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Smart Bots — An Inflation-Proof, Recession-Proof Workforce
A recession, defined as a period of decreased economic activity that lasts longer than six months, appears imminent. No matter how you slice it, that is not a good outlook for business or our wallets.
When the economy is in a downturn, most businesses suffer because demand and income drop, and prospects become less assured. However, we can utilize strategies to limit a recession's impact on a business. While 2023 may prove "the year of the recession," the current downturn, described as both technical and extraordinary, can only be overcome by implementing digital transformation processes.
As a result, firms must modify their operations to accommodate the shifting economic climate to survive the impending economic downturn. This article will discuss how Smart Bots can help businesses become more resilient in the face of recession and inflation.
The Effects of the Recession on Business Operations
No matter how big or small, a recession affects every business in at least one way. Specifically, the three most important aspects of a company that are affected by an economic downturn are as follows:
Companies struggle during a recession as their customer base loses disposable income resulting in fewer orders. The overall demand for your goods and services will fall during an economic contraction, decreasing sales. Hence, there is a possibility of a severe slump, and also, companies might need to deal with bloated inventories.
As financial markets close for debt expenses and new issuance, the state of your company's financial health could enter a period of uncertainty and risk. Aside from this, fully operational businesses cannot quickly shift gears and reduce capacity, either from the point of view of their equipment or human capital.
Companies of all sizes may need to lay off employees to control expenses and respond to falling demand for goods and services. In recent weeks, several large corporations have announced layoffs and hiring freezes. Further, an entertainment industry giant widely thought to be immune to the economic downturn cut more than 450 positions.
If a recession strikes at such a critical point in the business cycle for these industry giants, it becomes impossible to predict which companies will fare well. Companies can acquire the knowledge necessary to endure a recession and emerge stronger than before.
Survival Of The Fittest: The Making of Recession-Proof Businesses
Companies of all sizes were caught off guard by the current economic downturn, and many are now unsure whether the downturn will deepen or end. Thus, preparing for and quickly recovering from such disruptions should be your first focus for a recession-proof company.
During economic downturns, chief executives often prioritize ideas from large, financially stable corporations. After all, keeping up with technological advancements is one of the best ways for companies to maintain operations, revive themselves, and prepare for the future. Indeed, experts anticipate this will be the case with Robotic Process Automation (RPA).
RPA is a viable tool for improving productivity; however, it cannot yet deal with exceptions well. That is why a comprehensive approach is necessary. That is to say, RPA needs more than simple job automation: A more holistic strategy is required.
In this context, developments in emerging technologies like AI/ML, IoT, OCR, and smart bots have uncovered lower risk and introduced high-reward business alternatives for expanding businesses.
Investing in Technology to Future-Proof Your Company
Investing in technology, and especially in smart bots, can help your company weather the recession for the following reasons:
Technology Strengthens Customer Relationships
According to a recent forecast, investing in technology will continue unabated regardless of inflation, geographic unpredictability, or any other issue. This forecast is why global spending on IT will amount to $4.4 trillion by the end of 2022. Also, research shows that many businesses that cut their technology marketing budgets during downturns lose critical clients just as the market begins to recover.
The relationship between the company and clientele has always benefited from technological advancements that allow for a more customized and individual experience. Staying abreast with user expectations is made more accessible by AI developments, software and app creation, cutting-edge software systems, and smart bots. Moreover, investing in a solid customer relationship management system is also essential for generating qualified leads, maintaining current client relationships, and the preservation of a solid clientele.
Technology Improves Internal Efficiencies
You can improve your company's internal capacities without reducing services or personnel using suitable business models supported by cutting-edge technology. Better serve your consumers by investing in remote customer care, eCommerce applications and strategies, enhanced logistics, and smart bots.
Moreover, you may set yourself apart from the competition by adopting a data-driven culture and fully digitizing your organization.
Technology Boosts Sales and Productivity
Smart bots, in particular, are an area of investment that can help your sales team remain productive and open to new opportunities. As a bonus, they have the freedom to try out innovative approaches to closing sales. Moreover, investing in your sales staff while the economy down helps companies recover more quickly. You may keep your best employees and reduce turnover, indicators of a healthy workplace for when the economy recovers.
You should reevaluate your internal and external sales teams' objectives and procedures. Find out what they are up against and how they can be more proactive in their responsibilities, and then equip them with smart bots and other productivity apps to take more control of the data.
Technology Helps Companies Become Inflation- and Recession-Proof
Many businesses are slow to embrace technological innovations like smart bots. But rather than playing catch-up after a downturn or recession, companies need to take the initiative to adapt to new circumstances and emerge stronger than before. Investing in these technologies helps build a robust organization that can withstand changing economic climates.
Investing in flexible technology can save money in the long run by cutting out unnecessary expenses during a crisis. The ideal way to create a firm, big or small, that can weather a downturn or recover from one is to use digital transformation technologies, such as smart bots, as soon as possible.