Nasdaq dips…again; Don’t lose sight of the bigger picture

The Qs are down again this week. At last count, this is this dip #8 from the March Lows.

But from what we can tell…has anything really changed? We know that digital and technology is accelerating business and societal change to cope in a post-Covid world; Organizations that rethink their business models and digitally transform will survive and thrive. Technology companies that serve the platforms that underpin this transformation stand to become huge winners in a post-covid era (think cloud computing, edge computing, social, AI, etc.). We don’t have a choice now. Transform to survive and thrive.

The next wave of tech is here

I mentioned this in a recent Stocktwits post – we cannot lose sight of the bigger picture. If this is the future we knew was coming, it no longer 5 years out. Its here, in large part driven by a global pandemic.

  • Education goes online/virtual (it already went there via edX, Coursera, and now news that Harvard has taken its classes online.
  • eCommerce was nascent compared to physical retail, but will now accelerate.
  • Remote work is now a “thing”. Organizations in many industries will determine very quickly that a good chunk of their workforce can be productive working remotely.
  • The “side-hustle” becomes a “main-hustle”. Many people will realize that having multiple skillsets or “gigs” will be valued. This becomes an urgency for folks who have been laid off, especially in industries that aren’t hiring back.
  • The US has now found multiple cracks in its infrastructure that it will have to remedy quickly. Clearly the fragility of it’s supply chains and healthcare systems have been exposed. The financial system has been stress tested but this is a new scenario.
  • Telehealth, which at first seemed like a fringe benefit for busy individuals, has quickly taken center stage in scaling up accessible healthcare.
  • Many industries affected by the pandemic now have to pivot their business models. The auto industry has to accelerate their shift from ownership to subscriptions and ride sharing. Restaurants now have to rethink the dine-in experience vs. delivery/take out. Entertainment/leisure companies need to incorporate a digital entertainment model for their customers.

The implications of a post-Covid world aren’t fully understood

This change is not going to be easy. Many are only seeing the first order effects, but many of the second and third order effects have yet to be fully understood.

  • Zoom fatigue and mental health concerns as people cope with reduced in person interactions.
  • The rise of data-privacy concerns especially in economies where contact tracing is enforced or subtly introduced.
  • Cost constrains will be another catalyst to accelerate job automation of manual, repetitive tasks (via AI+ process automation). This will force many individuals to upskill or become obsolete very quickly. This phenomenon is already well underway as part of a bigger future of work mega-theme.
  • Continued prevalence of cyber attacks – in a post-Covid world where the workforce has suddenly become distributed, coupled with the fact that most CISOs are looking at tightened budgets.

This is an evolving situation. But one thing is clear. the next wave of tech is here and it is only going to accelerate. We will keep monitoring.

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