Can you believe that it’s already been a year of quarantine? Yes, it’s unbelievable how time flies so fast! Ever since it started, our lives and the world of business have drastically changed. We had to adjust to this crisis by redesigning our interactions and entering the new normal.
This pandemic made companies shift to how they function and find solutions to their challenges. Organizations had to step up and create strategies that keep their employees and customers safe.
The adjustment was not easy for all industries because of sudden economic changes due to the pandemic. However, the shock caused by the crisis has also sped up trends that already existed before. You just have to look forward and know the technologies businesses like yours use today.
Join Professor 3P’s class below as he guides us through the growth of trends, the economic profit gap, and how your business should be resilient in the pandemic.
Understanding the profit gap
The economic profit gap between the top corporate performers and other companies has dramatically increased. A study showed that the most profitable industries such as semiconductors, pharmaceuticals, personal products, and software have added in their expected economic pool $275 billion a year. On the other hand, businesses like transportation, capital goods, insurance, and banks have lost $373 billion.
The companies at the top quintiles of their industries (before the pandemic) are outperforming others in the bottom quintiles more than they had before. Businesses with decreasing profits before the pandemic have experienced a greater decline after the crisis.
Abrupt growth of digital trends
Did the pandemic result in this gap? It obviously played a huge part, but there’s one crucial thing you need to know: the growth of trends that existed before the crisis happened.
One of the examples is telemedicine services. Maxicare’s abrupt shift made this healthcare organization reach out to its members more by having 24/7 support through chat, phone, and video. Even though they had these services before, it increased drastically in the pandemic.
Another example is the rise of digital shopping. According to Oberlo, there are around 2.05 billion online buyers in 2020. The numbers increased in 2021 as there were 900 million more shoppers compared to the previous year.
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In cashless transactions, we know that customers want a safer purchase experience. GCash users increased to 33 million; it basically had a growth of 65% compared to last year. In 2020, there were over 1 trillion pesos worth of transactions that passed through this app.
You can also see this pattern in remote working and online classes, just to name a few. But we all know that these trends were here before, and the pandemic resulted in its acceleration.
Embracing tech solutions
The pandemic made companies prioritize the health and safety of their employees. A Lenovo study stated that around 87% of workers feel kind of ready to shift to work remotely (if required). It showed the possibility of doing tasks at different distances. For sure, this shift made businesses consider using technological solutions like cloud services and communication apps to enhance their new work-from-home environment.
IBM’s research, The State of Salesforce, showed that 29% of customers who have increased investing in Salesforce, the world’s leading customer relationship management, last 2020 as a result of the pandemic. Around 57% of customers stated that Salesforce has made it simpler for them to make essential business pivots.
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Overall, the studies above show that technology is a must in preparing to succeed, especially in a pandemic. It looks like a great opportunity to make sure that your business is ready for the future.
Becoming more resilient
Aside from the accelerated steps of change, there is a new opportunity to grab moves that are both big and strategic. A Mckinsey research showed that companies that consistently made big strategic moves through every stage of the economic cycle had more chances of outperforming their competitors.
The data shows that it is essential for your business to be resilient and prepared for the future. You have to be more open to change, especially when it comes to technology. Some businesses are thriving today, while others are in a fragile state.
What happened in the crisis revealed the trends that appeared more than ever. Another thing that you should learn from this crisis is that you must be resilient in the face of adversity. You can start by making strategies that will help your business thrive and easily adjust to abrupt changes.
Looking for solutions that will make your business more resilient in tomorrow’s world? Let’s discuss here to discover what Third Pillar has in store for you!