While the COVID-19 pandemic may be a health crisis and shock to the system, it is driving the rapid adoption of digital technologies
And ways of working needed for companies to stay relevant,
By Scott A. Snyder and Yulia Barnakova, co-authors for Wharton
When the Mosaic browser, with its consumer-friendly interface, was released to the world in 1993, most had no idea how radically this first foray into the internet era would transform our lives – both personally and professionally. As humans, we are generally poor at detecting and acting on early signals of change. And as business leaders, we do not fare much better. Most companies were late to the party on PCs, eCommerce, Smartphones, digital payments, the sharing economy, Gig work, AI, and now virtual ways of working. And it’s not for lack of trying. Last year, companies spent nearly $1.2 trillion on digital transformation, according to research by International Data Corporation. Yet only 13% of leaders believe their organizations are truly ready to compete in the digital age.
Enter the COVID-19 crisis. While it may not be a welcomed shock to the system, it is driving the rapid adoption of digital technologies and ways of working needed for companies just to stay relevant and continue to operate. Not only has the stock market experienced a historic drop in value, but companies have had to dramatically change the way they operate amidst a social lock-down.
This also includes servicing customers in new ways. If you are a bank, you now have a surge in digital banking users. If you are a healthcare provider, telehealth visits are way up. If you are a retailer or restaurant, online ordering and delivery are keeping your business afloat. Companies are also having employees work remotely wherever possible.
For some segments of the workforce, especially tech and sales, this is natural and a relatively easy transition. For others, this is a painful leap from a traditional physical work environment, with regular face-to-face contact, into a new digital domain, requiring consistent, proactive efforts to maintain connection. This also puts enormous pressure on internal organizations like IT and HR to ensure the technology capabilities, workplace policies, and organizational processes are adapted to this new environment. As companies scramble to provide training on digital tools to their workforce to make this shift, all leaders are being put under the spotlight in terms of their own digital readiness.