Covid-19 is officially a pandemic! Whether you believe it’s real or not, one thing is certain; you’re also feeling its impact. While the full economic impact of this virus is still unclear, the effects of the drastic measures being taken to contain it, such as social distancing, are already rocking both the public and private sectors in a not so stellar way.
Despite its negative impact, we can all agree on one thing; this black swan has helped showcase the value of IT and the essence of digital transformation better than any other black swan event in history. Here’s how the coronavirus is impacting and is set to impact the tech sector and what businesses are learning from this pandemic.
The Impact on Tech So Far
Unlike in most sectors, the impact of coronavirus on the tech sector so far can easily be described as a mixed fortune. On the one hand, it has impacted some tech businesses negatively, and on the other hand, it has been somewhat a blessing in disguise.
Hardware tech companies have had the hardest hits so far. For instance, even before the outbreak took center stage, Apple warned its investors it would cut its sales projections due to a slower supply chain. True to it, it’s not only the supply chain of iPhones that have been negatively impacted but the overall smartphone supply chain.
But on the other hand, the pandemic seems to have fueled a digital shift. Now more than ever, businesses are moving to the cloud and deploying collaborative office tools, video conferencing, online marketing and remote support and services, and online marketing tools to cope with the challenges brought by the pandemic. This is a good thing for tech companies offering such services as the demand is now higher than ever.
What Businesses are Learning from the Pandemic
Before the pandemic, a good majority of businesses thought they had what it takes to allow employees to work remotely. However, now that social distancing and quarantine measures are in place, most organizations realize they are not as equipped as they thought.
For instance, most organizations are only now realizing that they lack efficient technological infrastructure to facilitate productive remote working conditions. But even those with infrastructure don’t have it all. Their workers lack the training they need to collaborate with their colleagues in these remote situations.
Why the Coronavirus is Likely to Inspire Digital Transformation
Black swan events, for instance, the current pandemic, tend to change the trajectory of history significantly. Take, for example, the SARS epidemic that took place between 2002 and 2004 was the fuel behind Asian e-commerce giants such as Ali Baba. The financial crisis of 2008 spurred the growth of conglomerates like Airbnb as people saw the need to share assets such as space as a way to survive the recession.
Now with that said, the current pandemic has the potential to encourage the adoption of digital transformation in business. Why? Well, as noted above, Corona has brought most organizations to the realization that they’re not as equipped as they thought. As a result, most organizations are now rethinking their digital strategies.
What this Means for Your Business
Now is the time for you as a business owner to rethink how your business can evolve. Evolving is the only way to ensure it survives the current as well as future digital transformation wave. Right now, whether you own a small solo-entrepreneurship business or a significant business with partners, you only have one option; adapt to survive.