While many hoped for a less disrupted year in 2022 than the previous ones, it is clear that this year has also brought its share of upheavals, such as armed conflicts and the economic recession. For business leaders, the objective remains the same: how to demonstrate agility to continue innovating and gaining market share?
At the dawn of a new year, it is already possible to predict the main themes that will challenge the strategies of leaders, namely sustainable development, productivity and the supply chain.
Quantified and precise objectives for ESG initiatives
According to the “Survey of Sustainability Reporting” study carried out by KPMG in 2022, 95% of the French companies analyzed are involved in reporting on sustainable development and ESG. In 2023, environmental, social and governance (ESG) issues will move out of mainstream corporate initiatives. So leaders will be given monetary goals to make those goals less abstract. Instead of a blanket promise to reduce emissions, they will be asked, for example, to reduce waste electrical and electronic equipment by a defined amount.
There is broad support for the idea that companies should prioritize these programs. Without a solid and concrete ESG program, brands and companies will be in bad shape. Employees want to work for companies that show they care about the environment and society. On the other hand, according to the CBI, 2/3 of investors take ESG factors into account in their assessments. As a result, this type of initiative will play an essential role in the months to come, as will accusations of “greenwashing”. The smartest players in the market will make sure they have the necessary data to back up their claims.
Energy costs will accelerate the development of environmentally friendly data centers
In terms of data center design, the issue of respect for the environment has been raised for several years. But with the energy crisis and soaring prices, the general imperative of efficiency has recently taken on new impetus. Data centers consume 1-2% of the planet’s electricity and, according to a study commissioned by the European Commission, their energy consumption is expected to increase by 28% by 2030; the increase in tariffs will therefore have considerable repercussions next year.
In addition, the ability to benefit from electricity produced by renewable sources must also become a priority – both in terms of site selection criteria for the construction of new data centers and for the refurbishment of old installations. We will also look for cooling systems that consume less energy in order to further reduce costs. Finally, we will see creative ways to use data center heat, either as another source of renewable energy or to power innovative side projects, flourish.
The need to boost productivity will transform workspaces – again
When times are tough, it’s more important than ever to be productive. Next year will demonstrate it again – and hybrid working could be among the collateral victims. Working from home has saved many businesses during the pandemic, but it comes with downsides. Among other things, it slows down decision-making. Working right next to co-workers can really boost productivity, as you can get your questions answered live. No need to send an email or schedule a phone call, which can take several days.
Even under the best conditions, the ability to innovate faster than the competition is a real advantage, and slow collaboration and decision-making can have negative consequences on innovation. Next year, more companies are expected to insist on having their employees in the office a certain number of days a week, or even full-time, to ensure that innovation happens at the necessary speed. A trend that the social network LinkedIn has already confirmed in a brand new study, noting a significant drop in the number of job offers offering telecommuting.
Businesses will look to technology vendors with a robust sourcing strategy
The past two years have taught bitter lessons about sourcing from suppliers whose supply chain is not strong enough: lead times can reach months or even years in some cases. Professionals no longer want to buy from other companies that don’t have a resilient supply chain in place. The latter are therefore adjusting their technological stack in order to anticipate failures and uncertainties on a global scale. Those who manage to deliver in a reasonable time frame will benefit considerably. Buyers will need to seek suppliers with multi-site operations and manufacturing capabilities across multiple continents. The supply chain will have to stand out for its unique flexibility, resilience and responsiveness.