Chapter 6 Digitalisation in a post-pandemic world

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Digitalisation in a post-pandemic world

Digital-first

The pandemic has thrown into sharp relief the importance of digital transformation. More precisely, it has revealed that many organisations are lagging behind in this area. Technology can help turn data into actionable insight, put businesses directly in touch with their customers, and help eliminate inefficiency. Yet, for many, technology is regarded as a separate part of the business, rather than the tools that make the business shine.

Digital value chains are an imperative

Our survey¹ shows the majority of respondents (67 per cent) are considering digital tools to improve supply chain visibility and resilience. Also, more than 60 per cent are looking at digitalising their inventory management and warehousing, production monitoring and optimisation functions.

Digital transformation projects can be grouped into three broad categories:

Operations improvement

Customer engagement

Workforce enablement

¹ Survey commissioned by Standard Chartered in June 2020 and completed by 205 mid-corporates (annual revenue USD100m-500m) based in Mainland China, Hong Kong, Singapore, Malaysia and India.

Areas corporates plan to begin or continue to digitalise

Let’s explore the three broad areas being digitalised:

Area 1

Operations improvement

Supply chain visibility
It is important to improve more than just the smooth flow of goods, materials and money. The flow of information will be critical, too.

Production planning
Drawing in data from a wider pool of sources will help with forecasting and planning. Doing this requires data analysis tools that can work with both internal and external data.

Inventory and delivery management
As companies increasingly move to online channels, managing the flow of stock will help counter inventory management problems.

Manufacturing process improvements
Don’t overlook improving worker safety, driving operational efficiency, increasing productivity, and enhancing product quality. They are all part of the digital transformation process, too.

Q: What progress are you making towards digital transformation?

This was already a priority for our business before the pandemic
We are making steady progress with both front-end and back-end operations
We are at an early stage, having only started on this since the pandemic

Operations improvement: Tools for digital transformation

Case example 1

Indian state-owned oil company undertakes digital transformation to create paperless office solution

Area 2

Customer engagement

Many companies suddenly lost all face-to-face interaction with their customers during the pandemic. It is unlikely that this shift will be fully reversed, so businesses need to make sure they have solid alternatives in place to address all the important customer touchpoints online and offline.

Customer acquisition
Businesses that stay in tune with consumers’ changing needs are more likely to stay ahead of the competition. Our survey² shows that 40 per cent of mid-sized organisations have already started using digital technology for customer acquisition and engagement.

Customer interaction
If customers migrate to online and minimal-contact channels, businesses must go with them. Digital marketing and omnichannel engagement strategies are now priorities, and all communication with customers must happen seamlessly across all channels.

Customer retention
Things like safety, security, reliability and convenience now mean more to customers than traditional benefits such as speed and accuracy. Positive actions that businesses take today will have impacts that will outlast negative associations with the pandemic and set the tone for future or ongoing consumer relationships.

² Survey as mentioned in footnote 1

Q: Which area of your business are you focusing your digitalisation efforts on over the next 6 to 12 months?

Treasury automation
Supply chain visibility
Production planning
Inventory and delivery management
Manufacturing process improvements
Customer engagement
Managing and equipping workforce

Customer engagement: Tools for digital transformation

Case example 2

US-based company adapts online strategy in China during the pandemic

Area 3

The rise of the digital workforce

There are four key stages for workforce digitalisation:

Engage, enable empower
Give staff the right tools to keep in touch and make it easy for geographically dispersed teams to work together well. Use cloud-based systems to securely store documents in an accessible manner.

Educate and reskill workforce
If your workforce is unfamiliar with digital technology, provide training and support. Staff need to feel competent and comfortable with the tools they are being given, and aware of their cybersecurity responsibilities.

Ensure data security
Cloud-based tools power remote working. But they also make it easier for corporate data to be accessed maliciously. Ensure data is protected and all applications and communications are secure.

Elevate employee productivity
Basic remote working capabilities are only the start. Enterprise platforms can create an integrated virtual workplace that gives workers access to everything they’d take for granted in a physical office.

