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Forbes
25-06-2025
- Business
- Forbes
How A New Wave Of Digital Innovation Is Reshaping Global Enterprises
Global enterprises face a new inflection point defined by exponential change. Emerging technologies ... More like artificial intelligence, quantum computing, edge infrastructure, and Web3 are not just reshaping how companies work; they are redefining what is possible. Global enterprises now face a new inflection point defined not by incremental upgrades but by exponential change. Emerging technologies like artificial intelligence, quantum computing, edge infrastructure and Web3 are not just reshaping how companies work; they are redefining what is possible. And the pace is staggering. Global digital transformation spending is projected to reach $3.9 trillion by 2027, with enterprises investing heavily in technologies that promise greater agility, smarter automation and scalable innovation. Impressively, companies leading in technology adoption are now outperforming their peers by two to six times on total shareholder returns (TSR). Here are four key transformative forces reshaping enterprises today, backed by real-world use cases and data-driven insights — and what enterprises should do about it: 1. AI: The Intelligence Layer Powering Decision-Making AI is no longer experimental. Fifty-six percent of enterprises now incorporate AI in at least one business function, a sharp increase over prior years. From automating customer service to optimizing supply chains, the impact is measurable. For example, major retailers are automating supplier negotiations, streamlining operations and minimizing delays using AI-powered logistics systems. This is not just innovation for the sake of it. It is changing the very definition of operational excellence. And we are only scratching the surface. As agentic AI gains traction, the next wave of transformations will likely move beyond automation into creative problem-solving, product innovation and even strategic planning. Increasingly, AI is visible at the center of how modern enterprises think, move and compete. 2. Quantum Computing: A Disruptor For Complex Problems Though quantum computing is arguably still in its early stages, its long-term potential is nothing short of a disruptive breakthrough. Unlike classical computing, which processes data in binary bits, quantum computers use qubits that can exist in multiple states simultaneously. This allows them to solve complex problems that are currently beyond the reach of even the most powerful supercomputers. Enterprises in high-stakes industries are already exploring the possibilities. Goldman Sachs has identified quantum computing as the next leap forward for advanced risk modeling and portfolio optimization. In the pharmaceutical sector, companies are using quantum simulations to accelerate drug discovery by modeling molecular interactions with unprecedented precision. Early-stage collaborations with leaders like IBM, D-Wave and Rigetti are helping organizations test quantum's practical applications in areas such as cryptography, logistics, and supply chain optimization. IBM's Quantum Network now includes more than 200 companies and institutions experimenting with use cases that were once considered theoretical. While commercial-scale deployment is still years away, enterprise investment in quantum R&D is rapidly growing. The global quantum computing market could generate up to $850 billion in annual value by 2040. For forward-thinking companies, now is the time to explore proofs of concept and develop quantum-ready strategies that could become a competitive advantage in the not-so-distant future. 3. Edge Computing + 5G: Moving Power To The Periphery Edge computing is quickly becoming a game-changer for how businesses handle data. Instead of sending everything to the cloud and waiting for it to process, edge tech makes it possible to handle information right where it's created — on the factory floor, in a delivery truck or even inside a wearable device. And with the speed and bandwidth of 5G, local processing becomes even faster and more reliable. Analysts predict the edge computing market will grow from $16.45 billion in 2023 to nearly $156 billion by 2030, fueled by the demand for real-time insights and ultra-low latency systems. It is a massive shift that is already underway. Smart factories are using edge computing to catch equipment issues before they become costly breakdowns. Logistics companies are tracking shipments in real-time without lag. Even autonomous vehicles are relying on edge-powered decision-making to stay safe on the road. What used to be a futuristic concept is now a practical tool, helping businesses make faster, smarter decisions, right where they are needed most. 4. Web3: Real-World Transformation In Enterprise For all the hype that surrounds Web3, its real value is starting to come into focus, especially for enterprises looking to rethink how they manage data, engage users and monetize digital assets. At its core, Web3 is about ownership and decentralization, which opens the door to entirely new business models. One company putting these ideas into action is MILC, which describes itself as 