Using tech to optimise for a new global reality: 2023 predictions part I

Market-altering dynamics have reshaped our global reality in the last 12 months, with supply chain disruptions, escalating energy costs, inflation, interest rate hikes and changing consumer demands. 2023 will be a tough year for the worldwide economy with the ever-growing possibility of a recession. However, through adversity comes an opportunity for growth – and this is where technology will play a key role in helping leaders build resilience into their business. In the first part of my new article series, I predict some ways in which tech will enable us to optimise for this new global reality in 2023, with real life examples from our own work with our clients.

Investment in tech for business growth

Business growth will likely continue to slow in 2023. As a result, new and innovative tech will have to play an even more crucial role in helping organisations to drive efficiency, profitability and new customer engagement channels. As tech leaders work to create a more resilient infrastructure, they’ll want to draw on an ecosystem of digital solutions to reduce dependencies in vulnerable areas; this could involve aligning with partners that are more resilient to global risks or working with suppliers across traditional industry boundaries.

M&A, especially for value creators, will remain in focus and an area companies will explore to bolster their tech, data and innovation expertise. Those that are strong enough for transformational moves like reorganisations and portfolio optimisation have a unique opportunity to fundamentally rethink their revenue profile and get ahead of the competition. For companies looking to scale up new digital initiatives, such as machine learning and robotic process automation, a quicker way to market will be strategic acquisitions to complement or lead their go-to-market – allowing them to acquire the necessary digital assets and skills at pace.

Sustainable technology

Digital transformation alone will not be enough in the coming decade. Of all the trends predicted by Gartner in their 2023 Tech Trends report, there was a common thread that underpinned them all: sustainable technology. We know that climate disaster will be eminently more challenging than the pandemic, and businesses are ensuring that environmental, social and governance factors are at the centre of their strategic vision – including a transition towards a circular economy (CE).

Sustainable technology is a framework of digital solutions that drive ESG outcomes, such as advanced analytics for improved traceability, using automation to reduce resource-intensive activities, or AI to optimise operations and reduce carbon footprint. For example, advanced energy management systems in eco-friendly warehouses can monitor the usage of heat, water, electricity and gas across their entire facility.

I also predict that businesses will need to consider the energy consumption of their digital transformation programmes; we will be increasingly advising clients on the environmental impact of data centres and how to mitigate and manage 5G energy consumption, which will become an increasing drain on energy consumption.

Supply chain resiliency

Many industries are still struggling with supply chain issues from Covid-19, and these problems are only exacerbated by the war in Ukraine, labour shortages, and trade embargoes. In 2023, companies will look to technology to help them map out their supply chains and explore ways to mitigate areas of supply and inflation risks. Most business leaders have already begun their journey to digital transformation, taking advantage of optimisation software to streamline their operations. Gartner also predicts the rise in a ‘digital immune system’ (DIS) next year, which combines practices and technologies for software design, development, operations and analytics to mitigate business threats.

At Infosys Consulting, we are also speaking to our clients about the growing importance of supply chain control towers. A cloud-based supply chain control tower (or supply chain command centre) offers end-to-end digital visibility of a supply chain and access to real-time data from any location 24/7. This offers several use cases, including visibility of inventory value, suppliers’ performance visibility, accurate and timely capacity planning forecasts, and visibility of quality levels and failure rate. Building protective measures into supply chains like these will help to deal with shortages and rising logistical costs.

Technology has the power to unleash new and amazing possibilities to evolve business, amplify human capabilities, and positively impact society – something which will be critically important in the new global landscape of 2023. In my next predictions article, I look at some of the new and disruptive uses of emerging tech that we are seeing from our clients.