Why the world will be vastly different
According to the COVID19 report, while many industries are struggling, some have been able to thrive during the pandemic due to the nature of goods and services they provide. Other industries such as the Tourism industry have taken a hard-knock and their futures are uncertain.
Rules and policies that the government will put in place post COVID19 will change the daily operations of companies. New habits will also have to be adopted by these very companies to ensure they survive. Due to the process of change being unprecedented and uneasy- many aftershocks will be witnessed. An example of this is the high unemployment rate due to retrenchments.
Expected shifts in consumer behaviour
The recently released Covid19 Report identifies the gradual shifts that are happening over time, which will now accelerate to become more immediate behavioural change. These shifts will happen over many fronts:
Human behaviour: Even more anxiousness/loneliness and depression; damaged trust in the hygiene of people and products.
Geo-politics: Extended travel restrictions, even within a country.
Industry dynamics: Optimized work from home setups, beyond typical ofﬁce jobs.
Macro-economics: Rising tension & conﬂicts at all levels; unprecedented levels of global unemployment.
Regulation: Take out/home delivery everything; the value of certified immune consumers.
Technology: Limited contact with older generations; our identity is more than our job.
Here is how different industries are impacted
Here is a display of graphs demonstrating the sharp and unparalleled drop in demand which will have ripple effects deep in the value chain across many industries. These graphs also show an impact analysis of the industries and the severity of the impact of COVID19:
What to do now
Many companies are due to switch from defence to offence. During this period of restructuring and strategising, companies will need to develop plans that will keep them afloat. They will need to invest in innovation and R&D which should also include the setup of new economic growth initiatives.
The transitioning of life post COVID19 will have a ripple effect on all spheres of life. As partakers in a global community, businesses need to migrate to markets where their products and services can still be rendered and they remain relevant in an ever-changing world.
This is an excerpt from The Shifts in Low Touch Economy. This can be found on the Board of Innovations updated reports and insights on boardoﬁnnovation.com/low-touch-economy/