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Digitization to Define Communication in Post-Coronavirus World
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Coronavirus has confined individuals within four walls with lockdowns in place. And as social distance is making the heart grow fonder, people are reaching out more than ever with smartphones, tablets or notebooks. This social transformation is sure to establish digitization as the new normal for what is being touted as going to be a very long time.
Vast Under-Penetration of Digitization in Emerging Markets
Leading emerging markets of Asia, Latin America, Africa and some European countries are still way behind in using digital technology compared with the developed world. While mobile phone penetration is nearly 90% in these countries, a large number of people are still using phones with old features, since voice communication, and not data, served most of their needs. Even those, who are using smartphones, rarely utilize online digital features.
However, the outbreak of coronavirus quickly changed the lifestyle and lookout of these people. People were not entirely used to digital platforms for doing office work (work from home), ordering foods and other daily needs or transferring money and making payments. Moreover, online schooling, video conferencing and virtual networking have now become essential.
The countries which are more digitized have been able to minimize their losses during the pandemic. These are major lessons to other countries. Even those who are less inclined toward digital technology and online platforms, either because they have to learn using smartphones or tablets or due to fear of data theft, are now feeling the massive advantage of using online platforms.
According to the United Nations Conference on Trade and Development (UNCTAD), "The global crisis brought on by the coronavirus pandemic has pushed us further into a digital world, and changes in behavior are likely to have lasting effects when the economy starts to pick up". UN Secretary-General Antonio Guterres said, "The future will be much more digital than the past. This is going to provide a major impetus for the development of artificial intelligence, and cyberspace activities."
Momentum to Gather Steam
The move toward digitization will gain momentum in the post pandemic world. Communication and collaboration tools are an essential part of a digitally transformed world.
The thrust for digitization is likely to come from two sides. Individuals who enjoy immense benefits of digital platforms are less likely to go back to their old habits. The new way of connecting to one other has opened a new world for them. Also, business entities will be more interested in cloud computing, automation and artificial intelligence to establish smooth supply chain systems.
Likely Winners
Utilization of data is likely to go up many folds. Installation of 4G technology in emerging markets and the upcoming 5G technology in developed nations will boost demand for smartphones and tablets. Major manufacturers of these devices like Apple Inc. (AAPL - Free Report) , Samsung and HP Inc. (HPQ - Free Report) are to name a few.
The use of social networking site Facebook Inc. and especially the utilization of its WhatsApp messaging platform has jumped up during the pandemic. Some teachers are using WhatsApp as a medium of taking classes. In this regard, Alphabet Inc.'s (GOOGL - Free Report) Google tools and apps are also being used widely for teaching and conferencing purposes.
Meanwhile, demand for online conferencing software such as Microsoft Corp.'s (MSFT - Free Report) Teams and Skype, Cisco System Inc.’s (CSCO - Free Report) Webex, and Zoom Video Communications Inc. has skyrocketed. Moreover, demand for e-commerce behemoth Amazon.com Inc. (AMZN - Free Report) has also soared.
The chart below shows the price performance of above-mentioned stocks in the past month.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Digitization to Define Communication in Post-Coronavirus World
Coronavirus has confined individuals within four walls with lockdowns in place. And as social distance is making the heart grow fonder, people are reaching out more than ever with smartphones, tablets or notebooks. This social transformation is sure to establish digitization as the new normal for what is being touted as going to be a very long time.
Vast Under-Penetration of Digitization in Emerging Markets
Leading emerging markets of Asia, Latin America, Africa and some European countries are still way behind in using digital technology compared with the developed world. While mobile phone penetration is nearly 90% in these countries, a large number of people are still using phones with old features, since voice communication, and not data, served most of their needs. Even those, who are using smartphones, rarely utilize online digital features.
However, the outbreak of coronavirus quickly changed the lifestyle and lookout of these people. People were not entirely used to digital platforms for doing office work (work from home), ordering foods and other daily needs or transferring money and making payments. Moreover, online schooling, video conferencing and virtual networking have now become essential.
The countries which are more digitized have been able to minimize their losses during the pandemic. These are major lessons to other countries. Even those who are less inclined toward digital technology and online platforms, either because they have to learn using smartphones or tablets or due to fear of data theft, are now feeling the massive advantage of using online platforms.
According to the United Nations Conference on Trade and Development (UNCTAD), "The global crisis brought on by the coronavirus pandemic has pushed us further into a digital world, and changes in behavior are likely to have lasting effects when the economy starts to pick up". UN Secretary-General Antonio Guterres said, "The future will be much more digital than the past. This is going to provide a major impetus for the development of artificial intelligence, and cyberspace activities."
Momentum to Gather Steam
The move toward digitization will gain momentum in the post pandemic world. Communication and collaboration tools are an essential part of a digitally transformed world.
The thrust for digitization is likely to come from two sides. Individuals who enjoy immense benefits of digital platforms are less likely to go back to their old habits. The new way of connecting to one other has opened a new world for them. Also, business entities will be more interested in cloud computing, automation and artificial intelligence to establish smooth supply chain systems.
Likely Winners
Utilization of data is likely to go up many folds. Installation of 4G technology in emerging markets and the upcoming 5G technology in developed nations will boost demand for smartphones and tablets. Major manufacturers of these devices like Apple Inc. (AAPL - Free Report) , Samsung and HP Inc. (HPQ - Free Report) are to name a few.
The use of social networking site Facebook Inc. and especially the utilization of its WhatsApp messaging platform has jumped up during the pandemic. Some teachers are using WhatsApp as a medium of taking classes. In this regard, Alphabet Inc.'s (GOOGL - Free Report) Google tools and apps are also being used widely for teaching and conferencing purposes.
Meanwhile, demand for online conferencing software such as Microsoft Corp.'s (MSFT - Free Report) Teams and Skype, Cisco System Inc.’s (CSCO - Free Report) Webex, and Zoom Video Communications Inc. has skyrocketed. Moreover, demand for e-commerce behemoth Amazon.com Inc. (AMZN - Free Report) has also soared.
HP Inc. carries a Zacks Rank #2 (Buy) and the other mentioned stocks have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of above-mentioned stocks in the past month.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>