It’s no secret that inflation has affected businesses around the world. But as inflation in 2023 threatens to slow economic growth, analysts have urged organizations to update themselves on business trends for the coming year, lest they be caught off guard. On November 16, Barclays economists even cut their global economic forecast for 2023, citing tight monetary policy.
The brokerage firm warned that 2023 could see rising inflation as advanced economies slide into recession. Recession fears have permeated big business as global central banks tighten monetary policy, stressed by geopolitical tensions and a shaky economy.
The three main business trends that will affect the daily work of companies are listed below:
1. Business automation
Business process automation will accelerate in 2023. As the world becomes more digital, companies will look to automate their products, processes, and services. A major business trend, we have seen how AI and machine learning have transformed the landscape in recent years. It is set to grow by leaps and bounds in the coming year. It’s an effective approach that results in faster workflows, error-free service, and higher profits. Automation software is also easily accessible and employees can log in on the go. Advanced technologies can now be combined to create “smart enterprises” in which systems and processes support each other, with little employee involvement.
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. Worked reported that more than 30% of organizations have five or more departments that they automate, as of 2022.
However, Microsoft founder Bill Gates warns against going crazy with automation. He said: “Automation applied to an inefficient operation will magnify the inefficiency.” It is clear that automation must be approached cautiously and the integration of automation into workflows must bring value to the business and to the customer.
As the world’s governments struggle to meet sustainability goals, they have begun offering subsidies and tax breaks to companies 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 must ensure that their environmental, social and governance (ESG) processes are visible and measurable. Businesses can use data to understand and revamp processes to make them more sustainable and reduce waste. AI has been used successfully to understand and study areas for improvement, and Ontario Power Generation was able to save $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. He also has other plans to make the company more sustainable while helping farmers maintain the local environment and soil. Stella McCartney fashion brands have engaged in carbon efficiency transformations.
Companies that focus on reducing waste and expanding their sustainability initiatives will find greater favor with governments and consumers as the world rushes 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 the best interest of an organization to continually improve the customer experience.
Over the next two years, 57% of business professionals in enterprise organizations plan to create automations that focus on improving the customer experience.
While automation has permeated all levels 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. The use of AI and other high-end technologies will help companies collect relevant data about what their customers want and want. This data can be used to tailor your customer service experiences, as personalized experiences drive engagement and business growth.
To succeed in 2023, companies must strike the right balance between automation and the human touch.
These business trends will be all the rage for years to come, and companies must find ways to continually innovate while putting people, planet, and profit first.