A new year is upon us and what will 2025 bring for businesses? Six experts make their predictions in this month’s Editor’s Question, starting below with Rob Shaw, MD EMEA at Fluent Commerce.
In recent months, we’ve seen a significant amount of uncertainty across industries, driven by macroeconomic factors and political shifts, such as the UK and US elections. Historically, when faced with instability, businesses tend to delay major decisions or pause projects. However, we’re now beginning to see those projects that were on hold for the past 12 to 18 months start to move forward. The next 12 months will bring modest growth. While global political situations may still generate some tension, businesses will gradually accept the current environment and adapt accordingly.
Shifting buying behaviours
In the retail industry, there’s been a noticeable uptick in foot traffic in town centres, suggesting the high street is once again becoming a key destination. However, buying behaviours have shifted. Today’s consumers are now more focused on purchasing essential items rather than discretionary goods. This has changed the retail landscape, reflecting a broader trend of consumers prioritising need over want. As disposable income remains tight and competition remains fierce, retailers will need to focus more than ever on customer experience.
Efficiency will also become a key driver for profitability. With ongoing supply chain challenges impacting costs, businesses will need to find ways to streamline operations. For retail buyers, this means understanding what trends consumers are going to be interested in and then ordering the right amount of stock. To supplement this, retailers need a complete real-time inventory visibility so they are able to see what they have to sell now, what’s already in transit, what’s on its way and what’s in the backlog.
Supply chain pressures
Indeed, supply chain disruptions have been a cold shower for retailers this year. From the Red Sea crisis to the recent US port strikes, these events have been a shock to the system. Retailers didn’t realise how big of an impact it could have on their operations. They’ve been bitten, and now they’re shy. As a result, CFOs will be nervous about over-exposing themselves.
It’s cognisant of when COVID-19 hit. Initially, we experienced a massive shortage of products. Then, supply chains opened up and people over-ordered and overstocked. A lot of brands fell by the wayside as they overspent on purchasing products they couldn’t turn into revenue. It’s a balance between feast and famine – one that retailers will be paying closer attention to in the coming year.
Learning from these events, retailers will change the way they source goods. More near-shore supply chains could emerge as companies look to reduce reliance on the Far East. The introduction of export taxes in the US may also have a significant impact on overseas trade, possibly leading to shifts in market strategies for European brands as they reconsider their expansion plans.
Edward Tuorinsky, CEO and President, DTS:
“Are you certified?” may become the most used phrase in business this year. I predict cybersecurity compliance will be a significant growth opportunity for 2025, specifically cybersecurity supply chain risk management (C-SCRM).
Assessing and managing the cybersecurity risk of all partners with whom you share data connections is an important part of each company’s security posture. Bad actors prey on the weakest link, often smaller companies, intending to gain access to a bigger, more lucrative company’s system.
Believe it or not, C-SCRM is trending because of the US Government’s Department of Defence (DoD). After years of cyberattacks, breaches and viruses, programs across the Federal government are helping secure the country’s critical infrastructure by establishing baseline cybersecurity standards for contractors, but with wide-ranging implications.
The DoD’s Cybersecurity Maturity Model Certification (CMMC) requires all 200,000+ contractors to prove that they meet minimum cybersecurity standards to qualify for new or renewing contracts. As mandates trickle down, thousands of subcontractors, vendors and suppliers to these companies will need proof of their security compliance, too.
Federal mandates for contractors represent a significant area for growth for commercial markets. Companies may find their supply chains are demanding that they invest in cybersecurity that meets national standards and documentation or certification audits that prove their security.
Companies with long-standing or niche supply chains have been reluctant to cut ties with a partner or supplier over cybersecurity, but I think we’ll see that change this year. Risk is a powerful motivator, and vetting your supply chain is one of the most cost-effective cybersecurity moves companies can make. While cyberdefences can barely keep up with evolving threats, supply chain security bolsters the entire ecosystem.
What will it mean to vet your supply chain? Asking for proof that the company has controls in place and is following policies and procedures to protect people, data and systems. With non-disclosures in place, we’ll see companies asking for System Security Plans and third-partycertifications like ISO, SOC or CMMC. We’ll also hear about organisations cutting ties with those who don’t have the documentation or aren’t up to standards.
Cybersecurity wasn’t part of the conversation with partners and vendors five years ago. Today, the regulatory environment and the need to secure the country’s critical infrastructure have made it an imperative. Look for cybersecurity to be a major area for growth in 2025.
