Four growth opportunities for Swiss companies in 2023

While there are signs of a slowdown in the economy and forecasts vary from one institute to another, companies are facing sector-specific challenges: The financial and engineering (MEM) sector is preparing for a potentially difficult year, the tourism sector is struggling to return to normal, and multinationals are under pressure from environmental regulations (source: swissinfo).

Exploiting growth opportunities thanks to cloud solutions

I remain convinced that challenges present opportunities that make all the difference to companies that know how to exploit them. We have found that technology is often an inherent part of new solutions that impact the world of work. For this reason, Swiss companies are increasingly focusing on digital transformations (2023 survey ICTjournal and Netzwoche) - with growing priority for cybersecurity as well as data management and modernization of the IT environment with cloud solutions.

An example of this is Nespressowhich has moved its key applications and databases, to Oracle Exadata Cloud@Customer Services. This upgrade offers benefits such as usage-based pricing, greater consolidation that reduces data center space and storage requirements, and improvements in compute performance, storage and overall flexibility. The International Organization for Migration (IOM) - the most important intergovernmental organization in the field of migration - also works with Oracle Cloud to facilitate its work. The cloud is used to support key areas such as projects, grants, supply chain and human resources management.

The supply chain issues, geopolitical tensions and cost of living crises that have characterized 2022 will continue to challenge businesses. Focusing on growth and optimizing agility as well as efficiency is very important. So what are these growth opportunities and how can companies take advantage of them in 2023?

1. a flexible planning and strategy

Digital competencies are critical to effective risk management. With the help of risk management, companies can respond quickly to new challenges and plan various scenarios to ensure the continuity of their business.

In reviewing their supply chain, companies were forced to respond quickly to the constant product shortages and supply delays that are still pervasive. This is just one example of how companies have had to act quickly to stay afloat, moving from a "just-in-time" model to a "more inventory, fewer shipments" model to offset the associated inventory and administrative costs. This type of continuous change allows for the shock of new scenarios to be absorbed. However, it can be difficult for companies to pinpoint the areas that require their attention. In 2023, the visibility of reliable, real-time data will be critical to enable proactive action and rapid adaptation of strategies. Bringing together data from all business functions, such as finance, inventory, and supply chain, into a single view will be critical to maximize return on investment and stimulate investment in further growth.

2. simplified financial automation

According to Gartner, the most difficult task for chief financial officers in 2023 will be recruiting and retaining employees. The battle for the best talent is fierce, and as CFOs kept their teams lean during the recession, they will need to be creative.

In 2023, automation will be a key investment for finance teams, not only to optimize performance, but also to allow professionals more time for value-added projects. Manual tasks such as month-end closing typically require finance teams to aggregate and analyze large volumes of disparate data. This task can be very time-consuming and error-prone, as a single incorrect entry can cost companies thousands of francs and wipe out their hard-earned profits. Therefore, in 2023, companies need to take advantage of growth opportunities in this area as well. Centralizing data and automating financial processes will reduce risk and make data more accurate. This allows finance teams to focus on analysis and respond to market changes.

Finance professionals don't want to waste their time checking and consolidating spreadsheets - they want to add value. Automation in 2023 will play a critical role in employee engagement and making finance employees feel valued.

3. automation of pricing to minimize supplier and currency risks.

As markets remain in flux in 2023, being able to adapt quickly to price changes will be critical. Budgets and profits can be affected by minor changes in supplier prices. It can therefore be difficult to spot the difference before it is too late. As international growth and foreign sales increase, complexity continues to grow due to ever-changing tax and customs regulations, making it difficult to move forward at the planned pace.

In 2023, automated pricing will enable fast-growing companies to remain agile and budget more efficiently. Using this technology, companies will be able to respond to supplier price fluctuations and create accurate cash flow forecasts. They will also be able to centrally manage pricing, ensure consistency across channels, and align product prices with profit margins. Automatic pricing effectively slows companies down when a product or component becomes more expensive, or gives the green light to buy at the right price. A key benefit is that these changes are made in real time, rather than weeks later, saving vital resources.

In international trade, this technology enables companies to centrally manage pricing and automatically update any country-specific tax or sales rules to ensure there are no unexpected penalties or lost sales. Currency-specific pricing and discount percentages give full control, allowing companies to allocate price levels to different channels and customers.

4. transparency: customers, employees and investors expect their brands to "do good".

ESG reporting will continue to grow in importance in 2023. Customers are demanding transparency, and the younger generation, which is imposing higher standards on employers than their predecessors, has assigned ESG a critical role in recruitment, retention, and brand loyalty. Nearly half of investors are even willing to divest from companies that do not take sufficient action on ESG issues, and as business leaders increasingly rely on investment, they cannot afford to neglect this reporting.

Greater transparency in business and personal data means better accountability and compliance. Creating and maintaining a robust ESG strategy depends on the quality and volume of a company's data. Cloud-based solutions will play a critical role in this by aggregating information from all parts of the organization, setting realistic goals, and monitoring progress to satisfy customers, employees, and investors alike.

Significant progress toward ESG goals has been shown to impact investment opportunities, increase consumer consumption, and improve employee productivity - which is critical as we head into a period of even greater financial uncertainty in 2023.

Author:
Billy Kneubühl is Country Manager Oracle Switzerland