In times of crisis, many companies want to change; that is when they start remembering, once again, about business transformation.
By early 2020 most people had barely heard the name that will be part of the rest of our lives from now on: coronavirus, aka COVID-19.
We all thought that this “bug” so far away was something that happened “there”, and that it would never touch us. However, as the days went by we began to hear about it closer and closer, and it became the main topic of conversation until it forced us to change our lives, with hardly any time to digest what was happening. There, at that moment, we became aware that the virus had turned us into its loyal customers.
The speed of propagation has been so fast that we were all confined to our homes; businesses closed; sales dropped as we had never seen before and, most dramatically, millions of people lost their jobs, with all that implies for our lives.
And now, in this situation, is when we think and say: why didn’t I make the change before?
Technology and data, the pillars of strategic plans
Something very similar happens in the management of companies. The same attitude taken with the coronavirus, that is, thinking that “it is up to others, not to me”, is what has happened to an enormous number of companies in various sectors and industries regarding the need to transform themselves to compete in an increasingly competitive environment.
The transformation that most businesses require is left behind because “now is not the time”. But there are always unexpected, uncontrolled external factors that force us to change in a much more drastic way, as is the case today.
Implementing technology to get closer to customers and understand them better, streamline processes and data analysis and, no doubt, innovate more, is an unavoidable necessity.
Over the years, the conversations around the digitalization of companies have largely focused on operating areas, with the aim of saving costs and generating efficiencies that have a rapid impact on income in the short term.
Who is getting stronger during the crisis
Managing companies under enormous financial pressure has led to a misinterpretation of technological transformation, leaving aside the strategic plans that should guide companies in the medium term. The fact is that companies rooted in technology, digital platforms, data management and the learnings from them are the ones strengthening their position against competitors during the crisis. Videoconferencing, entertainment and food delivery, all of them technology companies, as well as distribution, are growing during the coronavirus crisis in Mexico.
View data
| Correlation | |
|---|---|
| Video communications | +0.71 |
| Social networking | +0.70 |
| Food delivery | +0.66 |
| Entertainment | +0.62 |
| Retail | +0.58 |
| Messaging | +0.36 |
| Finance | +0.35 |
| Home design | +0.05 |
| Linear TV | −0.20 |
| Office real estate | −0.48 |
| Airlines | −0.49 |
| Automobile | −0.71 |
| Fashion | −0.72 |
| Ride hailing | −0.74 |
Bear in mind that being a technology company does not guarantee sustainability and growth; however, the companies that grow and strengthen their position against competitors have a high level of technological development and data management.
The time to transform
Now, no doubt, is the time to drive the transformation of companies through strategic plans: setting business objectives and developing action plans to execute tactical actions. And, last but not least, mapping a measurement framework to monitor the evolution of key business indicators.
All of it based on technology and data, the main axes for extracting learning and knowledge, which will help us make better decisions while minimizing risks. Because risks exist now and will always exist in the future. And we cannot control them.
