Recessions are a moment of upheaval and change in the economy. For companies looking to capitalize on boom periods, this means maintaining solid financial health during a boom period, focusing on stable market share, and viewing acquisitions as a growth opportunity. Recession-proof companies are well-positioned to weather economic downturns and thrive.
“While most companies struggled during the 2008-2009 financial crisis, others like Honeywell emerged stronger by focusing on operational improvements. The company undertook extensive restructuring to reduce costs, which resulted in long-term business efficiency and profitability. They avoided mass layoffs like other companies did, which led to higher morale and a significantly lower turnover rate,” explains Cosima von Kries, Nintex Director, Solution Engineering EMEA. “Another example is the LEGO Group, which increased its sales by 30% during the recession by diversifying its portfolio. The company began investing in newer manufacturing methods while optimizing inventory and warehouses.”
What makes a recession-proof company?
Companies around the world are embracing digital transformation, either consciously or unconsciously. Despite the economic downturn, technological interventions can support future growth by creating multiple new revenue streams. Companies can protect themselves against a recession by building a good line of credit, diversifying revenue sources, maintaining solid relationships with all stakeholders, and making accurate forecasts.
Executives are under constant pressure to be profitable as operating costs have increased due to inflation. During previous economic downturns, companies have struggled to find new strategies to maintain profitability, but investments in technology have proven to be a valuable source of sustained return on capital during difficult economic times.
“Automation platforms give companies the ability to automate and manage processes and repetitive tasks so employees can free up time for higher value tasks. Today, many companies view automation as a one-time investment. However, the value of improvements can become exponential when intelligent automation tools are deployed on a large scale, as well as creating a culture of innovation and continuous improvement, which in turn improves morale,” explains Cosima von Kries.
Intelligent automation: growth engine in uncertain times
Intelligent automation is changing the way companies do business in today’s dynamic environment. The complexity of IT has increased. Intelligent automation streamlines business processes and helps improve customer loyalty. Intelligent automation is at the heart of an organization’s digital transformation initiatives. It will be a driving force in accelerating business transformation and growth and play a key role in the hybrid work environment. It can increase productivity, speed time to market, and transform employee and customer experiences.
“Recession-proof companies are distinguished by how they apply intelligent automation in the following seven areas: financial health, stabilizing and gaining market share, portfolio diversification, transforming their business model, managing employees, digital-first approach and strategic partnerships. With the help of intelligent automation, a variety of improvements can be created in each of these areas, which almost automatically increases the value of the company,” concludes Cosima von Kries.
www.nintex.de/
2023-12-05 22:29:02
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