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Post epidemic EQ From New coronavirus epidemic and the future of Chinese Enterprises

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The following is the Post epidemic EQ From New coronavirus epidemic and the future of Chinese Enterprises recommended by recordtrend.com. And this article belongs to the classification: Chinese economy, research report.

Five epiphanies of major executives

Our research puts forward five main views on the business structure in the post epidemic era, which provides a new perspective for digital transformation, future work, transparency and sustainable development. Together, these ideas form an action book that tells enterprising leaders that the old way of working is gone forever.

Insight 1: digital transformation is not just about technology

The epidemic has brought dramatic changes to the business environment: a large number of workers turn to remote platforms, enterprises rethink and rebuild the supply chain, and the manufacturing industry turns to the production of personal protective equipment with strong demand. These are not just short-term business strategies. The ability to adapt to new business changes has become an indispensable part of the normal.

In our survey, 59% of the enterprises interviewed said that the new coronavirus epidemic has accelerated their digital transformation, and 66% of the enterprises interviewed said that they have been able to complete the transformation plan that encountered great resistance before. Although these data were recently collected from US executives, there is evidence that this is a global phenomenon, which also affects Chinese enterprises. In particular, the Chinese government is actively encouraging enterprises to carry out digital transformation. This transformation of corporate culture is defensive to a certain extent: cost reduction is the biggest benefit of the transformation plan.

The epidemic situation makes enterprises see a more important and lasting fact than crisis management. Before the outbreak of the epidemic, many enterprises did not seem to trust their own technical ability and were suspicious of the skills of their employees. But in the process of dealing with the outbreak this year, enterprises found that these anxieties were largely groundless.

Executives are increasingly trusting in the ability of technology to push digital transformation forward. They said they are planning recovery measures after the outbreak, including investment in AI, IOT, blockchain and cloud technology. The long-term advantages of technological transformation are widely accepted by the leadership. In order to succeed, enterprises need to ensure that their employees, like technology, have long-term competence, flexibility and adaptability.

Insight 2: human factor is the key to success

Although executives plan to upgrade almost all their technical capabilities in the future digital transformation, the secret of success still lies in human resources. In another IBV survey, our analysis confirmed that the business capabilities that make the greatest contribution to the expected growth of the enterprise are employee and customer-centric capabilities, such as staff training and customer experience management.

But it is worth noting that these factors do not seem to get the attention of executives. More than three-quarters of Chinese executives surveyed expect that after the outbreak of the new coronavirus, customer behavior will continue to change, and online shopping and customer service interaction will gradually replace face-to-face communication. To this end, 89% of Chinese executives said customer experience management would be the top priority in the next two years, up from 35% two years ago. However, “improving customer service” is only the second half of the list of digital transformation benefits in the minds of executives.

If executives have contradictory understanding of customer experience, then they have more contradictory understanding of employees. Although enterprises attach great importance to the safety, skills and flexibility of the staff, the priority ranking of employee satisfaction is not high. Executives know that employees are under great pressure and agree that the well-being of employees is a top priority.

However, our research highlights that there is a huge gap between executives’ perception of the services they provide to employees and employees’ true feelings: employers significantly overestimate the effectiveness of support and training services. Only about half of employees think that employers really care about their well-being. Obviously, there are plenty of opportunities for leaders, but it’s hard for most executives to grasp them.

Epiphany 3: traumatic stress affects corporate strategy

The task of executives is to define the vision of the organization. However, if they are always in the fire-fighting field, it is difficult for them to concentrate. Although staff safety and flexibility, cost management and organizational agility have become the most important priorities in both the short-term and long-term, the outbreak of the epidemic not only exacerbated their worries about the past business problems, but also brought new panic. What happened? Executives give current priorities.

Since the beginning of 2020, the top management’s ranking of priorities has not been stable, and it has changed again in recent months. Now they seem to focus on internal operational capabilities, which may cause them to shift their attention away from the customer service experience at critical moments. Compared with two years ago, corporate priorities are now more focused on crisis management and workplace safety. But in the future, 87% of Chinese executives expect cash flow and liquidity management to be a top priority, more than twice as much as two years ago.

Similarly, 87% of respondents thought cost control was crucial. There has been a surge in attention to cyber security issues; Chinese executives say they will increase investment by 83% in the next two years, and 55% of them plan to use AI to enhance cyber security in the same period. That’s twice the number of companies currently deploying the technology.

