The biggest business trends for 2023

(Tomka)

The world is turning – that is not one of this year´s trends. But the turning brings changes and trends that will have a huge impact on this year in business. We show you which ones they are.

New Year´s Eve is gone for quite some days. We finally arrived in 2023. So, why would you want to know about the trends for this year which you already have been experiencing? Because you certainly are experiencing those trends already. And they might have an impact on your business – in the one or other way.

So follow us on the path through the biggest business trends for 2023……

1) Hydrogen

Everyone is discussing it: e-mobility, with no more combustion engines in Europe from 2035 on; Elon Musk´s success and stumble with his Tesla shares; the dependency on Russia´s gas delivery for energy supply; the overload of electricity systems, and a possible blackout, and more.

There is a need for green energy, there is a need for more energy, there is a need for enough energy. But there hardly are solutions.

Many efforts on the other side will flow into the development of solutions based on hydrogen. This resource offers industry nations the possibility to remain such, but still accomplish objectives in fighting climate change.

Learning about the limits of electricity-based solutions in the last years, we find national hydrogen strategies and hydrogen councils all over Europe. There are also strategical partnerships in hydrogen, like Austria´s agreement with UAE to develop ways to get and use hydrogen fuel. 

However, the road is long, and it is long and winding. It is hard to say how quickly solutions can be created and established. It is hard to say if this situation will create a competition between hydrogen visions and electric solutions. But it seems clear that hydrogen is a must for creating that energy supply we need – not only to remain the standards, but also to increase them.

2) AI

Artificial Intelligence (AI) arrived in reality, and in people´s daily life. Typical examples like intelligent speakers (Alexa or Siri or others) are just the tip of the iceberg. Other areas which will see a strong impact of AI are medical diagnosis and surgery as well as in industry and the development of automation.

But also developments like ChatGPT, GPT-3, Alpha Fold or Stable Diffusion show that protagonists in AI have been walking with seven-league boots. The startup DoNotPay (The world´s first robot lawyer) made a revision of a lawsuit in the USA based on an AI software.  And it seems there soon will be more gamechangers in this field.

This year will see intense efforts in the development of new projects in this field. An increase of investments, too. So, 2023 is far more to be understood as a period of creating the critical mass, and also to find compelling solutions which can dig even deeper into daily life.

The same is valid for close topics like Blockchain. What is to be said about both, AI and blockchain, is: practical tools which will be used by a critical mass of customers will be crucial for their further development.

3) Cyber Security

Institutions and companies have seen cyber crimes and cyber attacks in the last years grow by 30 percent. Un-targeted attacks with ransomware increased in the one-year period between 2020 to 2021 over 3000 percent (written: three thousand). That calls for measures to increase cyber security at the same rates.

In fact, entrepreneurs have to make sure their websites and databases are secure. This will take several options to create and to maintain cyber security. One is, of course, the technological aspect like the constant improvement of firewalls and the like. Another is the financial aspect combined with the legal one. It takes cash and legal support if data or online shops are hijacked. Therefore, insurance companies will start to offer new policies for companies which shall cover the costs. In fact, one insurance company in Austria does offer such contracts.

Protection will be crucial, nevertheless. For that services can help to smooth out the damage done by cyber-attacks, it will be necessary that companies make sure their cyber security is state-of-the-art, which will we be key for many reasons.

4) eCommerce Growth

Covid and the lockdowns pushed eCommerce to a new level. The good news is: there are no signs for a decrease as an aftermath of this strong growth. On the contrary!

The growth rates changed from 2021 on. The volume then experienced an increase of 17.1%, while 2022 saw a growth rate of “only” 9.7%.

2023 will see a real growth again, which then is 10.4%. The years ahead on the other side will experience lower growth rates, but still growing on a high level.

That is good news for all who already have their online distribution. And it is a wake-up call to those who still are waiting.

5) Remote teams

While the pandemic changed eCommerce for the better, it made the working life a bit more difficult for companies. And while employees learned to enjoy the new way of working, entrepreneurs remained unprepared to get the most out of the new situation.

Meanwhile managers and entrepreneurs can be sure that remote teams came here to stay. For sure, this changed at lot, but some companies already have found out that it also has changed some things for the better. Like virtual conferences which became as usual as real-life conferences had been before.

Also, the control of the work accomplished has become easier. Bosses, managers, and other superiors have found methods to get a better assessment of their employees´ motivation. But also, to install working schedules with the employee being in the office just once or twice a week. Which – potentially – saves plenty of office space.

Remote teams will change the way of working further on. Not all the changes will happen in 2023, but this year will be decisive which paths will be taken in the near future.

6) Immersive Technology

Entertainment, and therefore content, becomes constantly more important. And, therefore, also its creation underlies developments.

This all began actually with the combination of “digital” and storytelling, when pioneers in this field like Maurice Benayoun, Lawrence J. Rosenblum, or Nintendo´s Gunpei Yokoi had the vision to make digital experiences feel like the real life. And it took a further step with the rise of Content Marketing and infotainment.

Nowadays, Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR) is state-of-the-art. And it will be a new step in content creation. Also, for enterprises. Also, in media design. Immersive Technology is the next logic step in experience, in user experience.

On top of all developments will be – yes, of course – the Metaverse. Not only the company formerly known as Facebook, but the whole idea of Metaverse, and all the options and opportunities for companies to thrive.

2023 will be the year those opportunities will be taken, and when companies will learn about the customers needs and responds on the offers. And, of course, the improvement of User Experience (UX) will bring new champions in the market.

7) Inflation

The crises of 2022 will continue in 2023. And the increase of energy prices, military expenses, and commodity as well as capital costs will push inflation also this year.

This is important to understand when you think about investments or desinvestions. The ones – investments – will cost more, desinvestions will bring less. Yet, the one or the other might be the next necessary step in your business.  Therefore, inflation and the increasing prices in your supply chain have to be considered.

Inflation will challenge enterprises this year. And some ambitious goals. It even might be tough. However, this also creates the need to increase profitability in a sensible way. Companies which focus on this will not only be able to change themselves, but they will also play an important role in the years left in this decade.

8) Digital Business Model

Without thinking digital, companies and entrepreneurs hardly will make the big step in the years to come. To say in honestly, and with all its cruel truth: it might be hard to survive in business.

There are many ways to grow, but there are not many ways to scale up. All the scale effects have to be managed in time, and with thinking beyond the obvious. Traditional companies will have a hard time in scaling with little opportunities to scale.

It will not be enough to make up one´s mind about which tool to choose. It will take a clear understanding of the underlying processes of your business. Manufacturing processes are as important as those in communication and logistics. Each company is 2023 in competition with the best. And especially the best ones in each industry and in each skill will have a digital root of their championship.

So, individuality, idea, and execution will beat sameness and randomness. A digital business model does support this.  

And consider this – five of these eight trends are directly based on digital transformation. One – remote teams – can just be realized with digital tools. So, digital is not the enemy. The enemy is not to know how to exploit that situation for the own benefit. Therefore, the strongest tool is still a strong mind.

These are the trends for 2023 – and probably beyond it. However, considering them will take you forwards, and it definitely will help to grow your business. No matter which size it is.

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