagnoses. These two applications will contribute an additional $250-$450 billion in GDP to the healthcare space by 2030.
A New Wireless Era
5G is only scratching the surface of its full potential, though a few caveats remain before it can scale successfully. A whole new lineup of infrastructure will be needed to support this latest wireless generation, including enabled devices, network density and access, and getting telecoms operators and carriers on board.
The complete uptake of 5G will take a few years to realize. But as the technological shift continues to unfold, investors can take advantage of the wave of opportunities it presents.
5G is more than an upgrade—it’s a crucial transformation of major segments of the economy.
Ranked: The Most Innovative Companies in 2021
In today’s fast-paced market, companies have to be innovative constantly. Here’s a look at the top 50 most innovative companies in 2021.
Ranked: the Top 50 Most Innovative Companies in 2021
This year has been rife with pandemic-induced changes that have shifted corporate priorities—and yet, innovation has remained a top concern among corporations worldwide.
Using data from the annual ranking done by Boston Consulting Group (BCG) using a poll of 1,600 global innovation professionals, this graphic ranks the top 50 most innovative companies in 2021.
We’ll dig into a few of the leading companies, along with their innovative practices, below.
Most Innovative Companies: A Breakdown of the Leaderboard
To create the top 50 innovative company ranking, BCG uses four variables:
- Global “Mindshare”: The number of votes from all innovation executives.
- Industry Peer Review: The number of votes from executives in a company’s industry.
- Industry Disruption: A diversity index to measure votes across industries.
- Value Creation: Total share return.
For the second year in a row, Apple claims the top spot on this list. Here’s a look at the full ranking for 2021:
|Company||Industry||HQ||Change from 2020|
|3||Amazon||Consumer Goods||🇺🇸 U.S.||--|
|5||Tesla||Transport & Energy||🇺🇸 U.S.||+6|
|6||Samsung||Technology||🇰🇷 South Korea||-1|
|9||Sony||Consumer Goods||🇯🇵 Japan||--|
|12||LG Electronics||Consumer Goods||🇰🇷 South Korea||+6|
|14||Alibaba||Consumer Goods||🇨🇳 China||-7|
|17||Cisco Systems||Technology||🇺🇸 U.S.||-5|
|18||Target||Consumer Goods||🇺🇸 U.S.||+4|
|19||HP Inc.||Technology||🇺🇸 U.S.||-4|
|20||Johnson & Johnson||Healthcare||🇺🇸 U.S.||+6|
|21||Toyota||Transport & Energy||🇯🇵 Japan||+20|
|23||Walmart||Consumer Goods||🇺🇸 U.S.||-10|
|24||Nike||Consumer Goods||🇺🇸 U.S.||-8|
|25||Lenovo||Technology||🇭🇰 Hong Kong SAR||Return|
|26||Tencent||Consumer Goods||🇨🇳 China||-12|
|27||Procter & Gamble||Consumer Goods||🇺🇸 U.S.||+12|
|28||Coca-Cola||Consumer Goods||🇺🇸 U.S.||+20|
|29||Abbott Labs||Healthcare||🇺🇸 U.S.||New|
|30||Bosch||Transport & Energy||🇩🇪 Germany||+3|
|32||Ikea||Consumer Goods||🇳🇱 Netherlands||Return|
|33||Fast Retailing||Consumer Goods||🇯🇵 Japan||Return|
|34||Adidas||Consumer Goods||🇩🇪 Germany||Return|
|35||Merck & Co.||Healthcare||🇺🇸 U.S.||Return|
|37||Ebay||Consumer Goods||🇺🇸 U.S.||Return|
|38||PepsiCo||Consumer Goods||🇺🇸 U.S.||Return|
|39||Hyundai||Transport & Energy||🇰🇷 South Korea||Return|
|41||Inditex||Consumer Goods||🇪🇸 Spain||Return|
|44||Disney||Media & Telecomms||🇺🇸 U.S.||Return|
|45||Mitsubishi||Transport & Energy||🇯🇵 Japan||New|
|46||Comcast||Media & Telecomms||🇺🇸 U.S.||New|
|47||GE||Transport & Energy||🇺🇸 U.S.||Return|
One company worth touching on is Pfizer, a returnee from previous years that ranked 10th in this year’s ranking. It’s no surprise that Pfizer made the list, considering its instrumental role in the fight against COVID-19. In partnership with BioNTech, Pfizer produced a COVID-19 vaccine in less than a year. This is impressive considering that, historically, vaccine development could take up to a decade to complete.
Pfizer is just one of four COVID-19 vaccine producers to appear on the list this year—Moderna, Johnson & Johnson, and AstraZeneca also made the cut.
Meanwhile, in a completely different industry, Toyota snagged the 21st spot on this year’s list, up 20 places compared to the rankings in the previous year. This massive jump can be signified by the company’s recent $400 million investment into a company set to build flying electric cars.
While we often think of R&D and innovation as being synonymous, the former is just one innovation technique that’s helped companies earn a spot on the list. Other companies have innovated in different ways, like streamlining processes to increase efficiency.
