The acceleration of digital businesses… the effect of the pandemic?

Business

By CAPosts 18 January, 2021 - 11:59pm 781 views

(Expansion) - The COVID-19 pandemic put the resilience capacity of thousands of companies around the world to the test, and 9 months after the first case of the virus was detected in Mexico, the effects for companies are more than evident. Regarding the positive effects, I highlight two: an increase in productivity and the role of digitization as an undisputed ally to streamline processes, as well as to increase the level of response of organizations to new global challenges

The big winners

The report The opportunities of digitization in Latin America in the face of Covid-19, carried out by the Development Bank of Latin America, points out that “the digitization of production represents the fundamental factor to keep the economy operating despite the disruptions that the COVID-19 ". However, for this to happen it is required that all the actors in the chain present a degree of digitization; In other words, a company that is already digitized will have benefits, but if the company that provides the raw materials or the one that ships it is not, it is unlikely that the new normal will have representative economic stability. Digitization as a result of the pandemic is not just about keeping a business afloat and increasing productivity, it is also necessary to stimulate the economy, contribute to the generation or preservation of jobs and improve the quality of life of society. The winners of the pandemic have been e-commerce and digital financial services. The first is obvious: people do not leave the house and order at home. The whole chain, from the one who sells, the one who packs, and the one who ships, has grown incredibly strong. Even consumer confidence to purchase products and services online increased. So another of the winners is the consumer, who, in many cases, discovered a new way to buy. Proof of this is that during the first months of the confinement, almost 20% of Mexican consumers plan to continue shopping online due to their good shopping experience, according to Report 3.0 COVID-19 Impact on online sales in Mexico, carried out by the Mexican Association of Online Sales (AMVO). For its part, the boom in financial services was more due to a situation of comfort and health: many people do not want to leave home and stand in line at a bank branch, so they have these services in a practical and easy way on their cell phone became the most viable option.

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The digital transformation of Latin America | Summit 2020 Expansion The big affected How to survive in the new normal?

Despite the competitive advantages of digitization, there were companies for which this sudden change did not mean a good thing, in particular for those that require the physical presence of the consumer, such as restaurants, stadiums, hotels and in general the tourism industry . But here the important issue is not the obvious loser, but the one who is not; that is, the company that could sell online, but was not digitized, the one that could offer its services in another way and never moved there. If you are from the group that has not been digitized, it is worth asking yourself what is preventing you from moving and why everyone around you is growing. Even the industries hardest hit during the pandemic are transitioning to digitization and that gives them a significant advantage. We do not know how long this "new normal" will last, what is certain is that there is no going back on the road to digitization. Opening. Open your mind. You have to be willing to understand how businesses work elsewhere, how the digital world evolves, and how that can grow your company. Caution. Reassess your business model based on current conditions, opening possibilities, capacity level, online sales versus physical sales, etc. Also, make cautious decisions and restructure your business so that it works and that, from today , the income speaks of its growth, do not wait for things to go back to the way they were before. That will not happen. Be careful with digitization. While digitization is critical, you shouldn't let excitement about it destroy what actually creates value for your customers. For example, people go to a restaurant because they like the food, but they also go for the experience; The same goes for going to the movies. You should not go crazy with digitization and put aside the reasons why people buy and like your product or service. This could be very expensive in the end. Editor's note: David Terán is founder and CEO of Gestionix. Follow him on LinkedIn . The opinions published in this column belong exclusively to the author. See more information about this and other topics in the Opinion channel

Source: MSN