{"id":296692,"date":"2019-12-17T05:41:58","date_gmt":"2019-12-17T13:41:58","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&#038;p=296692"},"modified":"2022-06-13T14:29:08","modified_gmt":"2022-06-13T21:29:08","slug":"2020-six-predictions-for-a-shifting-business-climate","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/2020-six-predictions-for-a-shifting-business-climate","title":{"rendered":"2020: Six Predictions for a Shifting Business Climate"},"author":501,"featured_media":0,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","castos_file_data":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[369852,1001,381312,369792,381322],"tags":[407692,1741,23402,407702,407712,278432],"department":[476792],"wherenext-category":[],"industry":[],"class_list":["post-296692","wherenext","type-wherenext","status-publish","format-standard","hentry","category-artificial-intelligence--ai","category-commercial","category-cxo-priorities","category-location-intelligence","category-sustainability","tag-2020-predictions","tag-ai","tag-automation","tag-customer-experience","tag-cx","tag-urbanization","department-cxo-priorities"],"acf":{"short_description":"Business trends that will dominate 2020 and beyond begin with customer centricity, rely on automation, and produce better business strategies.","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"Business trend prediction can be notoriously difficult, but corporate leaders who pay close attention see signs of what\u2019s to come. Here, we asked thought leaders to weigh in on the future of business and the role location intelligence will play in tomorrow\u2019s shifts, from urbanization to AI-based automation, climate change to customer power."},{"acf_fc_layout":"quote","image":296612,"text":"Climate Change Stokes Business Change ","author_name":"Grant Mullins, Vice President of Spatial Intelligence and Analytics, Regions Financial Corp.","author_profession_organization":""},{"acf_fc_layout":"content","content":"Climate change isn\u2019t just on the horizon, <a href=\"https:\/\/urldefense.com\/v3\/__https:\/www.esri.com\/about\/newsroom\/publications\/wherenext\/insurers-assess-climate-change\/__;!!DgLF0YGH!v7w64zfOnPTs9fqydTx5kQZIKPotx2PWe8jToZNoI5G8m59YoBm5j2lNRsuD2jU_pCav$\">it\u2019s affecting us today<\/a>. And companies need to know how to deal with the changes it brings. The connection between climate change and ESG\u2014environmental, social, and governance risk\u2014will likely be the next major location-based challenge we\u2019ll encounter here at Regions.\r\n\r\nOur ability to quantify the risks of climate change\u2014and tell a visual story about how the company is reducing and mitigating those risks\u2014will be a major asset, especially as boards and shareholders become increasingly vocal about expectations for ESG.\r\n\r\nBroadly speaking, location intelligence is becoming ingrained in our daily customer centric culture at Regions. Our understanding of consumer habits and patterns will continue to inform how we put our customers first. Location will play a role in everything we do for our customers, from how we market our products and services to how we respond to environmental, social, and governance risk."},{"acf_fc_layout":"quote","image":296642,"text":"Customers Set the Agenda","author_name":"Marianna Kantor, Chief Marketing Officer, Esri","author_profession_organization":""},{"acf_fc_layout":"content","content":"In recent years, customers have come to understand their own deep influence over companies\u2019 strategic agendas. In the years to come, businesses that <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/customers-drive-strategy\/\">make customer experience (CX) a top priority<\/a> will thrive. Influential executives are taking a holistic view of how customers interact with their brand\u2014understanding that it encompasses every type of engagement including marketing, point-of-sale, service, and support.\r\n\r\nTo better understand customers, industry innovators will leverage new, anonymized data on consumer behavior. And since the vast majority of that data will be tied to specific locations, savvy executives will use <a href=\"https:\/\/www.esri.com\/about\/newsroom\/arcuser\/location-technology-drives-intelligent-action\/\">location technology<\/a> to analyze and understand customer preferences. The most influential CX trend in the next few years will be a focus on what customers want and where they want it."},{"acf_fc_layout":"quote","image":296622,"text":"Predictions Improve","author_name":"Jay Theodore, Chief Technology Officer, Enterprise Technology Group, Esri","author_profession_organization":""},{"acf_fc_layout":"content","content":"If we want to predict the future of business, we should focus on the future of prediction. Every company wants to know what\u2019s ahead, adjust accordingly, and get an edge on the competition. The shrewd ones will take full advantage of predictive artificial intelligence applications, including machine learning and deep learning. This represents the next stage of <a href=\"https:\/\/www.esri.com\/en-us\/digital-transformation\/overview\">digital transformation<\/a> for many companies.\r\n\r\nWe\u2019ve seen executives across industries embrace AI as a way to understand the state of their operations. In some cases that means analyzing call center logs to identify which service complaints are common in which locations. In others, it\u2019s using AI to perform image analysis on competitor locations or far-flung company assets. And they\u2019re not just doing it once; they\u2019re automating the process, scaling the operations, and letting the model learn and improve future predictions.\r\n\r\nWhat only a select group of executives grasp\u2014but more soon will\u2014is AI\u2019s ability to analyze this and other data to see what the future holds for a business. One of the most compelling business cases in the next few years will involve predicting <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/halo-forecasting-with-ai\/\">how much revenue a new store will generate<\/a> in a specific location. This convergence of AI and location intelligence will help bricks-and-sticks companies and digital upstarts plan growth strategies more precisely, and minimize risk in the process."