12 business and technology trends shaping the ‘new normal’ – Consultancy.eu
As the world emerges from the particular pandemic, a range of trends are touted to disrupt the fundamentals associated with sectors plus organizations – in the particular process shaping a ‘new normal’. Experts from The Next Organization share twelve styles that according to them will play an influential role in pushing the boundaries of economy, society, organizations and people towards new frontiers.
Shift in power
The ‘polarization of capital’ is getting stronger and China is becoming very dominant. Whilst the US remains the largest economy in the world today, China is rapidly taking over that role . Accelerated by Covid-19, China is expected in order to become the largest economy simply by 2028.
As part of this growth, The far east is expanding its influence in Europe. In 2020 the large majority of outbound Chinese M& A deals were European. Furthermore, targeted European Corona aid to countries such as Italy and Serbia, bought China international prestige, influence and support. In addition , many companies are very dependent on their Chinese trading partners. Their dependency is expected to increase further, with the ‘Belt plus Road Initiative’: the new silk road.
To prevent European countries from lagging behind the united states and The far east, the Western Union needs to act as truly one union. Europe must build complementary partnerships regarding topics such as (work) migration, security and climate change. Such collaborations reduce risks and costs plus accelerate growth by increased market energy, removal of (trade) barriers and creation of jobs.
When European companies and countries work together, they remain competitive on a global scale plus preserve their strategic autonomy.
This trend should not come as a surprise and has been around for a while. All associated with us actually already use a lot of artificial intelligence (AI) products and services in our day-to-day life. AI allows machines to mimic human cleverness and perform tasks whilst improving itself in the particular process based on the information gathered. Spam filters, personal assistants such because Siri and Google Translate’s language recognition feature are usually all frequently used AI solutions.
However, the current technology isn’t even close to its full potential. AI will cause a major trend in almost all industries, by with regard to example, lowering the CO2-footprint and decreasing operating costs through automation. Some businesses announced that will they plan to enter the market with more advanced AI-driven products.
This revolution shows that our future is largely determined by robots, machine learning applications and black box algorithms. This pattern offers both opportunities, like possibly more efficient communication, and threats, like regarding instance biased discriminating methods. It concerns people, businesses and society as the whole.
How we take advantage of those opportunities and handle the related threats is something that will become apparent in the future. In any case, one thing is intended for certain: AI will not only affect organizations, but also have an impact on our day-to-day life.
Rise of social e-commerce
E-commerce improved tremendously during the Covid-19 pandemic . Building brand recognition is vital for e-commerce businesses to remain competitive during the ‘battle for the digital marketplace’.
Today, most companies use social media to develop their brand name, because studies say that 87% of the web commerce shoppers believe they are able to extract ‘purchase’ insights from social media. Especially ‘millennials’ plus ‘generation Z’ are more likely’ in order to get inspired through these platforms. So , the use of social networking increased, which made platforms such since TikTok, Instagram, Twitter and Facebook a lot more powerful channels for ‘social marketing’.
It is therefore expected that we will witness increasingly more of this kind of ‘social e-commerce’ in the future.
Influencer marketing will be a prime example associated with ‘social ecommerce’. ‘Influencers’ review products or services, endorse them and try to influence their own followers in order to buy the particular endorsed product or service.
While most consumers dislike ads, these people seem to enjoy being ‘influenced’ by a person they like or idolize. Therefore , influencer marketing has become a very viable strategy for different brands out there: the overall industry has grown from €1. 7 billion in 2016 to €13. 8 billion dollars in 2021. With a lot more corporate funding for content marketing and proven effectiveness, we can expect to be influenced even more later on.
Whenever the Covid-19 pandemic hit, life as we knew it changed. Boarders closed as well as retail facilities and offices. The pandemic resulted in a crisis leaving society within uncertainty. Inside times of crises, like this one, we find this difficult to break free from our current mindset when we reflect on past plus future situations. Psychologists call this the projection bias.
If you look at actual behavior, all of us see a social rebound effect. What we lack now, we all will want back to a greater extent when the corona crisis is over.
Social psychologists found that tragedies, disasters and health crises make us somewhat even more aware associated with our own mortality for a period of time. Rationally, a person would expect this mindset to make us the little a lot more cautious, yet the opposite is true. It turns out that it makes us more sensitive in order to everything that will transcends our own mortality. We ‘want to live again’, treat ourselves and are seeking thrilling experiences after being ‘stuck at home’ for the last two years.
