Businesses have faced significant challenges and experienced incredible change over the past few years, and this change isn't going to stop in 2023. Companies must deal with the effects of a global pandemic, Russia's invasion of Ukraine, economic challenges, and technological developments that are happening faster than ever before.
Here are the trends we think will have the biggest day-to-day impact on the way we work and do business in 2023.
5 Big Business Trends for 2023
1. Accelerating digital transformation
In 2023, we expect to see continued innovation and development of transformative technologies, including artificial intelligence (AI), the Internet of Things (IoT), virtual and augmented reality (VR/AR), cloud computing, blockchain, and ultra-fast network protocols such as 5G. Furthermore, these transformative digital technologies do not exist in isolation from one another; the boundaries between them will become blurred. New solutions for augmented, hybrid and remote working, business decision making, and automation of manual, routine, and creative workloads will enable these technologies to combine and reinforce each other. This will bring us closer than ever to the point where we can create an “intelligent enterprise,” where systems and processes support each other to complete simple, mundane tasks as efficiently as possible.
To prepare for this, companies must embed the right technology throughout their processes and in every area of their operations. At this point, there are few excuses for those in business who don't understand how AI and the other technologies mentioned above will impact their business and industry. More effective sales and marketing, better customer service, more efficient supply chains, products and services that are better aligned with customer needs, and streamlined manufacturing processes are all on the table, and in 2023, the barriers to accessing them will be lower than ever before. Many of these technologies, such as AI and blockchain, are now available in an “as a service” model via the cloud, and new interfaces and apps allow companies to access them via a no-code environment.
2. Inflation and supply chain security
The outlook for the global economy in 2023 is hardly bright. Experts predict continued inflation and slower economic growth. Many industries are still struggling with supply chain issues that arose during the global COVID-19 lockdown and were further exacerbated by the war in Ukraine. To combat this and survive, companies need to become more resilient in every way possible. This means reducing the impact of fluctuations in market prices for goods, as well as building safeguards into their supply chains to deal with shortages and rising logistics costs.
It is important for companies to map their entire supply chain and identify their exposure to supply and inflation risks so they can explore ways to mitigate them, such as alternative suppliers or increased self-reliance. I have recently worked with several companies that, realizing the risk of relying on Chinese manufacturing, still reeling from the Zero Covid policy and subsequent shutdowns, have decided to insource some of their manufacturing.
3. Sustainability
The world is increasingly waking up to the fact that climate disaster poses greater challenges than anything it has seen in recent decades, far surpassing the challenges faced by the COVID-19 pandemic. This means that investors and consumers will favor companies with the right environmental and social credentials, and purchasing trends will be driven by increasingly conscious consumers – consumers who prioritise factors such as environmental impact and sustainability when choosing who they buy from and do business with.
In 2023, companies must put environmental, social and governance (ESG) processes at the heart of their strategy. This should start with measuring the company's impact on society and the environment, then move on to increased transparency, reporting and accountability. Every company needs a plan with clear goals and timelines to mitigate negative impacts, and the plan should be underpinned by a robust action plan. Assessments and plans should go beyond the company's walls to cover the entire supply chain and the ESG credentials of suppliers as well. For example, the environmental impact of cloud service providers or the environmental impact of data centers are often forgotten.
4. Immersive Customer Experience
In 2023, customers crave experiences above all else. But that doesn’t necessarily mean price and quality take a back seat. Both will, to some extent, influence how we experience the process of selecting, purchasing, and enjoying the goods and services we spend our money on.
The role technology plays here has traditionally been to streamline processes and remove hassle from consumers' lives. Think recommendation engines that help you choose what to buy, or online customer service portals that deal with issues and after-sales support. These still play an important role in 2023, but the game has evolved and the keywords of the year are immersive and interactive.
The metaverse is an umbrella term used by futurists to describe the “next level” of the internet, where we interact with brands and other consumers through immersive technologies like 3D environments and VR. The metaverse is the stage where this phenomenon will come to life. Imagine online stores that let you browse and “try on” virtual representations of clothes, jewelry, and accessories. You could even dress your avatar in a virtual fitting room, as already pioneered by Hugo Boss and others, or use AR to see how clothes will fit on your real body, as Walmart is using. These trends will impact both online and offline retail.
The trend towards experience is so strong that brands like Adobe and Adweek have appointed Chief Experience Officers (CXOs) to make experience a fundamental element of their business strategies. As the competition for the most talented and skilled workers intensifies, companies increasingly need to think not just about customer experience, but employee experience as well.
5. Talent Challenges
The past year has seen a mass movement of talent, so-called “great departures” and “quiet departures”, as workers reassess the impact of work and what they want from life. This has put pressure on employers to offer attractive careers, hybrid work flexibility, and attractive work environments and company cultures. Providing people with rewarding work, ongoing opportunities to grow and learn, flexibility, and a diverse and value-driven workplace will all be essential in 2023.
Furthermore, the acceleration of digital transformation (trend 1 above) will lead to increased automation in the workplace and augment nearly every job around the world. Humans will increasingly share work with intelligent machines and smart robots, which will have a major impact on the skills and talent that businesses will need in the future. This will mean reskilling and upskilling large numbers of people within your business, as well as hiring new talent with the skills you need for the future.
On the one hand, companies need to address the massive skills gap that exists in areas such as data science, AI and other technology fields to ensure they create the data- and technology-savvy workforce they need to succeed in the future. And on the other hand, as human jobs are augmented by technology, companies will need to reskill staff to equip them with the skills they need to work alongside smart machines and develop the uniquely human skills that currently cannot be automated. By 2023, these will include skills such as creativity, critical thinking, interpersonal communication, leadership and the application of “human” qualities such as compassion and compassion.
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