Exploring the Top 5 Business Trends for 2021 According to McKinsey
2020 has been a roller coaster year for businesses worldwide, with the COVID-19 pandemic sending shockwaves across various industries. But with the new year just around the corner, it’s time to look ahead and prepare for what’s next. McKinsey, a global management consulting firm, has identified the top 5 business trends for 2021. Let’s take a closer look at each one.
Digital Transformation Acceleration
The pandemic has forced businesses to speed up their digital transformation journey. Companies have been pushed to digitize their operations, supply chains, and customer interactions to adapt to the new normal.
In 2021, digital transformation will continue to be a hot topic, with more businesses investing in digital capabilities. McKinsey predicts that this shift will result in even greater productivity gains in the coming year.
Example: Retail giant Macy’s launched a new virtual shopping service this year, where customers can schedule video chats with personal stylists to shop for clothes. This move shows how the company is adapting to the new digital landscape and responding to changing customer preferences.
Increased Focus on Sustainability
Climate change has been a growing concern for years, and in 2021, sustainability will become a key priority for businesses. Consumers are becoming more environmentally conscious and are looking for companies that align with their values.
McKinsey predicts that sustainable investments will have an even greater impact on corporate behavior in 2021. Companies that prioritize sustainability are likely to see increased brand loyalty and customer retention.
Example: Last year, Volkswagen announced plans to invest $66 billion in electric and hybrid vehicles, aiming to sell 1.5 million electric cars annually by 2025. This move shows the company’s commitment to reducing carbon emissions and driving sustainability.
Remote Work Continues to Rise
The pandemic has changed the way we work, with remote work becoming a new normal for many professionals. In 2021, this trend is set to continue, with many companies embracing remote work permanently.
McKinsey predicts that remote work will evolve from a perk to an expectation for most employees. Companies that prioritize robust remote work policies will attract top talent and gain a competitive advantage.
Example: Twitter recently announced that employees can work from home permanently if they wish to, even after the pandemic subsides. This move shows that the company recognizes the benefits of remote work and is willing to adapt to the changing work landscape.
Greater Emphasis on Resilience
2020 has been a year of uncertainty, highlighting the importance of resilience in business operations. Companies that were more resilient during this pandemic were better equipped to adapt to rapidly changing conditions and seize new opportunities.
McKinsey predicts that resilience will be a key focus for businesses in 2021. Companies that prioritize building resilience in their operations, supply chains, and workforce will be better prepared to face future challenges.
Example: Amazon quickly pivoted its business model during the pandemic, shifting its focus from non-essential items to essential goods to meet customer demand. This move shows how the company was resilient in the face of a crisis and was able to adapt quickly to the changing market.
A More Agile Approach to Business
The pandemic has shown the importance of being agile in business, with companies needing to adapt quickly to changing market conditions and consumer preferences. In 2021, agility will be even more critical, with companies needing to stay ahead of the curve to remain competitive.
McKinsey predicts that companies that embrace an agile approach to business will be better equipped to navigate disruptions and capitalize on new opportunities.
Example: FMCG giant Procter & Gamble implemented an agile approach to business by creating cross-functional teams that could pivot quickly to seize new opportunities. This move shows the company’s commitment to staying agile and staying ahead of the curve.
Conclusion
2021 is set to be a year of transformation, with businesses needing to adapt to the new normal. The top 5 business trends identified by McKinsey – digital transformation acceleration, increased focus on sustainability, rising remote work, greater emphasis on resilience, and a more agile approach to business – will be critical for companies looking to stay ahead of the curve. It’s time for businesses to embrace change and take advantage of new opportunities.
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