5 Technology Investing Trends for 2023 – Morgan Stanley

Companies across industries are looking to technology to streamline internal functions such as enterprise resource planning (ERP) and human resources (HR), said Leila Harestani, a Morgan Stanley banker who specializes in ERP and HR technologies.

In ERP, one of the biggest trends is cloud for deployment, in which software is hosted on vendors’ servers plus accessed through a web browser, generally at a lower cost than the alternative on-premises software, which is installed locally on the company’s computers or servers. As cloud-based ERP proliferates, more small- and medium-sized businesses may adopt these solutions, but vendors will have to prove they have prepared for security risks, such as who can access sensitive data and potential data theft by malicious actors, Harestani said. Another important theme is the use of AI to identify and learn from data patterns, which offers widespread applications with regard to forecasting plus modelling, supply chain tracking and customer service.

In HR, AI is useful for recruiting, onboarding and employee engagement, and companies are also investigating how the blockchain could enable better data protection through encryption, according in order to Harestani.

Emerging private businesses are the frontrunners offering these ENTERPRISE RESOURCE PLANNING and HR capabilities, and that has led to M& A interest through bigger companies, Harestani said. “The more innovative plus advanced technology solutions are coming from start-ups, and existing players in the market—larger companies and private equity firms—may look to acquire them. ”