'the AWS of Web3.' MILC helps enterprises move beyond experimentation and pilots by offering end-to-end support across areas like content DAOs, retail monetization and white-label licensing. Their approach is practical and collaborative, using tokenization, smart contracts and metaverse integration to create real-world solutions, not just theoretical frameworks. Web3 is more than a mere emerging technology trend. As more businesses look for ways to unlock new revenue streams and build trust through transparency, partners like MILC are proving that Web3, when applied thoughtfully, can drive truly significant transformation at scale. Why Now? The Convergence Factor What makes this moment so pivotal is not just the rise of singular technologies. It is the way they are beginning to converge, working together to unlock entirely new capabilities. These systems are no longer evolving in isolation. Instead, they are increasingly being designed to complement and amplify one another: The data backs up this convergence. IDC predicts global data volume will surpass 175 zettabytes by 2025, driving demand for scalable, hybrid architectures. Stanford's AI Index reveals that enterprise AI adoption has doubled in just three years. Meanwhile, Deloitte found that 70% of executives are already exploring quantum computing, despite widespread adoption still being three to five years away. The blockchain market will reach $67.4 billion by 2026, growing at a staggering 68% CAGR. Beyond parallel lines, these trends are intersecting in ways that signal a real inflection point for enterprise strategy and long-term competitiveness. How Enterprises Should Respond 1. Prioritize Interoperability Do not silo innovation. Interconnected ecosystems, including AI, edge, quantum, blockchain, can unlock multiplier effects when designed to work together. 2. Adopt A Portfolio Strategy Not every tech suits every business. Run parallel pilots in different areas and recalibrate based on real outcomes, not buzz. 3. Invest In Skills And Governance New tech demands new talent. Invest in data scientists, quantum engineers, blockchain architects and AI-native skills. Governance frameworks must evolve alongside. 4. Leverage Expert Partners Tapping into specialized infrastructure and consulting partners can help enterprises accelerate adoption, bridge capability gaps and reduce implementation risk. Catch The Wave This next wave is not just about adopting new tools. It is about reimagining the very nature of enterprise. Leaders must build thoughtful innovation portfolios that include AI, quantum computing, edge infrastructure and decentralized technologies. Those who focus on integration, strong governance and real-world testing will be the ones shaping the competitive landscape over the next decade. This is more than digital transformation. It is a full-scale digital metamorphosis: intelligent, resilient, commercially viable and built to scale globally.
Yahoo
24-06-2025
- Business
- Yahoo
WESCO International's (NYSE:WCC) 40% CAGR outpaced the company's earnings growth over the same five-year period
Buying shares in the best businesses can build meaningful wealth for you and your family. And we've seen some truly amazing gains over the years. For example, the WESCO International, Inc. (NYSE:WCC) share price is up a whopping 416% in the last half decade, a handsome return for long term holders. This just goes to show the value creation that some businesses can achieve. And in the last month, the share price has gained 9.9%. On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). During five years of share price growth, WESCO International achieved compound earnings per share (EPS) growth of 22% per year. This EPS growth is lower than the 39% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). Dive deeper into WESCO International's key metrics by checking this interactive graph of WESCO International's earnings, revenue and cash flow. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, WESCO International's TSR for the last 5 years was 428%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. It's nice to see that WESCO International shareholders have received a total shareholder return of 14% over the last year. And that does include the dividend. Having said that, the five-year TSR of 40% a year, is even better. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that WESCO International is showing 2 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable... But note: WESCO International may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. — Investing narratives with Fair Values A case for TSXV:USA to reach USD $5.00 - $9.00 (CAD $7.30–$12.29) by 2029. By Agricola – Community Contributor Fair Value Estimated: CA$12.29 · 0.9% Overvalued DLocal's Future Growth Fueled by 35% Revenue and Profit Margin Boosts By WynnLevi – Community Contributor Fair Value Estimated: $195.39 · 0.9% Overvalued Historically Cheap, but the Margin of Safety Is Still Thin By Mandelman – Community Contributor Fair Value Estimated: SEK232.58 · 0.2% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-06-2025
- Business
- Yahoo
Prosus NV (PROSY) (FY 2025) Earnings Call Highlights: E-commerce Surge and Strategic Growth ...
