IBM unveils 5 trends that will change business in Brazil and Latin America

The technology boom that organizations have experienced over the past three years has reinvented how leaders view the future of business. In this context, where technology, talent and trust are the three pillars of progress, today IBM unveils five trends that will reshape business in Brazil and Latin America.

“Because they take risks, put talent at the center of strategy, and practice open innovation, companies remain relevant in a highly competitive and challenging marketplace. The decisions and investments you make today will determine the opportunities tomorrow. When we combine technology, talent and ecosystem, the result is innovation for organizations, their customers and society,” says Marcelo Braga, President and Head of Technology, IBM Brazil.

In this sense, the market is also responding to business transformation. “In 2022 alone, companies in Brazil will be investing 74% of their budget in technology to create long-term digital opportunities,” said Alejandro Florian, vice president of consulting and strategic solutions for IDC in Latin America.

The IBM Institute for Business Value report, 5 Trends for 2022 and Beyond, shows how consumer, employee and investor demand is changing, as well as the rates and preferences of high performers.

These trends highlight the major changes that will remain.

1. INTRODUCTION OF NEW TECHNOLOGIES: take a chance or freeze in your comfort zone – Instead of developing individual innovation measures, leaders should focus on implementing integrated systems that will revolutionize business models. In this context, risk brings good results. Companies with a culture of tolerance for errors achieved a 10% increase in revenue. In addition, those who invested in ecosystems and open innovation experienced an average 40% increase in income. According to IDC, Brazil will become the country with the highest consumption of new technologies by 2026, corresponding to a compound growth rate (CAGR) of 16.9% over the period 2021-2026.
2. TALENT: take care of your people, otherwise they will leave without looking back – In the first five months of this year, almost 3 million voluntary workers were laid off in Brazil. Globally, IBV data shows that more than half (56%) of professionals who changed companies in 2021 cited the need for greater flexibility as the main reason, and almost a third said they want to work for a company that is more in line with their values. Organizations need to rethink their business models and make the necessary changes to become more attractive, which includes prioritizing people, their financial, mental and physical well-being, flexibility, and encouraging authenticity. Companies that do not meet the needs of their employees may succumb to the war for talent and be left with unfilled vacancies. The economic impact in Latin America could reach $35 trillion by the end of 2022 due to the gap in technical and digital skills in all sectors of the industry.
3. SUSTAINABILITY: Trust in companies is at stake – Executives say sustainability is one of their priorities for the next 2-3 years, and 54% of consumers say they are willing to pay higher prices for sustainable products. On the other hand, just under half of consumers say they trust companies’ sustainability claims, and more than three-quarters of that group do their own research before making a purchase decision. This means that companies must provide transparent and detailed information about the progress of their initiatives if they want to connect with these aspiring consumers.
4. ECOSYSTEM: it’s time to overcome limitations and make alliances, including with competitors “In recent years, the view of the ecosystem has grown exponentially. More than ever, open innovation is driving collaboration and co-creation to meet the changing needs of an increasingly demanding consumer. The value of the collective mind and the destruction of the boundaries of the organization itself is the key to achieving this goal, which will allow them to respond to the challenges of the context of rapid change and destruction. Collaboration with ecosystem partners, including competitors, will be needed as companies move forward in their transformation.
5. CYBER SECURITY – don’t expect them to attack your trust – While cloud technologies, platforms, and ecosystems increase agility and the ability to innovate, if poorly managed, they can put business at risk: 70% of organizations struggle to protect data across multiple clouds and on-premise environments. The key will be to combine strategies and technologies, as well as a Zero Trust approach, to achieve better business results, and to detect and respond to security incidents faster to protect your assets, customers, and business.

Transformation and destruction are continuous processes. Companies must take risks, learn from their mistakes, and find combinations of technologies, strategies, and people that can help them move forward. Investing today can mean opportunities and preparation for the future and, no doubt, a better position to take advantage of all the positive changes that digital transformation brings. These are trends that will remain.

About the IBM Business Value Institute

For two decades, the IBM Institute for Business Value has served as IBM’s premier think tank. We are inspired by the creation of strategic ideas based on research and technology that help leaders make smarter business decisions. Thanks to our privileged position at the intersection of business, technology and society, we research, interview and interact with thousands of executives, consumers and experts every year, synthesizing their perspectives into credible, inspiring and actionable insights. To stay connected and informed, subscribe to the IBV email newsletter on the ibm website. You can also follow @IBMIBV on Twitter or find us on LinkedIn.

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