How business leaders can thrive in a year of change
With 2023 drawing to a close, the biggest question for businesses and the c-suite for the coming year is: how can businesses successfully overcome economic uncertainty and prepare for an unpredictable year ahead? Dirk Martin, CEO at Serviceware SE, outlines the top trends business leaders can expect to become key priorities, and how they can deploy technology to make the most of the coming opportunities.
In recent years, the world has faced numerous challenges, from the Covid-19 pandemic to the invasion of Ukraine and related supply chain disruptions. The impact of such a lengthy period of uncertainty has been felt by all. As we look ahead to 2024, the outlook remains unpredictable but where there is adversity, there is often opportunity. Rather than allow the external factors to dictate business decisions, business leaders should seek opportunities to grow by building resilience and adaptability into this new paradigm of unknown.
2024 will mean high-stakes for all. Business leaders must be prepared for the unpredictable and dynamic nature of the workforce and the economy. As this year has shown, it’s crucial that businesses continue to keep a watchful eye on the broader strategic components of their operations with economic pressures and market volatility underscoring the need for strategic long-term planning and rolling forecasting.
Servitisation
We've witnessed an accelerated shift towards servitisation, a trend we believe will continue to surge as we move into 2024 and beyond. Companies are no longer just selling products; they are providing comprehensive solutions that include services. Servitisation has enabled companies such as Netflix and Spotify to disrupt and transform the entertainment industry and consumer preferences, from purchasing CDs and DVDs to streaming video and audio content anywhere.
This shift is apparent in the business world too, with organisations looking for solutions to enable them to transition smoothly into service-led models. Now more than ever, it’s important for businesses to manage their services more efficiently, ensuring they deliver value to their customers, whilst also improving their competitive edge.
ESG
Environmental, social and governance – or ESG – is expected to remain a priority for governments, businesses, and individuals in 2024 and beyond. Corporate Sustainability Reporting Directive (CSRD) is a pivotal framework that is set to redefine ESG reporting in the European Union (EU) in 2024.
Companies, complying with the Non-Financial Reporting Directive (NFRD), will be required to report on their climate impact under CSRD, a new and improved version of existing requirements. So, in the year ahead, CFOs everywhere are going to be figuring out how to use carbon accounting to meet business objectives and boost bottom-line profitability.
Human-machine relationships
The interaction between human and machine has entered a new realm recently as artificial intelligence (AI) continues to split opinion for both individuals and businesses. However, AI and intelligent automation (IA) are hugely complementary and are already transforming businesses across the world, regardless of size and scope. Gartner predicts that by 2026 more than 100 million humans will work hand-in-hand with ‘robo-colleagues’.
Technological advancements such as AI can and should work in unison with human beings to help assist and transform the future of financial and strategic planning. For example, AI can improve work efficiency and effectiveness by automating routine tasks and providing actionable insights from data analytics. A member of Forrester’s Consumer Voices Market Research Online Community explains, “People need to learn and think for themselves. [GenAI] is only helpful as an additional tool, not a replacement for human thoughts, intelligence, and interaction.” The challenge occurs when organisations shift the focus away from using the software as a decision-support tool towards allowing it to make decisions without human intervention. In the future, we can expect a blend of personalisation and automation of standard processes, possibly leading to self-sufficient, automated processes assisting humans.
Conversational AI
It’s predicted that we will see an upward trend for conversational AI that will allow organisations to interact with their customers in bold new ways. Digital customer service offerings are booming, and more and more companies are turning to self-service offerings in the form of voice and text-based chats to cope with the large number of inquiries that need to be handled.
Although personal human-to-human interaction in service will remain important in the future, the use of AI in self-service will increase exponentially in the coming years. By 2026, conversational AI deployments within contact centres will reduce agent labour costs by $80 billion, according to Gartner.
Cloud solutions
Rock-solid IT infrastructures and technological innovations that unlock value are crucial for businesses. Cloud usage increased massively in 2023, due to the flexibility, scalability and speed of deployment needed to pivot business operations. But how important will it be for 2024? And what must business leaders watch out for? In 2024, the world is forecast to generate 149 zettabytes of data. Cloud makes this scale of data creation and processing possible.
Cloud technology also gives businesses the opportunity to continuously refine and improve services, according to changing customer demands and business needs, whilst enabling them to assess how much is being used versus how much is being spent. With cloud now being seen as the digital backbone of many organisations, cloud solutions will continue to evolve. However, with this change will come increasing complexities – both in terms of the services available as well as the variety of operating models. It is therefore essential that businesses have the right tools to continually monitor and analyse cloud spend, in real-time, and with accuracy. Those who do will effectively pave the way towards growth.
Strategic IT teams
It’s become increasingly apparent that there’s a need for a holistic approach to IT Financial Management (ITFM) and Technology Business Management (TBM). As we head into 2024, we believe it’s important for companies to not only track and control their IT costs, but also understand the business value of their IT investments, enabling them to make informed strategic decisions for the future.
