Last year in this column, we highlighted business
trends that focused on efficiency, mobility, and accessibility.
In 2016 we expect businesses will focus on
many of the same ideas, with technology remaining at
the top of business priorities. This year, however, we
expect to see a shift, with companies placing value on
employee and client satisfaction as a way of increasing
productivity and retention.
Here are some of the trends we anticipate for 2016.
1. Cloud Computing: We have heard about the ubiquitous
“cloud” for several years, but in 2016, we will see
more companies making the switch from traditional
servers. In fact, it is expected to the biggest information
technology expenditure for businesses in 2016.
Cloud computing is an Internet-based system where
resources, data, and information are provided to
computers, allowing its users on-demand access to
its data. The biggest advantage is accessibility; users
can access their work from any location, without
dealing with the speed issues of remote access. Cloud
computing also has benefits of affordability and effective
disaster recovery and backup. Cloud computing
will soon become a necessary business resource.
2. Wearable Technology: One technology trend that
will soon integrate into the business environment is
wearable technology. Forbes magazine forecasts that
by 2016, the market for wearable technology will exceed
$6 billion dollars, primarily driven by millennials
and Generation Z entering the workplace. While
devices like FitBit and Apple Watch have debuted in
office environments for health initiatives, in 2016, it
is likely that wearables will be of greater use to facilitate
employee accessibility and efficiency.
3. Online Lending: Since the economic crisis of 2008,
small businesses have been turning to nontraditional
means of financing. While Small Business
Administration loans continue to be the preferred
and most secure option, companies that are not able
to meet the more stringent requirements of SBA
loans are turning to online lenders. Since 2014, almost
twenty-five percent of small business borrowers
have turned to financing through an online lender,
according to a survey by the Federal Reserve. However,
business owners should be cautious. Internet
lenders are not subject to the same regulations as
traditional loans, and factors such as
Annual Percentage Rate (APR) and hidden
fees may not be entirely transparent.
However, with proper due diligence,
small businesses may find online
lenders to be a viable option in the
coming year.
4. Cybersecurity: 2015 has taught us that hackers are
not only targeting big business, but small and midsize
companies that notoriously neglect security.
Small businesses tend to create repetitive or predictable
passwords, use open and unsecure Wi-Fi connections,
and open and abandon numerous user accounts.
According to Matei Gavril, CEO of PRMedia-Online, taking steps to install security software, create
complex passwords, secure Wi-Fi connections,
and encrypt smart devices are some of the steps
businesses should take to reduce their vulnerability
to cyberattacks.
5. Flexibility in the Workplace: While employees have
always longed for the elusive “work–life balance” we
expect to see more savvy companies creating opportunities
for their employees to make this concept a
reality. As the demand is growing—millennials are
expected to produce the next “baby boom”—flexibility
is becoming a priority among companies to retain
their employees and promote productivity. More
companies have begun offering flexible work hours,
more vacation time, longer maternity and paternity
leave, and even paid sabbaticals for travel or philanthropic
endeavors. These initiatives are examples of
how companies are maintaining their competitive
edge in recruiting top talent.
6. Customer Service: Today, customer praise and
complaints alike are more readily available to the
public and can make or break a business. This year,
we will see more companies budgeting for initiatives
to retain customers. According to Jay Bear, New
York Times bestselling author, worldwide, companies
spend $500 billion on marketing in a year while only
spending $9 billion on customer service. This is despite
marketing research demonstrating that customer
retention is the fastest route to growing
profits. Businesses can integrate their customer service
into a form of marketing that may prove to be
more affordable in the long term.
Business Insights is hosted by the Law Firm of
KPPB Law.
Bidisha Idnani an associate attorney at KPPB Law
practicing civil litigation.
Disclaimer: This article is for general information
purposes only, and does not constitute legal, tax, or
other professional advice.