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SGAnalytics_Blog_How is ESG Helping to Build a Future-relevant Supply Chain

How is ESG Helping to Build a Future-relevant Supply Chain?

Environmental, social, and governance (ESG) is becoming a vital topic of conversation across every sector, and for a good reason. A PwC discovered that 76% of consumers are likely to discontinue relations with organizations that do not comply with sustainable measures.  The supply chain operations lie at the heart of every organization. And they equally impact ESG numbers.  Apart from Scope 1 and 2 emissions, Scope 3 emissions are connected to the operations of a company's suppliers. In the last few years, they have been drawing the attention of analysts as well as fund managers. The EPA reports have highlighted that Scope 3 emissions account for almost 90% of overall greenhouse gas (GHG) emissions. Despite the importance of managing ESG risk across the supply chain, the current mechanisms do not comply with the set standards. It is time for businesses to employ measures to make the process efficient.  Read more: Sustainability Outlook: Top Emerging Trends in 2023 and Beyond  Understanding the Existing Models and Supplier Approaches  Businesses today are deeply intertwined with environmental, social, and governance (ESG) concerns.   Consumers are expressing their willingness to shop only for sustainable brands;   Investors are in search of more sustainable initiatives   Employees are willing to work with companies that instill sustainability into the core of their operations.  Reports claim that almost 90% of Gen X consumers are willing to spend an extra 10% or more when searching for sustainable products. 36% of B2B decision-makers say that a brand's commitment to the environment influences their purchase decisions. Embedding a good ESG framework into a brand's core strategy will help deliver long-term value. By rethinking & redefining business strategy and operational procedures, they can increase and maintain profitability.  Embedding ESG in Supply Chain Operations & Management  When it comes to ESG, businesses need to abide by their commitments to improve their existing operations, thereby actually impacting the communities. However, the tools we use to track ESG are flawed and require serious modification.  Building a sustainable supply chain management system is the top priority for most businesses. With organizations continuing to extend and expand their sustainability programs to encompass the supply chains, they are also looking for assistance with actual implementation. Some of the practical steps of maintaining a sustainable supply chain management system within an organization include:  Step #1: Evaluate  Step #2: Map out people  Step #3: Prioritize company ethics  Step #4: Set measured goals  Step #5: Build process momentum   It is more difficult for businesses to make decisions due to the set restrictions, and many organizations even shy away from relying on ESG as a decision criterion. However, conscious consumerism is emerging as a key trend, and it is gaining momentum.  Read more: Sustainability in Tech: 3 Ways for Companies to Become More Sustainable  For companies to stay relevant, they are continuously striving to evolve and meet the dynamic demands of their customers. A similar approach is the need of the hour to decipher the environmental, social, and corporate governance circumstances. While successful integration of ESG considerations into the supply chain operations mandate several commitments, they also offer a host of benefits, which are-  innovation  continuous product development,   competitive advantages due to sustainability   meeting the consumer expectations of being more aware and discerning  A recent study highlighted that almost 58% of employees consider an organization's social and environmental responsibilities when deciding where to work. In the last decade, ESG has transitioned from merely being a way for firms to mitigate environmental risk and demonstrate sustainability compliance into a value-creation tool that reflects their commitment to society. Hence a strong ESG proposition is vital for every business to establish long-term resilience.     The Cycle Approach for ESG Data  An ideal procurement and supply chain ESG program within every organization should include the following:  A data-driven rather than opinion-driven approach  Easy to implement and maintain a framework  Acceptance of change in behavior in meaningful ways.  Continuous improvement opportunities.  Efforts to make an impact decrease over time as the influence increases.  Today procurement professionals spend hours working on complex and outdated data. Due to this reason, ESG goals often get pushed away. Hence businesses need to take a fresh look at the cycle model, often referred to as the cycle approach. It helps in embedding ESG data into everyday decisions. This implies that preferred outcomes evolve into default outcomes, as ESG criteria are a seamless part of the procurement cycle.  Read more: The ESG Rating Phenomenon: A Guide to Understand ESG Ratings  However, to achieve this approach, businesses must incorporate ESG goals into the ongoing digital transformation and lead with a data-first mindset. Businesses are also integrating AI-driven platforms to leverage this data and automate the decision-making processes, thereby minimizing human error and biases.  By implementing this framework, businesses can use the available data to set realistic benchmarks. This can also aid them in achieving net zero emissions by 2040.  The ESG Transition Another approach, referred to as the supplier-level analysis, involves tracking how suppliers report and score on ESG issues. The supplier-level analysis is a massive improvement over category-level analysis when it comes to ESG. Scope 3 impact is more on procedures, and it has to do with the operational decisions made by the supplier.  However, the main challenge here is that supplier-level data depends on detailed operational audits. And this can be cumbersome as well as a time-consuming process to implement. Businesses need to include nuance associated with the material that is being procured. The supplier-level ESG data is incredibly complicated, and many procurement professionals often do not have the bandwidth to work with it on a day-to-day basis when making purchasing and sourcing decisions.  Rather than asking for the ESG impact on any category or the annual spend, businesses are approaching a new cycle that asks what the ESG impact of a requisition-to-purchase order is. This helps to identify the spending of one supplier when compared to another option.   This shift to the cycle approach will also require the need to restructure the existing supply chain teams. While earlier, it was the job of a chief sustainability officer to monitor ESG metrics within the organization and propose new solutions. However, with the cycle approach, ESG is becoming an integral part of everyone's job. With the right reporting tools, procurement teams can undertake informed and proficient choices on ESG without spending countless hours analyzing complex or outdated data.  Implementing ESG measures has many benefits for businesses and communities alike. However, only some companies are equipped to tackle these concerns head-on as ESG supply chain programs are often ill-defined, and their real impact becomes weak. With a cycle approach model, businesses can make a real difference without compromising on employee bandwidth.  Read more: Next In: Enterprise Sustainability Investments in Technology  Encouraging ESG integration to Future-proof Supply Chain Crisis  By integrating environmental sustainability, social inclusion, and a good governance strategy, supply chain operations can be accelerated, and new operational, cultural, and financial changes can be initiated to build a future-proof supply chain. It is time for businesses to develop a fair and equitable work environment that fosters a sense of responsibility towards the community.  Businesses are focusing on every vector to promote sustainability in the supply chain operations by establishing energy-efficient workflow, fuel-efficient transportation, eco-friendly packaging as well as circular supply chains to repurpose waste and returns. However, this can only be achieved by establishing effective governance policies and controls that assist them in the true spirit, along with complying with the law and fulfilling stakeholder obligations.  ESG is more than good intentions for all. It is all about creating a tangible plan that helps in achieving real-value results. By establishing a strategic long-term supply chain partnership, businesses will be able to establish, implement and report their ESG goals. Supply chain partnerships will enable them to align their vision for a balanced ESG stance and develop a positive synergy through green supply chains and socially responsible governance to create future relevance.   With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.                        A leader in ESG Services SG Analytics offers bespoke sustainability consulting services and research support for informed decision-making. Contact us today if you are in search of an efficient ESG integration and management solution provider to boost your sustainable performance.  

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SGAnalytics_Blog_Debt Ceiling Standoff - Will the World’s Renowned Economic Safe Haven go into Default

Debt Ceiling Standoff - Will the World’s Renowned Economic Safe Haven go into Default?

