Today, we’re taking a closer look at a specific section of the Digital Economy: The Enterprise & Tech Digital Economy. 

When we think about tech companies, some of the largest and most dominant companies of our time spring to mind: Facebook, Instagram, Google, Amazon–owned by Meta Platforms, Inc. (NASDAQ: META), Alphabet (NASDAQ: GOOGL), and Amazon.com (NASDAQ: AMZN), respectively. 

While these companies are some of the top beneficiaries of the digital economy MegaTrend, many more companies are impacted by this major long-term trend, and that will benefit from the changes this MegaTrend delivers on how we live, communicate, work, and so on. 

(source: https://www.thestar.com.my)

What Does the Digital Economy MegaTrend Mean For Enterprises And Tech?

In the following graphic, we see some of the technologies, business models, and trends that are made possible (or are part of) the digital economy:

(source: https://e.huawei.com/cz/blogs/industries/insights/2021/digital-economy-national-businesses)

There are many consumer-focused business models, such as ride-hailing, vacation rentals, video streaming, and so on – we all know the companies that are the key players here. 

But beyond what the digital economy means for consumers, there’s also a huge impact on enterprise customers, tech companies, and so on. 

Cloud computing allows companies to outsource computing, for example, which can result in cost and energy savings and can allow them to scale quicker by buying additional cloud computing power if they need it. In the past, they would have been forced to build out their own data centers, add servers, sync them, etc. 

Big Data Analytics is another digital economy trend that has a huge impact on different industries: Banks and credit card companies can use Big Data Analytics for fraud detection and prevention, while pharma companies can use this technology to find new potential drugs quicker and at lower costs. 

Even “real world” businesses such as mining or energy production can use Big Data to find deposits of iron ore, copper, oil, or natural gas more efficiently. 

Cybersecurity has turned into a huge industry all by itself: As almost all other companies are using digital technologies to operate more efficiently, they are potential victims of cyber threats. Protecting themselves against hackers, scammers, and so on is important, which results in steadily growing demand for the offerings of cybersecurity businesses such as Palo Alto Networks (NASDAQ: PANW). 

Benefit from This MegaTrend

Digital consumer companies are one way to benefit from the digital economy MegaTrend, but there are many additional exciting ways to invest in this trend. 

Taiwan Semiconductor Manufacturing Company (NASDAQ: TSM) is the largest contract chip manufacturer (aka, foundries). Since the digital economy will require more and more computing power, Taiwan Semiconductor has a strong long-term growth outlook. 

International Business Machines (NASDAQ: IBM) is active in many different areas, one of them being Artificial Intelligence (AI). Its Watson offering can be used by healthcare companies and in healthcare settings, for example, while the technology is also used by companies from the financial industry for customer management and other tasks. 

NVIDIA (NASDAQ: NVDA) develops semiconductors that can be used for AI tasks. With many different enterprises jumping on AI to improve efficiency across their operations, demand for NVIDIA’s chips should be strong for many years to come. 

These are just a few of the many different ways to benefit from this MegaTrend. Some of these are consumer-facing and very well-known, while others are pick-and-shovel type companies that will see their own business flourish due to increased demand from other companies – sometimes, these lesser-known companies can be even better picks.