The continuous transformation of organizations is becoming a top priority and will continue in the coming years. However, leaders do not need to be wary of the various business trends impacting their organizations. They can use these trends to guide their efforts and capitalize on the opportunities available to them.
End-to-end Digitalization
As organizations adopt digital technologies, they will continue to focus on improving their efficiency and reducing costs. Some key technologies that CXOs will consider include artificial intelligence, machine learning, blockchain, and intelligent automation. According to a survey conducted by the company, over 50% of enterprises plan on increasing their digital technology spending in the next few years. This will allow them to transform their businesses and improve their efficiency.
Investments toward South East Asia, India, and Vietnam
Due to the increasing number of global companies investing in India, South East Asia, and Vietnam, the region is becoming more attractive for multinational organizations. It is regarded as one of the most promising regions for global centers of excellence. South East Asia, India, and Vietnam offer a variety of advantages to multinational organizations, such as their low cost of doing business, vibrant ecosystems, and multiple start-ups. These locations are also expected to attract more global companies in 2022 as they expand their footprints.
Green tech, decarbonization, and sustainable development
Climate change is becoming an integral part of the business strategy of multinational organizations. However, implementing this strategy will be very challenging due to the lack of support and resources. Some factors hindering this process include the lack of investor capital, technological advancements, and the lack of a supportive ecosystem. To effectively address the issue of climate change, the leaders of multinational organizations must change their mindset and focus on the continuous improvement of their operations. Following the pandemic, global carbon dioxide emissions decreased by over two billion tons. The goal of the global business community is to achieve Net Zero by 2050. To achieve this objective, the innovators must accelerate the innovation in their respective business models and technology. In addition to adopting new strategies and technologies, the leaders of multinational organizations also need to change their mindsets.
Supply Chain Expansion
Due to the increasing number of multinational organizations operating out of China, the country’s supply chain infrastructure is becoming more complex. This is why many companies are shifting their operations out of China. This strategy aims to establish a China plus one strategy that will allow them to operate without a single country’s influence on the entire supply chain. The top 250 global companies are also shifting their operations out of China and into other developing Asian countries such as India, Vietnam, Thailand, Malaysia, and Bangladesh. Due to the increasing number of international trade wars and the geopolitical situation in the region, the leaders of multinational organizations are more focused on the continuous improvement of their operations.
Industry 4.0
Due to the emergence of hyper-personalization and the increasing number of global customers demanding more personalized products, manufacturers face various challenges in meeting their customers’ needs. To address these issues, they are using AI robots to improve their operations and make factories more innovative.
Talent Strategy
The rise of the pandemic and the increasing number of layoffs have caused talent wars to become more intense. Most employees and workers are looking for various factors, such as a stable work-life balance, a clear career path, and a great opportunity to learn. The way companies hire, retain, and attract talent has changed to accommodate the increasing number of workers and employees demanding more flexible work arrangements. Organizations are now experimenting with new hybrid and remote work models to ensure a secure and collaborative environment.
Focus on Electric Vehicles, Connected, and Automated Driving
Technology’s rapid emergence and evolution have caused the automotive industry to redefine its post-sales and distribution models. However, the challenges that remain are related to the increasing number of electric vehicles and the need to improve the efficiency of its operations. These include improving predictive maintenance and digital fleet management capabilities. Due to the changing expectations of customers, the automotive industry is now focused on developing more effective product differentiation strategies.
Growth of Pharma, FinTech, and e-Commerce Sectors
The rise of COVID-19 has resulted in increased sales of medicines and the growth of the pharmaceutical industry. Due to the increasing number of people shopping online, the e-Commerce industry is expected to continue growing. The rise of cashless services, such as online banking, has resulted in an increasing number of start-ups and global multinational corporations (MNCs) launching new products and improving their capabilities. This has led to the development of new and innovative financial services. The e-Commerce, FinTech, and pharmaceutical industries are expected to continue growing at a strong rate.