The U.S. government is likely to exceed its borrowing limit in just a few days as the treasury secretary, Janet Yellen, informed Congress in early January that the country hit its $31.4 trillion debt ceiling. Consequently, the treasury would need to pursue “extraordinary measures” to ensure it does not default on payments. While this event risks resurface frequently, the political and economic implications vary based on the time taken by the Democrats and Republicans to resolve the matter. As the government approaches the deadline to raise its debt limit, the possible risk of default increases, which could have an adverse impact on the markets and economy.  What is a Debt Ceiling?  A debt ceiling is a limit imposed by Congress on the U.S. Federal government’s outstanding debt. This means Congress has already instructed President Biden’s government to spend the money but has limited access to all the money he needs to carry out the spending.   What Happens When the U.S. hits the Ceiling?   Currently, the U.S. Treasury has less than $400 billion cash on hand, and the U.S. government is expected to borrow around $100 billion per month in 2023. When the debt reached near its limit, which Janet Yellen indicated that it occurred on 19th January 2023, they started conserving cash and stopped making payments for some services to buy time for negotiations. For example, the government temporarily suspends retirement programs for government employees with expectations that when the ceiling is raised, the government will make up for the difference.   Read more: How Fintech Companies are Revolutionizing B2B Payments  Currently, the department has taken some “extraordinary measures” to keep the government operating. The Treasury Department announced on 30th January that it plans to increase its borrowing during the first three months of 2023 (1Q23), despite the debt going to cross a $31.4 trillion limit. The U.S. also plans to borrow $932 billion during 1Q23, i.e. $353 billion higher than projected in October 2022, amid a lower cash balance and estimation of lower-than-expected income tax receipts as well as higher expenditure. Janet Yellen said that her actions would buy some time until Congress can pass legislation that will either raise the nation’s borrowing authority or suspend the limit for a period of time. Further, Janet mentioned that cash and extraordinary measures are unlikely to be exhausted before early June.  However, as they run out of these measures (market participants expect it to happen by mid-summer) and the lawmakers fail to agree on increasing the limit, the government is likely to face a default risk. The department also needs to decide who should get paid with the daily tax revenues they receive due to restrictions on the borrowings. This may lead to government employees not being paid in full, veterans losing their vital health and living benefits as well as seize on loans to college students and small businesses.   The default can have devastating financial and economic implications, including a total freeze on additional borrowings, soaring interest rates, panic in financial markets and economic recession. Historically, when markets start panicking, the president and Congress come into action. In 2013, the government was shut down for 16 days after Republicans sought to defund the Affordable Care Act (ACA) by leveraging the debt ceiling. However, the current situation does not look normal as major political parties are more polarized than ever. Additionally, the concessions McCarthy gave to Republicans may make it impossible to crack a deal on the debt ceiling.  Read more: 7 Trends That BFSI Industry Cannot Ignore Anymore- Get Ready for 2023  When will the Government Run out of Cash?   While it is hard to figure out the timing when the government will hit its debt ceiling as payments and receipts vary daily, given the filing deadline for income taxes is April 2023. However, the current balance indicates the debt ceiling could be reached as early as March-end.  What is a Political Standoff?  Currently, the Democrats hold the majority in the Senate and the Republicans in the house of representatives, so the debt ceiling has become a negotiation issue. The Democrats want to increase the limit without any conditions, whereas the Republicans want the government to cut down on spending. Any negative outcome during the period of negotiations could fuel volatility and uncertainty in the market. Even if there is a short-lived standoff, it could lead to irreversible harm to the U.S. economy by eroding household and business confidence and global financial stability. Uncertainty also threatens the low-interest rate enjoyed by the U.S. government on its borrowing, which is considered a relatively safer bet with high liquidity. Risky situations like the political standoff could raise the interest rates, and even a 25bps increase could translate into the additional burden of ~$60bn a year, pressurizing government coffers.  That said, raising the ceiling has become quite a common procedure for Congress; since 1966, it has increased 40 times.   Read more: Leveraging Data Analytics in Business and Finance to Drive Growth  What does History Suggest?  Nevertheless, in the past, there have been instances of political standoffs on the issue:  2011: President Barack Obama The standoff in 2011 between the Democrats and the Republicans was the most controversial and led to a first downgrade in the U.S. ratings by S&P Global Ratings. However, the ceiling was raised just two days before the expected date of default. According to the Government Accountability Office, U.S. borrowing costs increased by $1.3 billion that year.   2013: President Barack Obama  Again, the debate over raising the limit led to the government shutdown. According to Fed Economists’ study, when the debt limit was about to breach, the yields of treasury securities scheduled to mature near the projected date rose between 4bps-8bps. However, such small effects point toward the market expectation that the debt ceiling will be raised and the standoff will be short-lived.   2021: President Joe Biden  The Biden government experienced a political standoff in 2021 but prevented the first-ever U.S. default by raising the limit by $2.5 trillion. During this time, Moody’s ran a simulation that if the standoff lasted several months in the 4Q21, then employment and real GDP would decline by 5 million and about 4%, respectively, in the near term before it recovers over the next few quarters.   What are the Major Market Implications?  As the world economy is going through a rough patch amid a global economic slowdown and elevated inflation levels due to the coronavirus pandemic and Russia’s invasion of Ukraine, a default by the U.S. government could push the country into a deep recession.  Increased interest rates on treasury as the credibility of the U.S. government comes under question.  Less liquidity for rolling over maturing debt leading to Federal Reserve intervention.   Fall in equity indices, a decline in access to the private credit market, and hampered business, household, and market confidence.  Delayed payment to social security beneficiaries and many other forms of federal assistance would be at risk, which could have serious economic and health consequences.   Default on treasury obligations could further spill over to the financial market and threaten the availability of credit. Also, this could likely undermine the U.S. treasury’s status of being the safest and most liquid market in the global economy.   To sum up, these implications are far-reaching and are likely to impact the already slowed economic activity and can pivot the economy to a deep recession. Subsequently, dampening the tax revenues could lead to a cutback in other expenditure outlays necessary to support the weakening economy.   Read more: Top Venture Capital Trends in 2022  Conclusion The binding debt limit has become an annual threat event to the economy and markets, as it can have huge implications and could inject volatility in the market depending on the tenor of the standoff. Despite the current standoff, increased borrowing plans for 1Q23 indicate the requirement of debt is dynamic, given the assistance provided by the federal government to the U.S. economy. Hence, a sustainable solution becomes a pressing need to tackle this anticipated disruption. That said, a prolonged period of negotiation could lead to major ramifications on the economy and increase the risk of a rating downgrade.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.  A market leader in Investment Insights, SG Analytics assists in strengthening investment decisions by leveraging custom research support. Contact us today if you are in search of an investment research firm that offers tailored research support across a broad range of asset classes.     

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SGAnalytics_Blog_Investing In Renewable Sector Identifying the Top Renewable Energy Funds in 2023

Investing In Renewable Sector: Identifying the Top Renewable Energy Funds in 2023

