Several countries in Europe and Asia have announced a plan to end the lockdown and soon start a new phase which potentially will not be the same as the previous ‘normal’. Each country has various approaches to deal with ‘new normal’, depending on the adaptability of respective industrial sectors
Based on the early spread of Covid-19 and the territory quarantine, Chief Information Officer (CIO) and Chief Technology Officer (CTOs) have established heroic efforts to handle the migration of remote working routine for the staff via collaborative app. CTOs are even still required to reinforce their digital service, when numerous offline services have migrated to online in order to fulfill the steadily escalating customers’ demands.
However, their involvement will remain needed when the enterprise needs new plans in the following weeks when restriction has been lifted. In an article written by McKinsey, the infamous business consultant gave three tips and methods that CIO and CTO need to do in order to face ‘new normal’.
Advancing Digital Transformation
For CIO and CTO who have begun their digital transformation, they are on the right track. They can accelerate the company’s digitalization process by technology infrastructure which is more relevant, secure, and capable of meeting expectations whether from the customers or the internal sectors.
McKinsey’s research has shown that 55 percent of Chinese consumers are likely to continue shopping online even after the lockdown ends. Similarly, Indonesia will also experience the escalation of Gross Merchandise Volume (GMV) in e-commerce at 36 trillion IDR once Work From Home is begun, increasing by 26 percent in monthly average. Even 51 percent respondents from the research performed by Katadata claimed it was their first time shopping online. In the middle of May, Blanja.com took record of hundreds UMKM storeowners have started their business in the form e-commerce belongs to TelkomMetra subsidiary, thanks to BNI Kreasi Nusantara Craft Online program.
The development in this ‘new normal’ phase requires sales digital platform development. Like Walmart which has established online store visual with shop assistant which will assist in customers’ shopping experience, and car manufacturers in Asia has developed virtual showroom which allows the customers to visit dealers from home.
McKinsey suggested the executives to rearrange roadmap from their digital transformation, to match the short term requirements and corresponds with their new digital business plan. Once economy crisis has arisen, most enterprises would have had their own digital transformation agendas, although they haven’t been directed to their actual business objectives.
Data Based Decision Making
Production process will require supply chain reconfiguration with the calculation based on commercial data and logistics. Additional data source must also be considered to aid in strategic decision making.
For example, several distribution companies have adapted their inventory plan based on COVID-19 regression data in regional level. During quarantine, McKinsey has researched the customers’ statements and preferences that have grown exponentially. True to McKinsey’s results, the Jakpat survey result shows 59 percent of Indonesians spend their time watching TV in the event of physical distancing. The rate of this routine is higher when compared to checking social media, which is established at 53 percent.
Chief Marketing Officers (CMO) will require more detailed data to control digital marketing and shopping to entice market demands with more accurate precision. Due to the increased rate of watching television during the Social Distancing period, Mediahub as a subsidiary of TelkomMetra and content suppliers of Waku Waku Japan, HGTV, Discovery, as well as AFN on paid TV, is able to assist CMO providing advertisement recommendations, with accurate report of viewer number.
The industries that will take action once the ‘new normal’ has begun and require speed and flexibility in handling documents to adjust with WFH concept. Digital signature will allow decision maker party to make agreements in approving various confirmations with ease. TelkomSigma, which is the subsidiary of TelkomMetra, partners with Percetakan Uang Republik Indonesia (Peruri) in introducing Peruri Sign, a digital signature platform which consists of electronic information that is implemented with electronic certificate.
Technology Project Review
The decline in income which has been predicted by the early quarter will cause pressure on production cost and investment capacity. At the same time, WFH collaboration tools have been adapted and the executives wish to speed up their digital transformation process to meet e-commerce demands.
CIO and CTO have to reprioritize technology, project, and hardware purchase, with the intent of contribution in company’s cost reduction during the crisis and direct new technology investment required to restart and improve digital business scale.
Therefore, it is important for the CIOs and CTOs to establish beneficial relationships from the correct consultant partners in order to assist in directing the company digital transformation to be more relevant with the current condition and survive within digital ecosystem.