We’re almost into 2024, and our analyst expects big transformations on the global economic, pricing, collaboration, and technological scales. In this blog post, Kalle Aerikkala, Business Consultant at Vendavo, explains how businesses will need to adapt through enhanced collaboration, agility, and innovative technologies to navigate a dynamic landscape.
The new year is right around the corner, and we can expect big changes in the global economy, pricing, teamwork, and technology. Many companies in the pricing space are focusing on training current employees in 2024 following fewer job opportunities in 2023. Pricing experts will stress collaboration and adaptability, moving beyond just analytic skills.
Inflation is cooling, and businesses need to prioritize agility if they want to be ready for success in 2024. They’ll need to refine their pricing strategies, foster collaboration across departments, and explore technologies like large language models (LLMs) to handle their data efficiently.
Let’s look at some of the trends we can look forward to in 2024:
1. Overall economy
Next year, we’ll see an interesting loop between economic development, politics, and subsequent policy. The economic situation will impact election results, which will certainly then impact the economy. It is easy to predict that the year will have turbulence.
We will also see important polls in countries that, in total, have more than half of the world’s population. This could lead to a watershed moment, where the global economy will either start turning inside and more trading will happen between blocks of countries in the future or we will see global trade revitalization.
On that question, I’m optimistic for a result that would make the world more prosperous.
2. Pricing professionals
Although open vacancies declined significantly in 2023, the market for experienced pricing persons will remain tight. My prediction is that more organizations will react to this during 2024 and start to build more paths on how careers within pricing can develop internally.
In 2024, I predict that the skillset of ideal pricing professionals will start to shift. Humans will shift their focus on how to capture opportunities, because adoption of advanced analytical support will make identification of these opportunities more automated. This will elevate the need for interpersonal skills and the ability to convince others to make changes. We can no longer just produce analysis and make recommendations but must instead take a more active role.
3. Pricing trends
Inflation is predicted to cool during 2024, so the focus of pricing actions will shift from frantic price increases to keeping up with cost developments to a more nuanced approach. I predict that many organizations are finding themselves in a situation where the blanket price increases over the last two years have meant that part of the portfolio is seen as “out of market” by significant customer segments.
Next year, it will be necessary to adjust those prices while keeping an eye on the overall price level in the market. In addition, I predict that we will see a divergence in market price development across regions. This will mean that price adjustments need to be made more granularly in 2024.
Next year, collaborative pricing will be more critical than ever. If the predicted economic instability occurs, all organizations will need to focus on working across teams and functional boundaries to ensure the pricing agility needed to adapt to changing situations.
I predict that advanced organizations will establish a cross-functional body to make price adjustment decisions based on the pricing performance of the last changes executed. There will also be a shortening of the analysis-action period for organizations that have already set this up. This will be a critical focus in 2024 for organizations still building the capabilities.
With the rapid development of LLMs in 2023, I predict that 2024 will be a year where we will see a lot of hits (and misses) on its business applications. For pricing, this technology will provide interesting opportunities for combining different data sets and approaches for improved pricing and sales. Your organization needs to know how to approach the topic to make sure you benefit from the efficiencies the new technology creates.
In 2024, I predict we will see the fastest organizations reap some fast-mover rewards. I also predict that rolling out new technology will create frustration, as not all projects will go according to plan or create the expected benefits.
Where we’re headed
The intricate mix of economic changes, politics, and policies suggest some uncertainty ahead, but also hopes for growth. In pricing, the shrinking job market highlights the importance of being flexible and focusing more on collaboration.
As inflation decreases, companies need to adjust their pricing plans, especially across regions. Working with teams becomes crucial for quick and smart pricing decisions – particularly in unpredictable times.
Tools like LLMs will bring new ways to improve, though they’ll also bring implementation challenges. Businesses need to be ready to adapt, collaborate effectively, and use technology wisely to navigate a changing but promising landscape.
Reach out today to speak with an expert about your commercial excellence needs.