International Business Machines Corp. (IBM), salesforce.com, inc. (CRM): Six Future Trends that Investors Cannot Ignore

Page 1 of 2

Editor’s Note: This article has been amended to correct the 2025 projection of Americans over 60.

I recently read an interesting report entitled “Future Work Skills 2020” that was written by the Institute for the Future. The report outlines six trends that are likely to continue into 2020. For us investors, it is more important than ever to understand the needs of the marketplace before the marketplace understands itself.

International Business Machines Corp. (NYSE:IBM)The six trends of the future

These are the six trends that were identified by the Institute for the Future:

  • Increasing life spans will change the nature of careers and learning. By 2025, the number of Americans over 60 will increase by 70%. Investment into health and healthcare systems will be a priority.
  • Automation will push humans out of the workforce and cause workers to abandon rote tasks. Software and robotic automation will reduce the need for repetitive job roles and functions in certain segments of the economy.
  • The computational world will increase the amount of sensors, data, and communication technologies. International Business Machines Corp. (NYSE:IBM) defines it as big data and analytics.
  • A new media ecology will emerge, with various forms of content like video, pictures, and text blending together in a unique way that will change the way people work and learn in the business and education environment.
  • Super-structured organizations driven by social technologies will drive new ways of becoming productive and generate value. Examples of this include salesforce.com, inc. (NYSE:CRM) and its customer-relationship management tools. The services allow for large organizations to communicate across all levels in order to better manage sales relationships. Repeat this function using social tools in other aspects besides selling and the super structured organization will become much more horizontal.
  • A globally-connected world whereby Internet connectivity will increase. This will eliminate many barriers of entry, as the Internet is a great equalizer. The global economy will continue to outsource certain job functions to other companies. Service companies like Accenture Plc (NYSE:ACN) will prosper.

Let’s start with IBM

The company isn’t really well-known for business analytics and big data services. There are a variety of business-to-business and public sector solutions that the company currently markets and sells across the world, however. Data and the ability to analyze it will become increasingly important as companies can better deploy resources and extract gains in productivity.

International Business Machines Corp. (NYSE:IBM) plans to generate 90% of its earnings from software and services by 2015. The company has plans to diversify and reduce its current exposure to systems and technology. In the first quarter, the company was able to grow revenues by 7% in business analytics, 25% in smarter planet technologies, and 70% from the cloud.

By 2015, International Business Machines Corp. (NYSE:IBM) will cut its costs by $8 billion, initiate a share buyback program of $70 billion, and pursue $20 billion in acquisitions. I believe that the company will be able to reach its own target of $20 in earnings per share by 2015.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!