Renewable energy involves power generation methods that do not deplete natural fuel reserves. Many organizations in the energy sector are developing ways to generate electricity that have less impact on the environment and lead to zero carbon emissions.  Burning fuels leads to releasing pollutants into the air, thus impacting the quality of life for the earth's inhabitants. In the last few years, industries have seen a significant rise in anti-pollution technology, such as fuel injection in cars, to facilitate the efficient burning of fuel and smokestacks to reduce carbon emissions. Companies are also employing measures for carbon reduction, as coal - as fuel - is vital for power generation. However, irrespective of this headway, reaching a state of zero carbon emissions is challenging as well as expensive. Due to this, there has been more focus on renewable energy sources.  Types of Renewable Energy Sources   Multiple renewable energy sources that have been developed are currently being employed for the generation of power at all consumption levels. The types most commonly in use include:  Solar  Geothermal  Hydroelectric  Wind  Read more: Spotlight on EV Battery Technology as the US looks to Challenge China’s Dominance  Investing in Renewable Energy   Countries across the globe are changing their stance and switching to adopting greener power sources. Due to this reason, the prospect for renewable energy companies has never looked brighter. Taking into consideration the recent developments, the industry is set to grow at an even more rapid pace than current forecasts.  With the global economy striving to switch energy sources due to rising climate change concerns, organizations are moving away from carbon-based fossil fuels and opting for alternative energy sources like renewable energy. The decarbonization of the global economy is set to be more than $150 trillion investment over the next few decades. And renewable energy will play a major role in this transition.   How to Invest in Renewable Energy Sources?  Renewable energy sources supply almost 20% of the electricity generated by the power sector. However, climate change crises are forcing companies and other institutions to focus on doing their part to decarbonize. Many companies are signing power purchase agreements or PPAs and other electricity generators to purchase power produced from renewable sources specifically. Meanwhile, others enterprises are investing in renewable energy development projects.  While some investors are opting for renewable investments to be regarded as socially responsible citizens, renewable energy is increasingly economical due to the falling costs of solar panels and batteries for energy storage. This is making the sector more attractive for new investment opportunities.  Investing in renewable energy is an easy task. It requires picking an individual stock, mutual fund, or even an exchange-traded fund (ETF) that focuses on green energy. If an investor opts for a mutual fund or ETF, they may also invest in traditional energy companies. As the big oil companies rely on fossil fuels, many investors are transitioning to invest in renewable energy. However, it is important to understand the underlying company fund to invest in. Let's explore the top organization funds to invest in the renewable energy industry.  Read more: Sustainability Outlook: Top Emerging Trends in 2023 and Beyond  Renewable Energy Investment Funds to Look Forward to  Mutual Funds: Alternative Energy   Guinness Atkinson Alternative Energy Fund (GAAEX)  The GAAEX, or the Guinness Atkinson Alternative Energy fund, focuses on alternative energy companies that have a minimum market cap of $500 million. Starting in 2006, the fund has returned 8.17% in the last decade. From the period of January to September 2022, the GAAEX fund has been down by 21.76%. The fund invests 80% of its net assets in green energy enterprises.  Fidelity Environment and Alternative Energy Fund (FSLEX)  The Fidelity Environment and Alternative Energy fund, or the FSLEX, invests a minimum of 80% of its net assets in organizations that are engaged in renewable energy, water infrastructure, energy efficiency, recycling technologies, and other significant environmental support services. The fund returned 10.65% in the last ten years. However, it has been down 22.39% this year.     Clean Energy ETFs   Invesco WilderHill Clean Energy ETF (PBW)  The Invesco WilderHill Clean Energy ETF, or the PBW, is like the iShares Global Clean Energy ETF but contains securities from companies in the U.S. The fund incorporates stocks from almost 82 companies and is more volatile due to its focus on small-cap stocks. This volatility can be reflected in its year-to-date return, which was negative 35.69%.  iShares Global Clean Energy ETF (ICLN)  The ICLN or the iShares Global Clean Energy ETF tracks the S&P Global Clean Energy Index. It is a highly diverse fund and contains stocks that represent every corner of the renewable energy industry. This involves solar, geothermal, hydroelectric, wind, and more. The ICLN invests in organizations across the globe, and the fund has been down 8.29% to date.  ALP Clean Energy ETF (ACES)  ACES contains clean energy securities from corporations in the U.S. and Canada. The ACES fund concentrates on stocks that are issued by companies interested in developing renewable energy. In 2022, to date, the ETF has been down 11.13%. However, since its inception, the fund has been up 21.96%.  Read more: Next In: Enterprise Sustainability Investments in Technology  Individual Stocks   Plug Power (PLUG)  A hydrogen and fuel cell system company, Plug Power is at the forefront of hydrogen energy. While the hydrogen energy market is still in the very initial stages, these stocks are said to be very volatile. Year to date, the PLUG shares are down 38%. However, over the past five years, they have been up 669%.   Sunrun (RUN)  A solar energy company, Sunrun caters to the residential market globally. The company designs, develops, as well as installs solar panels on residential rooftops. As long as the energy sector witnesses a high price range for solar energy, Sunrun will be able to continue to add to its business, as consumers are now transitioning to adopt sustainable means to save on their monthly energy costs. Year to date, the shares of Sunrun have been down by roughly 11%. In the past five years, they were up 418%.  NextEra Energy (NEE)  NextEra is one of the leaders in solar and wind energy. The company is now incorporating measures to eliminate carbon emissions from its operations by the year 2045. In the last five years, the NEE stock was up 113%; however, in 2022, they have been down 9%.  Clearway Energy (CWEN)  Clearway Energy generates wind and solar energy, and they sell their energy to other enterprises. The company employs a strong financial foundation which further strengthens the sale of its thermal business. CWEN stock has been down 1%.  Key Takeaways  Considered a niche segment, the renewable energy sector is rapidly becoming a vital source of power around the world.  Renewable energy is friendly to the environment when compared with fossil fuels.  Green energy is focused majorly on wind and solar. However, companies are exploring hydrogen as a potential fuel source.  Green energy is also a popular investment as more people are realizing its impact on climate. However, with many renewable energy investments to choose from, this sector is becoming overwhelming to investors.  The largest renewable energy companies today are headquartered in Spain and Denmark. And other top players are stationed in China, the U.S., and Canada.  Read more: How is Multi-stakeholder Assessment Helping to Create Long-Term Sustainable Value?  To Sum Up  Even when investments are or are not in favor of investors, clean energy investments are here to stay for the long run. Due to the rising need to solve the global climate crisis, many renewable energy companies today are leading the course for a brighter future. However, this means only some companies out there today will be here tomorrow. To lower their risk, it is vital for investors to undertake thorough research and ensure they are investing in the best businesses that are industry leaders.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.     A leader in ESG Services, SG Analytics offers bespoke sustainability consulting services and research support for informed decision-making. Contact us today if you are in search of an efficient ESG integration and management solution provider to boost your sustainable performance. 

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SGAnalytics_Blog_Business Outlook In 2023 Data Compliance and Data Security & Pipelines

