Forecasting the Business and Industry Landscape in 2024
As we step into the fourth quarter, it is time to assertively reevaluate and reexamine the trajectory that business and industry are poised to follow in the upcoming year of 2024.
Given the predicted exacerbation of the global economic downturn before any signs of improvement, companies are expected to maintain a cautious approach towards spending and investing in radical new ideas in 2024. Nevertheless, there exist certain technological and societal trends that are undeniably significant, demanding immediate attention and action. These are the domains where we can confidently anticipate a constant stream of innovation and substantial investment, and I will meticulously highlight the most notable ones in this article.
Ubiquitous Generative AI
According to The Boston Consulting Group, "to be an industry leader in five years, you need a clear and compelling generative AI strategy today." AI and machine learning have been making waves for over a decade and are now deeply integrated into many products and services offered by major companies. Generative AI empowers organizations of all sizes to create and intelligently automate the customer experience and internal operations.
Nurturing Soft Skills and Human Connection
As automation becomes increasingly capable of handling technical aspects of work such as coding, research, and data management, the ability to leverage soft skills for tasks that still require a human touch becomes crucial. In 2024, we will witness organizations increasing their investment in developing and nurturing skills and attributes such as emotional intelligence, communication, interpersonal problem solving, high-level strategy, and thought leadership.
The Solution to Skills Shortages
The skills shortage has been a topic of discussion for several years. Hiring practices have evolved to prioritize candidates with specific experiences and skills relevant to a role, rather than focusing on qualities such as educational attainment or age. This shift in hiring practices will continue to be a strong trend. Additionally, we will see increased investment in training and upskilling, particularly around disruptive technologies like generative AI, and skills that will be in high demand in an AI-driven economy.
Viable Business
The driver behind sustainable business practices is customer demand. Research consistently shows that consumers increasingly prefer companies with a solid commitment to reducing their environmental footprint. Additionally, we are discovering that green solutions often lead to bottom-line growth. For example, Walmart dramatically reduced its spending on fuel and vehicle maintenance by transitioning to an electric vehicle (EV) delivery fleet. As the green economy expands, we will become better at identifying greenwashing, where companies merely pay lip service to environmentalism without implementing environmentally friendly practices.
Mass Customization
Customer demand is a key driver behind personalization-at-scale. Research indicates that consumers increasingly prefer companies that are committed to reducing their environmental footprint. Companies like L'Oréal have developed personalized cosmetics to match customers' skin types, and Nike and other manufacturers offer custom shoes in thousands of style and color combinations. This trend will lead companies of all sizes to offer customized solutions to build stronger relationships with their customers.
The Era of Data
Data is an increasingly valuable business asset. By 2024, more companies will have streamlined their operations and improved their customer offerings by adopting a strategic approach to data. As a result, they will be ready to monetize data itself, driving new business opportunities. Leading the way are companies like John Deere, which sells data from its sensor-laden farm equipment back to farmers as insights to improve productivity. As access to large-scale data collection and AI-driven analytics becomes increasingly democratized, this trend will be adopted by smaller companies in niche and diversified sectors.
The Customer Journey Transformation
The concept of customer experience is illustrated by a line graph that rates customers' sentiment at every touchpoint where they interact with a company, its goods, or its services. Traditionally, companies focused on building a business model around superior quality or value. However, in 2024, the emphasis is on ensuring that every interaction and experience leaves the customer satisfied. This includes personalized marketing, on-time delivery, frictionless setup and installation, and efficient problem resolution. It is becoming increasingly common for companies and brands to appoint a Chief Experience Officer to ensure these principles are fully integrated into all business strategies.
Business Continuity
Ensuring organizational protection against various threats is paramount. These threats can include cyber attacks, economic downturns, environmental events, war, global pandemics, or the emergence of disruptive new competitors. Learning from companies that have not only survived but thrived in turbulent times, businesses are now actively planning and preparing for potential future events. Despite the uncertainty of the future, building resilience to any emerging threats will be a key business trend in 2024.
