24 Mar, 2023
In a recent interview with CNBC, Christian Klein, CEO of SAP, stated that the next phase of globalization has arrived - and it’s driven by data.
How data is delivering the next phase of globalization
Just a few months into the year and already Amazon, Google, Meta, and Microsoft have announced mass layoffs. These layoffs reflect the wider economic challenges being faced around the world.
Google’s redundancy announcement was the largest in the company’s 25-year history and Microsoft is letting go of 10,000 employees in the first quarter of this year. Amazon has also announced it will be cutting the largest number of jobs it has ever axed and Meta is saying goodbye to 13% of its staff. However, according to Christian Klein, CEO of SAP, these reductions in staff aren’t simply a sign of a declining technology industry, quite the contrary. These changes in employment are simply a sign of organizations stepping into the next phase of globalization. A phase that is driven by data.
Technology isn’t declining, it’s simply shifting
Global recruitment site Indeed is still identifying 8 of the 10 best jobs in the US as jobs in the IT industry, and many of these are data-driven tech roles – full stack developers, cloud engineers, and machine learning engineers. SAP has also witnessed a shift towards data-centric and supply chain management-focused businesses. SAP has continued to expand as it’s shifted away from traditional computing infrastructure to the cloud, delivering an impressive performance, despite pulling out of Russia.
How recent years have shaped a shift toward data-centric business
One of the key learnings from the 2019 Pandemic was the vulnerability of our supply chains and the reliance of the Western world on China. The world was still dealing with the aftershocks of the Pandemic when the Ukraine-Russia war broke out, and many large organizations pulled out of Russia, resulting in the upheaval of the oil and gas industry.
Recent years have highlighted the importance of a robust supply chain for successful global businesses, and it’s striving to define, establish and reinform this stability that will define the next phase of globalization. In doing this, data will be key.
Data is now inherent in every business and this next stage of globalization will see companies getting a better grip on their data and how it can be used to make smarter, more insightful, and sustainable decisions. For a while, we’ve had negative interest rates, but the Federal Reserve, the European Central Bank, and the Bank of England have all hiked interest rates to reign in soaring inflation. However, Klein believes “people still want to invest money, but they really care about where to invest”. And we now find ourselves in a global economy where only a data-centric focus can deliver the sustained results needed to attract investment.