Turning Around Business In 2021

Business in 2021 is in a uniquely challenging environment. The rapid changes in economy during covid-19 has created alarming situation in the business today. Any pre-matured wrong move can cause catastrophic effect in the business. In order to comeback on the track, companies should reinvent their business model and adopt conscious finance and sales strategy to lead in the market.

Business Trends Today

If we analyze the business today, we can see majority of companies are adopting sustainable business strategies. Primarily we can see three trends in months ahead.

1-Consolidation

First trend is consolidation. Weaker companies are being sold out to the larger companies and the “big is becoming bigger.” Large companies are trying expanding their business by either diversification or inorganic buyouts.

2-Strategic partnership between offline & online players.

Second trend which is taking place is Collaboration and strategic partnership amongst the off line and online businesses. Even big online brands are increasing partnership with offline businesses.

3- Reinventing Business Model

?The offline big brands are reinventing business model and adopting digital solutions to involve their customers, clients and people on real-time interaction. Companies those who reinvented their business model, they emerged as successful players and they come back to full speed.

How to rapidly turn around business?

This is not a wait and watch period. Those who adopt change and transform their business model speeder and faster, they can enjoy the competitive advantage in the business. Companies need start up mind set and dynamic leadership to initiate quick turnaround in business.

·????????Dynamic Leadership.

It needs a dynamic leadership approach to quick action over research and testing over analysis on regular interval. The CEO’s direct involvement to encourage accountability and involve people in to mission can lead business success. A well defined Business Goal, daily team check-ins, weekly meetings and regular review followed with recognition for good work may create synergy for continuous improvement. The team needs work on the following strategy.

·????????Checking viability of Business Model

Since the market is changing, it is imperative to consider the business model and re-assess where your business stands concerning the revenue and cost. It’s also necessary to track the current financial matrix and cash flow. Company needs to evaluate the impact on new sales, collections, credit cycle and potential debts.

·????????Financial strategy

The first initiative is to “quickly stabilize cash and liquidity and take a realistic view of current options”. The case management system needs to go through a conscious financial analysis and planning. CFOs need to prepare conservative Weekly, fortnightly and monthly cash plan for at least 2 quarters. They need to create an action plan to reduce costs and/or increase revenues and collections. The company must adopt the strategy to converge capital to deal with exigencies.

How to overcome financial difficulties?

Covid-19 may create distressed situation for many business. The finance leaders need to identify suitable borrowing options and benchmark the terms of borrowers and lenders. They “should assess short term liquidity requirements and find ways to quickly preserve value and address potential risks”.

Companies need to adopt a cost control strategy by reducing overheads, conscious purchase control, disposing off old stock at discounted price & selling off slow moving inventories. Also they should stop dealing in none profitable products and services.

Companies need to frame the?contingency plan?to safeguard their existence during the pandemic storm. Contingency plan can be framed for varying outcomes like portfolio optimization through disinvestment, Reduction of None Performing Assets & cost reduction policy. If a company doesn’t have any such contingency plan,?it should conduct a comprehensive assessment of all risks and should respond to issues.

What is needed?

As things are slightly getting normalized, companies adopt new ways of working at a speed. Successful companies are moving towards flatter and none hierarchical structures in order to speed up decision making and increase organizational efficiency in accelerating options to solve real time customer problem.

There has been a new initiative in making customer involved in business. Communication has become faster.?Moreover, there is a competition in creating online unique customer experience of the products and services.

Reinvent Business Model

“Transforming business model is the key to unlock new value for business, customer and society in post covid world.” Companies have adopted following transformation in their business model.

·????????Digital Communication

Conventional offline companies started adopting digital strategies to involve customer in business. In order to engage customers, companies have adopted different programs like CRM, Live chat & AI enabled real time customer interaction by catboats. Social listening has been playing an important role for social media interaction with customer.

·????????Conservative Media plan

During this moment, conservative model of media plan should be adapted by eliminating costly campaigns, outdoor branding, and exorbitant ATL & BTL activities.?Lavish product launch, expensive brand launching, celebrity show and costly customer acquisition programs have been withdrawn. Companies started adopting digital media as a source of branding, advertising & marketing.

·????????Digital Media adoption

The digital and social networking sites are getting more customer engagement since customer is spending more time at Face book, LinkedIn, You Tube, Instagram etc. This is an active opportunity for companies to reach out consumers through these medium. With the off line marketing loosing its strength, digital marketing during and post corona crisis would gain momentum. Companies would drive their continuous efforts towards SEO,SMO & SEM. Along with this, affiliate marketing is also going to grow in post covid phase.

Offline companies have adopted cost effective marketing proposition by joining hands with digital media houses on equity sharing and strategic partnership.

·????????Staying close to customer

Businesses need to be committed to keep customers assured in short term delivery in any Geo location. Digitized inventory planning, Discounts, schemes and special offers will keep customers motivated and rewarded. Offering discounts and incentives will help business stay close to customer.

·????????Involving customers in business

Now companies believe “customer is the business”. Upcoming players are investing their valuable times with customers to enhance customer experience by enriching journey map and touch points. Fast growing companies have adopted digital pulse surveys through C-sat (Customer satisfaction score),CSI (Customer Satisfaction Index) & NPS (Net Promoter Score).

Sentiment Analysis & emotional Analytics

Some companies have adopted AI powered?sentimental analysis & emotional analytics tools to analyze the online buying behavior of customers.

Social listening and Insight

With the help of social listening customer is able to share his buying experience in social media. More over, customer is using social media interaction to reform his impulse buying habits to logical buying by exchanging comments, reviews and scores regarding online products and services.

Social Insight has been helpful in developing analytics of buying behavior & predictive forecasting. Social Listening tools like Brand Reputation Management, Online Brand Protection System etc. have been highly effective in determining effective brand optimization, Product optimization and revenue optimization in business.

AI & Machine Learning

AI has made life simpler, quicker & easier. With the help of AI, real time customer engagement, supply chain operation, Data analytics could be possible. Predictive forecasting & predictive Analysis are highly useful in conscious & quick business decisions.

Transformation of operating model

Although minority of companies today are undertaking business transformation, others are gaining marginal benefits through automation of process or operating model shifts. As digitization is underway in most of the organizations, this shift has accelerated the adoption of digital technologies. Companies have designed their solutions to use cloud computing which will not be under pressure for any pandemic situation. It enables high hand data security, digital payment solutions, access to business applications from employee working from home and interaction with customer from any geo location.

After all the turning around business in shortest possible time is not easy and simple. It needs dynamic leadership, SMART Goal & strong organizational purpose to involve proficient people into the mission with positive mindset and conviction.