Navigating the Future: 3 Truths and a Lie About Economic Conditions, Tech Accessibility, and Marketing and Advertising in 2023

Amaryllis Liampoti | Managing Director & Partner BCG, BCG X. Growth leader for EMESA (Europe, Middle East, South America, Africa)

There’s so much opportunity in the world right now, but it also feels like there is a lot of adversity. As we all look towards the future, Iet's remember that it’s important to focus on what we can do right now and how much of the confusion and doubt surrounding us can turn into an advantage.

Looking back on the insanity of 2022, we can use it as a lesson to prepare for a better 2023. It's not easy to see all the problems in the world and feel like we can't ignore them, especially when many people turn a blind eye. However, it's important to remember that the world is constantly changing and we must be agile enough to adapt. We may not be able to predict exactly how things will happen, but we can prepare for them.

Here are three truths and a lie about 2023:

Truth #1 Economic conditions: not exactly a booster rocket.

The economy may not be growing at the same rate as before, but that's not the only factor that determines business growth. It's important for businesses to make sure they're ready to adapt to these changes so they can continue growing in 2023 and beyond. This isn't a time to be pessimistic, but a time for action. Businesses can use this opportunity to reassess their marketing efforts and double down on providing real value, which will increase their chances of growth in the year ahead.

Truth #2 Tech is becoming more accessible.

For all the doom and gloom we hear about the economy, there are some silver linings. One of these is that technology is getting more accessible. The lower costs and wider availability of technology means that businesses can reap more benefits from it. The Chat GPT is a prime example of this.

This isn't just an opportunity for startups or smaller companies (or Shakespeare inspired texts ). Even large corporations are seeing the value in investing in tech and using it to streamline their operations (or at least make them more efficient).

2023 will be much more pervasive than today. Artificial intelligence and machine learning are growing fast as well. Advances in these areas making them more accessible to companies across all industries. In 2023 we will see the further emergence of a new breed of AI-based apps using pre-trained algorithms combined with natural language processing.

These will have far-reaching implications for business growth strategies — not in terms of how they interact with customers but also how they interact with each other as competitors or partners.

Truth #3 Marketing & advertising is massively changing

Media buying is another area that’s set to experience significant shifts. With concerns about ad blocking growing, the advertising of the future will probably consist of content and experiences that are more integrated across platforms. While the traditional model of advertising on social media platforms like TikTok and Meta is still in its infancy, it’s clear that this model is shifting toward more interactive and real time forms of engagement. It will be interesting to see how businesses continue to adapt their strategies in the new advertising landscape , and how they can use new platforms to their advantage.

With the rise of social media influencers, it’s also becoming more common for brands to partner with content creators who have large followings on TikTok or other platforms. For example, many companies have started sponsoring videos created by influencers in order to reach a wider audience via their channels — and in some cases, even creating branded content together.

Social commerce is another opportunity for brands to take advantage of new platforms. While TikTok is mainly used for entertainment and fun, it does have a shopping section as well. You can buy everything from phone cases to makeup kits through the app’s e-commerce platform , which allows you to see customer reviews and purchase items directly from there.

The lie of an innovation slowdown

Innovation is a driving force behind progress and economic growth. It is the engine that propels society forward, allowing us to tackle new challenges and unlock new opportunities. Despite the fact that economic slowdowns can often be challenging for businesses and individuals alike, they do not necessarily have to be a barrier to innovation. In fact, many people and organizations find that times of economic uncertainty can be a catalyst for creative thinking and innovative solutions.

As history has shown, times of economic slowdown can actually be a breeding ground for new ideas and technologies. During the Great Depression, for example, many people turned to entrepreneurship and innovation as a way to survive and thrive. This period saw the birth of many new businesses and technologies, including the first commercially successful electric razor, the first frozen foods, and the first programmable computer.

Today, we are facing another period of economic uncertainty, with many businesses and individuals struggling to adapt to the challenges posed by the COVID-19 pandemic. Despite this, innovation continues to flourish, with new ideas and technologies emerging every day. At BCG we found out that 60% of companies plan to increase tech and digital investments in 2023 vs 2022.

In short, while economic slowdowns can be challenging, they do not have to be a barrier to innovation. In fact, many people and organizations find that difficult times can actually be an opportunity to think creatively and come up with new ideas. As long as we continue to support and nurture innovation, it will continue to drive progress and help us overcome the challenges we face.

Thinking Differently: How Top Leaders Capitalize on Opportunities

I have been fortunate enough to have the opportunity to partner with influential business leaders and thinkers, who often seek my input on how to prepare themselves and their businesses for success in the future. Through these conversations, I have been able to learn from their experiences and insights on how they have achieved success in their careers. After considering all of these perspectives, I believe that there are three key differences in mindset that can help individuals better capitalize on opportunities:

1. Willingness to change: The most successful leaders I know are willing and motivated to drive change in their organizations, not just adapt their leadership style or themselves.

2. Speed: These same leaders are also eager to implement change as quickly as possible, which emphasizes the importance of experimentation, creativity, and innovation. Many of these leaders are shifting their mindset from offense to defense, meaning they are proactive in response to change rather than reactive.

3. Diversification: There is an increased realization that there are many more ways to succeed than before, leading to a focus on collaboration with the broader supply chain and other stakeholders in an organization's ecosystem. This diversification can include partnerships, deeper customer relationships beyond transactions, more empowered staff, and an overall win-win mindset.

The ability for leaders to navigate uncertainty is becoming increasingly important in today's rapidly changing world. The COVID-19 pandemic has highlighted the need for all of us to be able to adapt to unexpected events and make decisions in the face of incomplete information. The need for leaders to be able to handle uncertainty is not a temporary trend, but rather a skill that will only become more vital as the world continues to change and evolve.

In order to effectively navigate uncertainty, leaders need to be strategic thinkers who can anticipate potential challenges and develop plans to address them. For example, a leader facing economic uncertainty may create a contingency plan to cut costs or diversify their revenue streams. They also need to be empathetic, able to understand the needs and concerns of their team and stakeholders, and be able to communicate effectively with them. Agility is also key, as leaders must be able to quickly adapt to changing circumstances and make decisions that move the organization forward.

Embracing these skills is of critical importance for leaders in today's world, as they will be called upon to lead their organizations through a variety of challenges and uncertainties. By developing their strategic planning, empathy, and agility, leaders can position their organizations for success in the face of any obstacle. Whether facing a global pandemic or a shifting economic landscape, leaders with these skills will be better equipped to navigate uncertainty and guide their organizations to long-term success.

In 2023, we'll find ourselves re-norming, as the world of technology and innovation paves the way for growth. In this new world, loyalty will be earned through a commitment to value, and there will be a shift from mass consumption towards personal gratification.

As business leaders, we have the opportunity to redefine our brands in this new world. Rather than simply being the best at what we do, we can remove the barriers that exist between us and our customers and create a world where products and services are designed with purpose. By serving as a platform for meaningful relationships, where people come first and profits naturally follow, we can create a new standard for business. In order to do so, we must embrace the skills that will be critical to navigating the uncertainty of this new world, such as strategic planning, empathy, and agility. By developing these skills, we can position our organizations for success in the face of any obstacle.