The past year saw businesses of all sizes thriving
as the economy continues to outpace expectations.
However, a new year brings an opportunity to
look ahead at the forces that will influence
our workplaces and decisions in the
coming months. Here is a list of trends
to keep an eye on in 2020.
1. 5G Data Network. With the
launch of the fifth generation wireless
technologies (5G) network in
2019, expectations for its implementation
in 2020 are high. Its biggest
promise is speed—up to 100
times the speed of current 4G networks.
These lightning fast download
capabilities will allow us to entertain
ourselves on the move, have faster networks
at home, and quickly move large
amounts of data via the internet. Currently, 5G is mostly
limited to smartphones, but is expected to expand to
other devices and networks. The increased bandwidth
will lead to advances in the Internet of Things, smart
machinery, and data analysis. Many businesses will
need to take the much faster and more stable internet
into consideration in their operating models, since it
will result in increased web traffic to most sites and
decreased production time for emerging technologies.
As an example, companies utilizing Augmented Reality
(AR) or Virtual Reality (VR) technology will benefit
from the quicker delivery of these features to their
customers or their production environments.
2. Sustainable Business Practices. In 2020,
Generation Z and millennials will make up 40% of global
consumers, increasing the importance of ethical
consumerism, a generational shift in product loyalty.
Companies will continue to take notice, focusing on
making their brands more sustainable and transforming
their supply chains to reduce how their products
become waste. Think refillable shampoo bottles. Although
these changes may be expensive for small and
medium sized businesses, they can still participate in
the trend by rethinking their approach to packaging,
especially plastic, and sourcing from companies that
are at the forefront of sustainable practices.
3. Company Culture. A tight labor market going
into 2020 means that keeping employees engaged with
the workplace is important to retain talent. Some
methods that are in much broader use than before
include flexible work schedules, maternity and paternity
leave, and performance-based compensation.
New research shows that an employee’s
feeling of “mattering,” or making a
difference in an organization, is
critical to their longevity with the
organization. Sustainable business
practices, discussed above, also
contribute to a company’s internal
reputation and influence employee
satisfaction and retention.
4. Machine Learning and AI. In
2020, Artificial Intelligence (AI) will
continue to become more integral in
all businesses operations, and expand
its reach in new sectors. Global research
and advisory firm Gartner estimates that AI
will be a mainstream customer experience investment
in the next couple of years as 47% of organizations will
use chatbots for customer care and 40% will deploy
virtual assistants. AI is a tool for interacting with
customers online, and businesses will continue to
use AI to analyze data to improve customer’s
experiences. AI can also be used for cybersecurity,
doing administrative work autonomously, and is the
future of self-driving cars.
5. User Reviews. User reviews continue to drive
consumers’ purchasing decisions for products and services.
Online reputations can attract new customers
and maintain customer loyalty. In fact, 92% of
consumers hesitate to make a purchase if there are no
customer reviews, and 97% say that customer reviews
factor into their buying decisions. Having a four-star
rating by hundreds of customers is appealing. Since
medium to small businesses have smaller marketing
budgets, the importance of online reviews becomes
even more crucial. Customers knowing how real people
feel about a product or service increases the brand’s
trustworthiness and can result in increased sales.
Business Insights is hosted by the Law Firm of KPPB Law (www.kppblaw.com).
Sonjui L. Kumar is a founding partner of KPPB Law, practicing in the area of corporate law and governance.
Disclaimer: This article is for general information purposes only, and does not constitute legal, tax, or other professional advice.