DIGITAL TRANSFORMATION IN THE AGE OF THE PANDEMIC
The onset of the pandemic in March 2020 has necessitated a paradigm shift in the way companies approach business, with the majority of them opting for digital strategies that yield consistent value for themselves and their customers. As a result, companies now serve and relate to their customers far differently than they did prior to the COVID-19 pandemic, and here, Netooze explores this business culture shift and the lessons to be learned from it.
The reality is that most companies, and even individuals by extension, were caught off guard by the pandemic. That meant that in terms of a response, companies largely had to wing their way into figuring out a uniformed approach in the absence of a clear-cut plan, which resulted in a lot of these approaches being reactive and piecemeal.
The pandemic left companies’ substantial fixed assets, such as buildings, factories, etc., underutilized, which resulted in extreme financial difficulties associated with maintenance and debt. Inventory as well, classified under variable costs, also experienced some amount of scarcity. Luckily, technology solutions, which were reasonably not as accessible at the start of the pandemic, provided much-needed relief to organizations that had been looking to fill the gaps in their value chain, both from the customer and demand point of view..
As that digitalization occurred across many organizations, Netooze observed that there were unique characteristics of companies that generally performed well under the conditions. In identifying those companies, we recognized that they:
- Had lower fixed costs. In some cases, they were able to convert them to variable costs.
- We're able to efficiently deliver business output digitally.
- Experienced surprising demand fuelled by pandemic conditions
- Utilized various technologies to capitalize on the different categories of their assets
By contrast, we observed that companies that were not able to quickly adapt to the conditions suffered. They were challenged because:
- Their business models were heavily reliant upon face-to-face/same-physical space interactions
- They invested heavily in fixed-cost assets
- They were slow to accommodate the changes brought about by the technological age.
- Had difficulties with their attraction and retention of customers and employees
While those observations effectively categorized the businesses that did well and struggled throughout the pandemic, it’s interesting to note that smaller businesses, and startups who had otherwise crippling limitations, found their strengths in embracing digital solutions that hurdled them over most of the challenges they encountered. They were able to leverage their limited resources and tap into highly adjustable iterations of cloud services for their benefit to remain competitive. For example, some companies turned to:
- Filling vacancies via LinkedIn, Fiverr/Upwork, and Indeed
- Marketing and branding using Facebook, among other popular social media
- Managing collaborations via Zoom etc.
Companies figured out ingenious ways to leverage modern digital technologies to their benefit. Those rooted in more traditional operations gave themselves a fighting chance due to the scalability and flexibility afforded through these platforms, significantly impacting their trajectories. A few years ago, this would have hardly been the case.
Netooze® is a cloud platform, offering services from data centers globally. When developers can use the straightforward, economical cloud that they love, businesses expand more quickly. With predictable pricing, thorough documentation, and scalability to support business growth at any stage, Netooze® has the cloud computing services you need. Startups, enterprises, and government agencies can use Netooze® to lower costs, become more agile, and innovate faster.