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The Digitisation of Everything – Introduction

Tuesday 04 February 2020

Digitisation

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In 2019 the world spent roughly 5% of global GDP or $4 trillion on technology. By 2030, this is expected to double to more than 10% of GDP or an estimated $14 trillion. That $10 trillion increase reflects a remarkable growth rate of more than 13% per year for the next decade.

Driving this progression is a broad trend that Microsoft CEO Satya Nadella calls the “digitisation of everything”. According to Microsoft every business on earth is in the midst of a digital transformation that will lead to greater productivity and operating efficiencies.

We have identified the five critical technologies driving this trend naming them technology accelerators    ̶

Of course other technologies could be included, such as AR/VR, quantum computing and blockchain. However, we contend these other technologies are not yet impacting business on the same scale as our technology accelerators are.

That is not to say that this list is static and won’t change. On the contrary we believe quantum computing for instance may one day be a greater accelerator of change than the cloud. However, for almost every industry we consider today, these five technologies consistently appear as driving forces behind the digitisation trend.

In this Series we have selected six industry sectors relating to companies in the Swell Global Portfolio that are exposed to this digitisation trend. Each  will showcase a different segment highlighting how each is being impacted by the five technology accelerators and how our portfolio companies will benefit.

The Swell Global Portfolio includes companies that are consumers of these new technologies and others that are leading the development of them. Both stand to be significant beneficiaries as the world becomes more digital.

 

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About the Author
Lachlan Hughes, CFA

Lachlan Hughes, CFA

Chief Investment Officer

Lachlan is the CIO, with responsibility for all investment decisions of the Swell Global Portfolio. Previously Lachlan was a Senior Analyst with NovaPort Capital. During his tenure, the team achieved an annual return of 23.56% over the period from 2009 to 2013, outperforming the S&P/ASX Small Ordinaries Accumulation Index by 15.42% and earning the Lonsec Fund Manager of the Year (Rising Star) award in 2012. Prior to that, Lachlan was a corporate lawyer working with King & Wood Mallesons (Sydney), The Bank of New York (London) and Allco Finance Group.

Lachlan earned the right to use the CFA designation granted by the CFA Institute in 2010. His professional qualifications include a Bachelor of Commerce (Finance) and a Bachelor of Laws.

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