Since every significant historical moment has its own power games, the change in business models and the social adaptation to a new norm, this also applies to the new world order of COVID-19.
Much has been said that technology companies are the real winners, but does everyone really win in technology?
Video conferencing platforms
Photo credit: Skype
Digitization is gradually becoming part of the new pace of everyday life as governments urge their citizens to work from home and reduce physical contact.
Video conferencing platforms have instinctively become a comprehensive go-to service that no longer focuses on webinars or chats. It seems that platforms like Skype, Google Hangouts, and Zoom could emerge as the real winners, given the “new normal” that almost all governments and CXOs are currently imposing, especially in terms of long-term management.
The downside:: These platforms are not designed for highly confidential or sensitive environments. In the midst of its newly discovered fame, Zoom underwent a thorough review of how privacy violations due to the proliferation of "zoom bombing" are dealt with. We then see the same videoconferencing organizations that are trying to create temporary patches to fight malware and improve security before they make the headlines again (this time in a different light).
Judgment: Short term winners
Platforms for the delivery of food
Photo credit: GrabFood
The popularity of the delivery of food does not decrease so quickly, especially when more people are quarantined. In view of consumer sentiment, more and more F&B branches are offering delivery services online.
In response to an increase in unprecedented demand and supply as well as health risks, food suppliers such as GrabFood and Deliveroo have introduced the contactless “Leave at your Door Service” to help drivers and customers comply with the social distance guidelines.
The downside: The platform-to-consumer delivery business model includes operational risks with high delivery and delivery logistics costs. In addition, such platforms are easily misused. In the West, GrubHub, DoorDash, Postmates and Uber Eats were sued for allegedly violating US antitrust law by charging "exorbitant" fees for processing delivery orders. Eating is also beyond perfection, but a way in which people interact socially. If these companies do not change their business models, the business boom they are experiencing can be volatile, as restaurants and consumers avoid these services when restaurants reopen.
Photo credit: Gadget Adda
Market research firm Nielsen has identified six key consumer behavior thresholds related to the COVID 19 pandemic. According to logistics service provider Narvar Inc., the volume of orders in e-commerce has increased by almost 50% since the end of April.
Compared to March 2019, the transaction volume for household products and furnishings rose by 97%, for online games by 97%, for DIY products by 136%, for garden articles by 163%, for electronics products by 26.6% and for telecommunications companies by 18.6 %.
The downside: Online retailers, once proud of efficiency, are now under pressure to keep up with the volume of orders related to corona viruses. Amazon is stuck between hiring additional employees and giving them paid free time if they feel uncomfortable. The inability to strike an ideal balance between the demand for physical goods and the emotional wellbeing of employees is not a problem that must be ignored as it can affect the growth of a company. The behavioral change due to COVID-19 when shopping offline to online cannot be ignored as consumers experience the convenience that e-commerce brings to their lives. E-commerce players need to recognize that they are no longer the alternative, but the main player in shopping for consumers, and this helps them build sustainable business and organization to improve their status.
Credit: Vulcan Post
Real innovations always arise from the urgent need to solve a crisis. This is especially true for the healthcare industry. Public health systems around the world are relying on providers of digital health technologies, in particular on telehealth solutions to combat the coronavirus pandemic.
Ping An Good Doctor, one of the largest telehealth companies in China, reported a tenfold increase in newly registered users following the advent of COVID-19. In Seattle, TransformativeMed – a company that focuses on the user-friendliness of electronic patient records (HER) – offered its COVID-19 / Core Work Manager (CORES) app for hospitals and medical centers in the Seattle region free of charge. Given the current situation, Raj Prabhu, CEO of Mercom Capital Group, emphasizes that we should expect funding trends to change digital health technologies.
The downside: Analysts have pointed out that not every digital healthcare company in the world will be successful after the pandemic. StartUp Health suggests that "Investing in health innovation favors entrepreneurs whose solutions either have a direct impact on a pandemic response or are important in a changing world." Med-tech startups like InnAccel, who have developed an automated and closed system for eliminating highly infectious oral secretions, could be the real winners as they have an added benefit of their flexibility to quickly adapt their business models to events with black swans and a unique one Value to offer Proposal that can withstand periods of uncertainty.
Photo credit: Singapore Airlines
It is undeniable that no other industry has fallen as far and as quickly as the travel industry. The World Travel and Tourism Council announces that the recovery may take up to 10 months. As a result of the three-month loss in global travel, the accommodation sector is also badly affected. Jumbo hotels in Nevada and Las Vegas have lost their liveliness.
Startups for travel bookings such as Klook are firing employees, temporarily releasing employees and introducing a reduced working week across the company. Airbnb, the once-announced disruptor slated to go public in 2020, fires 25% of its workforce and experiences a drop in bookings with hosts who withdraw to find cheaper long-term renters. The financial strategy of the tourism industry, which is based on a smooth future of open borders and high tourism demand, has failed.
The downside: Before the pandemic, total travel and tourism contributions to the global economy in 2019 were a whopping $ 9.25 trillion, a 5.6% CAGR between 2019 and 2026. The need for business and social travel will not decrease, even as virtual interaction technologies become more popular or more accessible. From a business perspective, personal interaction builds relationships and increases credibility and trust. From a consumer perspective, nothing can take the novelty of experiencing a new city for yourself. The travel sector may experience challenging times during this period, but it would not be long before they reignite in the most explosive manner after the pandemic.
So who are the real champions?
There is no easy answer or crystal ball to predict who the ultimate winners and losers are.
Rather, the pandemic has taught us three important lessons to achieve self-activation and self-sufficiency in a dynamically changing world.
Flexibility to reinvent business models around network effects: Given the unpredictable environment that affects industries or the market, we need to be able to determine the next business model that we can rely on or replace to stay relevant in new realities.
Sufficient capital and comprehensive hedging strategies: It is important to have a stable runway that allows us to take every opportunity to relax and get back up as quickly as possible. We should never rest on our laurels.
Innovation and adaptation: The rubric for measuring or defining a new standard in the world after the pandemic is being refined. However, one can say with certainty that we still live in a competitive landscape driven by disruptive business models. Circumstances that benefit us at a certain point in time can also cause us to end prematurely. We should adopt the growth philosophy and constantly innovate. We develop the adaptability and resilience to face challenges as opportunities and evaluate the resulting processes and findings.
This article is a contribution by Ranise Teo. She is part of the business development and marketing team at Arcadier, a SaaS company that supports next generation market ideas. You can follow Arcadier on LinkedIn, Facebook, and Twitter for the latest news and updates.
Selected image source: GrabFood / Askifa.ng