Our 2022 Allianz Trade Global Survey   has revealed the huge challenges facing companies wishing to maximize export opportunities and expand their business globally. The most significant are:

  1. Uncertain demand prospects due to Covid-19 (cited in 40% of responses given before the invasion of Ukraine)
  2. High energy prices (35%)
  3. High transportation costs (33%).

And these perspectives were shared before the outbreak of war in Ukraine which, as  as our economic outlook shows, is already having a highly negative impact on the global economy.

You can, however, adopt smart strategies to mitigate risk and protect both your revenues and import-export business opportunities in this increasingly volatile global trading environment. In this article, we look at how digitalization helps business and contributes to company performance.

One standout indication of innovation revealed by our survey is that +91% of companies have undertaken digitalization efforts in recent years, with +42% of companies turning to blockchain-based technologies (such as cryptocurrencies and smart contracts) to unlock, simplify, and fast track
export opportunities 

When looking at how digitalization helps business, we witness that firms are increasingly using blockchain technology to disintermediate and decentralize the financial activity that underpins international trade. In practical terms, this means that transactions are taking place electronically and at speed using distributed ledger technology, rather than through the books of conventional brick-and-mortar institutions.

This approach could allow your company to react rapidly and in a far more flexible manner, enabling you to complete transactions faster, seize import-export business opportunities, and help successfully expand your business internationally despite global volatility.

Digitalization and blockchain technology in particular can give your organization the ability to:

There are two basic approaches to operationalizing blockchain technology in use by companies today: hiring an in-house team of developers or outsourcing projects to third-party experts. Both have their merits, but with the race for digital talent intensifying and staffing budgets under pressure, outsourcing is looking like the increasingly attractive option for many organizations.

Reliable outsourcing companies benefit from streamlined and optimized development processes, superior time to market capabilities, easier and faster workforce scaling, greater cost-effectiveness, and generally a richer set of tools and technologies at their disposal.

With major industrialized powers such as the USA, UK, and European Union announcing their intention to regulate cryptocurrencies and create their own central bank tokens, there is clearly still a great deal of untapped value and innovation to be unleashed in the blockchain space.

Blockchain technology may have the potential to help you significantly simplify and expedite international trade but it is only one way to maximize import-export business opportunities and to help your business expand globally. For more hints, tips and advice, download our Export Toolkit.