Business Outlook In 2023: Data Compliance and Data Security & Pipelines

In the ultra-competitive business environment, businesses must possess the ability to distance themselves from their competitors when it boils down to data or precisely the proficiency to analyze raw data and turn it into market-driven insight. Data was and is still the most asset for an organization. And with the value of data rising to unprecedented levels, industry leaders are making efforts to protect the data more aggressively.   In 2023, organizations will witness several new trends that will further reinforce the value of data within the organization.  Data security is becoming the New Executive-level Concern  Data is no longer a stagnant entity. It is being analyzed and shared continuously across networks. The potential for data to yield business insights is at an all-time high. Due to this convergence of data usage and data protection, businesses will likely prioritize data protection and security in 2023. A recent study discovered that 62% of business leaders expect their security budget to rise by as much as 10% in 2023.  Read more: Top Data Science Trends to Look Forward in 2023  The concern over the potential business benefits of preserving data privacy is emerging as a tremendous motivator to dedicate resources and always protect them.   Enterprises are more aggressively transitioning from traditional data stores to data pipelines. They are generating, ingesting, as well as consuming massive streams of data. This data is critical for business success due to the increasing investments in data processing infrastructure along with data engineering personnel within the organization.  Businesses are experiencing an accelerated reliance on data pipelines, offering them multiple sources to feed a data warehouse by employing data streaming mechanisms. This will help in replacing the traditional approaches. Innovative approaches will allow sensitive data to be de-identified in such data streams, enabling them to gain more prominence.  A singular truth exists within the world of data security. The truth is - not all data is created equal. But companies have the habit of treating all the accumulated data in the same way. The increase in cross-platform usage indicates that data is more spread out in the enterprise. This indicates that the most sensitive data is being protected at the same level as the least sensitive one. To ensure adequate data security and governance, businesses need to invest in planning data rules and requirements.  Understanding the business objectives   Assessing the current state of data  Mapping out data strategy framework for the future   Establishing effective controls   Creating integrated solutions   Scaling the team and processes   Read more: Data & Analytics Strategy: Must-Have Crucial Elements for Decision Making  Compliance - A Top Priority for Businesses  With governments issuing new data privacy laws, many industry regulators are diverting their attention to integrating these data privacy laws within their operations for varying rigidity and nuances that make compliance complex. As more data privacy laws are taking effect worldwide, organizations that have not taken any appropriate steps to protect their data are incurring significant fines.  Forward-thinking organizations are exploring beyond compliance to protect their organizational data by integrating methods that help in lowering the risk of the eventual breach with a data-centric approach. This approach can be considered a fail-safe posture, but the lost data is unusable, which further eliminates the prospect of embarrassing disclosure and damages.  Companies are now devising plans to ease the burden of potential noncompliance to reap more rewards from their data. Addressing compliance enables them to take a proactive posture and avoid costly fines, along with reputational damage. It is helping them to gain a competitive edge over the industry competitors, who take a rather reactive approach.   Data leaders should now be crystal clear about the priorities of their organization as well as how to employ the collected data and AI to deliver and accelerate business goals. By identifying the bigger picture of where and what's ahead, businesses can design a strategic context to devise actionable plans for delivery. By identifying the outcomes, objectives, and measures, business leaders can keep track of the data's progress and share it with the enterprise as the journey unfolds. Some of the elements to include in the data strategy are as follows:  Observations, data challenges, and recommendations  Objectives and outcomes  Cross-functional data for supporting multiple use cases  Data privacy and security requirements    Data organizations and pipelines  Action plan for the selected data area  Read more: Data Fabric and Architecture: Decoding the Cloud Data Management Essentials  Securing Data in a Business-oriented Manner   With data storage evolving, data security is looking into how data is advancing throughout the enterprise to control loss and leakage. Today, 11% of business units have zero involvement in setting information security policies. Today's goal is to create a data ecosystem without leaking sensitive information. The aim is to secure the point of creation instead of opting for a traditional approach to secure the information that is being sent.  Essentially, organizations need to focus less on creating secure pipelines for data and stress more on employing smart information that knows where it is supposed to be. This will enable the right person within the organization to access the right data and initiate desired business outcomes.    By 2024, organizations will use active metadata effectively to reduce the time to integrated data delivery by half and improve the productivity of data teams by 20%.   How Organizations Should Address this Trend  Organizations are now seeking to shrink data risk and adopt an assumed breach posture to make the data security risk irrelevant. Businesses that understand this will utilize proactive protection methods at record levels that will assist in rendering data unusable to hackers. This shift is good for businesses, as they can enhance their corporate reputation and build customer trust.  Given the evolving and future-looking technologies, in 2023, businesses will witness data leaders making selective decisions to pick out and integrate trends that best align with their organizational needs. This will facilitate the development of short- and long-term roadmaps to align data and operational framework with the developing trends, thereby enabling the organizations to evolve gradually.  From a pure business perspective, it makes sense for businesses to curtail unstructured ad-hoc decisions that are siloed and properly harmonize with the collective decision outcomes within the organization. With new data security tools emerging, businesses can implement data compliance and security strategies practically.  Read more: 7 Trends That BFSI Industry Cannot Ignore Anymore- Get Ready for 2023  Final Thoughts   Today data is more pervasive than ever. However, taking advantage of this full potential mandates creativity and conviction. Data leaders now need to navigate this ever-evolving pool of internal and external data sources and design strategy and direction in an increasingly competitive marketplace.  Leaders are now striving for real-time decisions and predictive models that assist them in keeping the organization relevant. However, to get there, the data strategy must be designed with the right approach to make sense of vast amounts of data. The strategy should also align with the business values and produce solutions that span the entire organization.   Creative and innovative decision-making are emerging as the new stakes for success. For businesses to fully realize data's potential mandates vision, persuasion, and support. A framework infused with insights from industry data leaders will assist them in designing and implementing their data strategy while making the most of their teams, talents, and strengths.  Data security and privacy are no longer niche IT concerns. They are emerging as a critical business priority. With the value of data rising and more data privacy laws being enacted, organizations that stay within the curve may play catch-up in the coming years. The top priority for any organization's to-do list should be aggressively addressing data protection and security gaps in 2023.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.       A leader in Data Analytics, SG Analytics focuses on leveraging data management & analytics and data science to help businesses discover new insights and build strategies for business growth. Contact us today if you are looking to make critical data-driven decisions to prompt accelerated growth and breakthrough performance.    

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SGAnalytics_Blog_Artificial Intelligence (AI) Stocks to Invest in 2023

