In what seemed like the blink of an eye, the world changed. Uncertainty is the only certainty, and many businesses have been not only disrupted, but greatly impacted by the COVID-19 pandemic that took the world by storm this year.
Entrepreneurs know that some of the best businesses were born from some of the worst times in history. Sometimes in our darkest moments, new ideas become beacons of light to which we anchor our vision. While the economic impact of the coronavirus will most likely be seen for years to come, the unprecedented times we are facing has unearthed new opportunities.
The effect of coronavirus on the world economy
In early June, many executives were hopeful that there would be an economic upturn after the worst of the coronavirus pandemic had passed, however, sentiments are far less positive as things stand today. Overall expectations, according to McKinsey Global “suggest growing caution and uncertainty. Even so, the respondent’s outlook for their own companies continues to brighten.” The largest share of respondents ranked the most likely outcome of the pandemic to be virus recurrence, long-term growth, and a muted world recovery.
Tech – the beacon of light
While many industries continue to suffer, tech companies look to be gaining more and more traction as the year progresses. Social distancing measures which were implemented almost globally as a means of reducing the spread of the invisible killer, have seen people turn to tech-based solutions offered by giants like Amazon, Google, and Uber, along with several smartphone companies.
Amazon made windfall profits as the company posted huge gains across the board during the pandemic. The virus has also strongly swayed online shopping and food delivery services in a positive direction.
Legacy systems are lagging behind
Despite the numerous benefits that come with digital transformation, many companies are still hanging onto their legacy systems. However, their inability to adapt could mean the end of their companies. Only the fittest make it through any form of evolution, and the digital one is no different.
While many companies are interested in digital transformation including moving to the cloud, they sometimes assume that all they need to do is transform their computer resources. There is a lot more to do and when a legacy system is standing in the way, and it is tied to network architecture and processes, it means that transformation takes longer and requires a company to retrain people in a coordinated way.
You can begin to see why legacy systems and the immediate shock of a worldwide pandemic do not mix well. Legacy systems take too long to adapt, putting companies on the backfoot when a quick response to market changes are required.
Bold pivots during the global pandemic
Of all the potential business lessons to be learned from the current environment, none may be greater than the importance of agility. For many larger companies, this need to embrace change has been learned the hard way.
The effects of the coronavirus lockdown on grocery stores were unparalleled. People were swarming the stores and buying more food due to restaurants being closed, as well as shopping in bulk to reduce the number of times they needed to go out each week. But the need for social distancing meant long queues for many. OpenTable, a restaurant reservation app expanded its offering to let users reserve timeslots for grocery shopping, a great example of using existing technology to pivot to the new needs of their customer base.
Mercedes F1 engineering team worked together with the clinicians at the University College London Hospital to develop breathing aids for NHS.
Bottles, the app that pioneered South Africa’s online liquor trade by being the first to deliver on-demand home delivery of alcohol, faced a steep learning curve when the South African government outlawed the sale of alcohol during the lockdown.
The site was smart enough to be able to foresee the impending ban and got to work on leveraging an existing relationship with grocery giant, Pick and Pay, to allow the app to pivot from on-demand booze to on-demand food.
Survival of the fastest
Survival during a crisis is hinged on one important factor: quick and innovative thinking. E-commerce has continued to boom over lockdown, and those who have been able to pivot their services to suit new and changing customer needs are the ones who have succeeded in surviving the economic downturn caused by COVID-19.
Leveraging technology in a business is vital to allow it to cope with shocks such as a pandemic. On a smaller, more regular scale, technology allows a business to further optimise and streamline their offerings to their customers, which everyone would agree is the goal of most businesses.
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