Digital Transformation due to COVID 19
Over the years companies around the globe have found it difficult to adopt digital transformation. Digital transformation has been seen as a competitive threat adopted by tech-savvy players in the industry. A study shows that only 30% of companies have successfully succeeded in digital transformation. But due to the recent outbreak of COVID 19 virus, businesses are left with two options; either to shut down completely or to transform from conventional methods to digital methods. Industries like the airline, entertainment, hospitality, real estate, automobile and oil & drilling have been the worst affected industries with zero transactions in many countries.
However, a lot of industries have been forced to adapt to digital transformation and surprisingly they are successful than ever before. Corona outbreak changed the dynamics of business in various industries.
Here are a few industries which have been able to survive during these unprecedented times due to smart use of technologies.
1. Insurance Industry
The insurance industry is known for providing security to people, assets and businesses. In order to ensure business continuity, the insurance industry is planning to replace the traditional method of face to face interaction between an agent and the customer with self portals that can be easily accessed through a mobile application or web browser. Even though this would not serve the purpose fully in countries where financial literacy is low, this would serve as an effective alternative as they are built on an intuitive and responsive design approach. The agents are planning to use video conferencing apps for interaction with customers.
2. Education Industry
After the global lockdown started, the educational sector was predicted to be one of the most affected industry. But the pandemic crisis has helped almost all educational institutions to adapt to digital means. In a developing country like India, the use of digital means has not been widely appreciated (especially for school education). However, since the lockdown has started, zoom app and similar video conferencing apps have been the saviour for the industry. The total no. of downloads of zoom app has increased from around 1,70,000 in the middle of February to a 100 million-plus downloads in late May. Moreover, educational institutions are also shifting from traditional methods to smart methods. As a result, the expected CAGR of Educational ERP systems for the year 2021 has increased from 14.1 % to 25 %.
3. Telehealth Industry
Even though a lot of countries use telehealth services, COVID 19 has forced a sudden increase in the use of telehealth services. In order to avoid overcrowding at health care facilities, the governments have started encouraging the use of telehealth services via smartphones and other tools. In fact, a bill for coronavirus funding in the U.S. Congress waives the rules that usually restrict video services for people on Medicare, a move that really emphasizes the potential for telehealth in not only this current outbreak but in the future. Zoom application also lifted the 40-minute limit from its free basic plan for China so that the doctors in the country can use the application for online consultation.
4. Construction Industry
The Construction industry is one of the industry which has been least digitised to date. With the physical presence needed in almost every aspect of the business, it has been difficult for firms to implement digital transformation. However, operations of the firms can be digitised to yield better results. Operations include project management across departments, truck and asset management. Firms like Intellectsoft US have created an ERP system which has portals for project management with a time tracking option, a geofencing system for onsite presence visibility and mobile solution for truck drivers that simplifies asset delivery and management.
5. Energy Industry
As the demand for oil has reduced, companies are focussing on improving the efficiency of the business. Firms are using advanced analytics like natural language processing to predict unexpected events, improve well placements, and detect equipment failures. Companies like Shell have invested in technology to support 70000 employees to work from home every day. Shell has also entered a new segment by acquiring ERM power to achieve its goal of becoming a net-zero emissions company. Shell is also planning to use smart meters, grid equipment, weather data, and GIS data to forecast energy consumption.