Predictions for 2024

Over January, we at Enfuse Group have been reflecting on 2023 and the future for 2024.

Here’s my top 10 predictions for businesses and their priorities this year. Feel free to agree or challenge, or even call me out in a year’s time on where I got it wrong!

1. Uncertainty is the only constant
   Every year we think no more curve balls can hit us like the last, but they keep on coming. Businesses are now more accepting of the notion that uncertainly is the norm. This is significant as previously business leaders would hold off making big decisions till things settled and improved, but in late 2023 and into 2024 there’s evidence that they realise they can’t wait any longer. The big decisions they do make, however, are on the safer bets. This means less spend on innovative items where ROI is unclear or exposed to risk.

2. Process efficiency is king
   The market is tough with limited spending and growth, hence companies are focusing on cost efficiencies more than ever. During covid, the easier cost savings were realised such as head count and supplier rationalisation, which means organisations are now focusing on getting into the deep tissue of their processes. The need to model, simulate and mine processes to find opportunities for streamlining is greater than ever and likely to continue, with a particular focus on how AI and automation can help.

3. Back and mid Office systems need upgrading
   Five years ago the focus was all on customer facing systems. These drove revenue and success in a growing market. In today’s climate, however, the focus on savings means the back and mid office systems need modernising to unlock process efficiencies and people performance. Mix this in with big vendors like SAP getting ready to switch off support for old on prem versions of their software, and you have the next tech gold rush. Replacement of ERP, CRM and HR systems is and will be as popular as ever, only now under the banner of ‘digital transformation’.

4. AI is the new obsession but no one knows what to do with it
   Every conference you attend will have notable coverage on the impact of AI. The truth is that very few businesses have any clear understanding of how AI will take them to the next level. The quest to understand AI and how to apply it will continue to consume C-suite thinking time. Towards the later part of 2024 we should start to see applied AI become a reality, with clearer business propositions and consulting services to enable these. However, many organisations will still be at the ‘thinking’ stage.

5. Sustainability is important, except when it’s not
   Whilst sustainability is increasing in importance for consumers, tough economic times mean businesses are still prioritising short term profits over safeguarding the world we live in. 2024 should see some improvement but expect it to not be till 2025 that firms get serious with sustainability.

6. Raised expectations of HR
   The war for talent, new working practices, greater emphasis on mental health and a need for a more diverse workforce mean that businesses have raised needs and expectations of HR. Initiatives to drive all of these agendas are increasing in number and will see HR functions rebranding and strengthening their capabilities in 2024

7. Faster, more resilient and safer Technology wanted
   There’s clear evidence that top performing organisations are able to deliver improved technology solutions at speed that are resilient and safe from cyber attacks. For this reason, high demands on IT/Technology functions will continue, although business leaders are being tighter on how much budget they provide to fund this.

8. CX fightback with data
   Forrester’s mid 2023 finding that CX quality declined for the second year running is not such a surprise when you consider the challenges in demonstrating direct value. That said, maturing analytics capabilities and the rise of AI should see CX teams better equipped to fight back in 2024, as they better exploit data to prove their value.

9. Data governance no longer the ugly duckling
   Data governance teams have always been the ugly duckling; tolerated by their siblings as a necessity but little more. With AI now able to expose data governance issues in ways previously unimagined, there is an imperative to get data under control. 2024 is the year that data governance hits white swan status.

10. Cybersecurity a continued must
    Do I really need to say more? Political unrest, rise of AI, increasing crack down on firms who don’t protect their data – it all means cybersecurity will continue to be a top priority even in tough economic times.