Covid 19

COVID-19 Is Accelerating the Rise of the Digital Economy

If there were any concerns about the importance of digital transformation for corporate survival, the coronavirus pandemic has completely silenced them. The largest portion of customer and employee transactions must occur virtually in a contactless society. With notable exceptions, digital operations are the only method to stay in business during mandatory shutdowns and activity restrictions. If you don’t go digital, you’ll be out of business.

This digital obligation isn’t new; it’s just been made more visible. Before the epidemic, the economy was already undergoing a dramatic transformation toward digitisation and servitization. 

The paradigm has shifted as a result of recent events, as indicated by the significant movement in investment towards digital firms.

The epidemic serves as a wake-up call for companies that have been hesitant to embrace digital change and are now terribly unprepared. These digital underperformers are struggling to transfer their operations and personnel to a virtualised environment, in addition to the pressure of potentially health-compromised workers, a dramatic drop-off in demand, and absolute financial turmoil.

When it comes to digital innovation, going quick and furious is the key to success, yet going too fast can cause some problems. 

Organisations that had not only planned but also implemented digital strategies before the pandemic, on the other hand, are now in a place to outperform their less agile competitors. That isn’t to downplay the COVID-19-related issues that are troubling companies, irrespective of their current digital maturity level. Going digital will not make all the problems that affect businesses today suddenly go away. However, they do have many more tools available not only for weathering the storm but also for strengthening the opposite side.

But, don’t dismiss the digital laggards yet though. Ingenuity thrives in times of crisis, and strong ideas put into action may move a company forward, visit websites that have been operating digitally and you’ll see how well they are still performing.

Those who concentrate on adjusting their digital capabilities for the post-coronavirus coming years that appear significantly different from the past (before the pandemic) can be outpaced by those who relax on their existing digital glories.

Digital Advantage

Organisations that adopt digital solutions are more resilient in the face of adversity, giving them a significant competitive edge that allows them to recover faster and shift from defence to growth. The following are the key benefits:

Digital technologies enhance productivity and automate manual procedures, leading to increased efficiency, reduced waste, as well as and increased attention on profit operations.

  • Productivity

Now that staff is set up to work remotely, the attention can shift to maximising workforce productivity by utilising collaborative technologies and tools.

  • Enhanced Security

You’ll be adequately equipped for and more robust to the spread of cybersecurity threats.

  • Customer Needs Awareness

First-party data is specific to your company and provides a clear picture of your clients as well as the kinds of products or services they want.

  • Agility

Data-driven insights allow for more rapid decision-making and change execution. Cultural flexibility is incorporated into digital organisations, allowing them to adapt and shift courses as needed.

Even though it may appear contradictory, a crisis is an optimum time to accelerate digital transformation. Instead of postponing digital transformation efforts, businesses should go all-in.

It shouldn’t cost too much. Many of the most effective transformation programs begin with low-cost pillars and limited resources, which are then expanded once the problems have been sorted out and the outcomes have been verified. Digital transformation can be self-supporting when the next phase of the process is achieved properly.

It is possible to save money. Historically, lowering expenses by enhancing efficiency and productivity tasks for which digital solutions are ideal has proven to be more efficient than traditional cost-cutting strategies alone in maintaining enterprises during the financial upheaval.

It’s not always possible to reinvent a company. Many businesses are having supply chain issues, forced shutdowns, a dramatic drop in consumer spending, or a combination of the three. Businesses must either change their approach to their current digital channels or execute a larger transition to a digital business strategy to counteract these losses.

There isn’t going to be a “back to normal.” The pandemic will be outlasted by widespread digital adoption. Advanced analytics will be used to extract insights from consumer data, and attempts to integrate multiple data sources will be continued to generate a more comprehensive view.

Experimenting and innovating regularly. Businesses will be able to emerge stronger and more resilient as a result of digital solutions.

COVID-19 has accelerated the digital transformation process by 5.3 years

Twilio, a cloud communications platform recently conducted a global survey including over 2,500 enterprises. The report provides an insight into how companies have responded to the crisis’s complex difficulties and how they will proceed to change in the future.

Almost every business has had to find new opportunities to interact with its consumers and stakeholders. The Cloud’s scalability, speed, and agility have allowed businesses to innovate more quickly than ever before.

COVID-19 was the decade’s digital accelerator. COVID-19 sped up organisations’ digital communications strategies by an average of 12% around the world.

Previous barriers to development have been dismantled. COVID-19 boosted the funding for digital transformation for nearly four out of five UK respondents.

Some industries advanced faster than others as a result of COVID-19. Tech firms (78 per cent) were the ones who accelerated their digital transformation the most, followed by the energy and healthcare industries. Future remote job options are now ‘certainly’ possible thanks to digital technologies. Almost all of the firms polled (99%) thought that digital technology is important.

The relevance of omnichannel communication is growing, Emails, videos, social networking sites, online content, and SEO/PPC marketing are all examples of digital communication. As the world reopens, 92 per cent of UK firms predict that their company will extend its digital communication channels. During the epidemic, the use of 5.9 various channels in the UK increased considerably.

How COVID-19 drove businesses over the technological edge and forever changed the corporate landscape. The COVID-19 crisis has ushered in periods of change in the way organisations throughout all regions and sectors operate, setting in motion the digitisation of consumer and supply-chain contacts, as well as their internal processes.

CONCLUSION

The pandemic has demonstrated that desperation is the best motivator. Businesses have been motivated by the crisis to overcome the cultural obstacles that formerly prevented them from adopting innovative digital technologies. This rapid digital transition reflects a promising future for businesses, as they will be far better equipped to respond to any unforeseen obstacles that may arise.

The COVID-19 epidemic has revealed a strong digital gap: organisations that had already invested in digital operational strategies performed considerably better than those that had not. In reality, the viability of several businesses is dependent on their digital capabilities. Organisations must change right now. There is no way to go back to the way things were. It must be done to protect the business and its future.

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