No one doubts that coming into the new year, 2023, businesses and governments are already deep in the woods of challenges. Of course where there are obstacles facing business, there are possibilities and opportunities as well.
Futurist Bernard Marr, list what he calls seven challenges businesses will face in 2023.
Inflation and economic downturn
Recession is the word of the year. Many economies will stagnate or shrink, and businesses need to prepare for that reality.
What to do: Companies can face inflation by establishing end-to-end, actionable visibility of spending by business process, function, cost category, and business unit, as well as reducing spending.
Supply chain security
Challenges began with COVID-related backlogs and have been made worse by Russia's invasion of Ukraine and labour shortages due to the Great Resignation. This has made parts and products harder to obtain, as well as pushed prices up (e.g., energy, grains, computer chips, oil, and so on).
What to do: Companies should resist the urge to over-order to compensate for backlogs, which could worsen the situation. Instead, focus on long-term recovery and restructure your needs to prevent similar shortages in the future.
Increasing customer expectations
Customers are demanding more immersive customer experiences in the real world as well as in the metaverse.
What to do: No matter how you engage with consumers (online, offline, or a mix of both), ask yourself, “How can we add even more value for our customers by turning this interaction into an experience?”
Accelerated digital transformation
Technologies like 5G, blockchain, the cloud, and the Internet of Things (IoT) are building and speeding up artificial intelligence, and all of them are enhancing each other.
What to do: This is rapidly creating a world of ever-faster technological developments. In response, every business must think of itself as a tech business. Companies need to re-design their processes and ensure their people have the skills needed for a world where we increasingly collaborate with and work alongside capable and intelligent machines.
The war for talent will intensify
Speaking of workers — companies in 2023 must be ready to cope with a continued talent shock. We’ve been hearing about the “War for Talent” for years, but now it feels like the war is deepening.
What to do: To attract top talent, employers must offer a working environment that is appropriate for the new world of work, including job flexibility, authentic leadership, diversity, etc.
Data and device security
Cyberattacks are on the rise, and ransomware and phishing scams are now a common occurrence. As businesses become more digital, they accumulate more data, which becomes highly attractive to cybercriminals that intend to steal it and hold organizations hostage to monetary demands.
What to do: Companies can take steps to protect themselves by taking proactive measures like evaluating their data backup and recovery processes, conducting penetration testing and vulnerability scanning, and taking proactive steps to protect sensitive data and prevent cyberattacks.
Sustainability
Climate change is the world’s largest business challenge, and consumers are demanding transparency in sustainability practices as well as more eco-friendly products and services.
What to do: Companies can respond by viewing the whole picture of their business practices and auditing their full supply chains. They should also consider switching to renewable energy, moving to more sustainable packaging, and allowing people to work remotely when appropriate (which can help lower emissions).
Becoming demonstrably more sustainable can not only satisfy consumers’ needs but also help you spot efficiencies and savings that can have a positive effect on your bottom line.
