COVID-19 has proved challenging for many investors, but the pandemic is also accelerating a long-term structural trend that presents significant investment opportunities – the digital transformation of enterprises.
Flashback a few months and it’s easy to see how this unfolded. Almost overnight, entire workforces began working remotely and demand for digital collaboration tools skyrocketed. Organisations with strong digital systems in place were better placed to adapt, while those that didn’t quickly realised they needed to upgrade their technology.
In this environment, technology companies that provide the established technology ecosystems other organisations need have become compelling opportunities for investors. These include companies from around the globe, such as Microsoft, Salesforce, SAP and Alibaba.
In our Winning in the age of enterprise digital transformation whitepaper, we look at digital transformation as a long-term, structural trend; the effect of digital disruption on traditional business models; and the types of businesses most likely to be successful.
The paper also discusses some key features of enterprise technology businesses that make them highly resilient and durable investments in most economic conditions. These include limited competition, the high cost of switching providers, access to valuable enterprise data and, in the case of subscription services, a highly predictable, recurring income.