},{"acf_fc_layout":"quote","image":296632,"text":"Demand Grows for Sustainable Choices","author_name":"Lindsey McDougall, Electric Vehicle Program Manager, Austin Energy","author_profession_organization":""},{"acf_fc_layout":"content","content":"As sustainability becomes a mainstream concern, interest in electric vehicles will grow. Businesses with a role in filling that demand will create ways to serve new and existing customers.\r\n\r\nAt Austin Energy, we are working to identify underserved populations for electric vehicle charging stations <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/how-and-why-utilities-are-shifting-to-renewables\/\">powered by renewable energy<\/a>\u2014including low- to moderate-income communities and areas without adequate access to them. Once we identify those areas, we will customize our programs and outreach to those residents by using location-specific demographics and other data.\r\n\r\nWe will also enhance our demand response programs by analyzing vehicle telematics to better understand the demand for electric vehicle charging. And we will prioritize charging station maintenance and station upgrades based on location and usage analytics."},{"acf_fc_layout":"quote","image":296602,"text":"Adapting to Urban Growth","author_name":"Cindy Elliott, Commercial Industry Lead, Esri","author_profession_organization":""},{"acf_fc_layout":"form","form_type":"aside","form_position":"Right","form_title":"THE ESRI BRIEF","form_desc":"A biweekly email connecting business leaders with thought-provoking articles on location intelligence and critical technology trends.","form_button_label":"Sign up now","form_content":"https:\/\/go.pardot.com\/l\/82202\/2017-10-12\/jw1bmb","form_tag":"low-commitment-form\/sign-up-form"},{"acf_fc_layout":"content","content":"Increasing urbanization will play a substantial role in shaping business strategy. More than half of the world\u2019s population lives in urban areas, and in just three decades that proportion <a href=\"https:\/\/www.un.org\/development\/desa\/publications\/2018-revision-of-world-urbanization-prospects.html\">will reach nearly 70 percent<\/a>. In raw numbers, that\u2019s an additional 2.5 billion people calling cities their home\u2014and nearly 90 percent of this growth will be in Asia and Africa.\r\n\r\nWe already see smart companies anticipating this trend. Nike, for example, has said that over the coming years, 12 cities\u2014all but two outside the US\u2014will account for 80 percent of the company\u2019s growth.\r\n\r\nTo understand and leverage this demographic shift, businesses will use <a href=\"https:\/\/www.esri.com\/en-us\/location-intelligence\">location intelligence<\/a> to tailor strategies for specific cities. For example, rather than a US business plan or even a Southwest regional plan, they\u2019ll adopt a Dallas strategy or an Amsterdam strategy. This kind of local planning will require a detailed understanding of <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/nexttech-omnichannel-crm-and-gis\/\">how consumer preferences vary from city to city<\/a>.\r\n\r\nThose same businesses are also facing pressure to compete with Amazon and the \u201cright now\u201d economy and stay mindful of their environmental impact. This means they\u2019ll have to figure out how to get products and services to their customers today\u2014or even within the hour\u2014with fewer emissions. Location intelligence will help companies address these <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/holiday-deliveries-and-logistics\/\">tactical problems<\/a> and <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/location-intelligence-in-the-c-suite\/\">inform larger strategies<\/a> for an urbanizing world."},{"acf_fc_layout":"quote","image":296652,"text":"Automating Business with AI","author_name":"Omar Maher, Director of Artificial Intelligence, Esri","author_profession_organization":""},{"acf_fc_layout":"content","content":"If we\u2019re predicting the future of business operations and strategy, two terms come to mind: artificial intelligence and automation. Advances in machine learning and deep learning are making it possible for AI to process thousands of variables to make predictions, as well as extract insights from complex data such as imagery, video, and text. And all these processes can be automated.\r\n\r\nWhat companies will discover is that <a href=\"https:\/\/www.esri.com\/en-us\/artificial-intelligence\">automation, combined with location intelligence<\/a>, can provide unprecedented levels of insight. For instance, by leveraging the exploding amount of <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/new-forecast-human-weather\/\">human movement<\/a> data available, businesses can understand the character of cities and neighborhoods with new levels of specificity. They can then use that knowledge, along with thousands of variables, to make accurate predictions regarding the best areas to open stores, craft effective marketing campaigns, and even choose the optimal product assortment or promotions for a given area.\r\n\r\nAutomation will also simplify the analysis companies routinely perform\u2014and help them scale that insight quickly. One utility company that used a location-based AI model to analyze lidar data, as well as automate asset detection and extraction, saved 50,000 hours annually. Oil and gas companies, fast-casual restaurants, agricultural firms, and others are beginning to understand their competition by automating AI-based programs that sift through thousands of satellite images of specific facilities and locations. These pioneers will achieve and enjoy a competitive edge for years to come."}],"references":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.9 (Yoast SEO v25.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Business Trends 2020 and Beyond \u2502 Urbanization, AI, CX, Risk, Prediction<\/title>\n<meta name=\"description\" content=\"From urbanization, to customer experience, to the predictive power to AI, business leaders offer their outlook on 2020 and beyond.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/2020-six-predictions-for-a-shifting-business-climate\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"2020: Six Predictions for a Shifting Business Climate\" 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