Covid-19 and the disruption it brings means that companies are digitizing their business operations. People need to work from home to keep away from the virus. As a result, organizations have had to lean on digital like never before.
The rate of digitization
Companies were already digitizing before Covid-19. Now, that rate has exploded.
Organizations that lagged behind this process are now frantically trying to catch up, while those with existing and robust digital processes are reaping the rewards of this new context.
This can be seen in the massive explosion in profits in some of the world’s largest tech companies. Companies like Apple, Google, Facebook, Amazon saw massive profits because of the pandemic, with people and organizations relying more and more on digital services for their work and home lives. Microsoft alone saw a 775% increase in demand for its cloud services because of the pandemic.
On the other end of the spectrum, supply chains all around the world are being updated out of old processes into new digital contexts.
Organizations that embrace digital solutions will see a massive increase in productivity, efficiency, productivity, organizational resiliency, security, and agility, according to a recent study conducted by BDO.
The change in working life
With the pandemic forcing a shift to digital working, a lot of organizations are sticking with the changes, partly out of concern for safety, partly out of better work-life balance, and partly out of a desire for better results. Some of the biggest companies in the world are embracing long-term working from home arrangements for the long term.
According to BDO, the following aspects of work life will likely remain unchanged, even after the pandemic has ceased:
- Remote work arrangements
- Digitization of customer service
- Shift to e-commerce
- Greater use of self-service
- Contactless delivery options
- Outsourced IT
- Customers focusing on spending less and saving more
- Increased focus on safety, cleanliness and health
- Bulk buying and stockpiling
- Use of online and on-demand platforms
The nature of work may also be changing. NTT believes that work itself may become consumption-based, with more employees dedicating their hours per project, rather than contractually sitting in an office from 9 to 5. It may be that work will be reimbursed based on the outcomes delivered, with people working from anywhere and at any time.
The skills gap
Closing the skills gap was already a major issue for developed countries. Now, with a new and acute emphasis on digital skills, people and companies around the world are going to have to make some big changes.
Because of the rate of global digitization, digital skills will become basic skills, similar to literacy and numeracy. Many companies will need to reskill their existing workforce in order to meet the challenges of tomorrow.
However, that may not be enough. There will be a surplus of people who will need basic digital literacy, along with a need to upskill in particular areas. This problem is becoming so wide-ranging and acute that organizations like Microsoft are creating initiatives to help millions of people get these skills.
With massive amounts of change just around the corner, those organizations and individuals who are ahead of the curve will reap the most rewards.
Want to keep up to date with he latest industry news? Check out our industry news page.
Interested in finding out more about the subjects raised on this page?
Simply click on the tags below to read related blog posts...