These are troubled times, and suddenly globalisation doesn’t seem so inevitable: destabilised by a series of economic shocks that have converged dramatically over the space of a few short months: the first European War since 1945, inflation running at a forty year high, and an unprecedented rise in oil and energy prices. Second hand cars are now selling at more than new vehicles, due to a of shortage of rare metals (creating bottlenecks in semiconductor supplies): so combined with higher prices at the pumps, demand for EVs and Hybrids has surged. A used Tesla Model Y will now set you back $67,944, but you’ll fork out just $63,242 for a new one. So much for globalisation then, and so much for the virtues of joined up economies…
But, in fact, globalisation is far from dead: its only sleeping, and that underlying pattern of disruption (or “externalities” as economists quaintly call them), is likely to increase demand for emerging technologies, which offer practical solutions for a better and more joined up World. And Lord knows we need it, after the enforced isolation and individual anguish we all lived through during COVID lockdown restrictions.
Just think about it for a moment: recent disruptive change has mostly been centred on a short to near term scarcity of resources, combined with supply chain disruptions: and the actual events making the headlines are symptoms rather than causative (oil at $114 a barrel, and domestic energy prices soaring by 54%), but the (two) root causes can still be ameliorated, rendered more resilient, through adoption of emerging technologies, and AI in particular…
AI predictive technologies have the potential to radically enhance supply chain efficiencies and resource allocation: reducing the impact of global shortages, and pinpointing the best, safest way to move precious resources to where they’re needed most: so that we can all safely rely on a return to economic orthodoxy, where a new car costs more than an old one. Shipping companies already employ the Internet of Things to gather key resource data, track and optimise transportation chains, and level out externalities. That’s why, across the Globe, 61% of executives have also now introduced AI into their supply chains (with 50% reporting increased revenues as a result, according to McKinsey (www.mckinsey.com)). In a very real sense, the future is in their hands…
Small wonder then that emerging technologies have become an immovable element of corporate spending plans for the foreseeable future: a crucial driver for global investment over the years ahead.
And with both feet firmly on the ground, Tata Consulting Services (www.tcs.com), are forecasting that their annual revenues will double to $50 Billion within the next eight years, with profit margins of 28%: Rajesh Gopinathan put it succinctly, “We are closer to a cycle than a sports car. It's not about the speed rush, it’s organic growth and we know that balance is more important than ever".
He's right…we should all be looking beyond the headlines, to a brighter, more joined up future: and Emerging Technologies have the answer.
The headlines make gloomy reading at the moment, but better resource allocation and strategic delivery don’t need to be just an aspiration: Emerging Technologies already have the answers, and its time to bring them to the fore.
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Red Ribbon Asset Management (www.redribbon.co) aims to harness the full potential of fast evolving and emerging technologies to meet the needs of global communities as part of a circular economy, fully recognising the compelling demands of planet people and profit.