This century mankind has witnessed several pandemics, epidemics and natural / man-made disasters that caused huge losses of lives and disrupted the lives of the affected countries. But, COVID-19 by far has been the worst in terms of its impact at global scale on human lives and the overall functioning of world affairs. The pandemic in a short span of time has impacted every corner of the world, leaving no country untouched. COVID-19 is not problem of a country or continent, but a concern for mankind at large.
Governments, health organizations and social service organizations have been the front line force in fighting these situations in the past. At this scale it was impossible for these groups to put up a fight, for the first time the business world has shouldered the burden and are actively contributing in the fight to get over this tough phase, in every way they could.
While the entire focus is on overcoming the crisis on hand, the damage to the global economies is of unimaginable magnitudes. The world post COVID-19 would not be the same. The key question however is, will the world change post COVID-19, if yes, then how?
Will the world order change? Will new world leaders emerge? Will some businesses / industries disappear? Will new industries emerge? The list is long!
There is an uncertainty, will things get back to normal in 3 quarters and everything will go back to the way it was or will changes in human behavior, government policies, budget cuts, cost control efforts etc., significantly change the way the business will be done.
What does seem certain though is, all changes or disruptions or new business ideas will be driven by technology innovations with internet as the backbone.
In the meanwhile, the question is how does one (business or individual) in their current state, respond to the wave of change coming. Ride high in the wave of change or drown into oblivion. The responses could broadly be categorized in the following three categories:
- Wait and watch, let things unfold, then adapt or adjust?
- Make assumptions, estimate impact and prepare in advance to handle the change.
- Identify potential opportunities, create new ideas and start new trends
One would like to see self and their organization in the 2nd and 3rd category, so let us view the changing world from the lens of an IT professional or IT services organization.
End consumer largely drives businesses, whether in a B2B or B2C business models. Let us list some potential impacts of COVID-19 on business and its influence on the key industries.
Consumers Behavior, Preferences, Aspirations and Changes in Priority
- Health, safety & well being (could become the stated need rather than an unstated need)
- Spending patterns or purchasing channels (online purchases becomes a need and not convenience)
- Packaging needs (Hygienic and safe packaging becomes a norm)
- Home delivery
- Investment preferences (Equity or Debt Funds or FD or real estate)
- Use of digital money
- Luxury products spend (Cosmetics, designer wear, costly marriages, leisure travels)
- Home entertainment systems (Home theaters, indoor games)
- Electronic devices (Laptops, desktops, security software, etc.)
- F&B (Restaurants, Bars, Pubs, coffee shops etc.)
- Education (Online learning, learning apps, virtual meeting apps, headphones etc.)
- Commercial Real estate (Office spaces, school buildings)
- Media and entertainment (Usage of papers in print media, foot fall in Multiplexes)
Government Policies
- Policy changes globally (visa restrictions, in-sourcing, tax laws, security needs, trade policies etc.)
- Decline of global organizations such as WHO, WTO, UNESCO etc., (Possible emergence of country wise bi-lateral relationships)
- Taxation
- Promote Startups and small businesses
Business Verticals
- Retail (Online Vs physical)
- Manufacturing (New product lines, obsolete products, automation, digital factories)
- TTH (Arline, business hotels, logistics and shipping, tourism)
- Finance (Mortgage banking, Investment banking, Insurance etc.)
- Telecom (Increase in data usage, online entertainment plans etc.)
- Curb on Imports (demand for local alternatives)
- Healthcare and Life Sciences (Pathological equipment, increase in physical check-ups)
Conclusion
IT products and services companies are driven by technology investment made by businesses and also businesses benefit by the technological advancements brought in by their IT partners. It is imperative for IT services companies to see how they can partner with their customers in helping them sail through these turbulent times without losing focus on sustaining its business and employee well being. By providing ideas, solutions and innovative models that will help the customer control significant costs, increase efficiency and productivity, while at the same time ensure their own utilization and revenues are not impacted. IT services organization will have to focus their energies on learning new and disruptive technology, create a culture of continuous learning and innovation.
Stay safe, stay healthy! Take care of self, family, people and living beings around!
Continue staying positive!
Author(s): Daljit Rana & Raghuraman Kadambi
Linkedin: https://www.linkedin.com/pulse/uncertain-times-opportunity-shine-raghuraman-kadambi/
Image Credit(s): https://www.piqsels.com/en/public-domain-photo-sudmd (public domain)