Don't have a costly Kodak moment - we can all cash in on the digital revolution

It's the investment theme that has driven the US stock market to claw back all the losses it suffered earlier this year – with the big five tech stocks (Alphabet, Amazon, Apple, Facebook and Microsoft) leading the way.  This market surge has happened despite the US economy still being mired in recession, a fact that has caused some investment experts to utter understandable words of caution. Load Error Similarly, outside of work, we're being nudged into conducting more of our lives via our mobile phones or computers – everything from social distancing family 'get togethers' via apps such as House-party, watching films via Netflix, through to mobile banking and arranging our weekly food shop to be home delivered. Robin Brown, managing director of investment bank Stephens, says a 'huge digitalisation of processes' is taking place within companies, enabling them to become more efficient and drive down costs. More recent examples, he says, include the likes of US department store JC Penney (America's answer to Debenhams) and US clothes retailer J Crew (competitor to Gap) which both last month filed for bankruptcy. Half of the current constituents of the index, he believes, will be removed from it over the next decade.  So, how do investors embrace such 'disruptive technology' within their portfolios to positive effect? For investors who want exposure to the big technology giants – Apple, Alphabet, Amazon, Facebook and Microsoft – the best approach is to buy an investment fund that holds all or some of these companies in their portfolio. Some experts believetheS&P500 Index has run ahead of itself, leading to a disconnect between the US stock market and the US economy. An alternative 'tech' approach is to buy a fund run by a manager who passionately believes that the tech giants – despite their inflated prices – still provide long-term growth potential. It adds that manager Dan Whitestone believes that the economic disruption caused by coronavirus 'will accelerate the pace of change in many industries'. An alternative strategy to just buying exposure to the big tech stocks is to purchase shares in companies that are employing technology to transform their business models.  EdenTree's Fitzgerald runs the £210million Amity International investment fund. This focus on innovation has helped the company differentiate itself from peers in a competitive market while also improving the overall efficiency of its business.' In the US, Fitzgerald is impressed by Adidas's focus on its employment of new technologies such as 3D printing and digital design tools in developing products that use fewer materials and create less waste. Used in conjunction with its portable 'Mini-Med' insulin pump, it ensures diabetics' blood sugar levels remain at all times within safety bounds. ' As an investor in such companies we want to see evidence of perpetual change and use of disruptive innovation,' says Fitzgerald.  Russ Mould, investment director of wealth manager AJ Bell, says a number of housebuilders and estate agents – including Taylor Wimpey and Foxtons – have used 'virtual tours' of sellers' homes to sustain interest from buyers during lockdown. Mould adds: 'While the fortunes ofTaylor Wimpey and Foxtons still depend upon the health of the economy, their use of this technology has helped keep their brands active in front of existing and potential customers.' He also believes pub chain Wetherspoon will benefit from its app that allows customers – once pubs open again – to order a pint and pie from their table without having to queue.  Neil Campling, head of technology research at London-based Mirabaud Securities, believes technology-focused businesses such as online retailers Boohoo and Ocado are obvious winners of the country's – and world's – increasing adoption of digitalisation. As is investment trust Tritax Big Box, which leases industrial warehouses to firms such as Amazon and the parcel deliverycompany DHL. Finally, for investors who believe that disruptive innovation will power the recovery of the world economy after the coronavirus pandemic, there are a number of investment funds available which have a technology focus.  They tend to be globally invested – but with the biggest slice of their assets in the United States.  They include investment trusts – all listed on the UK stock market – managed by Allianz and Polar Capital.  Allianz Technology is run out of San Francisco by Walter Price, a longstanding technology-focused fund manager.  Over the past five years, the £680million trust has generated a total return of 240 per cent. Polar Capital Technology has achieved five-year returns for shareholders of 214 per cent.  The £2billion trust is 70 per cent exposed to the US stock market and its largest stakes are in Microsoft, Alphabet and Apple.  But remember: the funds are best held as part of a diversified portfolio.