By Anshuman Jaiswal, Principal – Digital Transformation, Kearney
While companies are grappling with covid-19, building capacities to support work, serve customers in collaboration with suppliers and partners and devising various ways to provide tools, infrastructure and connectivity to keep the lights on, there is spurt of strategic thinking emerging to really figure out “how to not only overcome but come out as Winner” on the other side when all of the pandemic chaos subsides.
Executives have started to crystal ball gaze on:
– How to be successful in the new normal, as new industry dynamics emerge?
– How to turn the crisis into opportunities: gain share; consolidate your position; and deepen loyalty?
– How to learn from this experience, build the lessons into plans, and prepare for future impactful events?
In coming weeks and months, the mindset will shift from how we survive to how do we think about creating new capabilities, services, offerings and gaining the head start in the new normal. Every crisis has given birth to new companies and have bolstered the fortunes of those who adjust to the new normal and tapped on to new opportunities
Leaders will have to fundamentally think differently about product/service offerings, customer value propositions, labor changes and technology driven growth
While several questions are yet to be answered:
– Whether world will fragment or unite post crisis? Will globalization be dead and new of regionalism start?
– Will we see a permanent shift to more remote working?
– Will China (for products) and India (for services) model alter to accommodate greater diversification for product and service delivery?
One thing is for sure, technology driven companies will have the lead, supply chains will digitize enabling new pools of products and service delivery
People/Work: As work shifts to remote work and virtual setting, to new locations, regions and countries – robust network infrastructure, bandwidth, devices and security will be required. Offsite and work from home (WFH) could become a new normal, it will be pertinent to devise work based on outcomes, newer ways to measure productivity and driving new work adjustments and ways of working. It might throw new opportunities in form of greater representation of women and minorities in workforce as obstacles of leaving home will be lowered
Customer: For last ten years, customers are getting used to things getting delivered per their convenience – entertainment from Netflix, Shopping from Amazon etc. The preference for everything online (both products and services) and customer convenience (last mile, at home, 1-2 hr. delivery) could really be the new norm. Technology leaders need to think about digital strategies differently to focus on Mobile first, reimagine and mobilize capital and resources around strengthening and beefing up e-commerce and omnichannel capabilities to offer anything anywhere at customer fingertips in comfort of his or her home.
Operations: Humans will be replaced by bots – have we not heard this for last few years? – this crisis will only accelerate reduction of dependency on humans and to pave way for frugal operations. Cash will king (at least in new future) and theme to save on operational costs to invest in customer centric digital capabilities will be key. IT leaders must double down on Business and IT process automation and make it their top priorities.
Suppliers: We are aware of country or geo concentration – It is largely China for manufacturing and India for IT services. Companies would have no choice but to revisit Global supplier and location risks and review supplier/sub-contracting performance to ensure underlying risks are surfaced and mitigated.
Any future course of action will depend on developing a thoughtful strategy – Digital Leaders should address three questions as they are navigate through these turbulent times.
How is your company responding – what are you are doing right now are having the greatest impact?
As IT leaders how are you pivoting the focus? How are you leveraging digital technologies to adapt and evolve?
What are you doing now to prepare for the pending recovery?