You see this process reflected inside society today. As indicated above, what we absence, we will want back to a larger extent. In the context of consumer conduct, this means a complete rediscovery of everything that was ‘just not possible’. And this is not only related to shopping sprees, expensive holidays or going in order to a restaurant.
We fall back on, and underpin the importance of, cultural traditions that make all of us feel comfortable. According to analysis in some Western european countries, shaking hands was normal for most people several weeks after the Covid-19 measures were reduced. Old traditions, such as shaking hands, will be back in no time.
Think global act local, again
The phrase ‘think worldwide, act local’ is not new, but it is now more relevant than ever. It means getting responsibility from the health of the Earth by taking action locally and it directs all levels of community.
In 2000 Coca Cola made it their particular strategy to adapt advertising operations on nearby customers. Since the past two years, ‘glocal’ offers been related again, but now on many different levels. National lockdowns exposed many vulnerabilities and unfolded new necessities of being locally independent. At the same time they will exposed the particular fact associated with international dependencies and therefore stressed the necessity of global cooperation.
Through international collaborations, vaccines have already been developed at an unprecedented speed. This is setting brand new standards to get other challenges that require global assistance like protection, climate change, labour migration, and poverty reduction.
On the other hand, due to lockdowns plus cargo ships being stuck, many realised how vulnerable international supply chains are usually . Therefore , supply chains are redesigned with the particular goal to buffer local stocks and centralising the purchase associated with goods.
Besides that, there is a general urge to support local businesses as consumers recognize the particular importance through an economical, social plus sustainable perspective. The new generation realizes that will an individual has an impact on the whole planet and therefore is determined in order to be ‘glocal’. So, they expect companies and institutions to answer the nearby needs of customers and to contribute to the movement.
New rhythm associated with agencies
With the increasing technological innovations and the effects of the outbreak, the rhythm of the particular organization changes. New studies show more productivity when working from home. Rethinking how to execute work in the innovative context, unfolds in new opportunities.
Specialists expect the impact of the internet of things and artificial intelligence on the function plus environment from the hybrid way of working in order to be the biggest business tendency for that next ten years.
This particular trend results in an increasing amount associated with smart workplaces across the globe. The particular biggest drivers of this particular trend may be vendors scaling out legacy systems and introducing smart connective systems. Companies and end-users have no choice but to go along with the particular developments. Although remote working was already underway before lockdowns caused by the pandemic kicked in, the particular government restrictions have prompted organizations to facilitate solutions that enable remote working.
Both institutions and employees embrace the positive effects of remote operating, resulting in a reconsideration of the function from the office. Experts think that the role of the office moves towards a social co-working space, where employees purposefully meet.
In rebalancing online and offline work, hybrid organizational models emerge, and platform business models become the particular point associated with departure. However, the success of the new tempo and functioning methods depends on a firms’ goals.
Personalised economic climate
A more personalised relationship with the particular customer is partly driven by the increase in online purchases, which have grown exponentially since 2020. With the help of omnichannel sales strategies, organizations are trying to win the competing battle.
The need pertaining to a personal relationship is powered by organizations and customers themselves. Digitalisation offers businesses the possibility of using analytics in order to gain a lot more insight into the entire customer journey. Upon the some other hand, consumers seek a private approach that responds to their unique needs, regardless associated with the channel they choose.
It turns out that will consumers who are omnichannel users, make more shop visits and recommend brands to friends and family more often. Investing within an omnichannel strategy is usually worth trying. However, the particular shift in the direction of an on-demand and app economy calls for an evolution of the shopping experience. Complemented simply by digital developments for example synthetic intelligence, the particular omnichannel buying environment becomes even more personalised.
The accelerating development in personalisation of customer journeys offers opportunities for companies that can differentiate themselves with their omnichannel strategy. It creates and delivers value meant for both customers and own brand and therefore attracts plus retains customers.
Since the pandemic, awareness of a healthy lifestyle provides accelerated. Not only do older people appear to be susceptible to the virus, but the particular younger era that are struggling with obesity and underlying diseases are also at risk. Since lifestyle is one of the majority of important factors, the focus on prevention and a healthy lifestyle has increased.
People try in order to encourage each other to exercise more and live healthier. But also challenges want how to cope with stress and the work-life balance, makes people more concerned with their mental health .
Within the service industry, the changes that arrive with consciousness for a more healthy living, will also be implemented. Insurers are considering lifestyle-dependent policies and employers are focusing on the particular mental and physical wellness of their own staff through various vitality and well-being programs.
