Supply chain security is another key issue. Challenges began with COVID-related backlogs and have been made worse by Russia's invasion of Ukraine and labor 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). 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.
The headlines are already filled with talk of skyrocketing inflation, and that trend will likely continue in 2023. Many economies will stagnate or shrink, and businesses need to prepare for that reality. 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.
Artificial intelligence (AI) is already starting to augment all of our businesses, and that trend will continue to accelerate next year. At the same time, other technologies like 5G, blockchain, the cloud, and the Internet of Things (IoT) are building and speeding up AI, and all of them are enhancing each other.
This is rapidly creating a world of ever-faster technological developments. In response, every business must think of itself as a tech business.
Customers entering brick-and-mortar stores aren’t just looking to buy products — they want memorable in-store experiences. If your company has physical shops, consider adding more immersive experiences. Online retailers should consider adding extended reality (XR)
experiences like virtual dressing rooms that allow customers to “try on” clothing, accessories, and makeup without leaving their homes.
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. 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).
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. 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.
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. 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.