From digitalisation and industry-specific challenges to geopolitical upheavals: Various transformation processes are characterising the economy. How do German companies assess their own future viability in the face of new opportunities and complex tasks? You can now get the answer from CEOs, board members and strategic managers from 19 key industries in the Future Readiness Monitor.
The survey
To determine how well prepared German companies are for the challenges of the future, we surveyed 379 top decision-makers from mid-February to the end of March 2024.
The topics
Respondents were asked for their assessment of their company's situation in terms of economic sentiment (optimism), current positioning in business-critical factors (maturity), current focus of activities and investments (investments) and the importance of future challenges (relevance). A special survey on the topic of "Artificial Intelligence" supplements the management report.
How you benefit
The Future Readiness Monitor provides insights into the most important current trends and developments in various sectors. Company managers can find out where their own organisation ranks in comparison to the rest of the industry in terms of various factors. In times of upheaval, the comprehensive and detailed situation report provides them with practical impetus to adjust their operational business and strategy, increase resilience and utilise new growth opportunities.
Companies are becoming increasingly confident about future growth. They are recognising new value levers. In view of various economic and geopolitical trends that are difficult to predict, this is an extremely pleasing result. It testifies to the belief that complex transformation processes are not only manageable, but also offer opportunities - especially if they are organised proactively.
The 10 trends at a glance
Companies have a key role to play in combating climate change: they need to reduce their own emissions and contribute to a more sustainable economy, as the importance of climate risks and reporting obligations on climate protection is growing and a comprehensive ESG strategy is becoming necessary.
ESG will continue to be a key issue for all companies in the future, as investors, the financial sector and customers are increasingly taking sustainability issues into account when making decisions. In order to increase the success and resilience of the company, it is necessary to understand sustainability as a key factor influencing the value of the company in the long term.
The increasing complexity of governance and compliance requirements requires companies to adapt their business processes accordingly in order to minimise risks and gain the trust of customers, investors and other stakeholders. Meeting these requirements should be seen as an opportunity to improve business practices and thus create added value.
By automating business and governance processes with the help of technological applications (e.g. GenAI, RPA, blockchain), processes can be made more efficient, errors can be minimised and employees can be relieved of repetitive tasks in times of a shortage of skilled workers. The new tools can also support decision-making and develop fundamentally new approaches to a wide range of issues. In the ESG environment, GenAI solutions can support the review and collection of extensive data material, for example with regard to Scope 3 challenges.
The increase in geopolitical tensions and trade conflicts presents companies with the challenge of adapting to a volatile and difficult-to-forecast global economy. The challenge for companies is to adapt to the changing conditions and develop strategies to minimise the negative effects. This includes diversifying supply chains and sales markets, strengthening resilience and developing new products and services.
Increasing digitalisation and networking have led to companies being exposed to a higher risk of cyber attacks and fraud. The challenges are the development and implementation of security strategies, risk analyses, as well as proactive security mechanisms and defence measures. This also involves ensuring compliance with data protection and compliance regulations (e.g. EU GDPR) and sensitising employees to the issue through training and awareness-raising.
Digitalisation and automation are having a significant impact on the world of work. Work processes and structures need to be adapted. This enables more flexible working models. If employees also increasingly work from home, companies generally need less office space as not all employees have to work in the office at the same time. This can lead to cost savings and give companies the opportunity to adjust their property strategy. Digitalisation and automation present employers with the challenge of integrating "non-digital natives" into the digitalised and automated world of work. This results in an overall process that should be accompanied by change management.
Demographic change, the shortage of skilled workers and digitalisation are presenting companies with new challenges. Talent management can help companies to overcome these challenges and maintain their competitiveness. Talent management refers to an organisation's ability to identify, develop and retain talent in order to build a strong and competitive workforce.
In times of polycrisis, in which companies are confronted with a multitude of interconnected crises and rapidly changing macroeconomic conditions, resilience is more important than ever. Resilience is the ability to recover from crises, to emerge stronger and to be able to shape the future with increased resilience. Agility is the ability of a company to adapt quickly and effectively to change.
The end-to-end digitalisation of all interactions that customers have with companies - from the initial contact to the long-term customer relationship - is constantly evolving. As the performance of sales channels and customer communication increases, customers' expectations of future experiences are also growing. For companies, it is important to understand and fulfil the needs and expectations of customers and to integrate them into the company's value creation process at an early stage.