Digital transformation in the age of Covid-19
Published on 29 May 2020
New solutions for the next normal
As industry and businesses try to wade through unprecedented economic turmoil, they are taking stock of how best to maintain operational continuity. Supply chain, logistics and transactional models have all been thrown into question. Even the way we go to work has changed.
According to recent research by Gartner, over 80% of US employees performed a significant portion of their job while working remotely during April 2020. The research also states that at least 40% of these employees believe this will still be the case once conditions have stabilised.
Where are we at?
The World Trade Organisation estimates that global trade volumes will fall between 13-20% in 2020. But even these figures are fluid as we wait to see how and when factories will fully reopen and whether or not there will be any secondary waves of infection.
So, where are we at? Nobody really knows for certain. While covid-19 has created new barriers for conducting business, other barriers have been removed.
With traditionally analog-thinking industries travelling down digital pathways even before Covid-19, what are the expected impacts of Covid-19 on trade and industry moving forward?
What will things look like tomorrow?
Viewing tomorrow through the lens of today is difficult, even in the most stable times, but what the initial data tells us is that there will be an unprecedented decline in international economic activity. To mitigate these impacts, businesses are increasingly turning to online strategies.
Online connection, investment in infrastructure for digital transactions and a pivot away from traditional models are just some examples of how businesses are preparing for tomorrow.
"When we look at the usage of AI and cloud, I think it is especially going to accelerate also not just us, but how our clients are going to go on their digital transformations. And I believe this crisis is only going to accelerate that as we go over the next few months."
Adaptation
Some forms of adaptation are more natural than others. Producers and their customers are both negatively impacted when trading is held up because of restrictions or logistics breakdowns.
Digital solutions are not a silver bullet, but they do provide numerous ways in which businesses can navigate coronavirus-related challenges. Some examples:
- Increased transparency and security for all parties involved in the transaction
- Easy expansion of a global footprint
- Seamless pivot from existing methods to digital versions
Converting existing business streams into new models is always daunting, however, in the case of digital transformation, most business are already aware of the tools that are available to them. All they need to make the leap is the correct incentive.
Most experts are generally aligned that a more fully digitised global global supply chain and optimised, online trade mechanisms will improve the outlook for a long lasting and robust economic recovery.
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