05.11.2021
Read Time 6 minutes
Read Time Lilia

How COVID-19 is forcing businesses to change their strategy and go online

The covid pandemic has affected not only the health sector around the world, but also the economic system around the world. Of course, the new realities formed by the covid have also changed the behavioral characteristics of consumers.

Several main ones can be distinguished:

 

  • Market uncertainty and consumer price sensitivity

Market realities are increasingly putting pressure on consumer behavior. The consumer’s perception of prices and the value of goods, which have become the primary factors determining his choice, is being transformed.

  • Convenience and accessibility as the foundation of the consumer experience

Consumers have become more demanding and are increasingly focusing on consumer experiences, the transformation of which is directly dependent on trends and the use of technology.

  • Digital interaction: between online and offline

The right balance between digital and traditional store formats is key to a successful consumer experience.

  • The priority of new consumers is self-care and well-being

Consumers are increasingly focusing on health, environmental and sustainability issues, pushing manufacturers and retailers to take action to care

consumer welfare and the environment.

How has the statistics of online purchases changed?

Now the level of development of digitalization is different in all industries: strong progress is observed in metallurgy, oil and gas sector, energy, mechanical engineering, and so on. All spheres are amenable to digital transformation – even the sphere of art. An example of this is the emergence of NFT: now artists can sell their art in the form of tokens.

Business success has never been more dependent on technology than it is now. According to Dell’s Digital Transformation Index 2020, while 79% of companies began a large-scale restructuring of the business model during the pandemic,50% of them believe that they are not changing fast enough. In 2020, only 6% of 4,300 leading companies from 18 countries have been named Technology Leaders by Dell experts, even though this year has been a breakthrough year in terms of business digitalization.

Technology has the potential to transform every function of a company, but digitalization delivers maximum benefits at the point of touch with the consumer. Now the main asset of the company is not goods or services, but customers, which moves marketing from the periphery to the center of the company’s business model. Marketing digitalisation provides 3 key benefits for businesses to be one click closer to consumers.

These and other factors lead experts to predict significant growth of the online market in the near future. By some estimates, online sales are expected to approach $ 6.5 trillion by 2023. dollars, whereas in 2019 alone this figure was 3.5 trillion.

Where to start digitalization?

Before you start digital transformation, you need to ask yourself the question of what your business will be like in five to ten years, and based on this make a decision. If the company does not have a strategic vision, you can contact consulting companies. Further, two options are possible:

  • Create a competence center within the company itself that will deal with digitalization issues.
  • Find digital partners – companies that will take on the challenge of digital development.

The main thing is to get rid of internal barriers and accept the fact that change is inevitable.

You can also contact us. We will gladly become your partners in this complex process.

 

 

Why should you embrace digital business transformation?

  • Increased productivity

Business digitization allows you to better evaluate all production processes, carefully analyze each step and accurately identify problems, inconsistencies and problems. Digitization enables businesses to be more efficient. According to the study “Walking the Digital Rope” published by Fujitsu, companies that have switched to digitalization have improved their efficiency by 39%.

  • Reduce operating costs

Digitizing your business reduces operating costs by up to 20% and increases efficiency. It also enables efficient cost management, which means better control over production and sales processes. Digitization also enables companies to create new business models and revenue streams.

  • Improve your customer experience

Another benefit of business digitization is that it helps to improve the quality of customer service and improve communication with them. Digitization creates a deeper connection with customers and potential buyers and creates added value for them. It also allows for new sales channels such as e-commerce or social media. Simple website development allows your company to be on the market 24 hours a day, 7 days a week.

  • Facilitate the integration of internal processes

Digitization allows you to systematize your business and develop. Databases acquire a fundamental role for decision-making and related tasks.

  • Discover new market opportunities

Digitizing business also allows you to enter new markets. Before the advent of technology, distance was a barrier to business internalization; Now all you need is a good digital communication strategy and the right logistics to enter new markets. For many businesses, digitization not only means smoother internal processes, but also gives the organization a competitive edge in the marketplace.

 

 

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CEO Rivo Agency
Nick Lischenko
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