- Developments around technology such as VR, AI and Robotics have entirely changed the way businesses operate; the products/services they offer, drives growth and profitability.
- Owing to the pandemic based challenges across various sectors, social media platforms and technologies such as drones, cloud computing and video conferencing apps have empowered and prepared businesses for future crises.
- NZX listed tech stocks like SCT recently notified that it was experiencing strong recovery from the pandemic, with the recommencement of queries and multiple projects onstream, while GTK is well-positioned to emerge stronger from the pandemic, with enhanced operations and efficiency on mission critical systems.
In the contemporary world, technology has been a catalyst in bringing changes and upgrades at an unmatchable pace.
The accelerated pace of technological change is leading to increasingly rapid disruption, fundamentally impacting the way we work and live.
There is an alarming need to keep abreast with the latest technologies and being agile in responding to change by adopting innovative technologies, which focuses primarily on reducing costs, enriching the value of products and processes, and improving the quality of life.
Digital transformation is no longer a buzzword; rather, it has become the new normal for organisations who want to thrive in the ever-changing business environment.
Keep on embracing tech and digital innovations and master them as they are here to stay!
In this article, we would delve into the three reasons why technology and digital are going to stay with us today and tomorrow.
Technology is delivering economic value across numerous sectors
Technological transformation has unfolded numerous opportunities across multiple sectors such as advanced manufacturing, health, financial services, agriculture, infrastructure, and retail.
Agriculture: Modern-day farmers are accustomed to delivering superior outcomes by leveraging technology. The future of agriculture lies in supervising and management of crop irrigation systems through smartphone, crop sensors, drones, and data penetration in crop management.
Manufacturing: Kiwi manufacturing industry is using technologies to modernise processes; there have been an active deployment of robotics, IoT, AI, 3D printing, and modelling technologies in daily business operations.
Health: Technological advancements in the healthcare sector is revamping the way doctors interact with patients. Hospitals have been including digitisation to enhance patient flow and management. Robotics is being applied to deliver superior surgery outcomes, and wearable devices with sensors to monitor and collect vital data.
Retail: Technology is facilitating online shopping experiences reach physical stores utilising VR, AI-enabled customer Chatbots; also, tech tools are deployed to aid in balancing inventory assortments, managing order and tracking price.
Even though technology has brought about digital capabilities across various industries, it has also enabled economic growth and added value; technology innovation has enlarged and created new jobs in new knowledge-intensive avenues.
Social media is changing the landscape for businesses
In modern times, businesses can grow through the magic of social media as it has emerged as an important resource to aid in brand recognition, building a customer base, exceptional customer service, gather information about a product for any improvement, etc.
Furthermore, data derived through social media platforms are empowering businesses to reach their customers in a more personalised way via tailored communication.
Organisations are using social media as a medium to keep an eye on their competitors to create new relationships in the long run and further provide opportunities by spotting the emerging trends in the market.
With a substantial increase in the number of individuals using social media as a medium to interact with a business, makes it all the more crucial for the entities to be data-savvy, primarily to thrive and outpace the competitors.
Pandemic has ushered in a new era of technology
Although COVID-19 implications have brought the world on its knees, the technology sector players have witnessed idiosyncratic business impacts.
Coronavirus brought digital wave of change not only helped in combating the pandemic, but new technology-based innovations and approaches would certainly authorise and prepare the nation for any future crises.
The crisis has ushered in a new era of important innovation via usage of technology. Many businesses are expected to take a step back from an office-centric culture, and resort to mass remote working boosting the need for cloud computing services and video conferencing apps.
Lately, Cloud technology has emerged as a powerful low-cost option for businesses to continue operations collaboratively, agilely, and securely.
Drones are used for multiple purposes such as surveillance, broadcast of messages, spraying disinfectants, and delivery of critical supplies such as medicine and grocery. We might also experience drone-based delivery of our packages via drones soon.
Of late, Amazon unveiled its plans to implement same-day-delivery via drones.
The virus also became the catalyst for the adoption of secure and hygienic contactless/cashless transactions.
Let us now apprise ourselves with two of the NZX listed tech stocks- SCT and GTK:
Scott Technology Limited (NZX:SCT)
A global automation and robotics solutions provider, SCT on 7 July, declared that the Company was witnessing a recovery post-lockdown with numerous projects resuming onstream and enlarged enquiries concerning SCT’s automation and robotic solutions.
Furthermore, SCT noted speedy transition to a streamlined, regionally focused business model with completion of the process in the USA, Australia, New Zealand, and China.
Despite the fact that pandemic would materially impact SCT’s FY20 earnings, its revenue is anticipated to recover with the uplifting of restrictions and recommencement of projects and capital expenditure by the entity.
On 27 July 2020, SCT last traded at NZ$1.83, up by 2.23% from its last close.
Gentrack Group Limited (NZX:GTK)
A New Zealand based software company, GTK unveiled its total revenue of NZ$50.6 million for 1HFY20, for the period ended 31 March, down by 7% on 1HFY19, reflecting a loss of numerous UK customers primarily due to supplier failure or acquisition, and a decline in non-recurring revenue in the UK and Australian markets.
Other highlights from the results were as following:
- The Company witnessed an upsurge of 11% on pcp, in its committed recurring revenue and reached NZ$29.7 million.
- Underlying EBITDA was noted to be in line with the guidance provided in February and stood at NZ$4.3 million.
On 27 July 2020, GTK last traded at NZ$1.3420, down by 1.49% from its last close.
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