Workforce enablement: Tools for digital transformation

Case example 3

Singapore-based law firm rethinks traditional ways of working, office life and digitalisation

Company background: Law firm headquartered in Singapore, with affiliate offices in other Southeast Asian countries

Overcoming challenges to digital implementation

Digital transformation is not a destination. It is an ongoing, iterative process of continuous refinement and improvement. That can seem daunting. But there are important steps that can, and should, be followed to get digital transformation projects off the ground positively.

Expertise and talent
The majority (60 per cent) of our survey respondents said they lack the internal expertise needed for digitalisation. Companies must urgently prioritise the development of existing expertise, while broadening their search for external talent.

Budgets and financial viability
Most companies are well aware of the benefits that digital capabilities offer. But pressures on budgets and economic uncertainty can be an obstacle for the adoption of such tools. Making lower-cost and easy-to-deploy tools should be the priority.

Strategy and cultural mindset
The swift adoption of remote working at the outbreak of the pandemic paved the way for a ‘let’s see what works’ experimental attitude in some corporates. This should be encouraged. Business leaders need to acknowledge that change does not have to be perfect at the outset.

Major implementation challenges faced by corporates to digitalise operations

Digital transformation journey: Key success factors

Moving to the next stage of the ‘Road to Resilient Growth’

In ‘The Road to Resilient Growth’, we have explored the challenges many organisations face. From manufacturing and supply chains, to working capital and alternative sources of financing, including new ways of working and digital transformation. Overcoming these challenges will require a combination of short-, medium- and long-term actions, as illustrated in the way we have broken the Road to Resilient Growth into stages – ‘immediate response’, ‘preservation and stability’, and ‘preparing for growth’.

Hopefully, as we move into 2021, businesses will become better prepared, having built more resilience into their operations, made themselves more flexible, and learned to meet the new needs of customers, employees and other stakeholders.

The Road to Resilient Growth

Q: What is your top business priority over the next 6 to 12 months?

Ensuring access to liquidity and cashflow
Exploring alternative financing solutions (private equity investments, bond markets, debt restructuring)
Ensuring the resilience of our supply chain and that our suppliers have access to financing solutions
Making our operations more agile and flexible
Using technology as a strategic differentiator to deliver more value to customers and stand out from competitors
Entering new markets to reach new customers/develop production facilities
Divesting non-core businesses
Improving the social and environmental impact of our business

Q: Which region offers your business the best opportunities for the establishment or expansion of sourcing, selling or operations over the next 6 to 12 months?

South East Asia
South Asia (India, Sri Lanka, Bangladesh, Pakistan)
Greater China (mainland China, Hong Kong, Taiwan)
Africa
Middle East
Europe
North America
South America

Q: What kind of support are you getting, or would like to get most from your banking partner?

Support as we explore and enter new markets to diversify our business
Introduction to new partners on the ground as we enter new markets
Financing solutions to support our supply chain partners
Support with sustainable financing solutions
Support in our digitalisation journey

References

World Economic Forum, ‘Digital Transformation: Powering the Great Reset’, July 2020
PwC, ‘Accelerate the Digital Agenda for restart post COVID-19’
PwC, ‘COVID-19 A digital technology agenda driving an accelerated transition to the new normal’, June 2020
Atos, ‘What the world will look like after the COVID-19 crisis’
NTT, ‘How COVID-19 is accelerating digitalization’, April 2020
Supply Chain Drive, ‘COVID-19 spurs a leap to digital supply chains’, June 2020
Supply Chain Digital, ‘COVID-19 - accelerating the digitalisation of operations’, April 2020
Strategy+business, ‘Redefining customer experience: Connecting in the time of COVID-19’, April 2020
Forbes, ‘3 Key Considerations for Managing Customer Experience During COVID-19’, April 2020
Forrester, ‘Customers Are Staying Home — So Prioritize Digital UX’, March 2020
NCS Singapore, ‘The 3 New Lenses to View Digitalisation in the Post-COVID-19 World’, June 2020
Broad Group, ‘AI and Digital Workspaces to Empower Remote Workers in a Post-Covid Era, June 2020

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