The Digital Transformation of Business Amid & After COVID-19

The coronavirus pandemic has compelled a digital transformation in businesses throughout the world. Organizations that were once reluctant to take the next step in their digital journey have been forced to adapt. With entire industries and sectors shifting to online operations, the question arises: Is this shift permanent? If so, what trends will digital transformation produce? And most importantly, what is the future of businesses going to look like after COVID-19?

We explore the answers to these questions in the following blog. But first, let’s start by understanding the extent of digital transformation in businesses. This will allow us to appreciate the subtle trends that this transformation has given rise to.

The Extent of Digital Transformations in Business

There are several aspects that can be observed to understand the extent of digital transformation in businesses. These aspects are discussed below. 

Digitization of Customer Interaction

Before the beginning of the pandemic, only 20% of users interacted digitally with business on a global scale. Since the pandemic, that percentage has increased to a staggering 58% which shows that more than half of the customers in the world now interact with businesses through a digital channel. 

As consumers have gotten used to interacting digitally, businesses have had to adjust accordingly. Without adapting to the prevalent user trends, organizations cannot hope to survive. And existing trends suggest that digital interaction among users and businesses will only rise in the future. 

Adoption of Digital Offerings

Back in 2017, only 29% of all offerings were either fully or partially digital. By mid-2020, this statistic jumped to 55% meaning over half of all offerings were digital in nature. This sudden and rapid growth in digital offerings is evidence of a digital transformation that is likely to continue well beyond the pandemic. However, there is no doubt that this increase in digital offerings has been because of the lockdown restrictions initiated by various governments around the world.

Even consumers who were used to shopping the conventional way were forced to go online. As such, organizations that were used to doing business offline had to adapt as well. This has led to a marked increase in the consumption of digital offerings. And as consumers get more acquainted with this side of digital goods, they are unlikely to revert once the pandemic is over.

Unexpected Efficiency through Tech Reliance

The shift to digital has come with a remarkable, albeit inevitable, increase in efficiency for many. In fact, collaboration through digital means has boosted efficiency on an industry-wide scale. Not only have businesses come to rely on digital means while responding to or implementing changes, they are now increasing customer demand for online purchasing and services digitally as well. 

Digital Transformation for the Long Term

Perhaps the biggest indicator of digital transformation is the belief among top executives that these changes are here to stay. According to McKinsey, over 60% of top executives at organizations that experienced a significant digital transformation believe that it is likely to stick over the long run.

This isn’t surprising either. That’s because organizations with a predominantly digital infrastructure such as Amazon were able to increase revenues during the pandemic while the rest struggled to survive. Amazon.com itself increased net profit by 84% with sales soaring to $386 billion. This is a definite lesson for other companies that in times of distress, digital capabilities go a long way in providing competitive edge.

The Post-COVID19 Era

So what can we expect once this pandemic is over? What will industries and major organizations look like once the dust settles? For one thing, technology and the use of digital technologies is going to be much more widespread. 

If the last year is evidence of anything, it is that digital infrastructures maintain business operations, increase customer demand and improve collaboration. So let’s look at the four likely trends the post-COVID19 era will experience.

Greater Focus & Investment on Technology

Technology was the crutch businesses and individuals relied on during the pandemic. So it’s no surprise that organizations plan to increase investment on technological resources and assets in the future. Already, companies were able to respond to changes 40 times faster than expected during the pandemic thanks to technological infrastructure.

As such, there is likely to be greater focus on digital infrastructure in the coming years. The adaptability and effectiveness of collaboration within the organization combined with the responsiveness to consumer demand shows exactly why organizations will be vying for greater technological capabilities.

Integrating Employee & Customer Technological Experiences

As businesses shift online, top management has to think carefully about employee experience, and by extension, customer experience. If managed poorly, remote employees can have had a high turnover rate. That’s because remote working can lead to fragmented communication and higher stress, among other problems. And if employees quit, it becomes increasingly difficult to maintain customer relationships.

That’s why businesses will likely think about a long term strategy to integrate employee and customer experience through technological infrastructure. The end result of how this might turn out, depends on the nature of each organization and how well it can handle remote coordination.

A World of Automations

Automations have played a huge role during remote working. Tedious and repetitive tasks were easily programmed to repeat on appropriate cues. This saved employees and managers time to tend to more important tasks. As a result, much of the revenue generated and customer satisfaction fostered during the pandemic was down to automation programs.

That’s why automation training is likely to be a part of organizational strategy moving forward. Success in post-COVID era might be defined by efficiency in automated functions. Those that can save time can allocate more of it to relevant and important tasks. As a result, long term revenues and profitability can be increased ten folds thanks to automation.

New Perspective for Technology Use

Finally, technology could be used for a whole new dimension in the world after COVID-19. Businesses may finally take a leaf out of Amazon, Google and Apple’s book and start using technology for innovation rather than simply cost cutting. 

The innovation perspective for technological use has been widely explored in the past as well. But businesses have been slow to implement it because there was no rush to innovate. Well, now there is. As consumer demand shifts quickly in the post-COVID era, so too must the businesses that fulfill them. And using technology for innovation will be a major weapon in the arsenal of businesses in the future.

Conclusion

The digital transformation of businesses is well and truly underway. However, it is up to businesses to utilize technology and digital infrastructure responsibly for the welfare of employees and consumers. Yet, there can be no doubt that businesses with better technology capabilities will rule the marketplace of the future. That’s because consumers want to fulfill their needs through the convenience of online interaction and the safety of their own home.