Addressing the cooling economy
Doing more with less
How can you set your organization up to thrive in the face of economic adversity? The answer to that question is unique to you and your industry.
Connect with our industry experts today to learn how you can do more with less.
Where are we today?
The warning signs of an economic slowdown are hard to overlook. The unexpected growth that buoyed many businesses at the height of the pandemic has come to a screeching halt. Inflation, supply chain challenges, and interest rate hikes have caused prices to soar and consumer confidence to fall. Businesses have responded by tightening their belts, including through layoffs.
What does that mean for…
You’re already highly leveraged, and price war competition is an ongoing industry challenge, making margins tight. On top of that, historical growth has come through M&A, making your tech riddled with legacy and heterogeneous software. The cooling economy is not doing you any favors with these “pre-existing” challenges.
How can you take the strain off P&L while reducing technical complexities?
The tech sector has been hit particularly hard by the cooling economy, with an estimated 93,000 tech jobs lost in the first six weeks of 2023 alone, according to an analysis by Crunchbase.
And, while layoffs have an immediate impact on a company’s bottom line, they almost certainly have other downstream implications for customer experience. How can you offset the loss of talent while still meeting customer expectations?
Financial services haven’t been impacted from the consumer standpoint, consumers are still banking, using their credit cards, etc. However, a downturn in the economy will reward the institutions that have made the move to a more customer-centric, digital universe to get relief from inefficient processes and move more of the workload to self-service, or AI, for streamlined process enhancement.
What does this mean? Cost takeout and improved customer experience will be the big winner in current and future IT initiatives.
Many healthcare organizations are putting operational and infrastructure projects on hold as they wait to see how economic conditions are going to pan out. And while this may seem like the appropriate action, pausing efforts around making member communities better or making their own revenues profitable will hinder long-term growth and give competitors who don’t pause the market advantage.
The manufacturing industry can’t seem to catch a break. From supply chain and remote work challenges in the pandemic, to now diving head first into price wars due to the tough economy, manufacturers today have to keep profit margins steady by slashing prices and playing the volumes game. As a result, overhead expenses are being cut and labor hours are extended to keep the supply close to the demand.
It’s a tough time for everyone, your workers are working harder and longer. Have you considered ways to make their lives easier? We’ve seen firsthand how a better employee experience translates to a better customer experience.
Energy consumption in the market is steady regardless of the market conditions. However, with low to no incomes for some consumers, energy and utility companies are facing pressure from their customers, skipped payments, and a rise in accounts receivables. Cutting overhead is a natural consideration. We can help energy and utility organizations not only lower their carbon footprint, but also their overhead. As a result, companies can invest their focus on their workers and customers while making the world a better place.
Check out our Blog!
Learning to thrive in the face of