It is likely that in 2022, COVID-19 will still make the headlines, although the recent launch of vaccination campaigns in a large number of countries gives us hope that this year will not be a repeat of 2021. But if this epidemic had a huge impact on the economy last year, it is not the only factor that guides the economic destiny of our planet today.
As Mark Raskino, a digital business consultant, asserts, the COVID-19 pandemic came at a time when savings were already . He added: “A decade-long boom, generated largely by low-cost finance and cheaper energy than before, has led to structural tensions such as debt, the collapse of international alliances and artificially inflated asset prices ”.
In this article, we’ll also take a look at other key elements and trends that will reshape the business world over the coming decade. The global pandemic will have a lasting and profound impact on the business world, but other changes in the areas of the “macrobusiness” environment, such as systematic mistrust, the weakening of international relations and climate change, have not. not disappeared, and will profoundly influence the way all business leaders do their business in the future.
So, as we will see, leaders will have to face a host of challenges in the 2020s. But from this macroeconomic turmoil will undoubtedly emerge analyzes that will give life to new business opportunities.
1-? A global pandemic
The impact of COVID-19 will obviously depend heavily on the duration of the pandemic. Today, governments can certainly start vaccinating populations, but with new variants of the virus appearing here and there, no one can say in January 2021 that COVID-19 will be a bad memory in the future. during the year. But if all goes well, businesses and consumers could revert to pre-pandemic modalities more quickly. For example, after September 11, travelers returned to normal Cayman Islands Phone Numbers List flying behaviors only three years later. If the pandemic persists, for various reasons, such as the ineffectiveness of the vaccines offered in the face of the virus mutation, it is more likely to have lasting societal effects. We can cite for example,
As leaders or business leaders, you need to think about how the pandemic is going to affect and change societal behaviors, such as individual hygiene and space standards, social gatherings and family interactions, the rate of d savings and purchasing habits of consumers, to name but the most striking elements.
2-? A stock market crisis accompanied by a recession
Although COVID-19 served as a visible catalyst for the stock market crises seen in many markets of 2020 and the subsequent recovery, the reality is that the markets were already fragile and precarious. In fact, by 2018, many CEOs and business leaders had already anticipated the situation and were preparing for an economic recession, which in fact makes this economic crisis unique compared to those of 2002-2003 and 2009. However, no one could not anticipate the significant damage and losses caused by COVID-19, with all the bankruptcies that followed and the prices that were characterized by persistent volatility.
The best way to deal with this type of stock market crisis is to adopt as much as possible the use of teleworking and the strategic and commercial means that electronic commerce allows, in order to accelerate the digital evolution and the work infrastructures of your company.
3-? Systemic mistrust
Even before the start of the COVID-19 pandemic, global consumer and citizen confidence was at an all-time low. From now on, the closure of borders, the competition between states to obtain vaccines and the debates concerning face masks and other health rules, combined with a certain mistrust observed between the individuals themselves, cause new points of friction, between companies, and people, but also at a political level, between states. However, it is possible that in the long term, this virus will finally be seen as the common enemy, and that the struggle to eradicate it will provoke empathy, a common goal and new cooperation.
At the same time, executives should consider whether consumers will continue to be loyal to brands that have been in the spotlight for a long time, or whether they will turn to companies that have products available at the right time. CEOs and executives of companies are known to have had to make tough decisions in response to COVID-19. And it is imperative to assess whether these actions have irrevocably changed consumers’ attitudes towards brands. A more personal connection effort, like an authentic email and empathizing with your customers, will have the power to help you overcome this feeling of mistrust.
4-? Low productivity
Slow productivity growth and a lack of attention to efficiency and productivity are at odds with the economic growth observed over the past decade. The COVID-19 pandemic has further reduced productivity by complicating business activity. The costs of operating in a world where social distancing is the norm drives up production costs, requiring significant reengineering to return to pre-COVID productivity standards.
As a business leader, set yourself bold, limitless productivity goals that require a reinvention of your overall strategy.
5-? Environmental concerns
At the start of 2020, climate change was moving to the fore in the development of long-term business strategies and plans. Although temporarily overshadowed by the onset of COVID-19, climate change is still viewed by many CEOs as a factor impacting their industry.
So don’t be fooled by the temporary environmental gains caused by lockdowns and reduced travel, although you can look to these results for inspiration on how to permanently adjust your countertop. Keep in mind that large infrastructure projects designed to mitigate climate change could be delayed in some geographies by redirecting funds to stimulus packages, which would require inventing alternative strategies to reduce emissions. of carbon.
6-? A talent shortage
Despite rising unemployment rates around the world, the biggest talent shortages will continue to hit executives in particular. Although the COVID-19 pandemic had the effect of increasing unemployment and underemployment, it did not create new pools of talent with a highly sought-after profile. And even a slight shortage of talent essential to your business can have devastating consequences for your position within your industry.
To overcome this type of shortage, you need to reconsider what kinds of skills and know-how will be needed in the post-COVID-19 world and start performing requalification programs during times when your business activity is calm. . Introduce the concept of agile learning as a core philosophy for running your business, and consider ways to expand the pool of talent you need, by redesigning telecommuting options or bringing in more of freelance workers.
7-? Technological progress
Technological progress will of course have a significant effect over the next decade. AI, data processing, blockchain, quantum computing, etc. will change the way businesses, organizations, and societies work. Market disruptions will be more frequent and we will see the emergence of the stage that comes after the digital revolution: the autonomous enterprise. This will greatly change the entrepreneurial framework for the coming decade.
8- The increased development of 5G infrastructure
There is no doubt that the demand for high-speed internet and a shift towards connected homes, smart cities and autonomous mobility have fostered the advancement of 5G internet technology. In 2021, we will see new infrastructure updates and application developments related to technology research from large companies and startups.
Many telecom operators are on the right track to providing 5G. Verizon announced a huge expansion of its 5G network in October 2020, which will reach over 200 million people. In China, the deployment of 5G is happening quickly. Globally, more than 380 operators are currently investing in 5G, and around 35 countries have already launched 5G commercial services.