Winning Through Technology: The Returns To Digital Differentiation.pdf

Carlyle_Digital_Differentiation_Jason_Thomas_April_2022.pdf
Preview of Winning Through Technology: The Returns to Digital Differentiation
🔗 Source: carlyle.com
📊 Size: 1.86 MB
📄 Pages: 11 pages
⬇️ Downloads: 689

Summary

The recent sell-off in tech shares is not a sign of deteriorating fundamentals, but rather part of a pattern observed during periods of rapid technological change. Capital markets initially focus on companies at the frontiers of new technology, but over time, attention shifts to businesses that adopt those technologies to introduce new products and services. By the end of Q1 2022, real business spending on digital transformation was 23% higher than in 2019, indicating that businesses have leaned in more heavily on data and digital despite market volatility. The economy is evolving towards a more efficient, digitized future, but returns associated with this transformation may no longer be found exclusively in the tech sector. Business investment in software, data, and digital R&D continues to accelerate, with companies that make efficient use of technology as an input likely to accrue returns rather than those classified as part of the "technology" sector. Historical examples, such as the electrification of the 1920s and the internet boom of the 1990s, demonstrate that technological revolutions create downstream opportunities that can drive growth and returns for companies that adopt new technologies.

Description

The recent sell-off in tech shares is not a sign of deteriorating fundamentals, but rather part of a pattern observed during periods of rapid technological...

Technical Information

  • File Format: PDF
  • File Size: 1.86 MB
  • Pages: 11
  • Language: EN
  • Total Downloads: 689
  • Last Updated: 6 days ago

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