The growth of the global economy will still be sustained from technological innovation: this is what emerges from the second annual report of Bain & Company. The Technology Report 2021 analyzes the impact of technology on markets and the economy in general, but also on geopolitics. And it highlights how adapting to tech change is the best way for businesses to thrive.
The technological economy in Bain & Company’s annual report
“Over the past decade, technology has proven to be much more than an isolated industry – it has become the primary force for value creation in nearly every industry, around the world.” These are the words of Roberto Prioreschi, Managing Director of Bain & Company Italy and Turkey. Which underline that no company can think of ignoring technological development and thriving.
A decisive fact that emerges from the research is that the 70% of venture capital investments go to tech startups. This means that investors truly believe in the technological future. But we are not just talking about small businesses. Bain & Company’s market analysis reveals the enormous impact of hyperscaler, the tech giants. Let’s talk about Alphabet, Amazon, Apple, Facebook and Microsoft in the United States, e Alibaba and Tencent in China. Companies that have invested heavily in research and in acquiring companies with innovative technologies and patents. Generating value for 72% of the expense.
However, the drivers are also geopolitical. The decoupling of the American and Chinese economies has already begun: direct investment between the two nations decreased by 96%. And this means, for example, that the China will invest $ 1.4 trillion for infrastructure technologies. In the European market, attention is being paid to tailor-made offers for specific sectors, to provide services that meet the needs of companies.
Finally, analyzing the shortage of semiconductors that has involved everyone this year, a fact emerges that should not be ignored: the demand for specialized processors is increasing. Big companies like Apple and Google have proven this. This does not mean that generalized chips will cease to be produced, but we must expect an increase in the demand for silicon.
“The technology market is experiencing a moment of extraordinary evolution: on the one hand, the migration to the cloud is pushing companies in the sector to radically transform their commercial approach and delivery. In the “As a Service” paradigm, the customer passes from cyclical events of technological renewal to constant exposure to service, where operational excellence and the optimal management skills of Customer Value Management become key elements for success. On the other hand, the world of IT services is also changing a lot, with the support of traditional system integrators with new Tech Providers, who natively blend managerial consulting skills, design thinking and excellence in technological engineering, expressing a level of profitability and unique growth in the market ”, he points out Mauro Colopi, Partner at Bain & Company.
For more complete and specific insights, visit the Bain & Company website.