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Yr in Assessment in 7 Charts: Digital Transformation Enters Hyperdrive
Let’s choose up the place we left off earlier within the week…
Taking a look at a graphic or two to place 2020 in perspective — and to place ourselves to revenue in 2021!
Earlier within the week, I dished on the most important rotation underway into small and micro-cap shares.
I couldn’t be extra thrilled about this development, because it’s been a significant revenue driver for me and my readers this yr, in addition to for my total profession.
And I’m equally enthusiastic about right now’s featured development:
The digital transformation of, effectively, the whole lot!
Covid-19 Induced Alternative
There are such a lot of negatives from the coronavirus disaster. Like hovering unemployment charges, important provide shortages, rising psychological well being points, and sadly, numerous premature deaths.
However in each disaster lies alternative. And nowhere is that this extra evident proper now than the digitization of on a regular basis life.
We have been already on a crash course for “the whole lot” to be performed on-line. However the pandemic hit the accelerator on this digital transformation.
A lot so, in truth, that high analysis agency McKinsey & Firm estimates the common enterprise has completed three to 4 years’ value of digital transformation in solely seven months’ time.
And right here’s the important thing:
These modifications aren’t non permanent. Neither is the acceleration in adoption. Each are everlasting.
And right here’s the proof…
Survey Says!
Corporations and executives have not too long ago gone from speaking about making digital modifications to performing on them. Contemplate the newest survey from tech analysis juggernaut, Gartner.
As I’ve written about earlier than in reference to the biotech sector, the pandemic has brought on a everlasting paradigm shift.
And the identical is true with respect to digital transformation.
Working example: A Dell survey of over 4,300 executives in 18 nations reveals an enormous migration — from being digital laggards and followers, to being “evaluators” and “adopters.”
This represents a everlasting shift in technique and philosophy, not some one-off response to the pandemic.
Extra Digital Knowledge
Lest you assume I cherry-picked a chart or two to make my very own level, right here’s some extra hard-data proof:
- In accordance with a current survey from Accenture, 92% of C-suite execs are accelerating investments in digital transformation. And 74% are utterly rethinking their processes and working fashions to be extra digital — and due to this fact, extra resilient.
- The most recent International Interconnection Index (GTI) research estimates that digital service suppliers — equivalent to telecommunications, cloud and IT providers, and content material, digital media, and expertise suppliers — will enhance bandwidth five-fold by 2023. The driving force? You guessed it: within the phrases of GTI, it’s all due to “better calls for from enterprises to shut digital gaps.”
All That and a Bag of Chips (Shares)
However how will we seize all this digital upside in a easy, single funding?
And don’t fear: I’m not about to advocate some untested Covid-19 Digital Transformation ETF…
Simply purchase chip shares!
You see, semiconductors are the oxygen for digital transformation.
With out extra chips, all probably the most important digital developments and initiatives — from cybersecurity to cloud infrastructure to information administration to synthetic intelligence to distant work and collaboration — simply wouldn’t be potential.
So, hold loading up your portfolio with compelling chip shares in 2021!
I’ve shared particular chip investments with you earlier than, together with Lam Analysis Company (LRCX).
However if you wish to be the primary to find out about my subsequent main chip-stock funding, make sure you take a look at this chance.
Forward of the tape,
Lou Basenese