For instance, in 2021, Coca-Cola performed an analysis of their beverage portfolio and ended up cutting their brand list in half, from 400 to 200 global brands. This ability to pare down and pivot could be a reason behind its 20 rank increase from 2020.
Innovation Creates Value
As this year’s ranking indicates, innovation comes in many forms. But, while there’s no one-size-fits-all approach, there is one fairly consistent innovation trend—the link between innovation and value.
In fact, according to historical data from BCG, the correlation between value and innovation has grown even stronger over the last two decades.
For example, in 2020, a portfolio that was theoretically invested in BCG’s most innovative companies would have performed 17% better than the MSCI World Index—which wasn’t the case back in 2005.
And yet, despite innovation’s value, many companies can’t reap the benefits that innovation offers because they aren’t ready to scale their innovative practices.
The Innovation Readiness Gap
BCG uses several metrics to gauge a company’s “innovation readiness,” such as the strength of its talent and culture, its organization ecosystems, and its ability to track performance.
According to BCG’s analysis, only 20% of companies surveyed were ready to scale on innovation.
What’s holding companies back from reaching their innovation potential? The most significant gap seems to be in what BCG calls innovation practices—things like project management or the ability to execute an idea that’s both efficient and consistent with an overarching strategy.
To overcome this obstacle, BCG says companies need to foster a “one-team mentality” to increase interdepartmental collaboration and align team incentives, so everyone is working towards the same goal.
Timeline: Looking Back at 10 Years of Snapchat
A high level look at Snapchat’s 10-year history, including user growth, innovative product design, and the twists and turns along the way.
Looking Back at 10 Years of Snapchat
Over the years, many ideas have emerged from the dorm rooms at Stanford University, but not all of them evolve into billion dollar companies.
Snapchat, however, has beaten the odds. The company’s stock has recently shot up during the COVID-19 pandemic, a bright spot in a decade of highs and lows.
The graphic above is a high level look at Snapchat’s 10-year history, including user growth and financials. Snapchat’s wild ride from start-up to massive success is well documented, so we’ll focus on key elements of story—product design, the Facebook rivalry—and look at how the company is doing today now that the hype surrounding the app has died down.
But first, a quick history…
Setting the Scene
Snapchat originally began its life as a project called Picaboo in 2011.
Cofounders Evan Spiegel, Bobby Murphy, and Reggie Brown, who were attending Stanford, began building an app that could send photos that disappear after a certain amount of time.
Picaboo was renamed Snapchat in 2012, and by the end of that year, it was clear that the start-up was onto something big. A $13.5 million Series A financing in early 2013 helped fuel the company’s explosive growth.
Positive Momentum: Product Design
One of Snapchat’s biggest strengths over the years has been innovative product design. Many of the features we now see baked into every social app originated from Snapchat.
Here’s a quick rundown of Snapchat’s key feature and product development over the past decade.
Of all the features listed above, the concept of stories is perhaps the most significant contribution to the digital landscape. Disappearing short-form videos started off as a messaging tool, but ended up transforming the way people share their lives online.
As well, the forward-looking acquisition of Looksery in 2015, helped introduce millions of people to augmented reality (AR). AR continues to be a major growth driver for Snapchat today, as advertisers embrace the Lenses feature.
Negative Momentum: Facebook Rivalry
To Mark Zuckerberg’s credit, he realized the potential of Snapchat early.
When the company was only one year old, the Facebook CEO offered the Snapchat founders $60 million to buy the company. When they rejected the offer, Facebook almost immediately launched an app called Poke which was extremely similar to Snapchat’s offering. You’d be forgiven for not knowing what Poke is, as the app received a tepid reception and was quietly shut down in 2014.
“I hope you enjoy Poke.” – Mark Zuckerberg, in an email to Evan Spiegel
For Snapchat, Poke was a blessing in disguise as it brought even more attention to their growing app. Mark Zuckerberg, however, was not done trying to steal the company’s thunder. After offering $3 billion in cash to purchase Snapchat (the offer was once again rebuffed), Facebook copied a number of features from Snapchat and integrated them into Instagram.
Stories were a massive hit for Instagram, and Snapchat, which could not yet match Instagram’s scale, took a big hit. Growth began to slow noticeably after that Instagram update.
Snapchat hit rock bottom in 2018 after shares dropped below the $5 mark, and user growth had stalled out. As well, underwhelming sales of Snapchat’s Spectacles product garnered negative press and hurt the brand’s “cool factor”.
Today though, the situation looks much different. The app still has a strong market share with the younger demographic, and close to 300 million daily active users. Snapchat was one of the many digital companies to benefit from the COVID-19 pandemic (or, at least, the increase in digital content consumption), and the share price has rocketed to new highs. One other promising indicator is the company’s rising average revenue per user, or ARPU.
Of course, as the last 10 years have shown, success is not guaranteed. TikTok is still a significant competitor with a lot of momentum, and tastes can change quickly in the digital world. That said, there is a positive path forward for Snap Inc.
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