4 megatrends shaping the business landscape—and why they matter

Megatrends: A busy shopping centre environment with people on their devices

We're all familiar with general trends that shape the business environment we operate in. What separates a megatrend from these is sheer scale. A megatrend is a challenge or priority area that affects every company across all sectors—a long-term pressure that will likely have a permanent impact on business for organisations that fail to adjust accordingly.

Organisations need insight into these megatrends in order to navigate them. Based on conversations with ServiceNow customers, partners, and internal executives, we’ve identified four key megatrends that will affect organisations this year and beyond:

Each of these priority areas is interlinked. We can’t talk about climate change strategy without discussing how it affects recruitment, just as we can’t invest in technology to improve customer experience without first addressing the financial pressure caused by inflation.

It's crucial organisations take the time to properly understand these megatrends and their impact on the business landscape. For organisations that do, there’s a real opportunity to both weather the challenges and increase business resilience ahead of obstacles in the future.

Inflation

Inflationary pressures caused by the pandemic have accelerated as a result of the cost-of-living crisis and geopolitical issues that increase the cost of fuel and other essential goods. Experts warn the situation is likely to continue, according to Forbes.

Though different organisations will have different priorities, inflation presents a universal challenge as it affects every part of a business. When looking to deal with the breadth of challenges facing us today, prioritising cost savings and efficiency is a good place to start.

Putting a successful strategy in place to combat inflation requires a varied approach. Organisations must work out where they can cut costs without disrupting business operations or service levels. The key is to work towards greater levels of efficiency with the same, or fewer, resources. This can be achieved with the right supporting tools—tools that essentially allow a business to do more with less.

Climate change

Of all the trends, climate change is set to have the biggest effect on business operations, according to edie. The urgency surrounding climate change is increasing, but real progress on the issue is limited.

Organisations must reconfigure their approach to environmental, social, and governance (ESG) with tangible outcomes at the forefront of the agenda—not just because it’s the right thing to do, but also because it can lead to genuine business benefits. Increasing reporting capabilities, prioritising risk-readiness, and publicly committing to sustainability initiatives can help increase business resilience and provide a competitive advantage.

The empowered consumer

Accelerated digital transformation, the ongoing cost-of-living crisis, and the increasing urgency around climate change have altered the behaviour of consumers. Modern technology empowers customers. But rising prices and a wealth of choices means they’re less loyal to brands now than they were two years ago.

In other words, your customers sit in the driving seat. If you don’t provide exactly what they want, how and when they want it, they’ll look to another company that does.

To remain competitive in the eyes of the empowered consumer, it’s crucial organisations stay informed about customers’ preferences. This approach requires executives to prioritise the right data.

Investment in data capabilities can provide organisations with better insight, which in turn can help them create a more personalised experience that meets customers exactly where they want to be met. It also makes it possible to adapt when necessary—adjusting the customer experience you’re providing as and when needed.

The changing workforce

Just as the problems and progress of today have changed consumer behaviour, employees and workplaces must change, too. Digital transformation has turned how, where, and when we work on its head—and the impact on employee experience is significant.

This megatrend is particularly important because we have five generations in the workforce at once. This is a challenge in itself: Organisations must juggle the demands and wishes of a variety of employee demographics at once, while also recruiting for a future that’s likely to rely heavily on AI-based skills.

Next steps for your organisation

Getting clear insight into the megatrends and what they mean for your business is the first step to understanding how to navigate them. Find out more about the topics—and how customers are facing them—in our megatrends ebook.