Five months ago, we saw businesses worldwide hitting the pause button. Today, with the ‘new normal’ starting to take shape, it is finally time to proceed. The question is, how? Traditionally, decision-makers would evaluate a number of different possibilities. “Do we need to save our way to profitability?”. “Do we have the right vehicles for organic growth?”. Or, “if growth is our lever, should we do it inorganically through acquisition?”.
But we can’t ignore the fact that behaviors have changed, in and out of the office. The once professed trend of remote working is now here to stay, accelerating digital transformation processes that would have perhaps been left aside.
As a consequence, technology has proven to be right at the core of the direction, strategy, and the results that companies will obtain or not. In other words, with the right planning, organizations can leverage it not only to survive, but to thrive and put growth into business. And the crisis only accelerates this opportunity.
Take the 2008 financial crisis for instance. It cost the global economy the equivalent of 22 trillion dollars. Naturally, the sector most affected by it was banking. The likes of Merrill Lynch, AIG, and Royal Bank of Scotland, came within a whisker of going bankrupt. Yet, on the flip side to that, companies such as Airbnb, Uber, and WhatsApp were created.
The way I see it, there was a period of absolute uncertainty, and a need to innovate. To change. Not to pause, but to progress. And the companies who embraced this mindset are now multibillion-dollar organizations, completely changing the markets they operate in.
Of course, being disruptive and innovative is something every business is trying to do. But what Airbnb, Uber, and WhatsApp had in common all those years ago was the technology-centric aspect to it. Fast-forward to 2020, and you have once again distressed sectors that could, and should, benefit from the same lateral thinking.
The retail sector, for example, could take advantage of technology to enhance the customer experience in-store. I can almost envisage a visitor walking through the doors to the fact that they were instantly identified and welcomed on their smartphone. A text from the brand would say “Hi there! Last time you were in here, you bought this product. We think you might like this one as well. Go to the third floor and have a look for yourself”. On the way, digital signage projecting images and videos of people interacting with the product would only entice the customer’s need for it. The product is tried on. It fits perfectly - just like the brand had predicted it would. With a single tap on their phone, the purchase is done. Simple as that.
The same could apply to the travel industry. Imagine wearing a VR goggle and seeing in 3D, through augmented reality, the place you’d like to visit. After immersing yourself in the desired destination in near real-time, the choice is made. You’re going on holidays. The transaction can be done digitally within seconds.
To say technology plays a huge role in underpinning all of these interactions is stating the obvious. You need Internet connection, cloud access, and big data to support all the above. Not to mention some fairly smart artificial intelligence whirring away in the background to make sure you’re delivering it to the right type of people.
Artificial Intelligence (AI), in particular, can help companies understand the market they operate in, the trends currently in motion, the potential threats to the businesses, and their target audience’s behavior. This is all fuelled by big data hosted in an elastic cloud-based environment, all supported by the Internet.
In order for businesses to truly leverage AI, Cloud, and big data, they need to come up with a definitive IT strategy that allows them to work securely and effectively without compromise. A progressive CIO might ask “Where are my efficiencies?”. “How can I optimize traffic?”. “How can I increase capability?”. This will allow for the precise investment needed, as well as the return it will bring to the business.
In a nutshell, things have changed. There is no returning to the way they were. It’s time businesses got their thumbs off the pause button and push on. Accelerate the use of technology, because it is going to be core and central to success. And here's the thing - most of this technology is out there today. It's the innovative application of it that's going to give companies a competitive advantage and really change business for the better. Technology can reduce spend, support business growth, and help address and adapt to market change. With a single strategy, it can help your business thrive, not survive.