Artificial Intelligence (AI) Stocks to Invest in 2023

Today artificial intelligence (AI) is the DNA of every tech innovation. Businesses cannot ignore the power of artificial intelligence as it is becoming a vital part of our everyday life now. AI is being designed and integrated into every operation to perform typical tasks that require some degree of problem solving and decision-making. These tasks can range from making decisions related to an insurance claim to creating images from scratch basis the available text prompts.  Businesses are still discovering new uses of artificial intelligence and incorporating it into technology. And this evolution of AI-backed services such as Siri or Alexa is here to stay.  From an investment point of view, artificial intelligence stocks offer great investment opportunities to investors. Let's explore the top AI stocks to look forward to in 2023.   Read more: Why Should Enterprises Care About AI Ethics Related Issues?  Investing in Artificial Intelligence   While there are several ways to invest in AI, the most prominent one is through the layer of a company's tech stack. While there is still no clear AI company, just like the way Google is the search engine, there are many investable industries that are employing substantive AI right now.  Industries such as cybersecurity, information technology (IT), and even retail shopping are witnessing AI-powered advances. However, one ideation that every investor agreed with is that - every company can provide AI investment opportunities and can be worth investing in if they offer AI-backed solutions for   While some focus on designing AI-based services, many are simply focused on investing in AI to enhance their business operations. Today, many tech giants are marketing their AI analytical services to enterprise clients. These services range from cloud computing to client software solutions.     Best AI Companies to Invest in    Here we have curated a list of top companies to invest in right now if you are an investor who is looking to get into the AI space.  Microsoft ($MSFT)  Microsoft employs AI-powered technology in a variety of its services. And recently, they just announced the introduction of an AI-powered graphic design tool named - Microsoft Designer. The tool, "Microsoft Designer," is a graphic design application in Microsoft 365 that will employ the same AI technology in DALL·E. Azure - Microsoft's AI platform enables companies to design innovative AI services.  Read more: The Next Tech Time Warp: How Will Artificial Intelligence Possibly Change the World?  Alphabet Inc. ($GOOGL)  Google's parent company is referred to as one of the global leaders in AI research. If you are an investor, you do not have to look far to witness the reach of Google's AI technology. Google's AI-backed tech is also being integrated into every aspect of Alphabet's business - ranging from accurately organizing photos to predicting where to travel next with Google Maps.  Today every business is aware of the power of AI in Google. However, it is worth mentioning that Alphabet recently bought the AI startup Alter for a whopping $100 million. An avatar startup, Alter helps creators and brands represent their virtual identities. Many analysts now believe that this move was made to assist Google in competing with TikTok. Alphabet is not set to increase its investment in AI and cloud security as well.   Tesla ($TSLA)  One of the top organizations that are fully committed to AI is Tesla. The company is dedicated that it organizes an annual AI Day that acts as a recruitment tool to attract the brightest minds in the field of AI. Tesla has also been teasing its latest inventions - a humanoid robot and self-driving cars. Tesla's new idea of a robot taxi service will be a mix of Uber and Airbnb as the company plans to focus on advancements in AI.  Amazon ($AMZN)  The entire organizations operate on AI technology. From forecasting customer demand to the Alexa device that is now in many homes, Amazon, in some fashion, functions entirely on AI. Amazon has also integrated AI at their fulfillment centers as robots to work in coordination with human beings. The company uses AI for product forecasting to maintain its inventory levels for such a wide variety of items that are available online. Amazon also uses chatbots for smoother customer service functions, thus making it easier for consumers to shop without any issues.  Additionally, Amazon Fresh and Amazon Go stores operate on the Just Walk Out payment system, where the user or consumer does not have to deal with a human at the checkout process.  International Business Machines Corp. ($IBM)  IBM was considered to be at the forefront of AI-based technology when their Deep Blue supercomputer defeated chess champion Garry Kasparov, in the year 1997. Today, IBM's Watson is making headlines for its AI efforts. The system can be used to predict future occurrences, optimize tasks and offer assistance with time management. IBM also announced that they are also training customer service robots to make sound and improve connections. IBM also integrated AI in their chatbots, which offers businesses a conversational medium to interact with their clients in real-time to enhance customer engagement and digital experiences.  Read more: Stocks with Multibagger Potential: Top Metaverse and Crypto Mining Stocks to Invest in  Palantir Technologies Inc. ($PLTR)  A data analytics company, Palantir uses AI tools to assist businesses and individuals in making decisions based on better data insights. The company uses AI to analyze available data and recommend decisions to customers. The Palantir Apollo is employed by businesses to improve their delivery systems and automated configurations. Palantir has been recognized as the leader in AI platforms, as their software is used across 50 different industries. The company is now building the digital infrastructure required for constant industrial progress.  Workday, Inc. ($WDAY)  AI is changing the way businesses integrate HR analytics into their operations. Workday has based its foundation on similar ideas. The company assists larger firms with AI-powered and cloud-based HR solutions. Businesses that operate on Workday have analytics tools that assist them with data-driven decision-making. It also offers them financial tools for budget planning. Workday uses AI for informed decision-making to unlock new opportunities and improve experiences, thereby enabling the workers to realize their full potential.  Lemonade ($LMND)   Lemonade is the first insurance company that is fully functional on artificial intelligence (AI). The Lemonade website has an AI bot named "Maya," that assists the user with every step of the process, from signing up for the policy to filing a claim. Many users are now turning to Lemonade as it equips them to file insurance claims in seconds without any additional assistance.  Key Highlights  Artificial intelligence is impacting many aspects of our lives, from search engine results to products, including photo apps, face ID, and on and on.  Businesses are exploring new opportunities to invest in AI rights, as companies globally are looking to capitalize on this technology.  Insurance companies are integrating AI-backed software. There are even AI investment apps available for investors as well.  Read more: Generative AI - The New Venture Capital (VC) Gold Rush     In Conclusion  It is fascinating to notice how the power of AI technology is set to disrupt every aspect of our daily lives in years to come.   There are several avenues for an investor to invest in AI today. A recent Zion Market Research stated that the global AI market is set to grow to $422.37 billion by the year 2028, growing from $59.67 billion in 2021. It is equally important to understand that artificial intelligence (AI) stocks are rarer than one might think. Many organizations tout AI-backed tech initiatives and machine learning. However, there are just a few public, pure-play AI stocks to invest in.  But, with AI touching many parts of the business in multiple industries, the only question that remains is whether to invest in AI and where?  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.           A leader in the Technology domain, SG Analytics partners with global technology enterprises across market research and scalable analytics. Contact us today if you are in search of combining market research, analytics, and technology capabilities to design compelling business outcomes driven by technology. 

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SGAnalytics_Blog_Leveraging Data Analytics in Business and Finance to Drive Growth

Leveraging Data Analytics in Business and Finance to Drive Growth

A significant trend, data analytics, has been garnering the limelight for a while. It is emerging as an important tool in intelligent decision-making and reporting. Organizations are employing data analytics to discover new insights and make better decisions, as well as to gain a competitive advantage. Businesses are implementing new operations in their journey of data analytics in finance. They are employing the assembled data by using big data technologies to enhance their performance metrics across different departments like sales, finance, customer service, marketing, etc.  Finding the Needle in the Data Haystack   One of the most vital aspects of data analytics implementation is recognizing valuable insights from data. With so much information to filter through, it is important for businesses to appoint a partner that can help them find the needle in the data haystack.  But implementing data analytics is no easy task. Data analysts should be highly skilled and trained to succeed at their job effectively. While this may seem like an obvious requirement in such an important field, there are many challenges that are likely to arise during implementation. This indicates that businesses need to plan when employing new resources for data analysis.  Read more: Black Friday 2022: Will Inflation Impact Holiday Shopping for Consumers?  Assembling the Gold Mine of Data  The raw material of data analytics is data that can be assembled from many different sources. Data can be collected from multiple sources like websites, social media, mobile apps, or even other databases.   Data can be stored in many forms, structured or unstructured. The accumulated data can then be analyzed to understand the existing as well as upcoming marketing trends and patterns. For example, your online bank can calculate how much money is spent every month on groceries depending on previous transactions.  Creating Value from the Accumulated Data  Data is a source of competitive advantage for almost all businesses. However, the ability lies in turning the collected data into meaningful insights. Businesses can then act based on the generated insights to gain the upper hand in their industry. This makes employing a data analytics firm an attractive option for businesses to study existing market patterns and customers.  Data can be employed to make better decisions. The right insights will enable businesses to make smarter business decisions, thereby driving growth or improving efficiency by understanding consumer behavior, employee engagement, operational productivity, supplier relationships, and risk management.  Data can be used to enhance customer experience (CX). Gaining an in-depth understanding of the customers before they become customers enables businesses to offer relevant services at all stages in their journey with your brand. This can range from pre-purchase to life cycle management and post-purchase. This will enable businesses to have identified their loyal customers over time rather than churning them out on the competition's doorstep.   The most valuable asset of any company, data is the key to the future, and it is also fueling the contemporary trends of digital transformation.  Read more: 7 Trends That BFSI Industry Cannot Ignore Anymore- Get Ready for 2023  Data Implementation Journey in Business and Finance   The journey of data analytics implementation begins with the right data. But the implementation journey is deemed the most challenging stage, as businesses must have a lot of support to manage their data and make it valuable. The next step is to make the right decision based on the derived analysis. Data analytics not only helps companies to make more informed decisions; it also assists in safeguarding their investments by facilitating better risk management strategies for both internal and external stakeholders. Through strategic planning, implementation, and execution, companies can gain a competitive advantage.    Data Analytics: How is it Revolutionizing the Finance Sector  Today, data analytics is revolutionizing the finance sector and other businesses. One way to effectively integrate as well as accomplish the required outcome is by lowering the component of human error in everyday financial transactions.  How is data analytics in finance transforming the finance sector?  Data analytics helps finance executives turn structured as well as unstructured data into insights to promote better decision-making.  Data analytics assists finance teams in gathering required data to understand the key performance indicators (KPIs).   Data analytics also assists finance teams in scrutinizing vital metrics and detecting fraud in revenue turnover. This is beneficial as financial services are experiencing a huge rise in digital fraud activity.  Big data has also helped in improving how stock markets function and upgrading investment-related decision-making.     Significance of Data Analytics in Finance  Is data analytics valuable for finance? The answer is yes.  Data analysis is considered a vital part of finance at this point. Today, no financial organizations are in the state to afford to lose out on data analysis. And the coronavirus pandemic created tremendous uncertainty in the finance sector.  Read more: Trends in Big Data Analytics: Forecast for 2023  The lighthouse in this uncertain situation is the ability to employ advanced data analytics to manage financials better. When an organization can masterfully forecast cash flow and execute its strategic financial visions, it can serve its market and clients for decades to come.  Implementing a financial strategy starts with identifying a company's true financial position. It entails the ability to respond to queries using operational and financial data. And this is where financial data analytics professional comes into the picture. This is the reason data analysis is emerging as a crucial element for the success of financial institutions.  Key Highlights  Organizations implementing leading-edge analytic techniques and technologies can report improvement in their performance uniformly.  For most organizations, the implementation of leading-edge analytics is still a work in progress. Very few organizations are implementing desired leading-edge analytic techniques and technologies.  Strategy formulation and implementation are the potential key areas where analytics has the potential to deliver substantial benefits.  However, adopting leading-edge analytic technologies is especially difficult for mid-market firms.  Future of Data Analytics in the Finance Industry  The future of data analytics in the finance sector and its everyday operations will be secure, as data analysis is vital to the success of financial institutions. With the finance sector continuing to digitize, more and more raw data is getting accumulated for organizational leaders to interpret. And data analytics assists them in making the right use of the assembled data.  Today, only 0.5% of businesses make use of their data, as per a study conducted by Data and Analytics in Financial Services. Financial institutions that practice financial data analysis are helping organizations make the most of their collected data.  Read more: How Fintech Companies are Revolutionizing B2B Payments  Final Thoughts  Data analytics is now recognized as the key component for successfully running any financial institution. It assists in consolidating all the accumulated data and reports into small data sets. Once all the data is accumulated in one data set, it can easily be used to draw conclusions. However, the question is not about why businesses should utilize data analytics but about how to navigate the available data options and then choose the option that is right for their business.  The first vital step is to start building a data-driven organization to keep up with the rising customer demands. With data analytics becoming the big buzzword over the past decade, many organizations are incorporating some of its data forms into their everyday operations. And banks and financial institutions are no exception. The rising interest in integrating data analytics in the banking industry is leading to an increase in changes that have been taking place in this sector. The sector has reported changes in technology, consumer expectations, and market structure and behavior.  The advent and application of data analytics are now enabling the banking and finance industry to optimize their processes as well as streamline their operations. This leads to improving their operational efficiency and competitiveness. Many banks are working to improve their data analytics and gain an advantage against competition or predict the upcoming trends that can affect their businesses.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.  A leader in Data Analytics, SG Analytics focuses on leveraging data management & analytics, and data science to help businesses discover new insights and build strategies for business growth. Contact us today if you are looking to make critical data-driven decisions to prompt accelerated growth and breakthrough performance.    

