War in Ukraine: Spike in the Price of Oil & Commodities and Stock Markets are on a Crash Course

The war in Ukraine has caused significant chaos in the world economy. Due to sanctions on the major aggressor, the global supply chain has been affected. This is responsible for the ups and downs in the global economy, especially in Europe and North America. Unfortunately, things are never going to be the same any time soon.?

According to a DW business article, the escalation in the Ukraine war is causing major unrest on the markets - with a huge increase in the prices of oil and commodities. Stock markets are currently experiencing a significant loss. The Hong Kong stock exchange reported a 3.4% loss and exchanges in Europe opened with huge losses.??

For instance, the German DAX index crashed by 5% and the euro zone's STOXX index plunged by 3.7% within the first minutes of trading. The threat of placing a restriction on the import of Russian oil and gas has caused a sudden spike in the prices of almost every item.?

Outrageous Increase in Prices of Almost Every Commodity

Brent crude oil controls the value of about two-thirds of oil globally and it was trading at $139 per barrel shortly after trading started on Monday, 7th March 2022. That was the highest price of Brent crude oil since July 2008. In Europe, the wholesale price of gas increased by 60% to $381, a big shift from the high price set the previous Friday. The price was $87 before Russia invaded Ukraine.

The value of Palladium also skyrocketed to $3,440 a troy ounce. Palladium is an important item used to manufacture catalytic converters. A catalytic converter is a device built into a car exhaust system to get rid of emissions that are harmful. That said, Russia is responsible for a significant percentage (38%) of global palladium production. Another important natural resource, nickel, also increased by over 30% to about $38,000 a ton - the highest value since 2007.?

Aluminum's price increased to more than $4,000 a ton. Being an important commodity for the automotive industry, this could lead to a chain of economic difficulties for manufacturers and consumers alike. The cost of a ton of copper rose to $10,850. The list of items that have been affected by the recent economic disaster is endless.?

This is a hard time for organizations around the world. Nations are working hard to stabilize their economies to avoid outrageous inflation. In the same vein, companies are faced with the responsibility of staying competitive in face of these challenges. The question is, what should organizations do to contain this crisis and reduce its effect on consumers?

The Role of Advanced Digital Innovation Experience in Solving the Present Global Economic Crisis

The global supply chain is endangered, prices of food and other important commodities are expected to continue to rise, the value of raw materials is skyrocketing, and nations are restrategizing their internal trading policies. In a nutshell, the global business landscape is unstable. Government institutions and private organizations need advanced digital innovation experience to thrive.?

Cutting-edge innovation is needed to cancel out the effects of this crisis and install more efficient internal and external processes. Digital innovation is simply the use of digital technologies to improve processes, foster growth, and boost overall efficiency. Government-run organizations need this to create policies and institute solutions capable of stabilizing the economy and controlling inflation.

Any private company that wants to remain relevant and competitive must embrace digital transformation. You need digital innovation experience to enhance product and service offering processes. This is effective in improving self-reliance and cutting down costs of operation; both are needed to contain the effects of rising costs of supplies and an unstable global supply system.

How Advanced Digital Innovation Experience is the Solution to Global Economic Crisis

Your company needs digital innovation to survive the ongoing ‘shaking’ in the business world. No matter where your business is located, what is happening in Europe, Asia, and North America will affect you directly or indirectly. Here is how digital innovation experience can help you stay competitive:

Crisis Readiness

You need digital solutions to get ready for the unexpected. By analyzing your business needs, supply chain crisis, and the spike in prices of raw materials, you can leverage digital innovation experience to build solutions to stay ahead of the curve in your industry. Just like digital solutions helped smart companies to stay competitive during the pandemic, advanced digital transformation is what you need to overcome the present and future challenges.

Enhancement of Business processes

Companies are going to have a hard time passing on their higher costs to consumers. And this could lead to the fall of businesses that are not ready to innovate. Due to the rising cost of raw materials and energy, increasing prices of goods and services is logical.?

However, you can offer fair prices by cutting down on costs of production. Improving your business processes is a key way to reduce the cost of operations. Digital innovation is what you need to optimize methods, automate tasks, and get more done in less time.

Improving Self Reliance

One of the major lessons of the Ukraine war is the need to improve self-sufficiency. Not every company can be completely self-sufficient. However, you can leverage digital technologies to improve self-reliance.?

What if your company or country is sanctioned and you can no longer access a vital tech product from overseas? With digital innovation experience, you can build essential products and improve stability in the face of crisis by reducing dependence on third-party solutions.

Why is Advanced Digital Innovation Experience So Important in 2022?

At the beginning of this year, experts predicted an increase in cyber attacks, including supply chain attacks and ransomware. In addition, the Russian invasion of Ukraine is causing an outrageous rise in the prices of raw materials, energy, and almost every commodity. Inflation is looming and any company that wants to remain in business needs digital innovation to implement solutions to ensure the security and optimal functioning of business activities.

Is Digital innovation Worth it?

Yes, if you want to stay competitive, increase productivity, enhance customer experience, and boost your revenue, you need to innovate digitally. The good news is that adopting transformative digital solutions is easy and affordable with Bredec. We specialize in emerging technologies. Leverage our offers to implement hyper-secure, future-fit industry 5.0 solutions. At Bredec, we assure you of products and solutions tailored to your business needs.

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Contributors; Gray Oshin (content creator), Melanie Matt (concept and strategy) & Nilesh Bhagwat Jamale (Head of domain Advanced Digital Innovation Experience)