TRENDWISE Q3 2023 Report Unveils High-Risk Industries for Disruption Amid Uncertainty

Turbulent external forces drive today's business landscape, posing disruptive threats to companies and organizations that necessitate a re-evaluation of their strategies. Growth Innovation Strategy, a strategy and innovation consulting firm, uses our AI-enabled TRENDWISE disruption stress-testing tool to identify sectors vulnerable to disruption risk. Our most recent findings show events during Spring, 2023, added to elevated risk profiles over the next three years for industries that include the insurance, public utilities, electrical equipment, and computer industries.

The results of our TRENDWISE quarterly scenario forecasting update call out the severity, timing and uncertainty of more than 130 external forces on 112 industries identified by the North American Industry Classification System. These include impacts to internal value chains from environmental factors, social movements, the political and regulatory climate, technology, and other force vectors.

Currently operating in beta and under development for improved real-time automation and accuracy, TRENDWISE and Growth Innovation Strategy have focused on two dozen representative industries in the Goods and Services sectors. In our second quarterly update of TRENDWISE disruption weightings, we have increased confidence that firms in the industries we highlight should emphasize the importance of stress-testing strategies to ensure resilience and adaptability in the face of complexity and uncertainty.

Clarifying picture: Among industries at most risk for disruption, timeframes pushed out and certainty increased for most highly-affected industries except insurance, where uncertainty grew.

Elevated Impact: Although clarity grew for industries at most risk for disruption, risk remained elevated in the face of AI adoption, growing demand for cleaner industry, and economic pressures.

Business and organizational leaders face the daunting task of future-proofing their enterprises. Against that backdrop, TRENDWISE and Growth Innovation Strategy simplifies the process of leveraging valuable insights from thousands of open sources. When combined with common scenario planning approaches, leaders can use TRENDWISE insights to navigate the complexities of the business landscape with greater ease and confidence.

By incorporating the TRENDWISE analysis into scenario planning, leaders gain a comprehensive understanding of the key uncertainties and disruptive forces shaping their industries. This knowledge helps Growth Innovation Strategy, our clients, and other organization leaders to develop multiple future scenarios that capture the range of potential outcomes for their business and industry.

Stress-testing existing strategies and exploring alternative approaches allows leaders to identify vulnerabilities before their competitors and seize emerging opportunities to foster innovation and growth.

Embracing a culture of resilience and continuous learning, organizations can proactively respond to unexpected changes, ensuring they remain agile and competitive in an ever-evolving business landscape.

In our Q3 2023 update, TRENDWISE and Growth Innovation Strategy highlight material updates to the following industries according to our modeling.

Material Iterative Changes: "Business as Usual, but Better":

Several industries have experienced significant iterative changes and technological advancements. Animal production, specialty trade contractors, scenic and sightseeing transportation, furniture manufacturing, textile mills, private households, and religious, grantmaking, civic, professional, and similar organizations have witnessed structural innovations that reduce risks while introducing new challenges. Agility, innovation, and adaptation are key to success in these evolving landscapes.

Disruptive Shifts to Technology and Consumer Behavior: "A New World Awaits":

Disruptive technology innovations have impacted industries such as educational services, food manufacturing, information, nonstore retailers, amusement, gambling, and recreation, real estate, administrative and support services, and more. These shifts introduce uncertainty and risk alongside growth opportunities. Businesses must remain vigilant, adapt strategies, and effectively manage risks.

Addressing Emerging Risks: A Guide for Leaders:

Growth Innovation Strategy recommends ten crucial steps for leaders to transform emerging risks into growth opportunities. These steps include integrating risk management into decision-making, engaging with policy-making processes, prioritizing sustainability, investing in technological preparedness, continuous monitoring, fostering resilience, promoting an inclusive culture, enhancing communication and transparency, developing dynamic capabilities, and embracing scenario planning.

Using TRENDWISE and Scenario Planning Tools:

Leaders should leverage tools like TRENDWISE to identify areas of impact, prioritize strategies, stress-test against future scenarios, foster agility, and lead with confidence. TRENDWISE by Growth Innovation Strategy provides valuable insights to navigate uncertainty, mitigate risks, and maintain a competitive edge.

Conclusion:

In a period of fast-moving disruptive forces, adaptability, proactiveness, and innovation are key to success. Growth Innovation Strategy, with its expertise and TRENDWISE tools, offers insights and guidance to navigate disruption, manage risks, and seize opportunities. By embracing a dynamic approach and utilizing scenario planning, businesses can turn uncertainties into strategic advantages and thrive in an ever-evolving landscape.

For more information or tailored analysis, reach out to Growth Innovation Strategy at strategy@growthinnovationstrategy.com.

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