Two years later: The Pandemic, The Global Economy, and The 4Ds
After 30 years of waiting, Liverpool Football Club was a small number of games away from lifting the English Premiership title.
Large and small-scale companies were well on their way with plans for Q1, setting new sales and revenue targets. USA and China in economic tussle; while the world also looked forward to global sporting events like the Olympics and the EURO 2020.
Having a flashback to the Year 2020 feels like monumental time travel around two worlds. Yet it’s barely been 24 months. The global outbreak of COVID-19 with genesis in Wuhan city, China will forever define the scope and discussion around these times.
This article peeks into the disruption of the global economy, using digitization as a magnifying glass on the effects of a worldwide pandemic and a predictor of what’s to come.
The Impact of COVID-19 on businesses and the global economy and what more do we need to know?
“We thought Brexit was a big shock for UK businesses, but COVID has been much greater”, - Professor Paul Mizen, principal investigator of the DMP.
The ILO (International Labour Organization) estimates working hours lost in 2020 were equivalent to 255 million full-time jobs, leading to $3.7 trillion in lost labor income. 4% GDP in decline, and a 30%-40% decline in the stock market according to Bloomberg.
If we dig deeper, we’ll find that beyond the gloomy statistics, there are changes to how we now live and work. New technologies like the Metaverse have sprouted up to reflect a world that has grown accustomed to distant communication, virtual reality, and always-on availability.
Digitisation has now become the number 1 future-proof tactic of businesses globally.
Digital Products and Services in COVID-19 Era
By the end of the year, about 94% of UK homes had internet access, up from about 89% in 2019 according to Ofcom.
It’s going to get even more internet-ly with the global spread of block chain technologies, virtual reality, and 5G networks in 2022.
Compliance is not left-out. With new entrants in the global village, new policies are a necessity. Clear guidelines and structures are set from top to bottom as employees are on boarded differently from different parts of the world.
Learning is online; business meetings are online. Entertainment is online. Who needs Oxygen when you have Oculus?
Digitisation is not an IT project but a Business Strategy Driven by Top Management
Digitisation will help an organization with new revenue streams and value-producing opportunities by doing things faster, cheaper, and better than the competition using insights never before available to marketing and product teams.
On its part, digitalisation promises much-needed improvement both in the delivery of public services, onboarding processes, and turnaround time.
So how can UK businesses leverage digitization two years after the pandemic?
Digital Transformation Post COVID-19 and the Future
With digital transformation, companies are making giant leaps forward— innovating everything they do, from internal systems to customer interactions both online and in person.
We have discussed the rise in the demand of internet connectivity with Zoom becoming a company worth $20 Billion within 3 months.
Netflix was able to gain unprecedented insights into viewing habits and preferences. It uses that data to inform everything from the design of its user experience to the development of first-run shows and movies at in-house studios. That’s digital transformation in action — taking advantage of available technologies to inform how a business should run.
To do this, organisations need data, insights, and the right tools. But it doesn’t end there. A holistic company-wide approach is also required. From internal messaging to employee training and engagements, to structuring and company policies, work cultures - everything needs to be upgraded to reap the best dividends.
Companies should utilise Digital Transformation through the following framework:
- Customer experience:
- Operational agility:
- Culture and leadership
- Workforce enablement
- Digital technology integration
The Way Forward
As companies have transformed themselves with digital technologies, people are calling on governments to follow suit. By digitising processes and making organisational changes, governments can provide services that meet the evolving expectations of citizens and businesses, even in a period of tight budgets and increasingly complex challenges. They can enhance services, save money, and improve citizens’ quality of life.
2022 will be the year for digital transformation to finally take its place as the most important strategy for growth initiatives. Organisations that leverage this in every aspect and at scale will continue to reap the biggest rewards.
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