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SGAnalytics_Blog_The Future of IoT: Top Trends for 2023

The Future of IoT: Top Trends for 2023

The debut of the Internet of Things (IoT) was perceived as a much-hyped futuristic technology. IoT, now a reality, is driving both social and technological innovations. The emerging IoT trends in 2023 can attest to this fact. It is being integrated with data analytics and artificial intelligence. These integrations are assisting businesses to enhance their processes, boost profits and reduce overheads. Especially in the challenging times due to the onset of the COVID-19 pandemic, IoT has emerged as the savior for many.  IoT is paving the way for smart technologies. It is expected to transform different sectors thanks to the rise in cloud integration and the advancements of 5G. With the Internet of Things (IoT) here to stay, it is predicted to transform how businesses used to function. A McKinsey report stated that, on average, with every passing second, 127 new devices are getting connected to the internet. Allied Market Research forecasted that the IoT consumer market is expected to reach 292.83 billion dollars at a CAGR of 13.9% by the year 2030.  IoT has evolved from being a theoretical concept to a practical experience. It has expanded its use cases in domestic as well as industrial markets. In 2023, experts are predicting that there will be more than 43 billion devices that will be connected to the internet. This will assist in generating, sharing, collecting, and helping to use data in all ways.    With many getting used to this concept of the Internet of Things, businesses are preparing to move with the IoT trends for 2023.  Read more: A Critical Overview of Big Data and Bigger Dilemmas for Enterprises  Top Strategic IoT Trends and Technologies Through 2023    Convergence of the Internet of Things with the Enterprise Metaverse  The convergence of two very vital tech trends will define how technology is being employed across industry and enterprise during 2023. One of the most critical applications of the metaverse for business will help in bridging the gap between the real and virtual worlds. By integrating data from IoT sensors, businesses will be able to build realistic digital twins of different systems, ranging from manufacturing to shopping malls. This will enable the user to step inside the digital world using experiential metaverse technology such as VR headsets to understand how the operations are undertaken and variables that will likely influence business outcomes.  Industries are witnessing applications of this technology convergence in retail as well. Store planners can monitor footfall in real-time and adjust their store displays and promotions. This will help us understand customer behavior and revenue generation operations. IoT is enabling factories and manufacturing units to experiment with different machinery configurations, highlight potential safety problems and predict breakdowns.     Integrating IoT in Manufacturing Operations   IoT uses sensors help manufacturing managers to identify machinery problems early on. It helps to identify the problems before technicians will help resolve issues. Sensors are very handy to overcome handling preventive maintenance. IoT has been contributing to finding applications in smart factories. Wearables enable workers to gain a clear picture of the existing factory conditions and safety.  Read more: The Next Tech Time Warp: How Will Artificial Intelligence Possibly Change the World?  IoT and wearables  also aid in connecting the factory floor with the management. Wearables help to connect mobile devices. This will help enhance time management and safety across manufacturing operations, allowing for smoother feedback. Innovations in preventive maintenance and other development are emerging among the most recent industrial IoT trends.  Key Highlights:  IoT can assist managers in predicting machinery problems.  IoT offers ways to integrate smooth operations in smart factories.  Factory floors and managers can be connected with IoT and wearables.  The number of devices linked to IoT is predicted to reach 30.9 billion by 2025.     Healthcare to Spearhead Internet of Things (IoT) Adoption  The healthcare industry has been experiencing IoT technology for years. With the rise in IoT adoption and innovation, the healthcare sector is witnessing a rise in the use of wearable sensors, tracking, and navigation tech. Healthcare facilities are integrating enormous IoT-driven equipment. IoT’s ability to enhance and monitor operations is helping to improve these locations. IoT is also enhancing lighting systems by linking them to health monitors and deploying sensors. This is making smart buildings out of healthcare facilities to drive revenue and assist healthcare providers in saving on costs.  IoT adoption has become even more crucial for the healthcare industry since the onset of the pandemic. Technologies such as telehealth visits made it possible for people to receive proper medical help while practicing social distancing guidelines. IoT devices were being used to track the patient’s conditions remotely. With healthcare being perceived as a huge opportunity for IoT technology, the value of the market is set to hit $267 billion by the year 2023.  Read more: Tech-driven Enterprises in 2023: How will Technology Spending Deliver Value?  Key Highlights:  The healthcare sector is experimenting with new IoT advancements  Health facilities are employing IoT to manage light and temperature  IoT is assisting healthcare organizations to boost revenue and save on costs  When perceived from the consumer side, wearable devices will allow everyone to gain better insights into their health and fitness. This will assist in reducing the strain on existing healthcare systems. It will enable patients to seek 24/7 care while freeing up valuable resources for those who need immediate care.  New Regulations in the IoT Space  In 2023, the IoT space is expected to witness the introduction of new legislation that will require different industries, including manufacturers as well as operators of smart devices, to follow stricter regulations on ways to collect and store data. These rules will stress how data can be collected, where they can store the data, and measures to be undertaken to protect data against security breaches. However, this is just a single piece of the new legislation expected to be implemented worldwide. This implies that 2023 will be a year when governments will start tightening their grips concerning the legal along with social ramifications of an ever-expanding IoT landscape.  This new EU (European Union) legislation is also anticipated to address issues related to edge computing, which employs devices designed to assess data when it is collected instead of sending it back to centralized cloud servers. In 2023, the Asian market will witness the culmination of policies that will allow the widespread adoption of IoT technology. In China, as everywhere else in the world, the IoT is being perceived to have the potential to drive massive business growth. It is time for businesses to adapt to the growing needs of consumers while integrating the upcoming regulations to avoid potential clashes with privacy issues.  Read more: Debunking the Myths - Does Innovation Holds Back Digital Transformation? How can the Emerging IoT Trends Help Businesses?  IoT is starting to mature and become a full-blown technology for businesses. However, it is essential for them to be prepared to brace for IoT’s impact by figuring out the best strategies to adopt the technology. The upcoming trends will assist businesses with the smooth integration of IoT in their everyday operations, thereby equipping them with ways to identify which products can be made IoT-ready.  While the evolution of IoT may have caught many off-guard, the rise in its application is assisting every sector ranging from manufacturing to healthcare. With the most recent emerging trends in IoT currently available, businesses intend to get up to speed with IoT developments. Many industries are using IoT to speed up and enhance their operations. It is now time for businesses to get ready for IoT’s pending explosion. Whether you are running a small enterprise or manning a Fortune 500 company, IoT is making its way into every organization. Therefore, it is more important to be prepared than to be left behind.   With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.   A leader in the Technology domain, SG Analytics partners with global technology enterprises across market research and scalable analytics. Contact us today if you are in search of combining market research, analytics, and technology capabilities to design compelling business outcomes driven by technology. 

