Prepare Your Business for The Great Reset

  • Anuj Saxena


<p>In the wake of the crisis brought on by the COVID-19 pandemic, the <a href="https://www.imf.org/en/Publications/WEO/Issues/2020/04/14/weo-april-2020" target="_blank" rel="noopener">International Monetary Fund (IMF)</a> reported that although the losses were not consistent, the world economy fell by 4.9% in 2020. While GDP decreased by 7.2% in the European Union (EU), it decreased by 2.4% in emerging economies.</p><p>The pandemic exposed systemic inadequacies and social disparities, highlighting the need for a new, inclusive, and resilient economy.</p><p class="bbox"><em>As life came to a standstill and world economies plunged, the World Economic Forum (WEF) launched an initiative to fund a sustainable economic recovery. This economic recovery plan is - <span style="color: #c2e0f4;"><strong><span style="color: #236fa1;">The Great Reset</span>.</strong></span></em></p><p>According to Klaus Schwab, president of the World Economic Forum, resetting the world economy and its frameworks will require businesses to increase their stakeholder responsibilities, implement more environmentally responsible practices, and seek social impact alongside financial progress.</p><p><img src="https://kradminasset.s3.ap-south-1.amazonaws.com/KR+Blogs/Prepare+Your+Business_IG_Option-02-A.jpg" /></p><h2><span style="font-size: 14pt;">What is The Great Reset All About?</span></h2><p>Launched in June 2020 by the WEF, The Great Reset is an initiative to restructure the global economy after the COVID-19 pandemic. It has three core principles:</p><ul><li style="list-style-type: none;"><ul><li>The first principle is creating ideal conditions for a &ldquo;<strong>stakeholder economy</strong>,&rdquo; where organizations are geared to benefit all their stakeholders, including customers, employees, suppliers, and local communities, by incorporating resilient, equitable, and sustainable models for development.</li><li>The second principle of The Great Reset is giving more weight to <strong>ESG metrics</strong>.</li><li>The third principle urges organizations to incorporate <strong>modern, fourth industrial revolution digital innovations and technologies</strong> where possible.</li></ul></li></ul><p>&nbsp;</p><p class="bbox"><em>The Great Reset encourages global cooperation between governments, world leaders, and powerful corporations to achieve common goals. The collective aim is to manage the damage done to the world economy in a socially responsible, sustainable, and environmentally conscious way. </em></p><p>One proposed route forward for The Great Reset is the move away from capitalism and the concept of personal ownership to embrace collective ownership. Of course, this is only possible if the big corporations restructure their business models with sustainability and the environment in mind, and consumers, too, are incentivized to adopt the shared ownership model.</p><h2><span style="font-size: 14pt;">The Plausible Great Reset Scenarios</span></h2><p>The direction The Great Reset will take in the coming decade is still being determined. The Davos Agenda claims that the great reset requires the circular economy to transform all goods into services to pursue the goal</p><p style="text-align: center !important;"><span style="color: #236fa1;"><strong><em>You'll own nothing, and you'll be happy</em></strong></span></p><p>The circular economy strongly emphasizes reusing and recycling materials rather than utilizing them only once and discarding them.</p><p>Traffic congestion and pollution from vehicles are choking cities and contributing to global warming. Consider a world in which fleets of electric and shared autonomous vehicles reduce the number of vehicles by up to 90%.&nbsp;</p><p>The concept of ESG, which stands for <span class="undrln" style="text-decoration-color: DodgerBlue !important; text-decoration-thickness: 2px;">Environmental</span>, <span class="undrln" style="text-decoration-color: DodgerBlue !important; text-decoration-thickness: 2px;">Social</span>, and <span class="undrln" style="text-decoration-color: DodgerBlue; text-decoration-thickness: 2px;">Corporate Governance</span>, is another critical component of the Great Reset. Businesses with low ESG scores will not obtain funds. Stakeholders will avoid them due to factors such as a high carbon footprint, lack of diversity, or social justice strategies.</p><p><a href="https://www.knowledgeridge.com/Blog/How-to-Get-Started-with-Environmental-Social-and-Governance-ESG-Investing" target="_blank" rel="noopener">Related article to ESG</a></p><h2><span style="font-size: 14pt;">How Organizations Can Get Ready for &lsquo;The Great Reset&rsquo;</span></h2><p>The pandemic has hastened the digitization of businesses across all sectors. Using modern technologies to achieve our goals is a cornerstone of The Great Reset initiative. Here&rsquo;s how organizations can approach this change in the right direction.</p><p><img src="https://kradminasset.s3.ap-south-1.amazonaws.com/KR+Blogs/Prepare+Your+Business_IG_02.jpg" /></p><h3><span style="font-size: 12pt;">By Being at the Forefront of Digitization</span></h3><p>The pandemic has emphasized the importance of digital solutions. Organizations across the board have realized that fostering digital connections is the only way to stay relevant and successful in modern times.