Research to make you more interesting at dinner parties!
All around us, technological innovation is disrupting global industries and equity markets. In some sectors, such as retail, old business models are under real pressure. How should investors reflect this in their investment strategy? How should portfolios reflect Old Titans versus New Upstarts? Understanding the depth and breadth of these innovations will help investors in their decision-making.
Earlier this month, SSGA released a terrific report, "Invested in Disruption" which, amongst other things, examines the ongoing creative destruction of disruptive technology in autos, healthcare and retail. Other papers below provide a fascinating insight into developments in automation, robotics, virtual reality, driverless cars, artificial intelligence and telecoms. An added bonus of reading these research reports is that you will instantly acquire some really interesting dinner party conversation!
Invested in Disruption: IQ Magazine Q3/Q4 2017 (SSGA)
SSGA explores the game-changing technologies and secular trends that are redefining the investment landscape.
Driverless cars: Innovation paves the road to investment opportunity (Invesco)
(For compliance reasons, this paper is only accessible in the USA, Canada, UK and certain other geographies)
Invesco examines the investment implications of an innovation which may disrupt multiple sectors, asset classes and geographies : autonomous driving technology and driverless cars.
Longer Term Investments: Automation and Robotics (UBS, 2017)
In this paper by UBS, the authors discuss recent trends and the outlook for factory and process automation, industrial software and 3D printing, as well as commercial drone and AI.
Disruptive Innovations: Ten Things to Stop and Think About (Citi GPS)
This report by Citi examines some of the most innovative new concepts across sectors, in the fields of big data, robotics, online retailing and others. The report identifies new products which could potentially disrupt the marketplace.
Future Reality: Virtual, Augmented & Mixed Reality Primer - BofAML
As part of their work on "A Transforming World, BoAML introduces a new Innovation-focused theme on virtual reality (VR), augmented reality (AR), and mixed reality (MR). This Primer sets out the challenges and opportunities offered by the theme.
Artificial Intelligence: The Next Digital Frontier? (McKinsey & Co, 2017)
This McKinsey paper examines investment in AI, describing how it is being deployed by companies that have started to use these technologies across sectors. It aims to explore AI's potential to become a major business disrupter.
Fintech and Regtech: the Future in a Sandbox (CFA Institute Research Foundation)
This paper from CFA Institute argues that recent technological developments could be catalysts for a paradigm shift, which will be typified by a reconceptualization of the nature of financial regulation.
Car of the Future v3.0: Mobility 2030 (Citi GPS)
This detailed paper (165 pages) has been authored by Citi Research. It examines four key trends in the auto industry between now and 2030.
Tech Disruption in Action (SSGA, 2017)
SSGA analysts describe what technology-driven disruption means for investors, specifically looking at three main sectors on the front lines of creative destruction and transformation: automotive, healthcare and retail.
Virtual and Augmented Reality: Are you sure it isn't real? (Citi GPS)
This report by Citi provides interesting insights into the growth of VR/AR-related market expansion. The total market for VR/AR content, services and devices, is estimated to be US$80 billion by 2020, and over US$500 billion by 2025.
Beyond Fintech: Assessing Disruptive Potential in Financial Services (WEF, 2017)
This report from the World Economic Forum examines how technology is reshaping financial services. It addresses new entrants and innovations, illustrates the role of financial infrastructure, and explores the forces reshaping the finserv ecosystem.
Digital Disruption: FinTech is Forcing Banking to a Tipping Point (Citi GPS)
Investments in fintech have grown from $1.8 billion in 2010 to $19 billion in 2015 - with over 70% focusing on the "last mile" of user experience in the consumer space. This paper by Citi examines the impact of fintech on banking.
Driverless vehicles are here (Magellan Asset Management, 2017)
This paper by Magellan Asset Management explains what automated driving actually is, and discusses recent rapid developments.
Technology Transforms the Financial Landscape: Do Not Underestimate It (BlackRock, Sept 2017)
BlackRock advises investors to think carefully about the impact of technological innovation upon inflation. The paper argues that investors should concentrate more on the secular forces transforming the economic and financial landscape, and less on the actions and language stemming from central banks.
When Robots Do It All and Leisure is Mandatory: Not for another 100 years (BBVA, 2017)
BBVA explores how advancements in machine learning, mobile robotics, and computing power have led to AI gaining traction as an attractive investment within the tech industry.
Re-birth of Telecoms Into a New Digital Industry: Time to Dump the Dumb Pipe (Citi GPS, 2016)
This paper by Citi examines the technological change that is afoot in the telecoms industry.