Unquestionably, volatility has become the new normal. We live in uncertain times, thanks to a continuing cycle of innovation and disruption. The economist Joseph Schumpeter called it “creative destruction,” a term that perfectly captures the awesome energy and extraordinary force of modern markets.
The idea of continuous change frightens some people. But for visionary entrepreneurs and investors, the turbulence of our incredibly complex global economy is a gift that keeps giving. Every day presents new opportunities for those bold enough to seize the moment and ride the wave.
This unprecedented tide of transformational change is driven by the rapid development and application of new digital technologies. What’s genuinely astonishing is that we’re still in the early innings of a long game. The current era of technology-driven transformation will likely last another 15 years. There are indications that it might continue for several decades.
From a macro-economic perspective, this transformation makes complete sense. A surprisingly large proportion of today’s technology infrastructure is 30-to-40 years old. The old infrastructure is being replaced by platforms and applications that are newer, faster, more efficient and far less costly. In addition to having smart cars and smart homes, we’ll have smart power grids, smart cities and smart nations.
That’s great news for society, and even better news for the technology industry. Don’t listen to the naysayers. The tech industry is enjoying the most significant boom in its history. From now until the mid-2030s, we will have our hands full with new projects. This is truly the best time to be a technology executive.
Digital transformation isn’t a buzzword or a fad. It’s an absolute imperative. Organizations that do not transform and disrupt themselves will perish. It’s really that simple. Technology is the beating heart of disruption. Technology turns disruptive ideas into innovative products and services that conquer new markets.
I predict another fabulous year ahead for our industry. I foresee another year of amazing innovation, invention, disruption and growth. Some segments of the economy may experience painful dislocations, but most of society will reap the benefits of a global economy that’s more efficient, more powerful and more equitable than ever before in history.