In the technology sector, the COVID-19 pandemic has stimulated progress, and several trends that we thought would take ten years to accomplish. Companies concentrated on incorporating technology into their business models, by creating better businesses. Insights from our Global Technology team illustrate three technology developments that, as a result of COVID-19, are changing companies.
Adoption of vertical application software
Companies have adopted the use of internal or external developers to construct vertical application software that satisfies their particular requirements. Companies have also configured frameworks to suit their current structures instead of modifying internal systems to fit the parameters of existing apps. Businesses have realized the significance of using vertical application software instead of more general applications as the technology industry has advanced. The software for vertical applications is designed to be specific to a company or industry and addresses the needs of the industry in a way that general software cannot.
In our opinion, vertical application software also allows an enterprise to perceive its clients differently, providing a major competitive edge in industries that have unique workflows and data requirements, such as financial services, government, energy and healthcare. We believe it is particularly important to integrate these applications.
Shift to digital business transformation
The fundamental reevaluation of how technology and related processes can be used to impact business performance is known as digital business transformation. We believe a company must invest substantially in technological platforms and operations in order to embrace digital transformation. This means replacing digital systems with manual processes for some businesses. For others, digital transition means replacing older technologies with updated technology and processes.
We assume that digital transformation can take place in the cloud, where organizations will benefit from low and flexible costs of information technology and more reliably service their clients. The need to transition to cloud-based computing, such as manufacturing, energy and government services, has influenced many sectors. Although these sectors usually have legacy architectures. Enterprises are mindful that tech and the cloud-based environment need to be adopted.
Another main development in digital transformation is the growing use of data both to drive better business decisions and to gain better feedback from clients. Digital marketing and promotional practices have traditionally been based on manual labor. Machine learning and artificial intelligence will simplify many of those tasks. We assume that businesses that adopt digital transformation benefit from the return on investment, as well as improved operating systems, of a new IT architecture.
Embrace of disruptive technology
The Global Innovations team specializes in investing in technology and focuses on enterprises that radically disrupt the way business is carried out in their respective sectors. These businesses also develop, market and distribute transformative innovations that alter the way, the whole sectors or economy work dramatically. Machine learning and artificial intelligence are, two of today’s most important transformative innovations. Effective companies take advantage of both by disrupting their markets and creating knowledge and revenue for their clients.