Who Led the Digital Transformation of Your Company? Covid-19

“You can’t delegate digital transformation for your company… You and your executives have to own it! Executives need to engage, embrace and adopt new ways of working with the latest and emerging technologies.” — BARRY ROSS, CEO AND CO-FOUNDER, ROSS & ROSS INTERNATIONAL

The COVID-19 outbreak is a sharp reminder that pandemics, like other sporadic disasters, have occurred in the past and will continue to do so in the future. Even if we can't stop this deadly disease from spreading, we should be prepared to mitigate the societal impacts. The present pandemic is wreaking havoc on economies all around the world and it does not look like any country will be unaffected. This has far-reaching implications for not only the economy, but for the entire society, resulting in drastic change in businesses acts and consumers behaviors. As we are in the midst of a pandemic, predicting its long-term consequences is extremely challenging. Despite the fact that society has been affected by multiple pandemics in the past, it is impossible to predict the long-term economic, behavioral, or sociological implications since these elements have not been thoroughly investigated before.

Many firms have been forced to shutter as a result of the COVID-19 epidemic, causing severe disruptions in various industry sectors. Short-term difficulties confront retailers and brands, including those relating to health and safety, supply chain, workforce, cash flow, customer demand, sales and marketing. Many industries, particularly in the tourism and hospitality industries, have faced the maximum challenges due to this pandemic. All organizational functions are designed to prioritize and optimize expenditures, as well as postpone work that will not add value in today's scenario. Companies, particularly start-ups, have imposed a hiring moratorium that will last indefinitely. Simultaneously, online communication, online entertainment, and e-commerce are all seeing extraordinary development.

As of today, nations all around the world are still struggling with the COVID-19 epidemic, which has a wide range of consequences that have yet to be completely understood. What we do know at this moment is that digital technologies have made our lives simpler while also allowing businesses to continue a certain amount of activity, particularly during lockdown.

The term "digital transformation" refers to a major shift in how companies employ technology in order to improve their business performance. Digital transformation is a shift produced or affected by the use of digital technology in every element of human existence to increase a company's overall performance or reach. Digital transformation helps to speed up the business of a company by utilizing technological tools and examining chances that might aid company operations in order to expand the target market. When companies are forced to shift due to a pandemic, they have the benefit of being able to ramp up advertising via web apps. As a consequence, they are able to resolve issues in the sales and logistical channels. There are four things that can be implemented for digital transformation:

·????????Ensuring that business processes are efficient & effective, and

·????????Ensuring that business processes stay competitive.

·????????Improving customer satisfaction, and

·????????Making different strategic decisions easier for business people.

When organizations are compelled to change, digital transformation may be quite beneficial. For example, consider how online apps may handle two problems at once, namely sales and logistics. The supply chain can begin to rely on online platforms that link buyers and sellers of materials.

There are three things to consider when it comes to digital adoption - First, the need of digital transformation isn't just about technology; it's also about how organizations can compete more effectively since it may lower costs in a variety of ways. Second, developing business-related digital knowledge and abilities. The truth is that not every company requires a website; others simply want promotion through the right methods. Due to a lack of awareness, digital transformation decisions are frequently less relevant to the demands of the organization. The third option is to use integrated e-wallet services.

Organizations that adopt digital solutions have more resilience in the face of adversity—and a leg up on the competition, allowing them to recover faster and transition from defense to growth.

·????????They use digital technology to simplify operations and automate manual procedures, resulting in increased speed, less waste, and more time spent on revenue-generating activities.

·????????Their staff were already set up to work remotely, so their focus is on maximizing staff efficiency and maintaining business culture by using collaborative technologies and tools.

·????????They are more prepared for and more robust to the contemporary environment's rise of cyber threats.

·????????They mine client or customer data to keep an eye on demand fluctuations and find new client demands.

·????????They use data-driven knowledge to make and act on choices more quickly. They have cultural flexibility built in, allowing them to adjust or shift direction at any time.

To capture this phenomenon, the term "digital economy" was developed. In simple terms, the digital economy is the economy that is increasingly influenced by digital technologies such as the Internet, mobile connectivity, cloud computing, big data, machine learning, artificial intelligence (AI), blockchain, Internet of Things (IoT), robotics, smart manufacturing, predictive and data analytics, and other new digital technologies that continue to emerge.

Although digital transformation affects all industries, it has varying effects depending on the kind of firm, with substantial distinctions across manufacturing, commercial, and service firms. Manufacturing companies are particularly concerned with reducing cost per product, production time, and the split of total expenses into manufacturing, logistics, and administration. Flexible manufacturing, quality production, procurement cost optimization, and inventory management are the primary problems they face in order to stay competitive. The COVID-19 epidemic has had an impact on companies both on the demand and supply sides, since the pandemic has intensified panic purchasing and unprecedented peaks in demand for specific items, generating serious supply chain issues. In these conditions, supply chain digital transformation and innovation have proven critical in avoiding long-term outstock.

Indeed, by altering internal processes and connecting with suppliers, customers, and business partners for real-time information exchange and cooperation, digitalization provides businesses with a wide range of opportunities for business value creation. For both back-end and front-end company operations, digitalization provides several opportunities for creating value. Businesses may automate order processing by integrating B2C and B2B e-commerce sites with their enterprise resource planning (ERP) and warehouse management systems. Businesses may also integrate their customer relationship management (CRM) system with their ERP system to make selling easier and more productive. Most of these services are now being offered as cloud-based software as a service, making them more accessible to small and medium-sized organizations. Other possible value drivers include the Internet of Things, additive manufacturing, automation, blockchain, artificial intelligence, and predictive analytics. Big data and predictive analytics enable data mining of the massive quantity of data being gathered, while blockchain and IoT provide enormous opportunity to provide transparency and real-time information to supply chains. Artificial intelligence (AI) and machine learning (ML) are two promising technologies that are already being widely used in engineering, health, and finance.

To summarize, businesses are speeding their adoption of digital transformation as the most effective method to avert a short-term economic collapse and confront the COVID-19 pandemic with resiliency. The way we as humans define the role of technology in our work and lives will determine whether this trend continues.

PUBLICATION DETAILS:

'ANALYZIA': Vol-4, Issue 1 (IBS Analytics Club, IBS Hyderabad)