What are competitive advantage threats and opportunities to consider in 2023?
Businesses face enormous challenges and have undergone tremendous changes over the past few years. And this situation clearly will not slow down in 2023. This article, titled what are competitive advantage threats and opportunities to consider in 2023, has tried to bring more than one opinion on how things could progress in 2023. We have taken what marketing companies are telling us and look to see if there is an alternative, perhaps a radical view. Which do you believe? Well, we’d love to hear from you.
Here are the trends we think will have the most significant day-to-day impact on how we work and do business in 2023.
Many perceive that long-promised disruptor technologies such as Artificial Intelligence, the Internet of Things, Virtual and Augmented Reality, cloud computing, Blockchain, and ultra-fast 5G network will continue to develop and grow. What is unknown and a subjective concern now is just how these concepts will be fair in terms of the anticipated growth of application and utilisation.
Alternative perspectives indicate that the digital transformation era may have already reached its peak, especially in terms of its omnipresence as the pervasive source of business growth. IoT seems already to no longer be the primary value proposition it has been promised to be and is Blockchain under siege as a representation of an ‘uncontrollable entity’ as the worldview changes.
Crypto and 5G
Indeed we may see Central bank digital currencies (CBDCs) used to defeat independent cryptocurrency independence as governments move to integrate their ‘state brand’ and consequently polarise the market conditions. The 5G rollout may yet be another laggard in respect of the promised omnipotence of its presence. Manifesting perhaps in the reduced application of its market potential, seeing it quietly shuffled backward. Much like the ‘Big Data’ promised bonanza. Wasn’t IBM’s Watson going to change the world by now?
Perhaps we could also see a blurring of boundaries between various presented transformational digital technologies. Working together in new ways to enhance each other will be the eventual acceptability outside lucrative and often clandestine Government contracts.
Access to cheap money
The likely merging and creating of cohesive user landscapes is a feasible possibility as access to cheap money has dramatically reduced. And the demise of significant incubators like Y Combinator ensures that tech start-ups have to be much more defined in a substantially more challenging investment landscape. The mid-market investor landscape will find less legroom in 2023. Their borrowing costs rise, and reducing margins will crystalise their selectivity and caution. A consequence of the new fiscal landscape is likely to see more mergers of convenience. And attempts to build critical mass through force multiplication.
We are more likely to see augmented working environments develop with hybrid remote working. Business decision-making and quick and easy automation of arbitrary routine. Due to these combinations, creative workloads are being integrated into new ‘at work’ environments. At last, we may see correctly applied synergies even. However, it’s possible that, for the first time, these orchestrations will not be as market-led as they are politically led.
Remote working will be more aligned as office working environments will also see the hand of government influence. The burden of the under-utilisation of urban and city infrastructure will be a considerable worry going forward. So perhaps expect new centrally-led employer legislation. Ensuring that governance will play a part in the mix of new augmentations in and around working options.
Allowing menial and repetitive tasks to be accomplished efficiently with systems and processes supporting each other. Except for those functions that actually require real menial and remedial physical labour. This market will continue to be serviced by migrant workforces who currently fulfill most of such roles. Because of this, the political desire to restrict economic migration may be relaxed in 2023
What are the competitive advantages of new technologies?
Embracing appropriate technologies through process-driven access across many areas of operation will be a cornerstone of the coming transitions. Ironically the changing landscape will see the re-emergence of none technological services outperforming tech value propositions. This is becoming apparent as technology companies operating overheads continue to increase due to unavoidable demands for continuous growth. Therefore look out for artisan and boutique players emerging. One with higher per capita skill sets and much lower overheads become a significant threat as they take market share in terms of both price and performance advantage.
It’s not difficult to see how Artificial Intelligence and other technologies can affect business and industry. However, understanding how these technologies will impact your organisation will be paramount in 2023.
A concern for thought leaders already is that the impact on business is from an over-emphasis on AI-driven solutions. Promoted as cost coefficients and system inflexibilities could end up being more costly and less flexible. Condemning their users to less competitive advantage and agility at a time when these attributes are needed most. The elephant in the room is that AI and big data to be the only option is far from the coming reality.
With application costs and land application incumbencies already laying a higher cost and lower effectiveness burden on straight-jacketed users. Subsequently, as the markets contract in the coming economic strife, the winners may ironically be those organisations that are not so omni-dependent on AI. Those who have seen the advantages of retaining multiple and agile options to service new demands.
It will be important to maintain growth and buoyancy in 2023. to isolate a competitive advantage, business leaders need to focus on a number of different aspects. Including good business practice application and flexibility as cheap money investment rounds will no longer cement over ineffective performance.
Critical Factors in the marketplace
More effective sales and marketing will be more important than ever. And sole reliance on technology means businesses produce much less effective impact due to reduced accuracies, and less distinction. And, therefore, less differential in their market.
Better customer service
Tech-driven customer services will mean worse customer service as a lack of human intervention displays more credible care messages at a time when the service factor will be much more vital. This is a huge mistake for many. More than ever, user tolerance of endlessly poor automated response systems will be noticed. This will therefore be a much more salient opportunity for value perception, renewed brand delight, and competitor differentiation.
