IESE Professors Núria Mas, Mireia Las Heras, Marc Sachon, Pankaj Ghemawat and John Almandoz have predicted 5 major business trends for 2017.
Economic recovery, industrialization, ludification, antiglobalization and populism would take centre stage in 2017, which political and business leaders must face, they say.
A Post-Crisis Year
Describing 2017 as finally, a Post-Crisis Year, Prof. Núria Mas says interest rates are expected to climb. The forecast is for moderate growth in the United States, with the ratio of unemployed persons per job opening falling to 1.2. Meanwhile, Western Europe’s economy would be recovering more slowly with volatility anticipated, due to Brexit.
In Eastern Europe, Russia is driving a return to growth. In the Middle East and Africa, oil-producers, like Qatar and Nigeria, may benefit from rising energy prices. Yet the outlook is not so rosy for Latin America, dragged down by Brazil’s weakened prospects.
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Asia is expected to be the region with the fastest growth, boosted by both India and China, although the latter is expected to see its growth march continue to slow down.
Business leaders should expect the prices of commodities to go up, plan for increased volatility and capitalize on the growing middle-class consumption in emerging markets, she says. Núria Mas is professor and head of the Economics Department and holder of the Jaime Grego Chair of Healthcare Management.
Digitization to Lead the Way
Saying that the old résumé-and-cover letter approach is dead, Professor Mireia Las Heras explains that digitization will continue to change the way of selecting and developing talent. For example, gamification is now engaging employees in the process of learning new skills and competencies in a way that’s more fun, memorable and efficient.
For more efficient recruitment an management of talent, she suggests a proactive search for candidates through online platforms and channels. It should be kept in mind that your employees are your best ambassadors to attract talent: leverage their contacts.
Use gamification techniques to develop competencies in fun and engaging ways. Mireia is an Associate Professor and Research Director of the International Center for Work and Family at IESE.
Push for Fully Connected Factory
Prof. Marc Sachon says although it will probably be 2020 before we see the fully connected factory, the potential of Industry 4.0 is already making itself felt. Smart machines and 3-D printing will facilitate nimble manufacturing in 2017, allowing companies to react quickly to changes in demand and in the environment. Thus, there is need to recruit and train more specialized workers, as fewer generalists will be needed.
Industry leaders should be ready to exploit the levels of personalization that Industry 4.0 affords. They should look to gain competitive advantage today, as these processes will become standard tomorrow. Sachon is Professor of Production, Technology and Operations Management at International Center for Logistics Research (CIIL)
The Myth of Globalization Collapse
Although it may seem we are witnessing deglobalization, the flows of foreign direct investment have only grown in recent years. In fact, the DHL Global Connectedness Index 2016 indicates that global connectivity grew about 8% between 2005 and 2015, Prof. Pankaj Ghemawat says.
For globalization strategies, dealing with national borders and the effects of distances remains more critical than ever. Yo-yo strategies that oscillate between extreme views of a totally globalized world and then a deglobalized one should be avoided and a middle ground should be found.
Prof. Ghemawat’s Triple A strategy calls for adaptation (respecting local differences), aggregation (overcoming distances), and arbitrage (exploiting differences). He is Professor of Strategic Management at IESE.
A Winning Strategy
Prof. John Almandoz says populism and doing whatever it takes to win are two ways to compete in politics and business. However, great leaders will think more about their lasting contributions to society.
Thus, “winning” should mean more than just maximizing profits for shareholders. The focus should be on improving the wider ecosystem that underpins shared success. “Make sure your business has a higher purpose: it will boost your reputation and attract millennials,” he recommends. Prof. Almandoz is Assistant Professor of Managing People in Organizations.