E-commerce Revenue Growth: 21% increase, moving 2 times faster than peers. E-commerce Adjusted EBIT: $443 million, contributing to positive adjusted EBIT for the group. Free Cash Flow Improvement: $513 million increase. Core Headline Earnings Per Share Growth: 59% increase. Dividend Increase: 100% increase. Warning! GuruFocus has detected 7 Warning Signs with PROSY. Release Date: June 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Prosus NV (PROSY) reported a 21% growth in e-commerce revenue, moving twice as fast as its peers. The company achieved $443 million in e-commerce adjusted EBIT, contributing to a positive adjusted EBIT for the group. Free cash flow improved by $513 million, indicating strong financial health. Core headline earnings per share grew by 59%, and the dividend was increased by 100%, showcasing strong shareholder returns. Prosus NV (PROSY) is leveraging AI and innovation to redefine e-commerce, with a focus on building regional lifestyle e-commerce ecosystems. Despite positive results, the CEO considers the current numbers small and expects significant growth, indicating potential pressure to meet high expectations. The company faces competition from Meituan in Brazil, which could impact its market share and profitability. There are concerns about the integration of acquisitions like Despegar and the cultural transformation within the company, which could take time. The focus on AI and innovation requires significant investment, which may not yield immediate returns. The regulatory environment in Europe poses challenges, although recent interactions have been faster than expected. Q: What opportunities do you see for driving profitability through efficiencies? A: Nico Marais, Chief Financial Officer, highlighted that Prosus has achieved significant growth, with a 21% increase in revenue, translating into strong operating leverage. He cited examples such as iFood's 28% adjusted EBIT margin and OLX's 61% profit growth. Marais emphasized the potential for further margin improvements and operating leverage across their businesses. Q: What defines success for Prosus in the next three years? A: Fabricio Bloisi, Chief Executive Officer, outlined that success involves becoming the leading lifestyle e-commerce brand in Latin America, Europe, and India. He emphasized leveraging existing businesses like iFood and OLX, integrating investments in India, and expanding in Europe. Bloisi expressed confidence in building a strong ecosystem and achieving significant growth. Q: How is Prosus addressing cultural change within the company? A: Bloisi emphasized the importance of cultural transformation, focusing on speed, open communication, and innovation. He noted that the company is moving faster and more aggressively, with 30,000 employees aligned towards common goals. Bloisi highlighted the impact of this cultural shift on improving results and fostering entrepreneurship. Q: What is the role of AI in Prosus's ecosystem? A: Bloisi explained that AI is crucial for predicting customer behavior and integrating data across businesses. Prosus is using AI models to enhance customer insights and drive competitive advantages. He mentioned that the company is at the forefront of innovation, leveraging AI to create synergies and improve customer experiences. Q: How does Prosus plan to utilize the cash from Tencent dividends? A: Nico Marais stated that while the Tencent dividend has been a significant cash flow source, Prosus aims to generate more profits and cash flow from its e-commerce businesses. The company has doubled its dividend and plans to share more with shareholders as it becomes less dependent on Tencent, focusing on building ecosystems in Latin America, Europe, and India. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-06-2025
- Business
- Yahoo
Prosus NV (PROSY) (FY 2025) Earnings Call Highlights: E-commerce Surge and Strategic Growth ...
