A wide variety of factors – including economic and financial instability, geopolitical uncertainty, and climate change – continuing to cause disruption to businesses.
In 2023, European businesses and consumers face substantial headwinds created by the combination of the Covid-19 pandemic’s aftermath and the effects of war in Ukraine.
According to Forrester’s 2023 Predictions report for Europe, governments will struggle to support their shivering citizens through the energy crisis — thus, trust in government will plummet and European consumers will go greener.
But a weakening European economy won’t hand all the power back to employers; they’ll still need to offer anywhere work.
Customer
The challenges of 2022 — when companies lost their customer focus amid rising customer expectations and a worsening economy — will create an inflection point for customer experience (CX) programmes in 2023.
CX programs that help their organisations achieve their brand aspirations — and have the data to prove it — will thrive despite corporate belt tightening. In 2023, Forrester predicts that one in five CX programs will disappear — and one in 10 will be stronger than ever.
CIO
Various forces — geopolitical strife due to the Russia-Ukraine war, inflation and supply chain issues — all point to economic turbulence.
However Forrester’s data suggests tech spend will continue to grow — eclipsing $4,8-trillion this year.
In 2023, 80% of companies will pivot innovation efforts from creativity to resilience.
Emerging technology
Forrester predicts that, in 2023, AI adoption within enterprises will continue to expand and be more creative, trustworthy, and optimised.
Additionally, global economic uncertainty and changing climate dynamics will influence market shifts in the edge, IoT, and networking triad.
Furthermore, economic uncertainty, cloud-native technology, and demands for data sovereignty will reshape cloud in the year ahead.
Chief marketing officers
More than half of online adults in the US, UK, and France are anxious about the possibility of a recession, according to Forrester’s 2022 data, and they plan to pull back their spending.
As the market catches up to the reality of a global downturn, CMOs who scrutinise their marketing strategy to manage short-term and long-term growth will win out.
In the coming year, brands will pivot to a value orientation or risk up to 20% of their customers.
Environmental sustainability
Environmental sustainability is fueling a market revolution that will present companies with opportunities to develop new products and services and to build off these innovations.
Massive government funding will further spur companies to make environmental sustainability a strategic imperative as they rush to take part in this historic business opportunity.
Forrester predicts that carbon offsets and credits will be back in fashion, but with less fraud in 2023.
The Metaverse and NFTs.
In 2023, metaverse and NFT stunts will take a backseat to fighting the fires ignited by a volatile economy.
Brand experimentation will pivot from the superficial “one and done” headline-grabbers toward efforts that deliver employee and consumer utility.
Expect a sober 2023, where the industry focuses on function over form to prove the metaverse’s value to a skeptical potential customer base.
The future of work.
After nearly three years of pandemic-induced change, organisations are trying to find their footing in a new normal of anywhere work, skills shortages, and talent constraints.
From rollbacks of flexible work to layoffs and more, some companies are trying to use this moment to revert to old habits.
Many of them will overreact to outside stimuli and under-respond to employee needs and opportunities.
Trust
The 2020s are off to a tumultuous start. Individuals have experienced extraordinary political and social upheaval, the reemergence of infectious diseases, financial instability, scandals, and extreme weather events.
Against this unsettling backdrop, citizens, consumers, employees, and partners will look to organisations they trust for stability and positive long-term relationships.
Yet not every organisation knows how to cultivate trust. In 2023, some industries that normally experience healthy levels of trust and those that take trust for granted will see major declines that will take years to repair, while others will buck historical trends to maintain their trust levels.