Forrester Research Inc. has released its 2026 Budget Planning Guides, indicating a shift towards cautious growth amidst ongoing economic volatility. The report highlights the impact of tariffs, trade wars, cyber threats, and economic uncertainty on budget expectations, prompting leaders to adopt scenario planning. It advises business leaders to prepare for both significant budget cuts and unexpected investment opportunities, emphasizing the importance of protecting investments that enhance customer value, eliminating inefficient spending, and embracing continuous, low-cost experimentation to maintain a competitive edge. Key areas for increased investment include data literacy and employee AI readiness programs, as well as customer insights and data management. Conversely, a reduction in investment is advised for cloud-first strategies, due to new regulations, geopolitical tensions, and cost-cutting pressures. Forrester's guides aim to empower leaders to navigate these challenges by investing wisely and adapting dynamically to change.
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