En Voyage Issue#16 Flickbook

Business
WE NEED TO
TALK ABOUT
TECHNOLOGY
Technological development
has the potential to build
a future that is prosperous
and equitable. PEA's
Managing Director James
Orrick takes a look.
In an ideal scenario, advancements
in disruptive technology
can dramatically transform
healthcare, finance, commerce,
globalisation, legal systems,
taxation, privacy and security
in ways that offer convenience
and safety across the broader
spectrum of societal structures.
On the surface, the future looks
bright. But do we really know
what the future will look like?
Computerisation is a dominant
and essential tool across
numerous industries and disruptive
technologies are undoubtedly
helping firms to progress beyond
the limitations imposed by
outdated IT infrastructures.
Automation and AI will be
commonplace in the next five
years and a robotic workforce
that simultaneously undertakes
dangerous and uninspiring work
will fuel profits and efficiency.
The impact of computerisation
in the 21st century enables
companies to focus on improving
human-to-human interactions.
Digitalisation also accelerates
globalisation and provides a
platform to further impact societal
development in established and
emerging economies. There is
no question that technological
solutions have the potential
to deliver untold benefits for
companies - but at what cost
to a global human workforce
with a longer lifespan?
SCALABLE
Whilst disruptive technologies
are accelerating dynamic markets,
the speed at which innovation is
evolving the commercial landscape
poses a threat to large businesses
that are not agile enough to
adopt revised business models.
Credit Suisse forecast the average
lifespan of SP 500 companies will
be a mere 15 years in 2025 - down
from 67 years 100 years ago and
from 60 years in the 1950s.
To avoid capitulation, private
equity investors are challenged
with implementing business
models that are digitally-enabled
to enter new markets, support
scalable financial performance
and deliver value to stakeholders.
There is no doubt that technology
can provide profitable solutions.
However, for private equity funds,
new markets are not necessarily
better markets. Business models
have to be flexible enough to
establish a diverse range of
products that create sustainable
revenue streams. Those revenue
streams include providing
sustainable jobs for workers
who are also consumers.
THE DISRUPTIVE FORCE OF TECH
The World Bank has described
the digital revolution as the fourth
stage in the evolution of industry.
Technological breakthroughs such
as automation, artificial intelligence
(AI), robotics, the blockchain and the
Internet of Things will transform the
workplace and the wider spectrum
of the world as we know it.
AI and automation are advancing
at a phenomenal rate. AI can
even generate its own AI and
automation of knowledge removes
the risk of human error and
significantly improves efficiency.
Businesses will undoubtedly
benefit from the advances in
computerisation. Individuals also
have the potential to improve their
experience at work. Automated
processes eliminate tedious
admin tasks and free up time
for more important matters.
Disruptive technology will have an
effect on almost every industry all
over the world. Its impact will be farreaching.
However, executives and
fund managers have to decide just
how far they are prepared to allow
technology to reach. Changing
business models and operating
paradigm may mean replacing
manpower with technology.
In a time when consumers
demand corporate responsibility
and jobs are needed to avoid
economic downturn, how
disruptive will technology be in
the near and long-term future?
Disruptive technology has the
power to render companies and
their employees irrelevant. This
is what keeps executives and
private equity fund managers up
at night. Forward-thinking fund
administrators can help remove
the weight of expectation.
With connections in Guernsey,
Denmark and Sweden, PEA
has a strong understanding of
tech and a vision of the future
which can add value to private
equity funds struggling to
navigate the digital revolution.
ADVERTORIAL
Private Equity Administrators Limited is regulated by the Guernsey Financial Services Commission and
licensed under both The Protection of Investors (Bailiwick of Guernsey) Law, 1987 and The Regulation of
Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law, 2000.
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