Embrace the Chaos: Making Uncertainty Your 2025 Superpower
Unprecedented. This is a word we used to hear sporadically. Now, it feels like an unprecedented event happens every week or two, altering market conditions and strategic priorities. As we gear up for our New Zealand summer holiday, our US counterparts and competitors are wrapping up 2025 budgeting and planning cycles. On the heels of this cycle, I’ve spoken to quite a few leaders that are finding it more challenging than ever to predict what black swan event will happen next. Instead, they are building agile, adaptive strategies and focusing on business continuity planning that builds resilience into their operating model, making the not-so-unprecedented black swan event not only manageable, but a means to thrive.
We are operating in a world defined by geopolitical uncertainty, evolving regulations (or possibly deregulation in the US with the ushering in of the Trump administration), and accelerated technology innovation – particularly in artificial intelligence and adjacent areas. So, what do you need to be thinking about as we head into 2025?
Prepare for a more complex global environment:
While New Zealand’s relative geopolitical neutrality is an asset, external factors will continue to shape market opportunities. Recent global trade tensions and shifting regulations underscore the need to build supply chain resilience (yes, even in software companies) and strategically diversify market footprints. This trend is particularly important for those operating in or selling to customers in the United States. The shifting US political landscape emphasizes onshoring, supporting local manufacturing and software suppliers, and deregulation which is predicted to boost M&A.
Regulatory Readiness as a Competitive Advantage:
On the global stage, regulatory complexity around data sovereignty, privacy, and the ethical use of AI is intensifying. You can prepare by embracing “privacy-by-design’ principles to ensure your architecture can handle data localization demands, proactively aligning with standards relevant in your operating regions, and ensuring you are considering AI ethics and governance by building explainable, transparent, and fair AI solutions from the start. From a US standpoint, with the appointment of David Sacks as the incoming (and first) White House and Crypto Czar there is a high likelihood that AI regulations will shift toward a more industry-friendly approach, prioritizing innovation over stringent oversight.
Future Proof Through Emerging Technologies
This market is unpredictable, and well, unprecedented. . Futureproofing your technology (and your positioning) builds resilience. For example, showcasing advanced AI and analytics capabilities directly address core US industry needs—such as reducing operational costs, bolstering cybersecurity, and meeting fluctuating regulatory demands—even when federal policies are unpredictable. Demonstrating readiness for breakthrough innovations like quantum computing and other next-generation technologies signals that you’re not reactive to current conditions but poised to evolve alongside your customers. This long-term reliability reassures buyers that your company will remain a steady, innovative partner, no matter how the political or competitive landscape changes.
So, what immediate action can you take to deal with today’s highly complex and uncertain operating environments? Below are a few tips:
1) Strengthen Brand and Trust: Highlight how your solution creates tangible value – think improved efficiency, cost savings, compliance. Show transparency in compliance with local regulations, data handling, and an understanding of the broader economic and political climate.
2) Ensure Data Privacy and Security are Up to Scratch: As trade tensions with the US rise, lean into cybersecurity as a differentiator. Invest in threat detection, incident response, and third-party audits and PIN testing to prove you are a secure partner for US enterprises.
3) Localize Everything: As the US administration moves to a more protectionist approach, this will likely seep through the sentiment of the nation. Deep sector expertise and products focused on specific pain points show you understand local needs. Localize everything from your product interface to support hours, and ensure you have people on the ground to establish face to face connection.
4) Scaling Talent and Operations: Considering the possibility of tighter immigration policies and “Buy America” sentiments, establish a strong team on the ground, especially around GTM and regulatory/compliance.
5) Level-Up Internal Communications: Think deeply about what information you share - and when you share it - as you navigate change. Optimize for alignment and productivity.
To succeed and scale in 2025, you must remain agile. Flexibility and resilience are non-negotiable. Building these core tenants into your strategy and operating model will ensure you’re ready for whatever 2025 brings.
