Panel
The Next Decade: How to Manage Disruption
- Technological innovation over the next 5–10 years will center on commoditizing artificial intelligence and bots while prioritizing value-added advice, with capital deployment expected to accelerate growth in technology and biotechnology, including a fourth industrial revolution in digitization.
- New business models are anticipated to emerge over the next 2–3 years in media consumption, shopping, and social interaction, while investors are encouraged to plan 10 years out for market changes involving software and technology.
- Digital transformation is a permanent necessity for the next decade, with customers and companies making major investments in robotic process automation and software, as companies can no longer pause digital investment plans.
- Virtual roadshows, virtual data rooms, and virtual management presentations are becoming the new standard for taking companies public and selling assets, with video presentations and one-on-one Zoom Q&As expected to remain permanent fixtures to protect confidentiality and reduce management tax.
- The public market landscape is expected to evolve into three distinct paths for going public: traditional IPOs, direct listings, and SPACs, with SPAC sponsors facing a market shakeout where only those adding value will continue to raise capital.
- Work culture is shifting toward a permanent distributed workforce where employees without young families are comfortable with remote models, while those with families may return to offices sooner, leading to less frequent one-day business travel.
- Talent acquisition and retention strategies will require aggressive technology integration for non-tech companies, with headquarters offices evolving to include collaborative areas and moving away from cubicles regardless of vaccine availability.
- Geographic talent hubs like Austin, Silicon Valley, and Boston may see reduced importance as companies hire remotely, with a shift toward employees moving to lower-cost, higher-quality-of-life areas away from high-cost living centers.
- ESG priorities, particularly the social component, have risen to the forefront, driven by younger generations who refuse to work for companies ignoring these values, and consumer demands for ethical investment choices.
- Alternative investment managers will face broader report cards including employee and community impact, and the social part of ESG is expected to remain elevated alongside, but not replace, climate goals.
- Investors are expected to maintain a premium on growth in low-to-no interest rate environments, though some may eventually move back to value plays depending on the duration required to reach profitability.
- Uncertainty remains regarding the timeline for market recovery, the length of time investors will hold assets, and the ability to execute digital plans within the next 18 months.
- Concerns exist about the sustainability of company cultures, the training of the next generation through virtual apprenticeship models, and the ability to evaluate new investments and perform due diligence virtually versus in person.
- Telemedicine and telehealth are projected to continue accelerated growth, while gene therapy innovation in biotechnology is expected to accelerate faster than in the past 20 years, potentially triggering a major technological wave.
- Political outcomes such as a Democratic sweep could trigger tax code changes in the fourth quarter, potentially accelerating private company and sponsor M&A activity as companies look to lock in gains.
- Technology has faced criticism for negatively impacting social cohesion, leading to goals for teaching individuals to limit technology use and leveraging tools to bring people closer together.
- There is a recognition that pandemic-induced environmental issues may spark conversations about industrial pollution levels once normalcy returns, and companies are expected to improve communication, inclusion, and diverse hiring funnels.