New use cases for wireless communication that require Ultra Reliable Low Latency Communication (URLLC) systems open a new trove of challenges. In this thesis we address the wireless software radio systems engineering challenges to achieve lower latency and higher reliability. Furthermore, we present a thorough analysis of PHYsical layer (PHY) Digital Signal Processing (DSP) concepts and their impact on latency and reliability. These concepts are used in a Medium-Access-Control (MAC) layer Scheduling and Resource Allocation (S&RA) analysis to find suitable approaches for S&RA that minimize burst errors. Finally, our PHY and MAC analysis results in a demonstrator that verifies our approaches in a testbed. Thus, it is possible to meet the requirements of URLLC systems with a full software Cloud Radio Access Network (Cloud RAN) implementation with distributed Access Points (APs).