The key issues for businesses in 40 years' time (2063)

Founded in September 1983, The Open University Business School officially celebrates 40 years this year.

As part of our 40th anniversary reflections, we asked our Business School students and alumni 'what do you think will be the key issues for businesses in 40 years (2063)?'

Key themes in their answers included advances in artificial intelligence (AI) technology, a focus on sustainability and environmental issues and evolving Equality, Diversity and Inclusion (EDI) practices. Find out more below.

Christian Kastner, Sales Director at VAUTID, believes there will be some key changes:

• Standard/repeating tasks will be automatically done with the help of IT and AI. As much of the normal work will be automated, the more interpersonal people skills will become. Especially in communication and influencing others to create culture and trust. All things which AI cannot do. 
• The gap between qualified people and non-qualified will become even bigger. So, upgrading your skills and knowledge, like through the OU, will become increasingly important.
• We will see a completely new industry in environmental technology coming up, making the world a better place in terms of renewable energy, clean water and waste reduction.
• Uncertainty, change and volatility, uncertainty, complexity, and ambiguity (VUCA) will stay and become the new normal. Businesses have to live with that and adapt. 

Richard Gadd, Founder and Executive Director at Developing Business Excellence Ltd, predicts there will be a decline in people’s loyalty and goodwill, as well as customer service. Richard added:

I strongly suspect that the recruiting and retention of talent will become a major challenge, and that technological advancements particularly in AI will enable far more personalised shopping experiences.

I’d imagine that the cultural and ethnic composition of the workforce will change beyond recognition, and that global population shift will continue. As a result, I’d anticipate successful businesses having to demonstrate much greater multi-cultural, tolerant, and inclusive working practices.”

Alan S Morrison, Owner at ASM Media & PR, expresses that some issues will always be with us – managing people, finance, organisational structures and cultures and marketing and public relations. Alan shared:

They aren’t issues you ever ‘solve’ – they’re ongoing factors which change and which you have to manage."

To these, Alan also adds:

• Climate change-related sustainability and agility in responding to how the eco-systems which impact your organisation’s people and operations are changing.
• Ethical questions over how you operate and what tools you use and how you use them – already an issue with the new generation of AI tools, particularly the generative ones.
• Equality, Diversity and Inclusion – the first has been a big thing for more than 50 years, the latter two are newer. Organisations will be led on them by the views of their key stakeholders (Winstanley Matrix) and/or legislation, whichever comes first.
• ESG – the more progressive organisations are embracing this. In 40 years it should be a universal truth that you need to take them seriously.
• Purpose – fairly new, but will play a growing role in the recruitment and motivation of your people.
• Social inequality driven by technology – will your organisation follow those trying to cut headcounts via autonomous machines without taking responsibility for the knock-ons for employment and the living standards of the least well-educated?

Alan shares that it's easy to see the future as being massively different (c.f. 1960s Tomorrow’s World episodes), but that many of the key questions will remain the same, only involve around new things.

James Boyce, British Airways pilot and MBA student, focuses on two key issues: mass customisation, and employee retention.

Mass customisation can already be seen with the adoption of AI models that recommend videos on platforms such as YouTube and TikTok. As these technologies improve, so will businesses’ ability to produce customised products at low prices. However, mass customisation doesn’t come without challenges. Whilst giving customers what they want may increase customer satisfaction, it may also increase customer expectations. As these technologies become more widespread, barriers to entry will undoubtedly be reduced, opening space for new competitors to enter the market.

Workers may be less willing to remain in roles which do not fulfil their personal and professional goals and that do not offer them the meaningful projects, flexibility and purpose they desire. Workforces may become increasingly globalised: never before has it been possible to have multiple employees working for international businesses from the comfort of their own home. However, with such low switching costs it's possible that changing companies could mean merely logging onto a different website or using Zoom instead of Microsoft Teams, increasing employee turnover and knowledge sharing with competitors."

Read James' submission in full on our blog.

Tillmann Henssler, Manager Diversity, Equity and Inclusion at Pfizer, suggests key issues will include:

• Increase in use of technology / AI: managing the opportunities and risks of using Artificial Intelligence for the business.
• Finding and retaining talent in an increasing complex and volatile business world.
• Lifelong learning for the workforce to bridge skills gaps and adjust to ever-evolving job needs in the organisation.
• Adjusting your products and services with a view to the effects of climate change.

Rachel Blackburn, Director at US2U Consulting, shares her insights on the factors that will define the future of businesses:

• Sustainability as the New Norm: Companies will need to align their operations with the principles of sustainable development to meet customer demands and address regulatory requirements.
• AI-Driven Transformation: The integration of AI will optimise decision-making processes, automate tasks, and revolutionize customer experiences.
• Evolving Lifestyles and Consumer Preferences: Expectations for personalized, ethical, and convenient products and services will be the norm, and companies will need to adapt to these evolving demands.
• Quantum Leaps in Technology: Quantum computing, nanotechnology, and other emerging fields will revolutionize industries and create new opportunities.
• Global Connectivity and New Markets: Emerging markets will play a significant role in the global economy. Businesses that successfully navigate these markets and leverage the potential of borderless commerce will thrive, while those that resist globalisation may struggle.
• Equality, Diversity, and Inclusion (EDI) as Cornerstones: As societal norms evolve and the importance of social responsibility deepens, businesses will recognize the economic and ethical benefits of fostering diverse and inclusive workplaces.

The business landscape of 2063 will be shaped by sustainability, AI, lifestyle, and technology. As business leaders, it is crucial to recognize these key issues and proactively prepare for the challenges and opportunities they present. Adapting to the evolving world is not just a choice; it's a necessity for survival and success in the businesses of the future."

Read Rachel's submission in full on our blog.