Speak with our experts

Schedule a free consultation with our team of experts!
Book a Call
Thought leadership

5 Strategic Technology Investments That Can Outsmart a Recession

AI
Dhaval Jadav
Dhaval Jadav
Chief Executive Officer
Joy Taylor
Joy Taylor
alliantConsulting Managing Director:
A Visionary Leader and Proven Change Management Expert
5 Strategic Technology Investments That Can Outsmart A Recession

Summary: Strategic tech investments, like data cleanup, automation, targeted marketing and AI-powered insights, can help businesses thrive in a recession by boosting efficiency, uncovering new revenue streams and preparing teams to make faster, data-driven decisions.

In 2008, Domino’s saw its stock nosedive to less than $4. This descent started long before the financial crisis, and the subsequent recession left little hope of recovery. Yet by decades’ end, when most other businesses were still struggling to find their footing, Domino’s had launched a digital ordering platform that accounted for 60 percent of its sales and 400 new store openings. Over the next five years the company experienced unprecedented growth, continuing on this trajectory for 25 consecutive quarters.

How did they do it amid the worst worldwide recession in living memory? To CEO J. Patrick Doyle, their key was digital transformation: “We’re a tech company that sells pizza”. The recession gave Domino’s ample time to re-evaluate and invest in technology, operations and delivery, as well as digitalize their platform to make them more user-friendly. And they’re still reaping the benefits nearly two decades later.

5 Tips to Thrive During a Recession

  1. Make data pay dividends
  2. Streamline operations with automation
  3. Optimize marketing for maximum impact
  4. Empower teams with more accessible data insights
  5. Discover cross-selling opportunities

Domino’s wasn’t an outlier; Netflix and IBM have similar stories of embracing technology during the dip. When consumers shunned stale, pricey entertainment, Netflix scaled its streaming platform with personalized algorithms, outpacing rivals and reconfiguring the entire industry.

Similarly, IBM invested in analytics, early AI and cloud infrastructure, streamlining operations and bolstering their high-margin services. The focus on efficiency and data-driven solutions stabilized their business, clearing a path for cloud leadership and other forward-thinking initiatives. By the time any competitors caught up, IBM was already light-years ahead, graduating to new and untapped projects to further solidify their edge.

In an era when markets wavered and caution reigned, these companies didn’t retreat, they leaned in; utilizing innovation and technology to turn adversity into opportunity. Now there’s similar recession fears in the air. Customers are pinching pennies, and businesses are reacting as expected: shrinking budgets, freezing hiring, and hunkering down.

During a downturn, it may seem easiest to batten down the hatches until things blow over. But realistically, making strategic reinvestments in longer-term plans is the better option. The triumphs of the Great Recession winners offer a timely lesson: strategic investments can turn a recession into a springboard, but only if one puts the right plan in place.

5 Strategic Investments to Thrive in a Recession

Technology turns challenges into opportunities. Its ability to optimize operations, deepen customer engagement, and anticipate market shifts makes it the ideal, recession-weathering investment.

However, in this uncertain economy, a winning business plan can’t just be chasing every new gadget or system, trying to see what sticks. A company must strive for high-impact areas that deliver lasting value. This means utilizing a pivot-readiness approach with a specific focus on long-term ROI and sustained, continuous benefit.

We’ve done pivot readiness assessments and AI discovery sessions with businesses in nearly every industry and have identified five common, practical goals that any company can prioritize to position themselves for success.

1. Make Data Pay Dividends

Far too often, companies spend exorbitant sums on preserving their data without the additional steps needed to make it worth saving in the first place. Most often, this means cleansing their data to make it uniform, navigable, and query-ready. This is an ideal internal task for companies in a down period: it’s a future-forward endeavor that will pay off for years to come. By investing in robust data cleaning processes, companies can ensure their data is entirely free from errors and inconsistencies, and usable for any task, query, or program necessary. It helps avoid costly, pointless mistakes, and piecemeal fixes down the road.

