Technology activities

Analysis

Technology, media, and telecommunications 2020 year-end update

Companies are turning to cutting-edge technologies, such as big data, cloud computing, internet of things (IoT), and blockchain, to build robust supply chain management systems. With COVID-19 accelerating the shift to digital, companies are forced to think beyond abstract artificial intelligence (AI) and machine learning (ML) applications and pursue practical solutions that can grant long-term and sustainable competitive advantages. This technology, media, and telecommunications (TMT) M&A update provides Deloitte Corporate Finance LLC market data analysis that sheds light on M&A trends in the TMT industry.

TMT trends

  • AI/ML adoption:1 Many companies incorporating AI/ML into their operations are no longer realizing early adoption advantages. A recent Deloitte AI study revealed that 36% of business executives believe AI will transform their industry in one to three years. Companies are being forced to think beyond abstract AI/ML applications and pursue practical solutions that can grant long-term and sustainable competitive advantages.
  • Hyperconnectivity with 5G:2 With COVID-19 accelerating the shift to digital, the need for high-speed, reliable, and low-latency connectivity has gained renewed urgency. Telecom players around the world are engaged in a race to roll out 5G wireless infrastructure in support of a new age of “hyperconnectivity,” enabling interactions between billions of people and new connected devices while simultaneously creating conditions for transformative business applications across multiple industries.
  • Supply chain 4.0:3,4 To bolster consumer confidence and supply chain integrity, companies are turning to cutting-edge technologies, such as big data, cloud computing, IoT, and blockchain, to build robust supply chain management systems. Simultaneous with this trend is the rising need for automated vendor verification solutions—automated systems, drones, and integrated sensors are starting to replace physical inspections and drive greater monitoring efficiencies.

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References

Beena Ammanath, David Jaris, and Suzanne Hupfer, “Thriving in the era of pervasive AI,” in State of AI in the Enterprise, 3rd Edition, Deloitte Insights, https://www2.deloitte.com/us/en/insights/focus/cognitive-technologies/state-of-ai-and-intelligent-automation-in-business-survey.html, accessed January 2021.
Reply, “5G is the Backbone of Future Technology Innovation,” https://www.reply.com/en/industries/telco-and-media/5g-is-the-backbone-of-future-technology-innovation, accessed January 2021.
Morgan Stanley, “Taming the Wild Precincts of Global E-Commerce,” https://www.morganstanley.com/ideas/e-commerce-counterfeit-verification, February 28, 2020, accessed January 2021.
Ernst & Young Parthenon, A steeper ascent: Growth in the testing, inspection and certification (TIC) industryhttps://assets.ey.com/content/dam/ey-sites/ey-com/en_gl/topics/strategy/pdf/ey-a-steeper-ascent-growth-in-the-testing-tic-industry.pdf?download, accessed January 2021.

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