Covid and the transformation of businesses

Today, the issue of the pandemic caused by COVID-19 has led all companies and businesses to modify the way we operate on a daily basis, having to adapt urgently to the new reality.

In the vast majority of cases, we have had to work with our teams remotely; we have had to modify our production, storage, and delivery logistics; and the services and products we offered at physical points of sale have been shifted, to the extent possible, to e-commerce, among many other changes.

However, the most important thing at this moment is to ask ourselves, «What lies ahead? What strategy should we follow in the face of the ‘new normal?»

I believe that in the short, medium, and long term, we must develop a strategy to adapt our business to this new reality and find the best way to turn the crisis into opportunities.

• Short term: Everything we had to do urgently in the past 60 days has taught us what our customers want and what they are discarding or postponing at this time. Based on this reality, we must quickly define the products and services to focus on, redefine the segments to target, and determine how to promote and deliver them to generate cash flow as quickly as possible.
• Medium term: Towards 2021, we must redefine our structure and focus on what will make us more profitable. We must establish the best way to reach our current customers or perhaps new customers and understand their new needs to offer them the products and services they will require.

Solutions that use Artificial Intelligence and predictive models to optimize the supply chain, favoring cost reduction and guaranteeing an optimal and consistent level of service, will be very useful in establishing a solid foundation that supports the incorporation of unique user experiences, combining the best of the physical and digital worlds in the new reality.

Long term: It would be good to start by asking ourselves if the main part of our business, the «core business,» will remain in the long term or if it is time to initiate the transformation of our company.

In this regard, I like to use the example of Netflix, the company that transformed the online entertainment industry, doing so when its physical DVD delivery business was very successful. Netflix bet on a new business model when it seemed that it didn’t need it, and not only succeeded but also created a whole new industry that continues to lead to this day.

I believe that this is the moment to question whether in the long term, we should continue to be the same company or if we need to transform, even to create a completely new business.

At Global Hitss, we have the experience, resources, and partnerships to help transform your company into a digitally more successful one in the new world.

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