BUSINESS SENSE
COVID-19 : invention and remodelling key to business survival
“ Never give in . Never give in . Never , never , never , never — in nothing , great or small , large or petty — never give in , except to convictions of honour and good sense . Never yield to force . Never yield to the apparently overwhelming might of the enemy .” Winston Churchill
BY SHAUN JAYARATNAM
The world is in a great lockdown , facing the worst downturn since the Great Depression . The enemy – coronavirus . The coronavirus outbreak has evolved into a global pandemic with over 200 countries affected to date . With no vaccine in sight , the virus has caused nearly one million deaths and over 33 million people infected .
VUCA – volatile , uncertain , complex and ambiguous , a term coined up by the United States War College in 1998 to train officers for the 21st century describes perfectly the world we ’ re living in .
The virus has created utter chaos , disrupting every aspect of our life ’ s . The economic recovery will be a slow journey . Some of the challenges moving forward that businesses include uncertain consumer behaviour while demand patterns have been fundamentally altered . Another is that there is no clarity on the longterm financial state of the economy . Lastly how to define the way forward when economic recovery will differ from country to country .
It certainly won ’ t be business as usual as that is what got us here in the first place . Instead it will be changes that we ’ ve had to make to adapt and survive that will define our future in this volatile environment .
Organisations must be alert , nimble , and agile as they face long lasting demand and supply changes . It ’ s imperative they understand what customers value , their needs , their fears and their priorities , develop products and experiences based on those insights .
Companies need to reconfigure their business model , develop cohesive overarching strategies . They must build an-agile model around clients , suppliers and resources that responds to volatile unpredictable global events , allowing quick decision making devoid of errors or early inaction .
RESILIENCE AND ADAPTABILITY ARE ESSENTIAL .
Making this turnaround requires strong leadership with a clear and coherent vision , building a resilient cohesive team , as well as investments in innovation & digital transformation . This isn ’ t a normal economy , nor is it a normal world , certainly not a normal challenge .
To pull us through this VUCA world we need leaders with VUCA – Vision – charting a clear path , mission and strategy for the future ; Understanding of the changing circumstances , seeing the moves as they are happening , not when they are being revealed to the world ; Courage to step up and make tough bold decisions and moves ; Adaptability – adapting quickly to changing circumstances without altering strategic course .
The company strategy , market footprint , assets , systems , processes , and its entire supply chain must be re-evaluated to formulate strategic action plans that are sturdy across multiple scenarios .
With changing priorities , travel , tourism , retail and luxury purchases will be impacted . In the short term there will be decrease in consumption and demand for global consumer products , especially for luxury brands .
At this point it ’ s impossible to define what ’ s a short-term duration , it can be 6 months , a year , 2 years or more . Panic buying , driven by fear and anxiety , on the other hand has led to an increase demand for staple packaged products , home care items and consumer health products .
DEMAND FOR THESE MAY SUBSIDE SHARPLY POST CRISIS .
During these uncertain times people ’ s routine and purchasing habits are reshaped . However , this also creates an opportunity for businesses who can pivot operations and invest in new technologies to adapt to the changing environment .
Businesses need to reprioritize their portfolio based on shifts in consumer and customer needs and a new supply chain .
There will be a reconfiguration of the food industry business standards and the way supply chains operate . There may be more government regulations on consumer health and food security , along with more digital traceability to ensure safe production standards . Businesses need to keep their eyes and ears close to the ground , be in tune with the changing regulatory measures .
As consumers desire to remain healthy and safe will be stronger than ever , businesses may need to focus more on innovative
africanthinker . com 16