SBTC, ETR: 1 mins
Should we worry about the economy?
The primary sectors of the UK economy have been through turbulent times over the last few years since the financial crash of 2008 and the subsequent years of austerity are not over as the current government has said publicly.
Sectors in order of value (GDP) to the UK economy:
80% Service Industries
1.8% Production Industries
Over the last few years, the high street has been the most visible view of businesses finding the trading environment very difficult, have gone out of business or restructuring. Carilion, Toys are Us, Maplins, and recently House of Fraser, Interserve, Kier Group and HMV are businesses that find themselves in this position. What do they all have in common? They are all services or construction based. The UK economy is dominated by these sectors so is it any wonder they receive so much attention. What we should be thinking about are the key contributors to the challenging times which are the rise of online trading/commerce and the cost of operating the business.
Finding the right solutions for businesses is a tough one as the feeling is the economy will slow and no one solution will provide enough of a catalyst for a strong upturn. The answer for businesses has to be to craft a systemic solution. Below we outline some avenues for finding solutions to identifying new capabilities (broadly speaking) and making these the new normal.
Take nothing for granted and plan for the future. A client laughed when we suggested a ten to thirty-year plan.
Impact on Business Operations.
Be prepared to change the way things are done strategically and operationally. Are the business processes delivering the capabilities needed? The examples above serve as a reminder that the business landscape is constantly changing.
Seek technological solutions from across industry sectors. Security solutions are a good place to start.
Disruption to BAU.