What is the next big technological breakthrough

Can the next big technical breakthrough be predicted? In any case, it is not easy.


Traditional business software providers are lagging behind

The development of the cloud has had a similar impact on the business software industry. Some of the established companies have successfully met the challenge. Some existing systems do not provide real-time viewing and in some cases offer less functionality compared to open architecture competitors.

There is a real gap between traditional software providers and software companies that are new to the market or that have adapted to the changed world. The innovative companies have the opportunity to increase their market share through the upcoming changes. For example, only 5% of companies in industrialized countries currently use online accounting solutions.

What does this change mean for investing?

The pace of technological breakthrough and change will continue to accelerate and investment strategies should be designed accordingly. Barriers to entry to markets are gradually dissolving, entire industries are set in motion and cause a profound transformation process, which in turn washes up new potential opportunities

  • We can no longer rely on the traditional economic map of the world, we have to be open and look for opportunities worldwide. There are disruptive changes everywhere.
  • In addition, we should listen to the management teams of future-oriented companies to get a better understanding of what is driving change now and in the future and how change affects many areas of a company and its competitors. Equipped in this way, we should be better able to identify winners and weed out losers.

So maybe it will be a while before the perfect hoverboard whizzes through our streets. But we are convinced that there are companies that have the potential to make changes that seem unbelievable today and reality tomorrow.

Invest in technological breakthrough with iShares

The technological breakthrough is one of BlackRock's five megatrends. These are powerful transformative forces that have shaped our way of life for centuries and have the potential to fundamentally change the global economy, companies and society. Our range of themed funds opens up opportunities for investors to invest in these megatrends. We are convinced that this gives them access to companies with structurally higher earnings growth, which in turn should lead to higher returns in the long term.