COVID-19 Is Transforming The Way Businesses Conduct Operations
An Evolved Corporate America
The Novel Coronavirus has completely transformed our life, but many of us are in denial. We fail to admit that life will not continue on like it previously had and all things will revert back to "normal". In reality we must adapt to these unprecedented times in order to progress. And this very concept is defining the way businesses are redesigning their model into a more digitalized one.
Over the last couple decades, the importance of digitalization has proven to be an essential if you want to stay afloat in the competitive industries. If you look at the biggest companies in the world, the infrastructure of their organization is built upon an internet based user interface. Forbes questions, "If there [is] *no* retail location for [a] business[,] would it survive?" COVID-19 has taken a severe toll on businesses that are reliant on the brick & mortar shops. The public is refraining from stepping out of their house unless if it's of utmost urgency.
This year we have observed a massive increase in the use of E-commerce platforms and delivery services due to the justified fear of the virus. Retail companies that don't offer a contact-less delivery service have had a revelation. They aren't going to be able to survive unless they offer a seamless delivery service for all their customers. People prefer home delivery since it is easier and this has been known prior to COVID-19, but the current situation has highlighted how necessary it is to become digitalized.
The most important question is: Is this shift to E-commerce and home delivery going to be permanent? My answer is yes. Before the pandemic we had seen an increase in customer engagement with companies like Amazon and Alibaba. As reflected in their stock price, these companies are in their prime. Other businesses need to adopt a model similar to E-commerce companies in order to maintain skin in the game. The truth is that a digitalized business model is the most sustainable.
Restaurants have been greatly impacted as well. Most restaurants are considered small businesses and with the current restriction placed on the capacity of these restaurants, they have been unable to thrive. Small businesses are reliant on consistent cash flow due to their expensive cost of operation. Any anomaly in the routine can lead to closure.
These small restaurants have adopted two main methods to succeed during these times. Many restaurants are partnering with food distribution services like DoorDash and Postmates. Most restaurants don't offer a delivery service and being affiliated with delivery services has allowed them to maintain their customers. The second method is curbside-delivery. Curbside delivery allows customers to place an order online or over the phone and pick it up while sitting in their car.
Following the shut down of many office buildings through the United States people have resorted to remote working. Companies are now able to employ people all over the world without requiring physical attendance. The diffusion of corporate workers in expensive urbanized cities is leading to the drop in pricing for market-rate housing due to the declining demand.
Medical consultations are being done online as well. This questions the need for basic appointments being done at hospitals. SteadyMD.com offers a subscription service for your family which gives you access to a certified doctor. These doctors are still able to prescribe medications and complete the standard tasks completed by other doctors.
The education system has drastically changed in the last 6 months as well. Universities have completely shifted to distance learning. The pattern continues and the need for a physical location decreases. Schools would actually be allowed to admit more students and still help them achieve the degree they seek. The shift to virtual learning allows people from all over the world to have access to their preferred institution.
The business world around us is rapidly changing due to COVID-19, but this shift could be long due and the pandemic is just a catalyst for a digitalized future. Consumer habits have changed and made use of online and delivery services. The coming years are going to display how corporate America is taking steps to a digitalized era in the business world.