Supply chain disruption counts as one of the most top-of-mind challenges big global business organizations will deal with in 2023, says a new survey of more than 1,000 supply chain executives by the Capgemini Research Institute.
Global business leaders are focusing their investments on the areas that will continue to drive their business transformation.
In the face of economic headwinds, organizations are taking a cautious approach to investment. Supply chain disruption is seen as the top risk to business growth for 89% of organizations, ahead of rising raw material prices and the energy crisis. Supply chain resilience is a key priority, with 43% of businesses planning to increase investment, while 39% intend to increase investment in technology to reduce costs and drive business transformation. Sustainability will be prioritized by organizations in the U.S. and China, but less so in Europe, says Capgemini.
To help weather the economic storm, businesses are considering ways technology can help to drive growth and create economic value quickly. The report found that 39% of them plan to increase investment in technology in the next 12-18 months, and a similar proportion is planning to maintain it. Executives plan on leveraging technology primarily to help reduce costs and to make faster decisions, leveraging cloud, data and analytics. To further protect their businesses in the next year, almost half of executives also plan to increase spending in cybersecurity, Capgemini says.
Capgemini surveyed executives from 2,000 organizations across 15 countries in industries including automotive, consumer products,
industrial and capital goods, banking, insurance, retail, energy and utilities, public sector, life sciences and healthcare, telecommunications, media, and high-tech manufacturing. “Global business leaders are focusing their investments on the areas that will continue to drive their business transformation,” says Capgemini CEO Aiman Ezzat. “They should seize the opportunity that technology offers, not only to make their business more efficient, sustainable, and resilient, but more importantly to enable long-term growth opportunities.”
72% of organizations will be looking to make significant technology investments to reduce long-term cost, while 59% will look to make technology investments that support faster decision-making, the survey says. Companies are looking to add technologies such as IT infrastructure and cloud, data & analytics, and intelligent automation, among others, over the next year to 18 months to attracting investment in the next 12–18 months. 40% of very large organizations (with revenue more than $50 billion) agree that their cybersecurity spend is expected to increase in the most in 12-18 months.
“To tackle current risks and navigate turbulence, businesses must continue to make considered, directed investments, especially in diversifying and digitizing their supply chains,” Capgemini says. “They must adopt digital tools and technologies that drive cost savings and expand hybrid and remote working conditions.”