Select your investor profile:

This content is only for the selected type of investor.

Institutional investor?

Thematic investing

Digital: Be part of the "e"volution

Digital: Be part of the "e"volution

March 2017

Join in the digital revolution that’s transforming the way we live, work and communicate.

Digital - Services will grow in size, scale and sophistication

Digital technology has revolutionised the global economy, especially through the growth of mobile internet access. It is providing faster, cheaper, and more personalised solutions for businesses and consumers.

DISRUPTIVE DIGITAL TRENDS , CAPTURED BY PICTET-DIGITAL, WHICH COULD BENEFiT FROM AI*

Disruptive digital trends

*Examples are not exhaustive. Source: Pictet Asset Management

Our Digital strategy aims to capture opportunities linked to the new interactive solutions that are enhancing all aspects of our daily lives. Global interaction will be streamlined through the rise of innovative sharing platforms, cloudbased transmission and social media.  Additionally, the relationships between consumers and businesses will be revolutionised through e-commerce, automated distribution and instant customer relations.

The Internet of Things

The IoT is a prime example of the growth and sophistication of the digital world – connecting people, data, systems and services across the world at greater speed than ever before. 
Revenue from the Internet of Things market is expected to double by 2020
revenues from the internet of things market
Reference: IDC Research
Wearable devices, smart homes, transport systems and digitally controlled utilities will soon all be communicating with each other as part of one gigantic global network. The vast amounts of data derived from this network will offer ground-breaking social and economic benefits to an increasingly information-driven society.

For example, your car insurance premiums could be based on your individual driving habits, while your ‘smart’ fridge could automatically add items to your shopping list when they are running low and then remind you to buy them when you pass the right shop. Your phone, linked to GPS, is already a digital assistant, providing you with real-time information on whether your train is late and helping you avoid traffic jams. The collection and utilisation of data from this global network will revolutionise the efficiency of our daily lives.

The rise of the sharing economy

New companies based on collaboration and information rather than physical products are changing the relationship between consumers and suppliers. 
BUSINESS - TO - CONSUMER HAS BECOME PERSON - TO - PERSON
thematic digital number of rides
Reference: Uber
This is affecting everything from hotels, to travel, to retailing and music. In finance, meanwhile, peer-to-peer lending is offering a compelling alternative to traditional banks.

This sharing economy is powered by the popularity of social media. Reviews and ratings from other users add value by creating an extra layer of trust, and helps promote customer service.

A new breed of digital pioneers have the innovation and potential to create new industries as well as upset established business models, aided by the spread of smartphone use.

Businesses must invest to survive

The impact of the digital revolution will reverberate far beyond the confines of the technology, media and telecommunication industries. Companies will have to invest heavily in digital services to protect their market position and profits. 
IMPACT OF DIGITAL REVOLUTION
thematic digital competition disruption
Reference: IDC Research
Retailing, for example, is being transformed by the rise in e-commerce, while advertising and media companies are adopting digital techniques such as on-demand streaming and programmatic content.

Elsewhere, banking and payment providers are working with specialist FinTech firms to offer stronger encryption and greater convenience to their customers. In healthcare, the ability to map users’ health profiles and predict disease has considerable commercial value, while computer simulation is an essential tool for manufacturers and designers. Innovation will continue to drive new technologies that attract more users with even higher levels of technological interest, engagement and expectation.

The digital economy has come of age 

Sophisticated artificial intelligence, wearable technology, crypto-currencies and the expansion of the IoT are just some of the developments testifying to the pace of change in digital technology. Many digital companies are now supported by solid business models, balance sheets and earnings. In this period of unprecedented technological innovation, we aim to identify the most compelling opportunities in this fast-growing theme.