**London**: Forrester’s latest report identifies key strategies for business and tech leaders to mitigate risks associated with ongoing global instability, including refining technology investments, enhancing brand value, leading change, and implementing proactive risk management to ensure organisational resilience in 2025 and beyond.
In a recently published report by Forrester titled How To Thrive Through Volatility, researchers outlined essential strategies for business and technology leaders aiming to navigate the challenges posed by ongoing global disruptions. The report sheds light on a landscape increasingly characterised by instability in 2025, driven by various factors including new tariffs, trade wars, frequent outages, cybersecurity threats, supply chain disruptions, and rising geopolitical tensions.
As economic uncertainty continues to loom, there is a notable impulse among business leaders to pause initiatives and spending until the situation stabilises. However, Forrester cautions that with no clear end in sight for this volatility, leaders should instead focus on strategic investments that prepare for future growth while concurrently optimising costs, reallocating resources, and scaling back on non-essential projects.
The report presents four critical areas where leaders should direct their efforts to maintain stability and seize market opportunities. First, it calls for a focus on optimising technology investments and simplifying technology use. This approach, however, is distinct from mere cost cutting, which often proves detrimental in the long run. Instead, leaders should aim to streamline operations, which might involve eliminating redundant software and renegotiating existing contracts to foster greater efficiency and savings. Additionally, they are encouraged to prioritise modernization plans, positioning themselves to leverage advancements in artificial intelligence and other transformative technologies.
Second, Forrester emphasises the importance of reaffirming brand value and understanding customer segments. By prioritising the needs of specific customer groups, leaders can tailor their brand propositions to adapt to shifts in market volatility.
Thirdly, the ability to lead change effectively is vital. To navigate turbulent environments, leaders are urged to instil confidence and clarity within their organisations. This involves maintaining open communication and cultivating a culture that promotes continuous learning and upskilling among employees.
Lastly, proactive risk management is highlighted as crucial, especially given that over 40% of business and technology leaders view economic uncertainty as their primary concern. Forrester encourages a comprehensive approach to managing risks, addressing enterprise risks (which are controllable), ecosystem risks (partially controllable through third-party relationships), and external risks (uncontrollable factors such as tariffs). Creating scenario planning for each category is essential for effective risk governance.
Frederic Giron, VP and Senior Research Director at Forrester, noted the significant uncertainty introduced by ongoing tariff negotiations impacting imports from all Asia-Pacific (APAC) countries. “It is imperative for business and tech leaders to engage in comprehensive scenario planning to anticipate various outcomes and develop adaptive strategies that ensure organizational resilience,” he stated.
Meanwhile, Sam Higgins, a principal analyst at Forrester, commented on the global trade environment, saying, “Although we rightly predicted in 2024 that rising digital sovereignty policies and geopolitical tensions would see the world fragment into at least three distinct technology trading blocks, we did not expect to be facing a full-scale global trade war.” He highlighted the secondary impacts of tariffs on currency fluctuations, which affect the pricing of cloud-based computing services.
Forrester’s analysts elaborated on the ripple effects of new tariffs, particularly within supply chains and the technology sector. George Lawrie, another VP and principal analyst at Forrester, pointed out that recent tariffs have raised concerns among business leaders regarding the future of their supply chain strategies. He noted that the immediate effect of these tariffs would result in increased prices for consumers, yet it could also present an opportunity for supply chain leaders to diversify and digitise their operations to enhance resilience.
Senior Analyst Alvin Nguyen explained that the dynamic nature of tariff implementations will create confusion surrounding production and sourcing for semiconductors, potentially diminishing the value of IT investments.
Further, Mark Moccia, VP and Research Director at Forrester, warned that recent US tariffs are setting the stage for rising IT costs, advising leaders to prepare for various economic scenarios as they navigate these challenges. He remarked that CIOs may need to delay IT capital expenditures in response to escalating costs.
As these complexities continue to unfold, understanding the implications for the tech industry and developing cohesive strategies will be essential for leaders aiming to maintain momentum amid ongoing uncertainties.
Source: Noah Wire Services
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