Monday, January 30, 2023

Six scenarios where technology is key to facing economic uncertainty

The year 2023 begins with uncertainty and projections of a global economic recession due to multiple factors -such as the general rise in interest rates to control inflation, the war in Ukraine, the effects of the weather and the inconveniences that remain from the pandemic. – that have been impacting all sectors and have affected supply chains, trade and investment worldwide.

Recently, Kristalina Georgieva, head of the International Monetary Fund, warned that a third of the world economy could enter a recession this year, including half of the European Union. Despite the fact that in countries like the Dominican Republic inflation has remained under control (with a year-on-year variation of 7.83% at the end of 2022), the impact of the global context should not be underestimated. In fact, it is precisely these moments, given a global outlook of considerable slowdown over the next 12 months, that are the most critical to meet the optimistic growth projections for the country from various national and international entities such as the World Bank.

To face this context of uncertainty and economic challenges, technology becomes a strategic ally for companies to seek efficiencies, productivity, reduce costs, strengthen security and improve customer service. According to Alfonso López, general manager of Oracle Caribe, “the applications of future technologies have no limits and, as history has shown, for every crisis that society experiences, new solutions emerge to overcome them. During the covid-19 pandemic crisis, technology was a fundamental ally in reducing its spread and mitigating its impact on the economy. Today, in this scenario of uncertainty, it is essential that companies from all industries pay special attention to innovations that allow them to optimize their processes and strengthen their operations to increase their productivity and reduce costs”.

In this context of uncertainty, technology becomes a strategic ally of the economy and of companies to seek efficiencies, productivity, reduce costs, strengthen security and improve customer service.

According to figures from the Harvard Business Review Analytic Services, 74% of companies say that the cloud has given them a competitive advantage because it allows them to have real-time access to data. Likewise, Oracle estimates that by 2025, 100% of business applications will include some form of embedded Artificial Intelligence (AI). Additionally, the International Data Corporation (IDC) estimates that by 2026, organizations in the region expect a third of their revenue to come from digital products and experiences. The IDC also estimates that global cloud spending will exceed $1.3 trillion by 2025.

In this sense, the multinational Oracle presented six scenarios in which digitization becomes the key to face challenges and overcome uncertainty.

1) The cloud is the key to boosting business in today’s economy

When companies face great economic challenges, such as the pandemic, it is a priority that they acquire a robust and reliable solution that provides flexibility and reduces costs to boost their operation and growth. The Cloud then becomes a strategic ally because it provides cutting-edge technology that supports businesses in the protection, management and secure administration of data, making processes more efficient and generating greater peace of mind for companies and their clients.

2) Plan and anticipate to keep finances stable

The year 2023 represents great challenges for companies due to the rise in the price of the dollar, the implementation of a new tax reform, fluctuations in the demand for products and the increase in variable production costs, among other factors. In this sense, it is a priority that organizations manage different scenarios and analyze the financial impact of these variables on their business.

The key to these moments of uncertainty is to anticipate, plan and prepare. For this, there are applications such as Enterprise Performance Management (EPM), which allow the development of budget prediction scenarios to plan costs, expenses, income and investment. Undoubtedly, it is a solution that allows you to analyze and better understand the operation of the company and, in turn, prepare periodic reports on its behavior for decision-making.

3) Do not lose a single client

The center of business will always be the customer, especially in uncertain times like the one we are currently experiencing. In this sense, one of the priorities for businesses should be the reduction of possible disruptions due to the change in the interaction with their users, anticipating solutions to serve them in the best possible way. For this, there are solutions such as the Customer Experience Cloud (CX), which allow companies to know their consumers in depth, with a 360 vision, with the purpose of consolidating all the information in a single place, improving their experience and implementing marketing campaigns segmented by target audience.

4) The well-being of employees means well-being for the company

In times of crisis, organizations are required to be much more agile, empathetic and focused on their collaborators. Tools such as Human Capital Management (HCM) allow companies to have complete traceability of the employee, monitor health situations, quickly and automatically determine whether or not a worker has the physical conditions to go out to work (or if you must stay in remote work) and foster a culture of self-service, which allows employees to handle administrative and human resource needs on their own.

5) Take care of the entire process, from the raw material to the final product

In this scenario in which there are major effects on the markets, it is a priority to take care, protect and develop intelligence in the production processes to respond quickly to the changing conditions of demand and supply. In this sense, it is essential to have solutions such as Supply Chain Management (SCM), which easily connect the supply chain to create a resilient network and a process designed to anticipate change, allowing organizations to see production in real time, from manufacturing, to monitor production and delivery times, as well as temperature, anomalies, product quality and machine status, among other benefits.

6) Take care of your data, your finances and your customers

In times of uncertainty and volatility, it is necessary to redouble security efforts because cybercriminals emerge who exploit weaknesses and attack organizations, generating large economic losses and weakening user trust. To protect themselves from these types of situations, organizations must deploy smart digital security strategies that include rigorous control measures and integrated systems. To do this, Oracle has a ‘security first’ approach based on three pillars: risk reduction, automation and continuous protection.

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