</p><p>Given the difficulties of today's issues of resuming physical workspaces, driving the business recovery, and returning to expansion, digital has become the lifeline for every business. This will be crucial in the future for how companies organize and react to crises.</p><h3><span style="font-size: 12pt;">Filling the Digital Skills Gap&nbsp;</span></h3><p>Even though human capital is our most valuable asset, many countries are plagued by a digital skills gap in both the public and private sectors. To rebuild better, businesses must prioritize training and reskilling employees for a digital future while improving existing digital skills.</p><p>The circumstances in the last couple of years have spawned digital solutions to streamline various industries, including healthcare, education, manufacturing, cybersecurity, and more.</p><h3><span style="font-size: 12pt;">Re-evaluating Business Strategies</span></h3><p>It will be remarkable if businesses that had a specific strategy prior to the pandemic recover from the crisis with the same strategy. <a href="https://www.knowledgeridge.com/Expert-Network-Services">Rethinking business tactics</a> is required, with long-term environmental sustainability and economic growth taking precedence over any short-term disruption.</p><p>Deft resets increase organizational resilience. As businesses transition from response to recovery, senior leaders must make <a href="https://www.knowledgeridge.com/Expert-Network-Case-Studies">strategic decisions</a> that will lead them to a renewed future, no matter how paralyzing the uncertain outlook appears. As organizations identify and eliminate flaws in their business and operating models, they will be better positioned to withstand the next disruption.</p><p>Organization heads must lead the charge towards a comprehensive, organization-wide digitization to help reeling businesses recover from the pandemic-induced crisis.</p><h3><span style="font-size: 12pt;">Fostering a Shared Commitment to Sustainability</span></h3><p>Shared responsibility for sustainability is essential if we want a fair recovery and to build a better organization to withstand future challenges. In addition to financial success, businesses should upgrade stakeholder responsibilities, adopt more environmentally friendly business practices, and pursue social impact initiatives.</p><h3><span style="font-size: 12pt;">Optimizing their Value Chains</span></h3><p>With the growing digital infrastructure, we now have many modern tools to help organizations streamline processes and reduce waste. Digitization is crucial in helping businesses across sectors to optimize their value chains, improve their performance, enhance their social impact, and plot a sustainable future.</p><h2><span style="font-size: 14pt;">How Can Knowledge Ridge Help?</span></h2><p>Organizations must re-evaluate their digital transformation, skills, and sustainability strategies. Companies must sustainably provide greater cohesion in every part of their value chains, and digitization will be crucial to achieving that.</p><p>Leading organizations need to reset their strategic and tactical decision-making by staying ahead of the curve; this is where <a href="https://www.knowledgeridge.com/" target="_blank" rel="noopener">Knowledge Ridge</a> comes in.</p><p class="bbox"><em>At </em><em>Knowledge Ridge</em><em>, we have access to </em><a href="https://www.knowledgeridge.com/Knowledge-RidgeExperts" target="_blank" rel="noopener"><em>custom-vetted </em><em>experts</em></a><em> with relevant advisory and operational expertise who understand every nuance of the economic changes worldwide - the historical patterns, the reasons for disruptions, and what to anticipate going forward.</em></p><p>Our experts assist our <a href="https://www.knowledgeridge.com/Expert-Network-Clients" target="_blank" rel="noopener">global clients</a> across industry sectors and geographies in:</p><ul><li>Navigating an increasingly complex business environment</li><li>Analyzing political and economic developments</li><li>Forecasting economic trends</li><li>Understanding country-specific regulations and business practices</li></ul><p>&nbsp;</p><p style="text-align: left;">Knowledge Ridge&rsquo;s elite global network of experts supports organizations in better preparing for The Great Reset, creating more inclusive economies, and assisting with digital training and reskilling.</p><h3><strong>Frequently Asked Questions: </strong></h3><h2><span style="font-size: 12pt;"><strong>What Is &lsquo;The Great Reset?&rsquo;</strong></span></h2><p>The Great Reset is an economic recovery initiative forged by the WEF in the shadow of the COVID-19 pandemic.</p><h3><span style="font-size: 12pt;"><strong>Is Your Business Prepared for the Great Reset?</strong></span></h3><p>Your organization is ready for The Great Reset if it incorporates sustainable and ecological processes and is among the first to adopt emerging technologies to improve efficiency and reduce waste.</p>