How Covid has hyper-accelerated the need for digital transformation
The COVID-19 pandemic has changed the way businesses operate around the globe. Companies have had to adapt quickly to stay afloat with an increased reliance on technology, remote work and different delivery models.
The impact of a remote workforce
When Covid hit, many businesses had to adapt their operations and arrange for staff to operate from home. Depending on each companies structure, this was easier for some businesses than others. In a recent McKinsey Global Survey of executives, respondents said their companies moved 40 times more quickly than they thought possible to get everyone working remotely. On average, it took only 11 days to implement a workable solution.
New service offerings
Adapting to new technology has been a necessity for many. Leaders have had to explore new service offerings and ways of doing business. For example, restaurants selling ingredients online for people to cook at home, schools moving classes online, gyms renting out equipment and manufacturers producing essential items like hand sanitiser, medical equipment and PPE.
The McKinsey Global Survey also outlined that many executives believe their companies have accelerated their digital transformation by four years. And the volume of digital-related products has accelerated by seven years.
Increase in online channels
Consumers increasingly use online channels to purchase, with many businesses relying on delivery services to meet demand. The McKinsey survey detailed that people are three times likelier now than before the crisis to say that at least 80 per cent of their customer interactions are digital.
Even back in 2018, a ProTech survey found that automation of business processes was on the rise among companies of all sizes, industries and locations. It found that 70% of companies either had a digital transformation strategy in place or were in the process of developing one.
Before Covid hit, Forbes produced 100 stats on Digital Transformation and Customer Experience. Their findings showed the main drivers for digital transformation were improved operational efficiency (40%), faster time to market (36%) and the ability to meet customer expectations (35%). However, at the time of the survey, only 7% of companies had fully implemented their digital transformations. It would be interesting to see the difference in responses today, given the speed at which digital transformations are occurring across so many industries.
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