Statistics Canada has released new data showing that the Canadian economy grew by 0.1 percent in July 2022. However, their estimates show that economic growth stagnated in August when the annual inflation rate reached 7.0 percent (down from a high of 8.1 percent in June). According to the number, Canada is expected to head toward a recession in early 2023.
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As a leader of your organization, you need to start preparing for an economic recession with technology which can support your business and create a better outcome coming into and heading out of any potential recession. In this blog, you will find four best tips from our CTO that business leaders can use to avoid the worst scenario.
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4 Key Tips for IT leaders to Prepare for a Recession
📑 Evaluate your efficiency and look for ways to automate processes.
When preparing for a recession, one of the most important things IT leaders can do is take a close look at your efficiency and see where there might be room for improvement. If any business processes could be automated or made more streamlined, now is the time to make those changes. Taking care of these little details can make a big difference when weathering a recession.
📈 Get data on leading indicators so you can make better decisions in business processes.
Leading indicators are economic indexes that tend to change before the overall economy changes, which can be used to predict future economic activity, and thus help you make decisions about things like hiring and investment. It leaders need to collect data to analyze leading indicators of what the potential risk session might mean to you as an organization. In addition, you need to care about internal and external indexes that can help identify and forecast potential risks which can lead to an economic downturn.
To avoid another potential economic downturn, it's important to understand what leading indicators you can track to get ahead of the curve.
🧑💼 Make sure you have a recession-proof customer mix to avoid an economic downturn.
To survive a recession, ensuring your customer mix is as recession-proof as possible is essential. That means having a combination of customers who are less likely to be impacted by economic downturns.
So, what can business leaders and executive teams do to ensure a recession-proof customer mix? It's essential to look closely at your existing customer base and check if any customers are at risk during a recession and if you have any systems to help you identify them. If you have customers at risk, it's necessary to take steps to mitigate the risk, which might involve stricter payment terms or other measures.
🛍️ Use a slowdown to implement changes or investments from your wish list.
When business is slow, it's the perfect time to invest in new technology or make other changes you want. It can be challenging to implement transformative changes when you're busy with customers, but when things slow down, you have a chance to catch your breath.
It leaders can use this time to double down and look for investment opportunities in your business. Don't just sit around waiting for things to pick back up – by taking action, you can help ensure that your business comes out of the slowdown even stronger than before.
To learn more from our CTO, watch this video:
Boost Workplace Productivity through Insight and Automation
If you want to improve your business, start by collecting and analyzing data. With this valuable information, you can identify inefficiencies within your company, optimize efficiency among employees, and free yourself from doing the same tedious tasks repeatedly.
ProServeIT provides you with Data & Analytics 3-Step Journey to help executive teams make well-informed, data-driven business decisions and increase overall profitability.
Data and Analytics 3-Step Journey for business leaders:
Step 1. Discovery🔎
• Assess your current data practices, discover your Data Maturity level, build an implementation plan to “level up”, and understand costs & ROI.
Step 2. Level Up ☝️
• For small and medium businesses: integrate data from multiple sources, create a “single source of truth” to make data-driven decisions going forward, and build a foundational data infrastructure.
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Step 3. Managed Service ⚙️
• Continuously improve your data practices and ROI by getting weekly strategic advice from senior consultants and empowering all major stakeholders.
Edited by: Hyun-Jin Im and Betty Quon