Orediretse Molebaloa, Head of Solution Engineering for Africa, Infobip:
In 2025, businesses may face several challenges as they strive to remain competitive in an increasingly dynamic and customer-focused landscape. One of the most pressing issues will be balancing customer experience (CX) initiatives with internal priorities. Organisations must allocate resources effectively between scaling operations and delivering exceptional CX. This balancing act requires a strategic approach that ensures operational efficiency while maintaining customer satisfaction.
Data overload is another significant challenge. While businesses are collecting unprecedented amounts of data, many struggle to turn it into actionable insights. Instead, they risk over-engineering solutions and complicating customer journeys without improving them. Companies must invest in effective data analytics tools, like customer data platforms, to extract actionable insights while avoiding unnecessary complexity. For instance, at Infobip, a focus on leveraging precise, relevant data optimises CX without inundating customers with irrelevant interactions.
Breaking down internal silos to create a customer-first culture is equally challenging. Many organisations struggle to create cross-departmental alignment, where every team understands their role in the customer journey. This requires executive support and continuous training to ensure departments like finance or operations contribute to a seamless and customer-centric experience.
Furthermore, businesses must keep up with evolving customer expectations. Modern consumers demand consistent, personalised interactions across all touchpoints, whether on an app, a messaging platform or in-store. Any inconsistency can lead to customer loss. Businesses must prioritise omnichannel consistency, ensuring their brand identity and service quality remain cohesive across platforms.
Lastly, proving the ROI of CX initiatives remains a challenge. Quantifying the financial benefits of enhanced CX, such as improved customer retention and satisfaction, requires robust metrics and strategies to demonstrate its value effectively. Without clear evidence of value, justifying investments in CX can be an uphill battle in competitive markets.
Growth opportunities
The year 2025 presents exciting growth opportunities for businesses that are ready to embrace Digital Transformation and explore new markets. Expanding into untapped regions or verticals will be a significant driver of success. Each market presents unique characteristics, and businesses that tailor their strategies to local preferences and technologies will gain a competitive edge.
Expanding into underdeveloped verticals like logistics, healthcare and retail also offer immense potential. As technologies like IoT and AI mature, businesses can explore innovative use cases.
Hyper-personalised CX is another powerful growth lever. Advanced analytics and automation now allow businesses to cater to individual preferences at scale. This not only improves satisfaction but fosters loyalty and drives conversions.
Collaboration and partnerships represent additional opportunities. By working with complementary service providers, companies can offer integrated solutions that benefit customers and drive mutual growth.
Finally, investing in sustainability and inclusivity will yield significant rewards. Consumers increasingly favour brands that align with their values, from ethical sourcing to equitable workplaces. By embracing diversity, promoting equitable work environments and adopting sustainable practices, organisations can attract and retain both customers and talent, setting themselves apart in competitive markets.
Sara Daw, Group CEO of The CFO Centre and The Liberti Group:
The fractional C-suite boom will grow offering opportunities for business growth without the expense of a full time hire. According to the Bureau of Labour Statistics, fractional jobs were up 18% from 2021 to 2022 and 57% from 2020 to 2022. From what we’re seeing we can expect a similar jump again,
As we move into a new year and reflect on 2024 it’s clear the business context continues to be turbulent and in constant flux. The global megatrends of Digital Transformation, automation, advance of AI, climate change, geopolitical instability and social and demographic changes are not abating, instead they are increasing.
It’s not going to be good enough anymore for businesses to have static, rigid and bloated organisational structures which can’t flex, change tack, respond quickly to change and which lack the cutting-edge skills needed to test and experiment for the future.
Developing agile talent strategies which make businesses nimble, adaptable and innovative in partnership with technology will be key to competitive advantage and growth and should be top of the list for 2025.
But how do organisations do this? How do they access the critical skills they need to supplement their loyal employee base?
This is where the fractional C-suite comes in. This is a practical, alternative vision of the future of work for senior executives that is starting to gain significant interest and is being adopted by businesses globally. It disrupts and challenges the traditional full time employment model providing firms with access to the functional, emotional and collective intelligence they need to grow by moving positions from the ‘pay-roll’ to an ‘access-role’. Operating across the traditional C-suite disciplines of finance, marketing, people, technology and so on, these top calibre individuals with extensive knowledge and experience have left corporate to gain more flexibility, variety and control over their lives. They have chosen to leave this life for good, become self-employed and work with a portfolio of growing entrepreneurial businesses or larger organisations, each on a flexible fractional basis, for example one day per week or two days a month.
