COVID-19 Pushed Businesses to the Brink- Can Digital Transformation Help Bring Them Back?

Coronavirus is significantly affecting the business industry and customer actions. The public and private industries also fail to slow down epidemic transmission and control diseases with COVID-19. While the full economic effect of this black swan occurrence is still uncertain, we recognize the industry-wide transition has already precipitated the impact, and the dramatic steps are taken to counter it.

Company Insider Information and eMarketer experts expect the pandemic to affect telecommunications and infrastructure, new media, payments and exchange, insurance, banking, and healthcare.

Impact Of Coronavirus On Businesses

Over the last two weeks, 38 million individuals have applied for unemployment assistance according to the latest statistic published by the United States Labor Statistics Bureau; and an unemployment rate that has fluted in the sub-4% region for some time now is low at 15.7%.

These Black Swan incidents have a disproportionate effect on small size business with limited exposure to cash and debt. In a recent SMB survey, 75 % of respondents said that the virus affected their business, almost U-turning from the 64% who were optimistic about sales growth just a few months ago.

Effectiveness Of Digital Transformation

When these companies start with their business, the world can be undoubtedly bleak, but when they genuinely reinvent themselves in this situation, their success will not be far enough. And here comes the entire concept of Digital Transformation.

In brief, modern processes are the way to re-imagine your company in the new age, leveraging the mix of technologies, evolving market practices, and looking at it from a consumer service viewpoint.

According to IDC, there is a USD 20 trillion markets over the next five years, and development spending is expected to hit USD 1,97 trillion over 2022, or almost 17% with a five-year CAGR. While much of the emphasis has been centered on reinventing big corporations, Midsize business should do the same.

The other benefits of Digital Transformation are,

Allow A Detailed Review Of Technology:

If the coronavirus has taught us that technology is vital for long-term survival while working remotely. It may seem pointless, but now is the perfect time for re-tooling and updating the central back-end systems. Tech firms are still struggling for businesses and are, therefore, now more than ever open to lucrative offers.

Restore Your Business Processes To The Customer:

Customers are at the core of what an organization does. That is why it is essential to consider how businesses communicate with their consumers in various ways. As a small or medium-sized organization, it would undoubtedly have been necessary to introduce the business processes that you need to reach your clients (as well as suppliers, vendors, and others). Now is a perfect opportunity to test whether they are indeed appropriate. For starters, will customers call someone to make demands for critical business or technical support, and will they then be stopped?

And if they’re texting, would you place them in a virtual queue without having to stay physically? The experience of the customer is much more favorable at every pressure that you can eliminate. The more you enjoy existing customers, the less you have to find new customers, to keep your business prosperous.

Have Liquid Cash

Over the long term, firms have only exposure to liquidity or may produce profitable cash flow as a commercial enterprise. Operational efficiency sounds boring, but the focus is actually on the small things that reduce the costs of the whole value chain. You would also have to check your consumer accounts and guarantee a low-cost (but high-quality items) packages. Attach to your shopping cart, so you will be entitled to collect the extra discount point from a retailer. The more revenue you will generate from the business, the less burden the job would be.

Conclusion

Following this year’s anticipated H2 recovery, the severity of the global recession continues to be imparting an ongoing disinflationary shock to the global economy. Yet this picture is not standardized at the moment. Relevant food prices have been growing steadily since mid-March, representing similar factors COVID-19. Demand for products based on wheat and rice and individual hoarding reports from specific countries have increased in particular. The availability requirements sound small.

A certain degree of destocking seems likely to push the price of such goods downward, at least until the effect of the coronaviruses pandemic continues to decline unless this change in domestic tastes proves irreversible.