Global crash in 2007 Vs Today’s Challenge
The global financial crash in 2007/08 was a severe worldwide economic crisis and considered by many to have been the most serious financial crisis since the Great Depression of the 1930s.
Fast forward to today and the World Health Organisation has announced a global pandemic as a result of COVID-19 with businesses, large and small, being forced to work remotely and others being closed completely. COVID-19 has been reported by the IMF Chief as potentially ‘the worst financial crises on record’, with the global economy potentially taking years to recover. The impacts on production, supply chain and global financial markets will lead to global businesses having to reset their business models.
To further compound this; If you overlay the COVID-19 economic impact with other major economic trends such as climate change and the rate at which technology is disrupting businesses of today, then it could result in businesses being forced to essentially reinvent themselves to survive these unprecedented times.
Weathering the storm
Thanks to the challenges ahead, the majority, if not all businesses have been forced into a state of hibernation, or as some would say, isolation (quite literally!). However, has this pushed businesses into a state of emergency unnecessarily? Or has it, for some industries, merely highlighted the need to adopt more dynamic ways of working by leveraging some of those technologies which have been disrupting business models in recent years.
What have we learnt from COVID-19 in a few months?
With any global crises, the ability to procure and transport equipment and supplies is key. This is no different for COVID-19. There are three key themes we are now seeing:
- Business Processes – Procurement, Supply chain and logistics are the most important factors. It’s vital to procure the right equipment and supplies, reduce bottlenecks and make supply chains operate faster.
- People – There is a requirement to mobilise the most capable people from both public and private sectors to lead logistics and procurement.
- Data & Technology – The availability of data and enabling technology to track and get vital suppliers and equipment distributed globally is crucial.
What does life look like in the future?
Business must now make choices and begin to contemplate what life looks like post COVID-19. They must ask new questions when transforming their business models of tomorrow; How will people work in the future and where? How can technology transform new ways of working, improve processes and make data more available and how do we all play a part in planning for a COVID-19 level crisis in the future?
The events in recent months have highlighted major fault lines in business models of today, and a new level of change is required at a rate never been seen before. It’s time for many businesses to hit the reset button if they want to survive in the future.