Technology to Remain the Long-term Propeller of Economic Growth, Despite the Headwinds

Technology is at the core of businesses with the new business models being driven by platforms. As the traditional players are evolving, they are realizing that the adoption of digitalization and business connectivity is essential for their survival. Despite the various challenges and headwinds that we may face, technology is likely to remain a key propeller of economic growth in the long term. One of the main reasons for this is that technology is constantly evolving and improving, making it an essential component of any economy that wants to stay competitive. With new technologies being developed all the time, businesses and industries can increase productivity, reduce costs, and improve the quality of their products and services.

As we bid adieu to 2022 and welcome 2023, there are mixed emotions with which one can look back. On one hand, the economies are recovering from the devastating pandemic which has altered the lives of many in more ways.

On the other, we are looking towards an economic slowdown driven by the rising geo-political tensions (Russia- Ukraine conflict), rising inflation, the impact of climate change, disruptions in the global supply chain, and rising economic disparity.

Weathering Economic Disruptions with Technology

As the world is staring down at 2023 uncertainly, one thing is for certain i.e., technology is going to be the main driver which will help us navigate through these times. With every economic slowdown be it the dot-com burst, the global financial crisis of 2009, or the pandemic, the technology industry has always come out stronger and the businesses which have invested in these times are the ones who have stood in their peer groups

Digital technologies have fundamentally transformed the way we consume technology, especially with emerging tech - big data analytics to AI to metaverse, machine learning, and quantum.

Technology is Shrinking Boundaries in an Expanded World

Be it BFSI, automotive, hospitality, or retail – technology is disrupting every single aspect of our lives. As the restrictive boundaries are cut short and options for expansion are more, stay competitive with the right adoption of technology and you can create a new funnel of users for it.

Started as a seller of DVDs and CDs, an American streaming service company adopted digitalization and turned the recession into a positive outcome. Although, many people did not expect it to last. However, the adoption of technology made its service a viable option for all kinds of users.

For instance, the American over-the-top streaming service company intends to promote The Gray Man on the metaverse platform - Decentraland. 

Similarly, the supply chain fragility (delay in microchip shipment, documentation issue) during the COVID-19 crisis validates the need for technology as a key investment for the future.

With digital technologies, businesses can better manage their supply chain by

• Planning better with artificial intelligence
• Built up flexibility and visibility – sync in system, process, and communication
• Reduce the cost, complexity (3D printing, mobile barcoding)
• Downsize the downtime associated with their business-critical operations.

A step towards a greener (carbon neutral) carrier ship is the Japan’s liquefied hydrogen carrier. The gas produced using the innovative technologies does not emit carbon dioxide, proving it to be a game-changer.

The growing adoption of digital only and mobile-first bank and fintech apps is scaling the digital adoption of banking.

Did you know that the digital only and mobile-first bank offer 42% more features in their mobile apps than traditional banks, and boast two times the login speed?

Companies can leverage the cloud quantum computing power and solve complex issues as mentioned in the previous post instead of owning a quantum computer (which isn’t cost-effective). 

Economic uncertainty or say recession is common throughout history, and if observed – technologies always allow us to rise better.

It is important to consider recession as an opportunity to build different base such as:

• Reevaluate the processes and increase efficiency
• Target all kinds of competitors and place a better position
• Train and hire highly talented people within budget

Beating the Odds with the Right Investment in Technology

In conclusion, when an organization makes proportional investment of technologies it maximizes growth lines as it encourages a culture of change and ideas. As organizations don’t need to just survive but thrive. And to support your competitiveness, the way you leverage technologies is what defines success.