Appearance of technological winners and losers in the new world order COVID-19

As each important historical moment has its own power games, change of economic model and social adaptation to a new standard, the same goes for the new world order of COVID-19.

It has been said a lot that tech companies are the real winners, but does everyone in the tech space really win?

Video conferencing platforms

Image Credit: Skype

Digitization is starting to integrate into the new rhythm of daily life as governments implore their citizens to work from home and reduce physical contact.

Video conferencing platforms have instinctively become the one-stop service that no longer focuses on webinars or chats. It seems that platforms like Skype, Google Hangouts and Zoom can emerge as the real winners, given the "new normal" that almost all governments and CXO » now they are pretending, especially when it comes to how businesses will be run for the long term.

The other face: These platforms are not designed for highly confidential or sensitive environments. In the midst of its new fame, Zoom has been the subject of an in-depth review on how it handles confidentiality gaps due to the prevalence of "ZoombombingThen we see the same video conferencing organizations struggling to create interim fixes to combat malware and improve security before making headlines again (in a different light).

Verdict: Short-term winners

Food delivery platforms

Image Credit: GrabFood

The popularity of food delivery isn't fading anytime soon, especially with more people in quarantine. Aware of consumer sentiment, the rise of food and beverage stores began to offer online delivery services.

In response to an unprecedented increase in demand and supply, as well as health risks, food delivery companies such as GrabFood and Deliveroo, among others, have launched a contactless "drop-off" to help passengers and customers meet social distancing guidelines.

The other face: The platform-to-consumer delivery business model involves operational risks with high costs for delivery and supply logistics. In addition, such platforms are easily misused. In the West, GrubHub, DoorDash, Postmates and Uber Eats have been prosecuted for allegedly violating United States antitrust law by imposing "exorbitant" fees for processing delivery notes. Eating out is also beyond eating, but it is a way for humans to interact socially with each other. Therefore, unless these companies change their business models, the business boom they benefit from may be short-lived as restaurants and consumers reject these services as companies open up.

Verdict: Undecided

E-commerce

Market research firm Nielsen has identified six key thresholds for consumer behavior linked to the COVID-19 pandemic. With people adjusting their buying habits, volume of e-commerce orders It has increased by almost 50% since the end of April, according to logistics provider Narvar Inc.

Compared to March 2019, transaction volumes They increased 97% for home products and furniture, an increase of 97% for online games, 136% for DIY products, 163% for garden items, 26.6% for products electronics and 18.6% for telecommunications companies.

The other face: Online retailers who were once proud of their efficiency are now forced to keep pace with orders for coronavirus. Amazon is caught between hiring additional workers and giving them free time if they don't feel good. The inability to achieve an ideal balance between demands for physical goods and the emotional well-being of employees is not a problem to ignore, as it can affect the growth of a business. The behavior change resulting from COVID-19 in offline and online shopping cannot be overlooked as consumers begin to feel the convenience that e-commerce brings to their lives. E-commerce players must begin to recognize that they are no longer the alternative but main actor in consumer purchases and this ensures that they are building a sustainable business and organization to support their state of relief.

Verdict: Winners

Med-Tech Startups

Real innovation always comes from the urgent need to resolve a crisis, especially for the health sector. Public health systems around the world rely on providers of digital health technologies, in particular telehealth solutions to deal with the coronavirus pandemic.

Ping a good doctor, one of the largest telehealth companies in China, has reported a 10-fold increase in the number of new users registered after the appearance of COVID-19. In Seattle, Transforming med – A company that focuses on the usability of the electronic health record (HER) – has offered its COVID-19 / Core Work Manager (CORES) application free of charge to hospitals and medical centers in the Seattle area. In view of the current situation, Raj Prabhu, CEO of Mercom Capital Group, stresses that we must anticipate funding trends to switch between digital health technologies.

The other face: Analysts have insisted that not all digital healthcare companies will thrive in the post-pandemic world. Start-up health suggests that "investments in health innovation favor entrepreneurs whose solutions have a direct impact on a response to a pandemic or have a special place in a changing world". Medical technology startups like InnAccel Those who have developed an automated, closed system for the removal of highly infectious oral secretions could be the real winners, as they have an added advantage with their flexibility to quickly adapt their business models against black swan events, providing a unique value proposition that can withstand periods of uncertainty.

Verdict: Winners

The travel industry

It is indisputable that no other industry has fallen as far and as fast as the travel industry. The World Travel and Tourism Council reveals that the recovery could take up to 10 months. Ripple effect of the three-month loss of travel around the world, the accommodation sector is also severely affected. The giant hotels in Nevada and Las Vegas have lost their vitality.

New travel reservations like Klook He will lay off staff, put employees on temporary vacation, and put in place a reduced work week throughout the company. Airbnb, the disruptor announced once it would go public in 2020, lay off 25% of its workforce and witness a collapse in bookings with retiring hosts to find cheaper long-term tenants. The financial strategy of the tourism industry based on a harmonious future of opening borders and a strong tourist demand failed them.

The other face: Before the pandemic, the total contribution of travel and tourism to the global economy in 2019 was $ 9.25 trillion, recording a compound annual rate of 5.6% between 2019-2026. The need for business and social travel will not decrease, even as virtual interaction technologies gain popularity or reach. In a business sense, face-to-face interaction builds relationships and improves credibility and trust. From the point of view of any consumer, nothing can take away the novelty of discovering a new city on your own. The travel industry can go through some tough times during this period, but it won't be long before it reignites in the most explosive way after the pandemic.

Verdict: Losers

So who are the real champions?

There is no direct answer or crystal ball to predict who are the ultimate winners and losers.

Rather, the pandemic has taught us three important lessons for empowerment and self-sufficiency in a rapidly changing world.

Flexibility to reinvent business models focused on network effects: Given the unpredictable environment affecting the industries or the market we are examining, we must be able to determine the next business model to trust or replace to remain relevant among the new realities.

Have sufficient capital and comprehensive support strategies: It is crucial to maintain a stable track that allows us to take advantage of any recovery opportunity and improve as soon as possible. We must never rest on our laurels.

Innovation and adaptation: The section to measure or define a new standard in the post-pandemic world is still being adjusted. However, it is safe to say that we still live in a competitive landscape driven by disruptive business models. The circumstances that profit us at one time can also lead to our undesirable end. We have to adopt the growth mindset and innovate constantly. In doing so, we develop adaptability and resilience to face challenges as opportunities, valuing the processes and learning that flow from them.

This article is a contribution of Ranise Teo. He is part of the business development and marketing team of Arcadier, a SaaS company that drives new generation market ideas. You can follow Arcadier on LinkedIn, Facebooky Twitter For more news and updates.

Featured Image Credit: GrabFood / Askifa.ng