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SG Analytics_Blog_Outlook 2023 Top Strategic Technology Challenges

Outlook 2023: Top Strategic Technology Challenges

With the end of 2022 drawing closer, companies are forging the path of identifying unprecedented challenges as well as the unbridled opportunities brought about by technology that awaits them in 2023. The global pandemic altered the course of the technological market, thus accelerating demand for digital innovation and challenging major manufacturing facilities.  Ambitious objectives such as growing revenues and accelerating digital business demand action are still unclear. And technology is crucial to success. However, for businesses to set their action plan for 2023, it is equally important to be aware of the strategic technology challenges that lie ahead. This list clarifies which challenges will be the most relevant and how businesses can prepare to capture their value to drive strategies.   Business leaders and technologists can study the potential impact of these technology challenges on their specific operational strategies and framework, such as revenue growth, maximizing value from data, or building their brand. These challenges can pose a risk or opportunity for the organization. It will help them create a technology roadmap in order to drive impact to fulfill their strategic ambitions.  Read more: The Next Tech Time Warp: How Will Artificial Intelligence Possibly Change the World?  Top Technology Challenges in 2023  As we now usher in 2023, businesses are preparing themselves to brace for the unique set of challenges that lies ahead. These key tech challenges will enable industries to distinguish the companies equipped to tackle, survive, and thrive.    Supply Chain Crisis  The Covid-19 pandemic altered the course of innovation for businesses and is still posing a huge challenge to global supply chains. The bottlenecks, delays, as well as disruptions created due to the global pandemic have forced manufacturers and tech companies worldwide to face a constant struggle to source the required parts and supplies. One of the most critical challenges that await businesses in 2023 is the unprecedented shortage of semiconductors (chips). This will result in production delays across a swath of enterprises.  Early in the global pandemic, chip manufacturers were able to barely respond to the changes in demand, specifically the dip in demand from automotive manufacturers along with the rise in demand for consumer electronics. These demand fluctuations transitioned their production facilities and compelled them to reflect on the shifts.  Now with the demand for automotive chips resurging, semiconductor manufacturers are struggling to meet the market request due to supply chain shortages, restrictions, and capacity issues. While solutions are in progress, implementation is expected to be much slower than anticipated. Top corporations, including Texas Instruments, Samsung, Intel, and TSMC, are now constructing semiconductor fabrication plants in the U.S. to meet the rising demands. However, production is expected to begin in 2024 or 2025.  Advanced Security Threat   With more and more businesses becoming digital, cyber-attacks are also on the rise. As they are inherently accumulating more data, they are attracting cyber criminals who are on the lookout to steal or hold data for ransom.  In addition to these cyber threats, the emergence of quantum computing is also rendering the existing security systems obsolete.   Read more: Tech-Related Ethical Concerns Businesses Should Address in 2022   Quantum computing assists in speeding up prime number factorization, thereby making cryptography attacks more efficient. Organizations holding sensitive digital data are now investing in cybersecurity solutions to address the quantum computing threat through effective risk management plans. They are utilizing quantum computing to reduce cyber risk.   A recent survey highlighted that resilience and improving critical IT infrastructure are considered to be the top priorities of IT leaders. Due to this reason, they are now prioritizing cloud deployments as well as investments in security technologies. For smooth movement of information between physical and virtual locations within an organization, they are investing heavily in designing a strong hybrid cloud base that will be supported by multi-cloud technologies.   Distributed cloud systems, cloud access security brokers, and cloud enterprise resource planning are now emerging as the top cloud deployment phases. By placing resilience at the core of operational strategies, organizations are attracting new opportunities to overcome the existing data and security challenges.     Growing Concern over Talent Shortage  The rise in the pace of technological innovation is creating an urgent requirement for new talent that can help in building as well as maintaining emerging digital technologies.  A recent Gartner survey highlighted that IT executives are now citing the lack of talent as one of the biggest roadblocks to the adoption of emerging technologies within their organizations. The talent shortage is finding a place in other significant organizational crises, including tech implementation, cost, as well as cyber security risks.  In the face of this talent shortage, organizations are now embracing new and innovative internal training programs like boot camps for coding along with training universities. These additions will enable them to hire and train prospects as well as internal workers expecting career growth.  Read more: Global Business Trends Outlook 2023     Accelerated Innovation in Technological Space  The spike in digital transformation and innovation during the global pandemic exhibited zero signs of slowing down. However, this rate of technological innovation is presenting yet another significant challenge for businesses. Digital technologies like cloud, edge computing, machine learning (ML), metaverse, web3, non-fungible tokens (NFTs), Internet of Things (IoT), and more are advancing at an astounding speed that is hard to keep up with. For companies to maintain their competitive edge, it is vital to stay at the forefront of these technological innovations. Otherwise, they will find themselves in the digital dust of their competition.  The Rise in Demand for Integration of Sustainable Technology  Sustainability is transitioning at a rapid pace from the exception to its rule. With consumer expectations for sustainable products on the rise, sustainability is becoming a must-have for organizations in all aspects of their operations. In 2023, consumers, business customers, and investors will witness a rise in the demand for sustainable technology along with transparency in operations.  With more companies' re-platforming their existing operations to the cloud, the environmental impact, as well as the energy usage, is predicted to move out of sight. In 2023, businesses will no longer be able to hide their negative environmental impact in the cloud. Companies must now explore new avenues to integrate clean and sustainable technology within their operations at all levels, especially in areas that demand high resource usage, like data centers and blockchains.  Accelerating Investments in Technological Innovations   Despite the existing technological challenges in operations, IT leaders are witnessing a rise in the adoption of emerging technologies to drive innovation within organizations. The evolution of economies and markets is also attributed to the growing demand for tech innovations.  Across all technology domains, organizations are planning to increase the use of emerging technology investment. Industry leaders are also witnessing a reduction in deployment timelines as deployment technologies are expected to be adopted in the coming months. This implies that organizations are feeling prepared to accept the upcoming challenges as well as they are willing to deploy new technologies that help in accelerating growth directly. These challenges as set to influence technology investment decisions within the organization. In 2023, businesses will drive the trend of upending the previous models of management and working along with preparing themselves for a new approach.  Read more: The Age of Digital Transformation: Top AI and ML 2022 Trends     Final Thoughts  The explosive growth, as well as the rapidly changing landscape of technology across industries, is presenting significant challenges to businesses.  Companies are striving to survive this new and challenging market landscape by proactively addressing and preparing themselves for the above challenges. By monitoring the existing crises, industries are gearing up to face future challenges and opportunities. However, for them to stay a step ahead of the competition, businesses will have to think outside the box.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.              A leader in the Technology domain, SG Analytics partners with global technology enterprises across market research and scalable analytics. Contact us today if you are in search of combining market research, analytics, and technology capabilities to design compelling business outcomes driven by technology.  

