{"id":9489,"date":"2020-05-26T03:08:25","date_gmt":"2020-05-26T03:08:25","guid":{"rendered":"https:\/\/ca.syspro.com\/blog\/business-after-covid-19\/"},"modified":"2021-03-04T14:51:01","modified_gmt":"2021-03-04T14:51:01","slug":"business-after-covid-19","status":"publish","type":"post","link":"https:\/\/ca.syspro.com\/blog\/erp-and-technology\/business-after-covid-19\/","title":{"rendered":"Business after COVID-19"},"content":{"rendered":"

There’s a saying \u201cOld ways won\u2019t open new doors.\u201d<\/strong> It\u2019s now fairly obvious that the relaxation of the Coronavirus\/COVID-19 lockdown (aka stay at home) will only be gradual, in most countries. Whatever the \u201cnew normal\u201d is going to be, it\u2019s going to be very different to what we were used to.<\/strong> How will manufacturers and distributors adapt to these revolutionary changes?<\/p>\n

<\/p>\n

Digital transformation, the business and IT revolution that Gartner Research called for in 2017, is no longer an undertaking that a few organizations attempt. The old ways have gone. In order to deal with remote work, physical distancing in the workplace, and other news ways of working, companies will be looking at what technology can do to assist them \u2013 in other words, starting digitalizing. Companies that don\u2019t understand that things have changed will not survive.<\/p>\n

What changes are we likely to see?<\/p>\n

To be agile and stable, go digital<\/strong><\/h2>\n

Businesses aim to be stable, but now they realize they need to be agile. How rapidly can you adapt if something in the market changes rapidly as it has done, and you need to change how you do things? How do you keep operating if something like this happened again \u2013 for example, second or third waves? You need to look at solutions that allow you to change those key elements of your supply chain, production operations, and shipment activities without major disruption.<\/p>\n

Your staff need access to work transactions, processes, and data wherever they are, and they still need to talk to each other, i.e. collaborate. The technology is available now for you to enable new collaborative practices.<\/p>\n

How can you provide access to policies, transactions, and data when information is so dynamic? Digital assistants, or chatbots, can offer relief in some areas such as common or basic queries,<\/a><\/strong> so that your staff can be freed up for more complex issues.<\/p>\n

Managing inventory<\/strong><\/h2>\n

Some inventory isn\u2019t moving, other items you are running unexpectedly out of stock. How do you identify and locate items or parts quickly, especially critical ones? You need a modern inventory management system.<\/p>\n

It\u2019s likely that many of your sales and operations plans have significantly changed. Have you looked at solutions (not spreadsheets) that you can use for production and sourcing plans to balance production with demand, and do it rapidly?<\/p>\n

The ability to track and report on the source and handling of items or parts is now even more important to ensure what you use is safe. Similarly, your quality control processes and practices now need to be updated and pass the most stringent requirements. Will your current tools and technology enable you to do this?<\/p>\n

Re-evaluate the supply chain<\/strong><\/h2>\n

The old globalized supply chain won’t disappear but it will certainly change. Will we move from an era of globalization to one of regionalization, where businesses look to suppliers that are closer?<\/strong><\/a><\/p>\n

In order to reduce the risk of supply, companies may look to add new suppliers to their existing base. The old ways of calling for new suppliers and validating their qualifications won\u2019t suffice anymore, especially when you can do it digitally. So what platforms have you got to manage suppliers and the orders that you send them? In addition, shouldn\u2019t you be considering collaborative messaging platforms where you can include customers and suppliers for better delivery and customer service?<\/p>\n

How will factories change? <\/strong><\/h2>\n

Manufacturers will need to recover first \u2013 e.g. improve liquidity and working capital \u2013 before they consider retooling. Despite this many manufacturing jobs are on-site and cannot be done remotely. What will need to be done immediately is to decrease worker density throughout the production process?\u00a0 This means it\u2019s time to start exploring how you can deploy automation technologies, in materials movement and production, and using the Industrial Internet of things.<\/p>\n

If customers look for more local suppliers, will there be a drive to bring manufacturing closer to home where possible?<\/p>\n

Move infrastructure to the cloud<\/strong><\/h2>\n

To enable Work From Home (WFH)<\/strong><\/a> you will need better infrastructure for collaboration, application and data sharing, network throughput, VPN hardware capacity, and user support. Now maybe the time to evaluate the cost-effectiveness of using public cloud providers rather than doing it internally.<\/p>\n

Physical vs. virtual meetings<\/strong><\/h2>\n

Physical connections will still be important. We won’t all be only socializing or working through Zoom calls once this pandemic is over.<\/p>\n

What will happen to face-to-face meetings? If you provide a service, and part of the time you bill a client is for the cost of traveling to their site, will they rather suggest you meet online? What new opportunities can be opened by meeting people virtually, e.g., better ways of speaking with distant or international customers?<\/p>\n

For events that people attend in person, like conferences and seminars, you may miss some of the networking and the \u2018accidental\u2019 conversations by going virtual, but you can still get the main benefits of the event, the information and insights. I have anecdotal evidence of two seminars that were recently held online in which the audience, who had to sign in, exceeded by several times the number who would usually have attended the seminars in person.<\/p>\n

Having your events online drastically reduces the cost, so you could schedule more regular events, with great content, directly to people that need it, when they need it, without them having to travel to get it.<\/p>\n

What will organizations need to change?<\/strong><\/h2>\n

A McKinsey report\u00a0commented that, of 21 keys to success, three relate to the workforce\u2019s digital capabilities,<\/strong><\/a> including:<\/p>\n