It is no secret that inflation has taken a toll on businesses everywhere. But as inflation 2023 threatens to slow economic growth, analysts have urged organizations to be updated on business trends for the coming year, so that they are not caught unawares. On November 16, Barclays economists even cut their global economic forecast 2023, citing a restrictive monetary policy.
The brokerage firm warned that 2023 could see heightened inflation as advanced economies slide towards a recession. Recession fears have permeated large businesses as global central banks tighten monetary policy, stressed out by geopolitical tensions and an unstable economy.
The top three business trends that will impact day-to-day working for businesses are listed below:
1. Business Automation
Business process automation will speed up in 2023. As the world becomes more digital, companies will seek to automate their products, processes, and services. One of the top business trends, we have seen how AI and machine learning has transformed the landscape in the past few years. This is set to grow by leaps and bounds in the coming year. It is an effective approach that results in faster workflows, error-free service, and greater profit. Automation software is also easily accessible, and employees can log in on the go. Advanced technologies can now be combined to create “intelligent enterprises” wherein systems and processes support each other, with little input from employees.
A 2020 global survey by McKinsey and Co found that 67% of companies use business process automation solutions that improve end-to-end visibility across different systems. Workato reported that over 30% of organizations have five or more departments that automate, as of 2022.
Microsoft founder Bill Gates, however, warns against the perils of going berserk on automation. He said, “Automation applied to an inefficient operation will magnify the inefficiency.” It is clear that automation must be dealt with cautiously and weaving automation into workflows must bring value to the company and customer.
2. Sustainability
As world governments struggle to meet sustainability goals, they have started offering subsidies and tax cuts to businesses that focus on sustainable solutions.
The shift towards sustainability is also being driven by environmentally-conscious customers who are changing their spending habits to prioritize companies with sustainability goals and practices. In 2023, companies need to make sure that their environmental, social, and governance (ESG) processes are visible and measurable. Businesses can use data to understand and revamp processes to make it more sustainable and reduce waste. AI has been successfully used to understand and study areas of improvement, and Ontario Power Generation was able to save itself $200,000 and improve its sustainability ratings with this practice.
Multinational consumer company Unilever recently launched its regenerative agriculture principles to protect waterways and increase biodiversity. It also has other plans in place to make the company more sustainable while helping farmers to support the local environment and soil. Fashion brands Stella McCartney have engaged in carbon efficiency transformations.
Businesses that focus on reducing waste and scaling up their sustainability initiatives will find greater favor with governments and consumers, as the world races to mitigate the effects of climate change.
3. Customer Experience
According to a Deloitte study, on average, customers tell nine people about their positive experience with a brand. This simply means free marketing and more customers. It is in an organization’s best interest to continually improve its customer experience.
Over the next two years, 57% business professionals at enterprise organizations plan to build automations that focus on improving the customer experience.
While automation has permeated every level of customer service, what will set brands apart is a personalized customer service experience. Salesforce found that 80% of customers now consider an experience the company provides to be as important as its products and services. Using AI and other high-end technology will help companies gather relevant data on what their customers want and desire. This data can be used to tailor their customer service experiences, as personalized experiences drive engagement and business growth.
To be successful in 2023, companies must strike the right balance between automation and human touch.
These business trends will be in vogue in the coming years, and companies must find ways to continuously innovate while prioritizing people, planet and profits.
