The Covid-19 pandemic has forced fundamental changes on our world which is bound to give rise to a new reality. The ways of working will change, and in many ways, we will adapt to what was once considered as a futuristic way of living. In the business world, many companies will perish, as many will scale new heights; some will reshape radically, and many new businesses would open up to grab new opportunities brought forth by these dynamic shifts.
In the new normal of heightened disruption, now is the time to re-evaluate businesses and reassess their position in the new world order – the one that we will find ourselves in, after fighting off the deadly virus. And then transform businesses and reframe the fundamentals to be a perfect fit for the Covid-free world. Here are five insights suggested by EY on the basis of their predictions of the world that will unfold beyond the pandemic, to help in business transformation.
Long-term impact analysis to visualize the future
To survive and thrive in the world beyond Covid, you must be able to draw picture of that world and set your expectations accordingly. To do that you have to analyze the impacts of the pandemic on different business dimensions – impact of the pandemic on the international system, how things will change in individual societies and economies, how businesses and work will transform and how people’s behaviors and house-hold structures will change.
This will help you grasp the new world order better and enable you to position your business aptly in the new context. Once you reach that point, deciding the path of business transformation and driving the required changes is much easier.
Review your location strategy and real estate
Before Covid, most large businesses had national and international headquarters centered around the world’s 21 top business cities. In the new world order of virtual connectivity, remote working and direct to consumer approach, a decentralization would be inevitable. Due to similar reasons, more businesses would be expected to curtail their real estate requirement. In US, a study found that about 53% of real estate executives predict a drop in real estate requirements.
Rethink ways of working
The pandemic has accelerated adoption of technology and digitization across business. That implies a reinvention of ways of working where man and machine would be working together. It will require reskilling and upskilling of people and creating a stronger work culture with increased focus on connectivity, relationships and purpose.
Understand the new consumers and their preferences
The pandemic has changed consumer sentiments drastically. The new consumers are extremely digital savvy and have substantially shifted to the online channel as their preferred channel of shopping, according to the EY future consumer index research. The average online transaction value has also risen by 74% year on year.
Direct to consumer model has become a necessity for businesses overnight after the outbreak of Covid, and today consumers expect tailormade customer experiences. These trends are expected to persist in the new world and for any business to thrive, they must accelerate their online sales strategies.
Transition to a market maker
When you pay heed to the aforementioned insights you will be in a position to envision the future world much better and that would enable you to transform the position of your business from market leader to market maker. To become market makers, businesses must be able to identify the right opportunities for long-term value creation and swiftly modify their operations and models to seize them.
