Two weeks ago, Ferrari appointed its third CEO in as many years. That wasn’t the big news. This new CEO, Benedetto Vigna, is not a type of car, but a technician and not just any technician. It comes from Europe’s largest semiconductor chip manufacturer STMicroelectronics. There he led what has been called STM’s most profitable business unit: the one that builds and sells microelectromechanical systems and sensors: the things that power self-driving cars and in-car software innovations.
End of 2020, FedEx closed when purchasing ShopRunner, a subscription-based Pureplay e-commerce shipping provider. That acquisition wasn’t material based on what FedEx paid (they even said so) to buy it. Judging by the insights and business model innovations that integrating logistics with retailers’ online order flow and the commerce ecosystem can offer, they say it is capitalized.
Verizon Video conferencing platform bought Blue jeans in 2020 with the aim of using video as a platform for new B2C and B2B use cases that will be charged by 5G. One of the first uses is healthcare where Telemedical services is made possible for everyone with a mobile device securely and privately. These patient-doctor interactions are also automatically synchronized with the patient’s electronic medical record. The boss at BlueJeans said convenience and efficiency are two of the most obvious benefits, but most of all he is excited about the opportunity to make doctors more accessible to patients who today lack good health options.
Other industries are also shifting. Automotive OEMs are moving to technology first. Logistics players are relocating trade first. Telecommunications companies are leveraging new networks to push the next frontier in healthcare. Three of many data points that the connected economy is at the center of the boardrooms and war rooms of every single company worldwide.
Today is the official launch of the PYMNTS ConnectedEconomy ™ platform. We have been working on and developing this for almost two years, long before the pandemic accelerated the path to digitization for everyone.
More than just another way of talking about innovation, ConnectedEconomy provides a framework to understand how people and businesses will get involved in the years to come, and offers a range of research and insights to help business leaders realize their opportunities to recognize and use the networked economy.
Definition and measurement of the ConnectedEconomy ™ Measuring
The ConnectedEconomy ™ consists of companies that rely on the Internet as a fundamental aspect in the provision of goods and services. In order to organize and follow the developments in the connected economy, PYMNTS has divided them into divided 10 pillars. Each represents a component of the globally networked economy that is developing rapidly. Together they represent the segments that will determine its future.
Pillars go far beyond the classic categorization and measurement of companies. Each pillar represents a set of broad activities that people and businesses participate in to achieve a specific goal. It is even more important that digitization is redefining activities and results for the pillars.
And these pillars are not independent verticals, but rather intertwined, which often complement one or more other pillars.
Take the grocery store – a vertical defined by the amount of stores people visit to buy their groceries.
Take restaurants – a vertical that represents the set of facilities that prepare food and serve it to consumers inside or outside the commercial building.
Take food. It’s a pillar that reflects the blurring of the lines between the verticals that people use to buy, prepare, and consume their food. Eat is a new ecosystem that reflects the use of connected devices, apps, payments and other technologies by businesses and people to meet the consumer’s basic need for food.
PYMNTS has identified 10 pillars of the ConnectedEconomy.
Four of the pillars provide essential services that people rely on to perform much of their daily lives. People have to pay (and get paid)), Bank, communicate and travel.
People use another five pillars to run, maintain, and enjoy a household. As dwell is about managing their home and daily life and how they have it fun This is how they spend their free time. Then there is how (and where) they are eat and business. job is what most people have to do in order to do everything else.
Finally people want Stay healthy and live longer and healthier.
How people live in the networked economy
PYMNTS not only wanted to define the ConnectedEconomy ™, but also to understand how people live in it and appreciate it.
The PYMNTS ConnectedEconomy ™ platform presents the results of our first population-based study of 15,000 US consumers, conducted in April 2021. We conducted this study to better understand how digitally connected US consumers are today and where they find the natural synergies between the ten pillars of our connected economy and why. We plan to update this study annually, expand it to other regions, and launch specific pillar-based studies to better understand consumer and supplier dynamics within each region.
The study provided more than five million data points, which our analytics team combined into seven key insights. These insights provide a framework for how leaders should ponder the role they are planning in making the connected economy reality – one that two-thirds of the US population consider valuable and important.
The ConnectedEconomy ™ companies
We wanted to put the ConnectedEconomy ™ framework to the test by identifying a number of companies that we believe will predict the future of the connected economy. Today the debut PYMNTS CE100 index, a patent-pending financial index of this basket of 100 companies.
Reaching that 100 was a journey. First, PYMNTS selected a basket of 140 companies and asked eight highly respected payments investors and innovators to contribute to the list. The criteria are simple: Listed companies that are traded on all stock exchanges around the world enable or drive the future of the networked economy within and across the 10 pillars.
The final cut reflects a quantitative assessment of more than 100 variables and a qualitative assessment based on our experience, history, and a basic understanding of what determines long-term success in highly complex ecosystems. We plan to realign this basket of companies every quarter as more companies go public and become potential competitors.
We will publish a daily update on the performance of our CE100 index compared to other popular indices. The CE100 Index does not weight stocks proportionally by market capitalization – it’s a comprehensive measure of the growth of related economic players that limits the bias of some of the less powerful big tech performers who are part of the basket. It is important that, despite this adjustment, the CE 100 index has both turned backwards and outperformed the other major financial market indices until 2015 and at least until today.
Set bookmarks shortcut to check the progress of the CE100 index daily.
The captains of the ConnectedEconomy
Over the past six months, we’ve also spoken to 50 CEOs and C-suite executives from some of the largest and most innovative companies in the world to hear their views on and place in the connected economy. A common theme in all of these conversations is how much you’ve thought about the idea of a connected economy, even without using those words. She and her teams use software, new technology, and connected devices to not only improve activities within each of these pillars, but to blur the lines between them to create methods of engagement.
We will continue to speak to those in the know and tell you about what we hear as a regular feature of the platform.
Since day one, the guiding principle of PYMNTS has been “What’s next” – with a number of proven frameworks based on cutting-edge economics, how innovations emerge and scale in dynamic markets in order to identify and analyze relevant trends before they become mainstream .
“What’s next” now includes an expanded focus on the networked economy. The PYMNTS ConnectedEconomy platform is the only place on the web where data, news, and insights about the innovations that drive the connected economy can be found – and the voices of those who deliver them – can be consistently heard.
We are pleased to be able to offer you a seat on the Ring to see how the future of our global economy develops.