Intersection - Navigating Market Challenges: Technology Solutions for Cost Control and Growth in an uncertain Economy

The current market landscape presents a myriad of challenges for industries and roles across the board. Inflationary pressures, a slowing global economy, and rising input costs are testing the ability of businesses to generate income, manage costs, and sustain growth. In this post, we will explore the technology trends and investments that can accelerate solutions to address these challenges.

Our team has meticulously gathered data from various sources and leveraged Wipro’s AI360 to identify the top 7 intersections of technology and business focus for the next 3 years in Australia. We have considered where technology can significantly impact cost containment.

On our journey through 2024, surveys of Australian CEOs outlined more caution and concern than in 2023, with business conditions expected to be moderate and reduced growth over prior years. Additional surveys reported that 38% of businesses are struggling with cost controls in an inflationary environment.

Considering the various surveys and sentiments, top concerns for executives cover:

1. Economic uncertainty impacting growth as global circumstances impact the local market and the trading strength of the currency.
2. Supply and demand challenges impacting bottom line performance with input shortages and demand fluctuations.

Cost containment is not a new subject, and significant learnings on focus areas from previous economic tightening can be leveraged. What is different now are the levers available to support fiscal performance. Understanding that executives will focus on productivity and performance, delivering cost savings and redirecting spend into strategic growth initiatives to maintain a competitive edge or, in the case of services, improving the delivery of those services to end users.

Business leaders are recognising the importance of technology and innovation in addressing these challenges. To defend margins, industry leaders will prioritize cost control in their approach. This shift in strategy will require technology investments that can drive cost savings and enable businesses to find and develop new markets in a slowing economy. Supply chain strategies will also shift from managing disruptions to controlling costs, making technology a top priority for industry leaders.

Some of the top technology trends we consider can impact cost containment are:

1. Developer-Driven Self-Service and Platform Engineering: This concept allows developers to create and manage their own resources and services without relying on traditional IT or operations teams, leading to increased productivity and faster development cycles.
2. AI-Augmented Development: Leveraging AI and ML to improve productivity and efficiency of the software development process, covering code generation through testing and performance analytics.
3. Industry Cloud Platforms: These platforms offer value in industry frameworks, processes, policies, and regulatory compliance requirements, beyond typical cloud repositioning of applications.
4. Democratized Gen AI: Empowering broader groups of users to leverage the power of AI and drive thinking and innovation along with productivity.
5. Intelligent Applications: These applications, such as chatbots and virtual assistants, leverage AI to provide personalized assistance and automate tasks.

By embracing these technology trends, businesses can enhance their ability to navigate market challenges, control costs, and drive growth in an uncertain economy. To address these challenges, several pathways could be considered.

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1.???? Stakeholder Alignment and Executive Engagement: To kickstart the journey on cost containment, it is essential to align stakeholders on immediate areas to investigate. Engaging executives to frame the challenge at hand, develop a view of potential outcomes leveraging technology, and drive an immediate action roadmap can pave the way for short- and long-term wins.

2.???? Benchmarking and Target Architecture: Consider informal and formal benchmarking with industry peers to gain insights into relevant cost and initiatives. Develop a target architecture based on business needs and continuously review the plan to adapt to the constant evolution in technology.

3.???? Application Development and Deployment: Review application development and deployment approaches, considering the implementation of disruptive technologies to accelerate processes, reduce errors, and deliver secure applications. Additionally, assess ways of working and internal barriers that inhibit acceleration of applications, enhancements, and services.

4.???? Process Assessment and Redesign: Leverage the latest suite of process assessment and redesign tools to drive remapping, automation, and productivity. Increase the team's knowledge of AI and disruptive technologies and encourage continuous assessment as a culture.

5.???? Access Accelerators and IP: Explore access to accelerators and intellectual property from third parties through managed services and outsourcing to drive cost containment.

6.???? Technology Trends for Cost Containment team awareness: Encourage teams to embrace technology trends such as developer-driven self-service and platform engineering, AI-augmented development, industry cloud platforms, democratized Gen AI, and intelligent applications. Develop a culture of continuous learning and innovation.

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In conclusion, understanding the importance of technology and innovation in addressing market challenges is crucial for business leaders. By prioritising cost control and leveraging technology investments, organisations can not only defend margins but also find new markets and drive growth in a challenging economic environment.

About the Author – Bernadette Harkin

Bernadette is passionate about staying abreast of technological advancements to drive strategic execution. She brings a pragmatic approach to integrating professional skills and methodologies with technology to achieve successful Digital Transformation. With a background in professional services as an ASX NED and a global technology Executive, Bernadette possesses a strong digital literacy that she brings to both the boardroom and clients. Her extensive international experience in large corporate structures and start-up ventures has equipped her with the expertise to lead client-facing organisations, operations, advisory, and transformation initiatives, ultimately driving growth and scalability.

This paper was compiled with the assistance of Wipro’s AI360 platform.