This shift wherein consumers value quality over quantity along with a focus on their particular health, disrupts various sectors. High-quality local products and various gadgets in order to monitor overall health are becoming increasingly more popular. As a result, companies have to take a closer look in the content material of their companies possibly redesign their own strategy. This particular development offers companies plus start-ups the opportunity to respond to brand new customer requirements.
More than just an economy
Now that the present economy, which is based on infinite development, is becoming less sustainable due to weather change, international conflicts and social discontent, a new economic school is gaining ground: More than just an economic climate.
An economy should simply no longer be ‘addicted’ in order to growth plus fossil fuels, within which the particular selfish ‘homo economicus’ takes centre stage, but should be the sustainable and social economic climate in which human welfare, social connection plus a flourishing nature go hand inside hand. Hence, the provide and demand for sustainable products continues to rise, as does the number of consumers who are prepared to pay extra for sustainability.
Sustainable investing is also getting momentum. Investments in companies which concentrate on the planet’s greatest challenges and operate in a sustainable plus social manner, with responsible governance codes doubled since 2013. This shows that institutional investors, companies and individuals are committed to make the planet ‘inhabitable’ for the particular future generations as well. Furthermore, lasting investments are expected in order to more than double in the following 7 many years.
This need means that it is possible to make a return on an investment, while contributing to a better world. The combination of businesses which focus on sustainable products and services and traders willing in order to fund all of them, makes that will we are usually truly moving to a new paradigm: More than just an economy.
Focus on talent and wellbeing
Nowadays, management teams of many companies do not only give their particular employees the rights plus privileges these people need. They go much additional and find ways to improve the happiness and thus the whole well-being of their workers.
Worldwide, there is a good increasing trend in the number of individuals suffering from burnouts. Currently, the particular number associated with burnouts offers doubled throughout the corona crisis. People are struggling with loneliness, work-related stress and mental health issues. Working from home also plays a major role. It is more difficult to have an overview of the wellbeing of employees when they will work (for the majority of the time) at home.
Awareness of the causes and consequences of burnouts and stress is increasing, and organizations are expected to set up the (home) functioning environment of employees within such the way as to prevent this as much as probable. The importance of mental and physical health is usually increasing designed for both individuals and employers.
Moreover, a study has shown that happy employees are about 12% more productive. To respond to employee needs plus happiness, many businesses are right now focusing on finding a balance between worker growth possibilities, well-being and productivity. Within doing so, they attract loyal, hard-working employees plus reduce absenteeism and staff turnover.
In the particular past few years, the participation society increasingly developed. Consumers, as well as workers, want to participate and help every other more and more in company and daily life processes. These days, many businesses are implementing a “think tank” in the form of a client council.
One of the reasons for your increase from the participation society is the particular Covid-19 pandemic. This gave rise in order to two kind of movements. The first were solidarity movements. For example, an online platform was created where people could sign up to provide free support to others in need. The second movement was the (online) sharing of knowledge between agencies and their customers, within organizations plus between various organizations.
In order to keep in touch with customers, institutions want in order to involve consumers through, just for instance, on the internet panels. Customers can talk about their feedback and ask questions. Because of this particular online focus, it is easier for organizations to reach their own target audience and to share and collect information. Informing the consumer in a more efficient and effective manner leads to fewer questions plus higher customer satisfaction. This within turn leads to an improvement of the client journey.
In addition, it has also proved very valuable for groups within organizations or between institutions to team up (online) and share information. By sharing, getting comments or suggestions, but furthermore by listening, learning plus exploring, all parties can develop further and come out stronger.
Work, live, consume along with meaning
For numerous, 2022 marks the year exactly where they want to change their routines. Old habits were forcefully disrupted and thus many came to reflect on their life. With that, people became more aware of their actions and the impact those have on themselves as well as the environment around them. Once a person reaches the top associated with Maslow’s pyramid, they need meaning in their life.
In the US, a recent movement called ‘ the great resignation ’ has been identified. A huge number of individuals voluntarily quit their (successful) jobs in the past 1, 5 years, all with the reason of doing something that they believe will make them happier. A big search for a lot more meaning within daily life is reborn due in order to unfulfilling work conditions, new opportunities of remote working and insights in health challenges for people plus planet.
Organization are being scrutinized and expected to take their responsibility to society. Not only employers, but also their own products plus services should ‘offer the meaning’. In the current market, where consumers possess plenty associated with options to choose from, setting brands apart through a strong reputation and emotional connection with consumers is a must to find success.