Business Strategy

COVID-19, technology companies strengthen their position during the crisis.

The time has come for digitalization and data management of companies in Mexico.

 

José A. Miranda, Lillian Symonds

 

In times of crisis, many companies want to change; then, is when companies start remembering once again about business transformation.

By early 2020 most of the 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” that was 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 it more and more closely; and that knowledge became the main topic of conversations until it forced us to change our lives, with hardly any time to digest what was happening. There, at that moment, we began to be aware that the virus had turned us into its loyal customers.

The speed of propagation has been so rapid that we were all confined, without leaving our homes; and businesses closed; and sales dropped down, 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 plan development

Something very similar happens in the management of companies. The same attitude that has been taken with the coronavirus, that is to say, to think that “it is up to others, not to me”, is what has happened to an enormous number of companies in various sectors and industries with regard to the need to transform themselves in order to race in an increasingly competitive environment.

This transformation required in most businesses 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.

The implementation of technology enables us to boost client proximity by getting a better understanding of customers, a streamlining of processes and data analysis, and, no doubt, greater innovation is an unavoidable necessity.

Over the years, the conversations that have emerged around the digitization of companies have largely focused on operating areas with the aim of saving costs and generating efficiencies that can have a rapid impact on income in the short term.

Videoconferencing, Social Networking, Food on Demand, and Entertainment companies, all of them with a great focus on technology and data, strengthen their position during COVID-19.

This management of companies under enormous financial pressure has led to a misinterpretation of the technological transformation and left aside the purpose of developing strategic plans that guide the path of companies in the medium term. The fact is that those companies rooted by technology, digital platforms, data management, and learnings from them, are the ones that are strengthening their position with respect to competitors during the crisis. Videoconferencing, Entertainment, Food Delivery, all of the technology companies, and Distribution are growing during the coronavirus crisis in Mexico.

Bearing in mind that being a technology company does not guarantee sustainability and growth; however, those companies that grow and strengthen their position with respect to competitors have a high level of technological development and data management.

Now, no doubt, is the time to promote the transformation of companies, through the development of strategic plans, establishing business objectives, and developing action plans to execute tactical actions. And, last but not least, map a measurement framework to control the evolution of key business indicators to be monitored. So, based on technology and data, the main axes to extract learning and knowledge, which will help us make better decisions, minimizing risks. Because the risks exist now and will always exist in the future. And we are cannot control them.

José A. Miranda is Managing partner at Naawa, Lillian Symonds is Business Solutions Partner at Naawa

Copyright © 2020 Naawa Consulting. All rights reserved

 

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