Data cleanup also helps organizations prepare for when they want to upgrade or implement a new tool within their system. AI agents and other AI-heavy applications are reliant on coherent, unified company data. While many of the benefits are immediate, the biggest assets continue to strengthen with time. While data can provide immense upside, it also requires equally extensive upkeep and time to flourish. For technology especially, it is the foundational piece for many other assets. If they don’t have one already, organizations should strongly consider a data lake, warehouse, or other similar tools to solidify their strategy.

2. Streamline Operations with Automation

Repetitive, time-intensive tasks — such as order processing or inventory management — drain resources that are necessary in a downturn. AI-powered automation, like robotic process automation (RPA), can simplify these, reducing costs by 10-to-30 percent while improving accuracy and scalability.

By automating high-volume tasks, businesses free up capital and time for strategic initiatives, ensuring lean operations without sacrificing quality. Even on a reduced budget, organizations should consider utilizing an automation consultant. Their experience will result in heightened productivity, a more modern approach, and a better balance sheet for the future.

3. Optimize Marketing for Maximum Impact

Companies that maintain or increase marketing efforts outperform those that cut back, preserving competitive positioning and brand credibility.

Marketing remains vital, but efficiency is key when the funding falters. Analytics and ad optimization tools improve ROI by 15-to-25 percent through smarter targeting and content creation. Platforms like Google Ads Smart Bidding can reduce cost-per-click.

A recession gives companies the ideal chance to conduct an all-out marketing audit. Marketing budgets can often grow out of proportion, and a lull is the perfect time to recalibrate based strictly on ROI.

4. Empower Teams with More Accessible Data Insights

Labor shortages and turnover can radically strain performance during a recession. But data-enhanced decision-making can significantly boost employee effectiveness. After their data has been cleaned, companies can adopt an AI layer that allows staff to quickly query that data or build reports without specialized knowledge. This allows workers to identify high value opportunities quickly without basing their decision making on anecdotal evidence or forcing them to engage in lengthy dialogues with the IT department to pull the data they need.

Prioritize high-impact roles, such as sales or operations, and measure improvements in output within six-to-12 months to validate the data being utilized. Investing in people will ensure a workforce equipped for current and future challenges.

5. Discover Cross-Selling Opportunities

In the throes of a recession, maximizing revenue from existing customers is crucial. With a foundation of clean, capable data, companies can garner a greater understanding of their current and former customer base.

With a data-driven picture of specific client preferences, companies can tailor their message toward offerings that complement a customer’s previous purchases. Similarly, clean data can even make it possible to employ an AI agent to help discover likely cross-selling opportunities.

I am constantly pushing our professionals to find actionable and measurable solutions to the biggest problems American businesses are facing today. The business owners I speak to are all having trouble finding talent, mustering enough funds to expand their operations, and they’re worried about the implications of a purely digital future. The good news is our rigorous science-based and AI backed methodologies have been able to deliver customized solutions to everyone that works with us.”
Dhaval Jadav
Dhaval Jadav
Chief Executive Officer, alliant

Finding the Advantage in Uncertain Times

In times of economic downturn, the instinct to cut costs and “wait it out” is strong. But history has shown that strategic, long-term investments, particularly in technology, provide the most lasting payoff. Whether a recession is imminent remains to be seen, but the ultimate winners will be those that treat technology as a curated, careful portfolio for the long-haul.

The tech ecosystem extends to every corner of the economy, and a good strategy must be robust, thoughtful, and balanced if a company seeks to maximize its benefits. By focusing on high-impact areas such as data management, automation, marketing, and cross-selling opportunities, businesses can not only weather a recession but position themselves to emerge from it stronger than ever.

Joy Taylor isn’t just a consultant; she’s a force of nature in the world of business transformation. With over twenty-five years of cross-functional experience, Joy applied her expertise in program transformations, project leadership, strategy and execution, team facilitation, change management, communication, and Lean Sigma to everything from startups to multibillion-dollar enterprises.
Joy Taylor
Joy Taylor
alliantConsulting Managing Director

News & Insights

View insights hub
News

While Gen Z might have a stigma against them in the workplace and employers are already firing them in droves, business experts are warning companies not to let go of their younger employees just yet.
Show in Portal
View insights hub

Speak with our experts

Schedule a free consultation with our team of experts!