E-commerce Revenue Growth: 21% increase, moving 2 times faster than peers. E-commerce Adjusted EBIT: $443 million, contributing to positive adjusted EBIT for the group. Free Cash Flow Improvement: $513 million increase. Core Headline Earnings Per Share Growth: 59% increase. Dividend Increase: 100% increase. Warning! GuruFocus has detected 7 Warning Signs with PROSY. Release Date: June 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Prosus NV (PROSY) reported a 21% growth in e-commerce revenue, moving twice as fast as its peers. The company achieved $443 million in e-commerce adjusted EBIT, contributing to a positive adjusted EBIT for the group. Free cash flow improved by $513 million, indicating strong financial health. Core headline earnings per share grew by 59%, and the dividend was increased by 100%, showcasing strong shareholder returns. Prosus NV (PROSY) is leveraging AI and innovation to redefine e-commerce, with a focus on building regional lifestyle e-commerce ecosystems. Despite positive results, the CEO considers the current numbers small and expects significant growth, indicating potential pressure to meet high expectations. The company faces competition from Meituan in Brazil, which could impact its market share and profitability. There are concerns about the integration of acquisitions like Despegar and the cultural transformation within the company, which could take time. The focus on AI and innovation requires significant investment, which may not yield immediate returns. The regulatory environment in Europe poses challenges, although recent interactions have been faster than expected. Q: What opportunities do you see for driving profitability through efficiencies? A: Nico Marais, Chief Financial Officer, highlighted that Prosus has achieved significant growth, with a 21% increase in revenue, translating into strong operating leverage. He cited examples such as iFood's 28% adjusted EBIT margin and OLX's 61% profit growth. Marais emphasized the potential for further margin improvements and operating leverage across their businesses. Q: What defines success for Prosus in the next three years? A: Fabricio Bloisi, Chief Executive Officer, outlined that success involves becoming the leading lifestyle e-commerce brand in Latin America, Europe, and India. He emphasized leveraging existing businesses like iFood and OLX, integrating investments in India, and expanding in Europe. Bloisi expressed confidence in building a strong ecosystem and achieving significant growth. Q: How is Prosus addressing cultural change within the company? A: Bloisi emphasized the importance of cultural transformation, focusing on speed, open communication, and innovation. He noted that the company is moving faster and more aggressively, with 30,000 employees aligned towards common goals. Bloisi highlighted the impact of this cultural shift on improving results and fostering entrepreneurship. Q: What is the role of AI in Prosus's ecosystem? A: Bloisi explained that AI is crucial for predicting customer behavior and integrating data across businesses. Prosus is using AI models to enhance customer insights and drive competitive advantages. He mentioned that the company is at the forefront of innovation, leveraging AI to create synergies and improve customer experiences. Q: How does Prosus plan to utilize the cash from Tencent dividends? A: Nico Marais stated that while the Tencent dividend has been a significant cash flow source, Prosus aims to generate more profits and cash flow from its e-commerce businesses. The company has doubled its dividend and plans to share more with shareholders as it becomes less dependent on Tencent, focusing on building ecosystems in Latin America, Europe, and India. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Japan Times
23-06-2025
- Business
- Japan Times
Japan activist clout shown in shareholder rejection of Taiyo CEO
Shareholders' rejection of another term for Eiji Sato as Taiyo Holdings chief executive officer over the weekend was a rare event highlighting the growing clout of activists in Japan's stock market. The Tokyo-based chemicals maker said Monday that as a result of the vote, Executive Vice President Hitoshi Saito replaced Sato as top executive. Voting out a company's CEO candidate, something that doesn't happen often in Japan, is another sign of how activists are pushing to change company policies that they claim are weighing down shareholder returns. In 2019, shareholders of Lixil turned down candidates proposed by the housing material maker in a similar vein, choosing instead former CEO Kinya Seto. Activist shareholders submitted a record number of proposals at annual general meetings this year that question management decisions and urge changes to board structures and privatizations. Taiyo shares rose as much as 2.5% on Monday, poised for a fourth-straight advance, even as the broad Topix share index dropped. The vote against Sato at the general shareholders meeting on Saturday might force the company to consider changing its management structure and strategy. Sato had said earlier this month that the company would decide on formal proposals for capital alliances, including privatization, from fewer than five private equity funds. The Taiyo case "shows how Japan is changing and shareholders are voting for better governance, capital efficiency and a business portfolio built around core strengths rather than ego,' wrote Nicholas Benes, CEO of the Board Director Training Institute of Japan. "I cannot remember a case where a sitting CEO was deposed in Japan for the clear reason that his favorite strategy didn't work well and he was too stubborn to give up.' A number of major shareholders, including DIC and activist fund Oasis Management, had opposed Sato's reappointment. DIC has a 19.3% stake and Oasis held an 14.9% share, according to a compiled data. DIC criticized Taiyo as being slow in setting up a committee to study an acquisition proposal and in pushing ahead for talks with the prospective buyer. Oasis criticized Sato's compensation as being too high. According to a Taiyo filing, Sato's total compensation for the fiscal year ended March 31 was ¥307 million ($2.1 million). Oasis said in a statement that it had called for shareholders to vote against the re-election of Sato, on the grounds that his leadership was detrimental to Taiyo's corporate governance and value. "We are pleased,' it said, that "the collective will of shareholders has validated our position.'
