Where is the ROI from Private Wireless and How Can We Measure It?

A study sponsored by Nokia and conducted by GlobalData, the Industrial Digitalization Report, argues that 87 percent of enterprises adopting private wireless and on-premise edge saw a return on investment  in one year.

We might note that such claims are based substantially on improvements in sustainability, safety or security goals, though. Under the best of circumstances, it can be difficult to pinpoint actual productivity gains, such as a reduction in downtime or outages, from the use of any local connectivity or network access platform.

Productivity Element	Key Metric	Explanation
Operational Efficiency	Downtime Reduction (%)	Quantifies the reduction in production line or machine downtime due to more reliable connectivity for predictive maintenance and real-time monitoring. For example, a facility might report a 15% reduction in unplanned outages.
	Asset & Inventory Tracking Accuracy	Measures the improvement in locating and managing assets in real time, leading to reduced search times, fewer lost items, and optimized logistics workflows.
	Throughput Increase (%)	Measures the percentage increase in the amount of work completed in a given time, such as the number of items processed per hour in a warehouse or the number of units produced on a factory floor.
	Cycle Time Reduction (seconds/minutes)	Calculates the decrease in the time it takes to complete a specific task or process, such as a robotic arm performing a repetitive action. This is often enabled by 5G's ultra-low latency.
Workforce Productivity	Worker Output Increase (%)	Measures the percentage increase in tasks completed by employees, often through the use of connected tools, augmented reality (AR) for training, or real-time communication on a secure network.
	Response Time (minutes/hours)	Measures the time it takes for a team or automated system to respond to an issue or request, such as a maintenance crew receiving an alert about faulty equipment.
Cost Savings	Total Cost of Ownership (TCO) Reduction	Compares the long-term costs of a private wireless network to legacy systems (e.g., Wi-Fi, Ethernet cabling). Some claims suggest a significant TCO reduction due to fewer access points, easier installation, and lower maintenance.
	Cable Replacement Cost Savings	Quantifies the amount of money saved by using a wireless network instead of installing expensive and complex physical cabling in large or hard-to-reach areas.
Safety and Security	Reduction in Safety Incidents (%)	Measures the decrease in on-site accidents, which can be enabled by real-time monitoring of hazardous areas, remote-controlled machinery, and collision avoidance systems.

That is not a new problem. It is similarly hard to quantify the impact of just about any connectivity solution.  Measuring changes in throughput is an indirect metric and other measures such as “time saved” are somewhat subjective. 

Beyond all that, most managers and most people are probably going to focus on the expected value of the applications and experiences the connectivity enables, not the actual connectivity itself. Connectivity is a "necessary but not sufficient" prerequisite for deriving value from nearly every appliance and application.

Connectivity Solution	Core Productivity Advantages	How to Quantify (Key Metrics)
Ethernet	Speed, Stability, and Security. Enables high-bandwidth applications, prevents data loss, and ensures consistent performance for mission-critical tasks.	Throughput: Measures data transfer speed in Mbps/Gbps. Latency: Measures network delay in milliseconds (ms). Uptime: Quantifies network availability as a percentage.
Wi-Fi	Mobility, Flexibility, and Collaboration. Frees employees from fixed locations, allowing for dynamic workspaces and real-time on-site communication.	Connection Stability: Measures the frequency of dropped connections. Time Savings from Mobility: Quantifies time saved by not needing to return to a desk (e.g., in logistics).  Number of Connected Devices: Assesses the network's capacity to support a high density of users and IoT devices.
Smartphones	Ubiquity, Remote Access, and Real-time Communication. Extends the enterprise network to field workers, enabling them to complete tasks, access information, and communicate from anywhere.	Time to Resolution (TTR): Measures the average time it takes to complete a task remotely. Task Completion Rate: Tracks the number of tasks completed per employee. Cost Savings: Quantifies financial benefits from reduced reliance on paper or fixed equipment.