In this way, entrepreneurial organisations who don’t want, don’t need and can’t afford full time CXOs will be able to access much-needed fractional CXO skills to scale on a flexible basis.
Full time and employed larger corporate CXOs will also engage with non-threatening fractional CXOs to complete specialist tasks and projects of a part time nature – things on their to do list they don’t have the time or skills for. These fractional CXOs are ‘another one of me’ and bring dynamic access to wide and deep pools of C-suite skills on-demand.
Importantly, the very nature of being fractional means these CXOs get far more exposure than employed staff to the latest challenges, trends, tools and perspectives and accumulate up-to-date knowledge and insights,
As technology and automation adoption increase, we will see the start of traditional full time roles unbundling into a combination of work and tasks performed flexibly by humans augmented with automation. Fractional leadership meets this trend head-on by providing flexible access to the skills and know-how organisations need to innovate and grow.
Des Anderson, Co-founder & CTO, LearnUpon:
As we look ahead to 2025, businesses have a significant opportunity to capitalise on customer retention strategies. Retaining existing customers not only reduces costs compared to acquiring new ones but also fosters long-term growth and loyalty. Consequently, customer education and a strong focus on customer experience are becoming vital components for organisations aiming to achieve sustainable success.
Organisations can enhance the impact of customer education by prioritising personalisation. By analysing customer data, such as product usage trends and pricing tiers, they can create tailored training experiences that engage learners and strengthen loyalty.
Additionally, advancements in AI technology are transforming the way organisations interact with customers. Learning solutions are starting to enable fully personalised learning journeys that adapt dynamically to individual preferences, needs and goals. This shift not only scales customer education but also reduces reliance on direct support by offering strategic, consultative experiences akin to in-person sessions. These innovations are poised to improve engagement, retention and overall customer success.
The elephant in the room, however, is safer AI and data privacy. We’ve not yet experienced the full scope of capabilities that AI presents to our organisations, and we must care for and protect customers by providing safe guardrails for data. Additionally, there are some concerns around AI accuracy. AI models are known to hallucinate and can provide inaccurate information. It’s vital that any technology supporting learning is providing relevant and accurate information at all times. Before we see the true explosion of innovation that AI can provide, we must ensure that it is safe above all else.
It’s also crucial that humans interacting with AI for any business purpose are properly equipped with the right training and knowledge to use it effectively and interpret the responses properly. Businesses who can overcome the challenges around AI adoption will reap huge rewards – it’s time to take the leap and work out what AI means strategically for your organisation.
Ciara Harrington, Chief People Officer, Skillsoft:
Based on our latest research into workplace challenges, businesses expect to face significant hurdles in talent acquisition and retention, leadership and management, organisational effectiveness and customer satisfaction in the coming year. Much of these challenges are rooted in people and behaviour and require tangible investment into the employee (learning, skills development and on-the job application) and the organisation (people programmes, culture and organisational effectiveness) to be resolved.
While these workplace challenges are set to be prevalent, elsewhere, our survey respondents said their organisations are prioritising ‘improving efficiency’ and ‘increasing revenue’. This clear disconnect between leadership priorities and anticipated pain points will lead to significant and continued challenges in 2025.
As we navigate ongoing uncertainty, it is clear that the businesses that will thrive are those that invest in their people. By prioritising talent development, leaders can identify those core skills critical to driving successful business outcomes, improve those skills and in turn, boost efficiency and productivity. Leaders who understand that investing in people and driving profits are intrinsically linked rather than mutually exclusive will be successful next year.
Our research also highlights ‘burnout and exhaustion’ as the top work-related challenge, with almost 40% having experienced this in the last year. HR and leadership teams can take concrete steps to address these challenges, in-part by setting and communicating clear strategic initiatives which are integrated into the overall people programme framework and cascaded to all team members. This can drive significant organisational alignment as well as provide clarity on prioritisation of activities. In parallel, tangible and proactive mental health support is key to a healthy working force and reducing rates of burnout.
Despite these challenges, there are significant opportunities for growth. When asked what resources respondents would like their organisation to offer next year to help them feel more prepared to handle work-related challenges, the most popular answer was ‘more personalised training options tailored to my role’. We are seeing a real appetite to acquire new skills related to AI, for example, which can also contribute to businesses’ ambitions to increase productivity and efficiency – especially when people are able to make the most of what the technology is capable of.
