1) What is the new normal post-COVID? And where are the best opportunities to deploy capital?
Here are a few interesting data points that may provide clues 👇
Here are a few interesting data points that may provide clues 👇
2) COVID turbo-charged the innovation cycle & seeded the next wave of entrepreneurs
- Pace of #innovation -> @McKinsey reports that execs moved 20-25x faster in their digital adoption efforts
- Next wave -> High propensity business applications rose over 50% compared to 2019
- Pace of #innovation -> @McKinsey reports that execs moved 20-25x faster in their digital adoption efforts
- Next wave -> High propensity business applications rose over 50% compared to 2019
3) Acceleration in digital adoption will also lead to a boom in U.S. productivity
- In Apr 2020, @Microsoft CEO stated, "We've seen 2 years' worth of digital transformation in two months."
- The ROI? Combined productivity gains in 2Q & 3Q were the largest in the U.S. since 1965
- In Apr 2020, @Microsoft CEO stated, "We've seen 2 years' worth of digital transformation in two months."
- The ROI? Combined productivity gains in 2Q & 3Q were the largest in the U.S. since 1965
4) Shifts in consumer/business behavior have also changed the landscape & are likely to stick
- Increases in e-comm penetration were equivalent to the previous 10 yrs combined
- Hybrid workspaces [office + WFH] become the norm as companies plan to reduce office footprint by 30%
- Increases in e-comm penetration were equivalent to the previous 10 yrs combined
- Hybrid workspaces [office + WFH] become the norm as companies plan to reduce office footprint by 30%
5) Increased digitization across the U.S. economy has removed friction in the customer journey by increasing convenience & accessibility
- Telehealth -> growth of 30x in usage
- Learning/entertainment -> ~25% avg. growth in spending across gaming, DIY learning, & music streaming
- Telehealth -> growth of 30x in usage
- Learning/entertainment -> ~25% avg. growth in spending across gaming, DIY learning, & music streaming
6) The scale of disruption has been enormous in the lower middle market space
- Across the U.S., there are ~34% fewer small businesses in today vs. Jan 20
- Revenue has declined by ~33% over this period
Weakened players + retiring baby boomer owners= Buyer's market for SMB M&A
- Across the U.S., there are ~34% fewer small businesses in today vs. Jan 20
- Revenue has declined by ~33% over this period
Weakened players + retiring baby boomer owners= Buyer's market for SMB M&A
7) Priorities are shifting from efficiency to resiliency & from global to local
- Companies are building redundancies across supply chains post-COVID
- Investments in automation/robotics are also narrowing the labor-cost differential
U.S. industrial base poised to benefit
- Companies are building redundancies across supply chains post-COVID
- Investments in automation/robotics are also narrowing the labor-cost differential
U.S. industrial base poised to benefit
8) Additional Resources:
Great articles from @McKinsey here:
mckinsey.com/featured-insig…
mckinsey.com/featured-insig…
Great articles from @McKinsey here:
mckinsey.com/featured-insig…
mckinsey.com/featured-insig…
9) Additional Resources [cont.]:
Solid insights from @stratandbiz here:
strategy-business.com/article/Adapti…
strategy-business.com/article/Forwar…
Solid insights from @stratandbiz here:
strategy-business.com/article/Adapti…
strategy-business.com/article/Forwar…
10) Additional Resources [cont.]:
An excellent study from @harvardmed on telemedicine trends:
jamanetwork.com/journals/jamai…
An excellent study from @harvardmed on telemedicine trends:
jamanetwork.com/journals/jamai…
11) Want to see more content like this? Give me a follow; there's plenty more on the way.
Check out add'l business & investing insights from my past threads here:
Check out add'l business & investing insights from my past threads here:
https://twitter.com/justinpalb/status/1360024361449578498?s=20
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