The global pandemic unlocked digital transformation across all industries as businesses of all types and sizes realised that they needed to modernise their technology infrastructure in order to not just enable their employees to work remotely in a lockdown but also more importantly, for them to even operate. As most of the world came out of lockdowns, new geo-political and economic pressures are creating new challenges for businesses.
These are uncertain times indeed with supply chain and energy crises creating inflationary and currency fluctuation issues but the good news is that the countries in Asia Pacific appear to be better prepared for it.
2023, however, will continue to be a pivotal year for many businesses as they navigate these macro-economic issues. On top of that, they have to make a decision on whether to stick with hybrid work policies and if so, how to continue to not only attract talent but to keep them engaged and productive.
These are the key themes that I see will dominate the business landscape in 2023:
- Business transformation will continue to see a blurring of lines between industry sectors. Some examples: Grab is no longer just a transportation company; and is Stripe a financial services provider or a technology provider? AirAsia has soared beyond the sky and ventured into food delivery. Meanwhile, grocery retailer FairPrice has joined forces with Standard Chartered, and forayed into digital banking with the launch of Trust Bank. Consumers are making their buying decisions in different ways and businesses are having to reinvent themselves to ensure that they remain relevant.
- Supply chain issues will stabilise in 2023 as technology manufacturers re-architect the way their products are made with fewer components. They will also establish broader sources geographically to counter any instability in any part of the supply chain.
- Employee Engagement will be the priority for businesses in 2023. As companies evolve their work from home policies, the focus will not be where the employees do their work from but on work effectiveness. Employee engagement will be key to keep employees committed with more fun activities to reconnect people.
- ESG (Environmental, Social and Governance) will be a conversation that will percolate through the entire organisation with accountability at all levels. There will also be a shift to the Social and Governance aspects as organisations strive to meet government regulations and the expectations of shareholders, employees, customers and partners.
- The greatest challenge for companies in 2023 won’t be inflation or rising energy costs but how governments respond to them. Most organisations established financial fitness programmes during the pandemic and are in a good position to ride through the storm. Now they require prudent government policies to mitigate rising inflation and energy costs and currency fluctuations.
2023 will be an interesting year with challenges for all businesses. But as with every crisis, there are opportunities for the companies that have established efficient business processes and who can transform themselves to take advantage of the new realities. Focus on what they can control and not on what they can’t.
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Chua Hock Leng is the area vice president for ASEAN & Greater China at Pure Storage
