In 2020, enterprise IT teams across industries have undertaken a concentrated effort to respond to the challenges of the COVID-19 pandemic such as remote work, changes in customer preferences, as well as the demands to enhance security and to scale infrastructure capacities in line with peak workloads. Now, as the pandemic seems to subside and the world economy is beginning to recover, it’s already evident that things will never be exactly the same as before the lockdown.
As the world emerges from the pandemic, what will be the new normal? Which of the trends are here to stay, and how can businesses adapt to the post-COVID-19 reality? In this article, we will focus on the steps that companies have to take to embrace the changes.
How Has COVID-19 Affected Industries and Customer Behavior
As surveys indicate, the lockdown has forced businesses to take a giant leap forward. Normally, it would have taken the global economy approximately five years to get to where we stand now in terms of adopting new technologies.
The financial industry has become a global leader in implementing digital services, particularly, in offering digital loans, insurance, and mortgages for customers under the lockdown. The grocery industry has also made a quick transition to online shopping and delivery, followed by a surge in telemedicine and e-learning adoption rates. Finally, manufacturers started to test and deploy automated operation systems – something, they have been postponing indefinitely, before the pandemic.
Because of the lockdown, consumer spending habits have also changed. One of the most prominent behavior patterns is the increased consumption of media content with the online press, live-streaming video, and music being among the most preferred formats.
All in all, media content consumption in the US and the UK has increased by 80%, with people reporting using their smartphones for an additional 4 hours per day. Because of the increased use of smartphones, people have made texting their main means of communication – they also say they would prefer to receive text ads from brands, health, and government institutions.
Expectedly, consumers are spending more money on entertainment and groceries, and have shifted to online shopping, although this trend was prominent mostly among the millennials.
According to the Mckinsey April 2020 survey, 75% of consumers say they are likely to stick with the digital services that they have started using during the coronavirus pandemic. By now, It looks like the recovery of business from the COVID-19 crisis will be digital.
How To Accelerate Digital Recovery
The increasing proliferation of digital services is the new normal, and companies have to adapt accordingly. Below we have outlined some of the main steps you have to take to prepare your company for the post-crisis recovery.
1. Explore your customers’ expectations
How exactly have the needs of your customers changed during the crisis? First and foremost, do all it takes to gather market insights and get customer feedback. Run surveys, if you have to, and ask customer support officers to give you the list of the frequently asked questions. Use big data analytics to find out what customers are saying, and how has the crisis transformed their expectations and values.
2. Adapt your offerings to customers’ needs
Next, create digital channels for bringing your goods and services to customers. Perhaps, the retail chains that have shifted from brick-and-mortar to online operations and have managed to integrate their warehousing and sales with e-commerce platforms in a matter of weeks are the most vivid examples. Another example is grocery vendors, successfully launching delivery, and pick-up services to cater to the needs of customers staying at home during the lockdown. Within the travel industry, companies are doing all it takes to minimize the risks of contamination, provide access to sanitizers, introduce touch-free journeys, smart hotels with robotic personnel, and instant access to medical services.
3. Selectively digitize your operations
At this point, you have to determine the most business-critical aspects of your operations, and selectively digitize them to support changing customer needs and maintain non-disruptive operations. For example, if customer service is your primary focus, implement data analytics tools to gain insights from customer feedback. If it’s warehousing and logistics, introduce AI automation tools to accelerate operations and eliminate human error.
4. Update your technology stack
Digitizing your operations will involve software and hardware updates, so your IT department will have to reallocate its financial and infrastructure resources to support these initiatives. Think if you can prolong the software refresh cycles or renegotiate contracts with your key vendors to free up the necessary resources.
Most companies are facing the COVID-19 crisis unprepared, although, those who have undergone digital transformation are in a better position. All in all the recent digital shift has three problematic aspects:
– Security and data protection: Remote work will require you to rethink your security protection practices to protect sensitive data.
– Scalability: How well will your system handle increased workloads?
– UI and user-friendliness of the new digital offerings: Can your customers easily use them and understand their interface?
Going through digital recovery will require fixing these three core vulnerabilities.
5. Adopt an Agile mindset
As challenging as it may be for an established company, post-crisis survival will require boosting your organizational agility to the point when it resembles a dynamic startup environment. One or several of your teams may already be using Agile methodologies – you can use their experience and foster communication and knowledge sharing.
Surely, you will have to find means to build employee resilience, as people go back to work. Encouraging remote work will help you stay flexible. If you previously haven’t considered R&D outsourcing, think of it as a means of reducing expenses and tapping into the vast pools of global talent.
Read Also: Top 5 Reasons To Embrace E-Learning
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