The outbreak of Coronavirus has paused the progress of the world. The number of COVID 19 confirmed cases breaks new records every day and is likely to climb until the containment of the virus significantly. Quarantine, lockdown, social distancing, and other measures have profoundly impacted the global economy.
Organizations all across the world are responding to the crisis through rigorous scenario planning. The disrupted supply chains, the shift of traditional office hours to remote work from home situations, curfews, and prolonged recession are some of the major challenges that almost every industry is struggling in the pandemic situation. Software industries have slowed down due to the hurdles of the pandemic. However, a few transformations as a response to this COVID 19 crisis can strategically improve productivity as well as demand in the near future.
How are companies responding in crisis?
A closer look into microeconomics' study can justify the strict measure taken by companies as a response to the crisis. Let’s take a quick look into the ways how companies are facing the challenges in this crisis.
Salary Reduction: There are several industries, like travel, supply management, airways, and more, who had to cut down the salaries of the employees due to the decline in sales.
Lay-offs: Due to the alarming decline in revenue, most companies have decided to downsize as the solution to cut costs. You can find more than a thousand SMEs that have shut down during this period resulting in the loss of millions of jobs.
CEOs giving up their salaries: CEOs of reputed brands such as Allegiant, Marriott, Hyatt have given up their salaries as the empathetic response to this crisis.
Looking out for the employees: Several companies have embraced the ‘people first’ approach and have implemented remote working options to maintain social distancing norms.
Compassion is the need of the hour: Social isolation has made life difficult for every working professional. Compassion is something that can reignite the morale of employees, boosting their productivity.
Rigorous scenario planning: Companies must build up strategies that can be beneficial to the organization if the crisis persists for a few more years. Analysts usually formulate these strategies as adaptation measures to the current scenario.
Transformations suggested in the Scenario Planning
Rigorous scenario planning involves system thinking and future study analysis. The process of scenario planning revolves around assumptions for changes, producing mini-scenarios to identify the issues, and finally formulate strategies that can resolve the issues. It is a complex process, especially when the situation involves a pandemic situation. While several strategies can offer rays of hope to the industries, the software industry may adopt the following transformations in their scenario planning.
1. Going digital is the key
While the industries are suffering due to government regulations, the software industry has been a step forward in this transformation. The only way to survive the pandemic is to adopt digital ways for any business activity. While it may become a hurdle for other industries, this can become an opportunity for the software industry to rise up again. Another important aspect of digital transformation must be focused on the simplification of the customer experience. Therefore, this strategy aims at transforming companies into digital enterprises.
2. Adapt to the virtual environment
In the light of social distancing norms, on-premises work seems to be far-sighted. Work from home is the new normal that most industries can adopt as a step towards the welfare of public health. However, this method may not be an option for industries such as supply chain or logistics. On the other hand, software industries get the advantages of technology to execute their options through private servers, online live sessions, cloud sharing, etc. You may introduce upskilling programs for the employees to enhance their competencies and accelerate your competitive advantage as a digital enterprise. This strategy is essential to make the execution of projects smoother and faster.
3. Empathy serves as the foundation of trust
As everyone is socially isolated, it is essential for business firms to care for their employees. Building trust among employees can significantly improve productivity. In this Coronavirus pandemic situation, it is necessary for the companies to have an empathetic approach towards the employees to ensure employee retention as well as consistent productivity. Adopting this strategy can benefit the companies in strengthening the employer-employee relationship and ensuring the effectiveness of the workforce.
4. Analyze consumer behavior
The crisis has brought about changes in consumer behavior. It is crucial to analyze and understand the behavior of the target audience and strategize your market accordingly. You can reassess the needs and expectations of the target pool from consumer behavior to help you plan out customer retention programs. Rethinking and reformulating your brand image can be a great way to regain your market in the post-crisis world. It is better to embrace substantial or high-effective branding than sticking to your old brand marketing strategy.
5. Reinvesting in recovery
While investing may seem to the worst option in this crisis, if you can invest in the right place, it may yield a greater profit in the post-crisis world. Here are the few sectors where you must reinvest if you are planning a recovery.
Post-crisis operational model
Research and Development for innovative future solutions
Service to enhance customer safety
You may consider strategic acquisitions and merger options as well.
These investment decisions can be the roadmap to your automated success in the post-crisis world.
Embracing the ‘new normal’ and preparing ourselves for the post-crisis world are the only feasible options right now. Evaluating the post-crisis recovery scenario and developing strategic cost structure and operation models utilizing the above-mentioned point ensures faster and assured recovery for businesses. Stress testing on your scenario planning can help you develop strategies that can help in your post-crisis recovery. The crisis may have affected your business significantly, but a few strategic transformations may help you come out of the crisis stronger.