I recently posted an article entitled CEOs: Looking Forward to a Positive Future which shows that most CEOs are putting on a positive note as they face the year 2006.
In relation to that, a recent research done by Forrester shows the six economic trends that CEOs/CIOs should give attention to. These economic trends would help these leaders to plan their future actions as well as in implementing different business strategies. The research also indicated the reason why these powerful leaders should be abreast with the current trend stating that: CIOs and prudent IT groups should keep track of developments in the wider economy in order to anticipate and prepare for the challenges and opportunities their business partners will face.
Six Economic Trends:
- higher energy prices and an increased focus on energy conservation
This trend means that firm leaders should shift their plans towards “conserving” rather than having an increase in IT budget on oil-based industries.
- greater risks of disruption from natural disasters and terrorist attacks
Leaders should anticipate the unexpected dangers brought about by natural calamities.
- aging populations and retirement benefit crunches
Due to these trend in employment, leaders should find a way to have quality workers in their firms.
- the cessation of housing as an economic growth engine
This means that CEOs should implement a lower IT expenditures on housing-related industries.
- moderately higher inflation and interest rates
Due to this prediction, leaders should find a way to make the impact of this trend be felt less.
- accelerating technology globalization and slowing trade globalization
This means that a shift towards cost-saving business strategies like offshoring and low-cost operation should be considered.
Thoughts and Insights
There is nothing wrong in being updated regarding the latest trend and development in the world of business. As they said, information is power and nothing is more formidable than a CEO or CIO that is well-informed regarding important matters in a business. These economic trends predicted by Forrester should be given importance by these powerful leaders so that they know what to expect in the near future. Aside from that, they could also implement different business strategy in order to fight the inevitable problems that the firm could face in the years to come. Though these trends are more ofwhat is likely to happen and not the exact thing, it could be a relevant prelude of the kind of things to come. Whatever the case may be, being prepared is definitely a good practice to implement regardless if you are a CEO or just a regular employee in the firm.