In the ever-changing landscape of the business world, staying at the forefront is more than just an advantage—it is a necessity. As we gaze into the future, 2024 will stand out to be a year defined by transformation, adaptation, and innovation.
While global economic challenges may present sizable hurdles, the compelling forces of technology and societal shifts will also be too impactful to be disregarded.
Therefore, this article seeks to predict the top ten most notable business trends every organization should be poised to adopt.
TOP 10 TRENDS BUSINESSES MUST PAY ATTENTION TO
- Generative AI: This year, there is keen anticipation for the leaps in generative Artificial Intelligence (AI), expected to be one of the standout technological advancements. Projections by American technological research and consulting firm Gartner, hint that AI contribution will reach 10 percent of all data generation by 2025, setting the stage for substantial growth from this year.
Significant strides have already been witnessed, with OpenAI’s launch of ChatGPT in the latter part of 2022. The generative AI landscape has since experienced a surge in investor interest, fueled by robust earnings from notable companies such as Nvidia. Throughout 2023, tech giants concentrating on generative AI have consistently outperformed the broader market.
Therefore, there is a need for businesses to stay abreast with generative AI’s transformative potential and pursue investments to leverage its full benefits for increased productivity and efficiency. According to Goldman Sachs, there's potential for generative AI to boost global gross domestic product by 7 percent in the next decade, exerting a substantial influence on both business and society.
- Sustainable business technologies and practices: In 2024, another significant trend will revolve around the advancement of sustainable technologies and business practices such as clean, green, and climate technologies. Gartner identifies sustainable technologies as crucial strategic trends, forming a digital framework that contributes to Environmental, Social, and Governance (ESG) outcomes.
Gartner predicts that by 2027, 25 percent of Chief Information Officers’ compensation will be tied to the impact of sustainable technologies adopted by businesses. Equally, the Harvard Business Review emphasizes the immense economic opportunity, estimating a $12 trillion potential, even with achievement in just a few of the 60 identified areas, such as food and agriculture, cities, energy and materials, and health and wellbeing.
Key sectors including garbage recycling, electric vehicles, sustainable construction for homes and businesses, green energy, agricultural technology, and carbon capture will witness strong investor interest in 2024.
- Personalization-at-scale: The rise of personalization on a large scale is fueled by customer preferences, with studies indicating a growing inclination toward companies dedicated to environmental sustainability. Simultaneously, the expansion of the green economy reveals that eco-friendly approaches can contribute to overall business success.
Instances like L’Oréal creating tailored cosmetics based on individual skin types and brands like Nike providing custom shoes in a myriad of styles and colors exemplify this trend. As this continues, businesses, regardless of size, are expected to adopt personalized solutions to foster deeper connections with their customer base.
- The data economy: In the upcoming years, businesses will recognize the growing significance of data as a valuable asset. More companies will be expected to enhance their operations and refine customer offerings through a strategic approach to their data. This preparation will propel them toward the next phase - capitalizing on their datasets to explore fresh business opportunities.
An example of companies pioneering this shift is John Deere, which has innovatively sold data from its sensor-equipped farm equipment to farmers, providing valuable insights for productivity improvement. As large-scale data collection and AI-driven analytics become more accessible, smaller companies in various niche sectors are likely to adopt this trend.
- The skills solution: The skills shortage has been a recurring topic in recent years and companies’ response to this challenge has included shifts in hiring practices, focusing on candidates with relevant experiences and skills rather than traditional qualifications like education or age. This approach will persist as a prominent trend in 2024.
Moreover, there will be ongoing efforts to invest in training and upskilling, with a specific emphasis on disruptive technologies like generative AI and skills crucial in an AI-driven economy.
- Automation: In 2024, the field of industrial automation is poised for increased growth and advancement, fueled by the convergence of technologies like the Internet of Things (IoT), edge computing, AI, Machine Learning, and 5G/6G. Businesses should therefore be ready to consider the adoption of new and emerging trends such as an increase in predictive maintenance, real-time monitoring, interconnected shop floors, automated inventory control, and the application of AI algorithms for logistics optimization and demand forecasting.
The incorporation of artificial intelligence, robotics, optimized logistics, streamlined transportation, and workflow automation will not only reduce timelines but also lower costs. The introduction of innovative technologies in supply chain management, such as the adoption of paperless transportation documents, will further expedite the movement of goods and contribute to cost savings.
These technological advancements are set to empower industrial companies, allowing them to reach new heights in terms of performance, efficiency, and competitiveness within the global market. It's foreseeable that in the year 2024, the landscape of supply chain management will undergo a transformative hyper-automation revolution.
- The customer experience revolution: Visualize a graph tracking your customers' feelings at each point of interaction with your company, products, or services – that is the essence of the new customer experience demands.
While companies traditionally based their business models on superior quality or value, the focus in 2024 should be on making every interaction and experience evoke a positive response from the customer. This should involve personalized marketing that caters to customer needs promptly, ensures timely deliveries, promotes seamless setup and installation, and drives effective issue or complaint resolutions.
Many companies are now appointing Chief Experience Officers to embed these principles into their overall business strategies.
- Health and Wellness: The emphasis on health and well-being in the workplace is gaining traction, signaling a change in corporate focus towards a more comprehensive approach to employee health, despite a slight dip in growth.
CircleCare, a US-based company, contributes to this trend by providing a platform that motivates employees to adopt healthier lifestyles through gamification and rewards. Meanwhile, Trickle, a UK-based startup, is revolutionizing employee engagement with its platform, capturing real-time experiences and suggestions, and fostering a culture of openness and collaborative problem-solving.
These innovative approaches are reshaping workplace culture, highlighting the significance of mental and physical well-being as integral factors in employee satisfaction and productivity.
- Remote selling and virtual events: The lasting influence of the pandemic on how businesses engage with their customers endures, and in 2024, the significance of virtual events and remote selling will remain integral to marketing strategies.
Companies are anticipated to continue leveraging these approaches, utilizing online conferences, virtual product launches, and remote participation in trade shows to effectively connect with global audiences and drive sales.
- The influence of Generation Z: This year, the spotlight will be on Generation Z, the youngest cohort in the workforce, emerging as a dominant force. Businesses are expected to tailor their approaches to cater to the distinct preferences and values of this generation, placing a strong emphasis on diversity, inclusivity, and social responsibility.
To effectively attract and retain the tech-savvy and socially conscious Gen Z demographic, organizations will need to embrace strategies that resonate with their unique outlook on the workplace and society.
CONCLUSION
In a world fraught with uncertainty, the key lies in cultivating resilience in the face of cybersecurity risks, economic recessions, environmental adversities, or challenges posed by disruptive competitors, among others.
The year 2024 promises to be a year of dynamic change and innovation. To thrive in this landscape, businesses must adapt and embrace these ten key trends. It’s not just about surviving – it is about thriving in a future filled with possibilities.
ABOUT THE AUTHOR
HAROLD KWABENA FEARON is an Associate at SUSTINERI ATTORNEYS PRUC with its Corporate, Governance, and Transactions Practice Group, specializing in legal service provision for Startups/SMEs, Fintechs, and Innovations. He welcomes views on this article via harold@sustineriattorneys.com