More efficient supply chains
Cheaper, but automated, can be less flexible and often not cheaper. Augmentation is a consideration here, too, as agile, motivated humans are often the critical difference when things don’t necessarily go to plan. In a recessional business climate full of unknown hazards, a people-first approach could become the seminal factor in the survival and thrive challenge.
Products and services that cater to customer needs
It is always important to recognise the drive for growth, but compromising the customer’s service requirements through automation has led innovators to identify market opportunities in fulfilling true customer service. This service factor will likely become the battleground for sustainability in challenging times.
Inflation and supply chain security issues major threats to successful supply chain management
Forecasts are already showing that inflation and a sluggish economy will characterise 2023. Central banks are promising to manage a gradual inclination by controlling inflationary rates. Still, will they simultaneously work to enshrine a certain level of austerity to help justify the inclusion of CBDCs to capture a pending move to align terrestrial and digital currency landscapes?
Supply chain and logistics issues increased due to Covid-19 shutdowns and have worsened due to the Russian – Ukrainian conflict and the macro politics resulting in an even more volatile landscape, producing both winners and losers.
The United Nations trade and development body lowered its global economic growth forecast to 2.5% in 2022, citing pandemic-related debt levels, macroeconomic policy changes, and other factors. This is down from 3.6% the year before. For 2023, it seeks only 2.2% growth.
Resilience is a competitive advantage
Resilience will be the key aspect in any way possible to survive and sustain. Industries should minimise their reliance on volatile commodity prices and establish protective measures in their supply chains to address shortages and rising logistical expenses.
It is crucial to fully understand supply chain efficacy and determine levels of exposure to price and supply fluctuations and risks. Seeking innovative and alternative supply options and becoming creatively more self-sufficient to mitigate these risks is an urgent consideration. Many are already mobilised due to Chinese zero-Covid policies and the subsequent shutdowns in manufacturing and restricted shipping. This has some leading companies to manufacture parts in-house rather than risking unreliable Chinese short supplies and logistics issues and reduced logistical costs much-improved carbon footprint.
Smart thinkers are already cutting costs and reducing unnecessary overheads. Developing alternative supply lines – preferably with more local availabilities with less reliance upon the silk road and eastern sourced energy supplies. It’s noticeable that nuclear, shale, coal, and hydrogen are being quietly put on the 2023 agendas.
More than ever in recent memory, robust competitive intelligence is an absolute must to help you navigate your future. It is utterly inconceivable that anyone can survive going forward without knowing as much as possible about their market viability, competitors, new market opportunities, and the threats that could unseat them at any minute.
Some views suggest that too many people are more comforted by reading the ‘business as usual narrative, the comforting lies rather than the reality of the truth.’
The commitment to sustainability
In depressed market conditions that present volatile change, economic, environmental and social sustainability will remain critical aspects for defining corporate values. These are key things that should be assumed as standards of excellence by all. But be aware that sustainability must also be transferable to the bottom line. Organisations must become more efficient at integrating and applying these commitment standards as margins become compressed and performance pressure rises. A more critical marketplace will notice mistakes, shortfalls, and faux pas.
Customers want a seamless and valid experience.
Technology should help consumers by simplifying processes and eliminating hassle, yet in reality, it often does the exact opposite. Attention to this will be important in 2023. The game is changing. With next year’s focus being on immersion and interactivity, many may have to consider ditching longer-term plans and seek whatever confederacy or cooperation they can find to add better value.
Big brands are appointing chief experience officers (CXO) to guarantee that customer experience is critical to their business strategy. In addition to customer experience, businesses must consider employee experience as the battle for the best and brightest employees gets more intense. However, these roles must be genuinely impactful and deliver.
Shortage of talented people.
Employees have been reevaluating their lives in the last year. There’s been a significant realisation and an awakening among many people. They realise that their lives have been unfulfilling and unchallenging.
With the exodus from city centres and quiet quitting, many talented people have abandoned their jobs. Putting pressure on employers to create more attractive career opportunities, hybrid working environments, and improved company cultures and environments. In 2023, fulfilling work, ongoing education and learning opportunities, flexibility, and diverse, value-oriented workplaces will all be even more critical. In particular, relevance will likely be government intervention to counter the growing realisation that getting the bird back in the cage is harder once it has learned to fly. Hopefully, workplace augmentation will be an asset in this substantial challenge rather than a liability.
Because of the challenges facing the economy and business in 2023, human skills such as creativity, critical thinking, interpersonal communication, leadership, and applying ‘humane’ qualities such as compassion and caring will be critical.
The critical advantage
Octopus Intelligence has been dedicated to supporting businesses to be ready for the coming economic conditions since we plotted the market downturn probability in 2014. We are unique in the intelligence sector and are committed to delivering vital services to clients who recognise the importance of best-of-breed competitive intelligence.
What are competitive advantage threats and opportunities to consider in 2023?
In conclusion, it’s important to remember that the pace of change is accelerating. This means that businesses need to make plans for what lies ahead and update them as necessary. This article asked what are competitive advantage threats and opportunities to consider in 2023. Business leaders will need to make tough decisions as change forces many companies to calm down or even change direction. But the sooner businesses do this, the better for them and for their employees.