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SGAnalytics_Blog_Emerging Healthcare Technology Outlook 2023

Emerging Healthcare Technology Outlook 2023

The last two years have propelled healthcare into a new realm. And one area of medicine that will never stay the same for long is the upcoming new technology and equipment that will play a vital role in diagnosing, treating, and supporting patients.  Operators of medical practices are now aware of the prudent transition into a future of healthcare that is equipped with tech innovations and trends. The emerging trends are equipping healthcare professionals to carve out a bit of time from their busy schedules to understand better what may come. The emerging technology trends are likely to have an impact on organizations as well as medical professionals. Due to this reason, healthcare professionals are now engaging in adopting innovations that will remain valid for years to come.  With the world advancing on the path of digital transformation, let's explore the trends that will drive innovation in digital healthcare in 2023 and beyond.  Read more: Debunking the Myths - Does Innovation Holds Back Digital Transformation?  Top Trends in Digital Health in 2023  A Surge in the Popularity of Telehealth or Telemedicine  The advent of the global coronavirus infections shut down large sectors of the economy and impacted medical and healthcare technology trends. Many patients had to cancel their doctor's appointments due to the fear of spending time in the waiting rooms with other people who might harbor the virus. In-person encounters at reception, as well as with nurses and doctors, also witnessed a fall.   This led to a surge in the popularity of telehealth and its usage in healthcare. Telehealth offers doctors a way to see and examine their patients, even in a limited way. Experts are now predicting a rise in the use of telemedicine in years to come. The costs of medical telehealth services rose by 265% between 2020 and 2023. It went from $29 billion to $106 billion, a report from Healthcare Dive highlighted. According to industry researchers, patients who suffer from chronic conditions will benefit due to telemedicine or telehealth sessions.  Insurance Companies to Cover Telemedicine  With telemedicine becoming more accessible, it is being frequently covered by insurance providers as well. What was once considered an ad hoc activity is now a common inclusion in insurance programs. Several insurance products and plans cover all virtual and telehealth services. Other insurance plans offer people the choice of virtual or physical appointments.   Telehealth today is a much more economical way to receive effective healthcare. A recent United Healthcare report stated that patients could save over $130 using telehealth. Many insurance providers also offer 24/7 telehealth access.   Read more: Wearable Tech: A Promise to Revolutionize Healthcare  Monitoring Remote Patients   One of the significant implementations of technology in digital health to keep top of mind is the ability it offers healthcare professionals to monitor their patients remotely. With the healthcare industry evolving at a rapid pace, digital health solutions are assisting in enhancing patient outcomes in the future.  In 2023, the trend is likely to continue and incorporate new advancements. It will make it much easier for healthcare providers to place a heart monitor to record and monitor their vitals at home instead of admitting them to the hospital for days. With digital health tools, healthcare providers can monitor the vital statistics of their patients from the convenience of their office.  Technological Developments to Empower Digital Health Enterprises to be More Sophisticated   Insights from virtual reality and wearable platforms are equipping healthcare providers with incredible user data showing how people use technology. This represents multiple industries that can work together in unison to develop digital health solutions.  The available digital health apps in the markets have their own limitations on hardware and software. The advancements in smartphones are also assisting in fostering developments in digital health tests. They offer users with more usable, precise, accurate, and engaging health insights. Digital health companies are starting to offer digital results of the diagnosis by attaching a disposable sensor that areas the accumulated data.  Evolution of Artificial Intelligence (AI) and Machine Learning (ML) to Advance Healthcare  Artificial intelligence (AI) and machine learning (ML) are making predicting, diagnosing, monitoring, and treating patients effortless and manageable for healthcare professionals. These technologies assist clinicians in monitoring the health of their patients - in terms of their eating habits, when they sleep, monitoring their weight, and much more. It is also facilitating the delivery of personalized healthcare care based on the needs of the patient and their choices.  AI and ML are now becoming the most popular technologies in the healthcare sector. A PwCs study highlighted that 73% of healthcare executives believe that deep learning, natural language processing (NLP), and predictive analytics are significantly enhancing the ability of healthcare companies to treat their patients onsite as well as remotely. The global AI-in-healthcare market is estimated to reach $15.1 billion in 2022 and will hit $20.65 by 2023.  Read more: The Next Tech Time Warp: How Will Artificial Intelligence Possibly Change the World? Integrating AR/VR for Immersive Healthcare   With the rising popularity of the virtual world, software development companies are venturing into exploring the three-dimensional world of simulations. They are putting augmented reality to practical use by integrating them with health tech. Augmented reality (AR) and virtual reality (VR) technology are here to stay and are now assisting healthcare professionals in delivering not only information but also facilitating patient care. Immersive tech is being used as an educational tool to offer medical personnel the anatomy of a patient's body or to inform them about surgical procedures better. Augmented reality is also equipping surgeons with a better view of the operating area. It enables them to operate more efficiently with fewer errors and more confidence.     Greater Focus on Preventative Medicine  Monitoring health meant reactively treating sickness. The idea of getting sick and receiving a cure signifies that the healthcare system must treat things after they have gone wrong. This, over the years, has led to creating a mountain of massive healthcare costs, followed by poor patient outcomes.  But today, the scenario is changing. People are engaging in proactive ways to stay active and healthy. They rely on fitness wearables and daily wellness tools to follow a routine that helps them in preventing chronic issues like diabetes, dehydration, and depression. More employers are offering wellness products, including access to athletic classes, meditation apps, and an emphasis on wellness.  Wearables, as well as digital health platforms, are offering biomarkers that show wellness and illness. This allows the users to see their health trends and preventative risk factors early. And as this data is stored digitally, it is simple to share with healthcare providers to get a more comprehensive health analysis.  Read more: Tech-driven Enterprises in 2023: How will Technology Spending Deliver Value?  Digital Transformation In Healthcare in 2023  Digital health is a concept that is evolving through information and communication technology. Digital technology enables users to monitor and improve their health levels by offering data-driven insights into processes, behaviors, and outcomes connected to disease prevention.   Today there is no denying the significance of information and communication technology (ICT) in healthcare. People can gain greater access to healthcare thanks to digital health platforms. An innovative healthcare approach, digital health uses new tech-driven solutions to enhance the patient experience and the outcomes, detect and treat diseases; enhance health; decrease treatment costs while gaining better compliance.  However, it is not just about technology but about the people. In 2023, healthcare technology will be at the forefront of changes. Patients will experience quality improvements such as artificial intelligence (AI), machine learning (ML), and cloud computing will become commonplace in healthcare.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.      A leader in the Healthcare domain, SG Analytics is assisting healthcare companies in leveraging the power of information. Contact us today if you are in search of efficient Healthcare solutions to make sound business decisions.   

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