Welcome to 2021, Digital Transformation is now as necessary as financial services for any company that is serious about being successful. If your company is not serious about it, it should reevaluate its priorities.
The COVID-19 crisis has disrupted nearly every aspect of human life, from how people work and live to how businesses communicate with their clients. Moreover, it has upended the way customers select and purchase products and services, and the functioning of the supply chains.
A 2020 study by consultancy firm McKinsey & Company which surveyed more than 200 companies across different industries, found that over 90% of executives expected the downfall from COVID-19 to essentially change the way they undertake business over the next five years.
- Approximately 85% of executives believed that the pandemic would have a long-term impact on their clients’ requirements.
- More than 66% of executives also agreed that the pandemic would create new growth opportunities, although this differs according to industries. Nevertheless, seeing the opportunities arising from the pandemic is not the same as being able to grasp them.
- Less than 30% of executives felt optimistic that they are ready to face the changes they see coming their way. Surprisingly, the industry that seemed the most disrupted is, in fact, delivering new growth opportunities.
How are the executives responding to these evident changes? They are extensively focusing on continuing their business, particularly in their core. The majority of business owners are still looking at cutting additional costs, driving productivity, and executing safety measures to support tech-led growth.
The most obvious impact of the pandemic on digital transformation is the vicious acceleration of moving to digital. This is a revolutionary moment for businesses worldwide as digital transformation is no longer a long-term goal. It is happening — and in a very Darwinian model.
Businesses that will quickly adapt to the current scenario will thrive, and the ones that won’t will become cautionary tales. For example, Pinterest successfully went from 35 remote offices to more than 4,600 remote offices within a month and it seems it has no plans to return to the traditional office model post the pandemic. This is a brilliant example of digital transformation that shows speed and adaptability in unfortunate scenarios.
The pandemic has drastically increased the migration to a cashless society. I tend to agree with our friends at Zendesk, as surgically put by Mr. Battistini; customers are simply not looking for the same way to communicate anymore.
“Customers are adapting their needs to the drastically changing business landscape. Which means that they are not going to disappear, they’re simply going to reach companies via more innovative channels”
Tommasso Battistini – Zendesk BDR South Europe
The need to undertake digital transformation has eventually pushed forth the agendas for companies looking to change their business models and become more competitive. On the other hand, management processes are already being revolutionized. CIOs are the focal points of the process and are responsible for navigating the challenges involved with the COVID-19 crisis.
Moreover, companies are also looking forward to outsourcing strategy-making with respect to adopting technologies, including Artificial Intelligence (AI), Machine Learning (ML), Robotics, and Data Science. From employee management and productivity enhancement to customer experience management and from product development to software deployment, digital strategies need to be up-to-date to be in sync with the changing times.
The Bottom Line
Digital transformation has grown to be a necessity in the time of the COVID-19 crisis. However, that doesn’t mean it will look the same as it did before the outbreak. The hunt for talent, along with monetary resources, will probably be hampered. The post-pandemic era will bring new challenges and opportunities to light with greater urgency.
On the other hand, many companies will witness disruption in their business flow that may result in them revising their long-term strategic vision. Moreover, any digital transformation roadmap that does not deliver profits at every instant will need to be changed. The key to success is continuing to innovate and come up with new digital solutions. Implementing the right approach will certainly make businesses stronger and more customer-centric than before.
Matheus Baeta is a Business Development Manager at iMovo Limited and can be contacted on firstname.lastname@example.org