Prior to the outbreak, executives paid more attention to business agility, artificial intelligence, data and analysis, and other emerging technologies. Now, as executives have a new understanding of the risks brought about by the crisis, they pay more attention to competitive advantage. 88% of Chinese executives plan to give priority to enterprise agility in the next two years, and as many as 94% of Chinese executives plan to participate in the platform based business model.

Therefore, in the view of executives, all of these are very important – but not including the customer experience – and it is the customer experience that can help us get rid of the fog of competition and promote performance growth and business development.

Epiphany 4: some win, some lose. But few are alone.

The impact of the new epidemic on different industries and organizations is not the same. Our research results show that executives expect that health-related industries are most likely to be winners after the crisis. With the promulgation of the home order and the change of living habits, the telecommunications, media and entertainment industries are also expected to show a good momentum of development. The biggest losers will be tourism and transportation, as well as manufacturing intensive industries, including automobiles.

Throughout all industries, in order to achieve success, enterprises are more and more eager to expand their business scope. Our data also show that enterprises are increasingly dependent on the platform business model and partner network. 68% of Chinese executives plan to carry out important cooperation activities in the industry, and 48% of Chinese executives focus on cooperation outside the industry. Either way, they expect to be several times more involved in such activities in the next two years than they were two years ago.

The key point is that scale alone can’t guarantee to stand out in the industry. Only large enterprises that can operate in an agile way can maintain stability (for industries negatively affected by the epidemic) or perform well. Scale and flexibility are the key to success.

In addition, we should also pay attention to: after the implementation of the epidemic blockade, it is imperative for all walks of life to make exceptional arrangements for services, so “workers who stick to indispensable posts” have become the most beautiful rebels praised by the society. In addition, those who help others to live, work and play have also been highly recognized, which has led all organizations and budgets to re focus on these “indispensable people and things”.

In this turbulent period, these “indispensable people and things” are focused, and many organizations (perhaps most organizations) are redoubling their efforts to enhance their core competencies – improve operational efficiency and enhance the staff team – which may be the best way to deal with the crisis. However, if executives really want to improve their competitiveness, they must always keep these difficult goals in mind. These efforts will be the source of innovation and development in the future. But securing resources for these goals requires more scrutiny than ever before.

Epiphany 5: health is the key to sustainable development

Before the outbreak of the new crown epidemic, sustainable development strategy mainly focused on environmental issues: the risk of pollution, climate change and other factors to the “health” of the earth. Consumers are more and more interested in products and brands that really invest enthusiasm and efforts in these areas and sincerely hope to improve. Regulators have also responded to these concerns and priorities.

However, in the face of human health crisis, the sustainable development of the environment conflicts with personal safety. Consumers need to wear disposable masks and gloves, so they prefer independent packaging more than ever before. In order to protect themselves and their families from the virus infection, they have always chosen the door-to-door shopping method to avoid going in and out of public places. These behaviors seem to protect human health, but they are not conducive to the sustainable development of the earth.

But our research shows that consumers’ enthusiasm for environmental issues still exists. In fact, health and safety has been integrated into a broader and more complex definition of sustainable development. Companies now have a new obligation: they must meet new health and safety requirements while meeting existing sustainability goals, including reducing carbon footprint and improving waste management efficiency.

This may be one of the more challenging and critical business impacts in the post epidemic era. To meet these requirements, not only new practices and new materials are needed, but also new data types and new ways to increase efficiency are needed. For example, which method is more environmentally costly, allowing meat to deteriorate or be discarded, or using more plastics to extend the shelf life of meat? How can we ensure that the supply chain and last mile delivery can meet the needs of enterprises and consumers without unnecessary waste? In the face of increasingly complex problems, leaders have the responsibility to give more detailed and wise answers.

Where are you going?

This epidemic has sounded the alarm for us, that is, unexpected and incredible things may happen around us at any time. Executives must accept the changes in strategic, management, operational and budgetary priorities that the epidemic has brought. Companies are accelerating investment in digital technology, transformation and adoption of cloud technology.

Our self strengthening process has just started and is likely to accelerate in the future. It’s a tempting opportunity for executives who can connect digital transformation with priority businesses to manage complexity and improve competitiveness – they’ve taken the lead while others are still waiting to “get back to normal.”.

take immediate action

In order to compete for competitive advantage, enterprises must respond in real time (immediately) to adapt to this new environment. In order to survive and develop, enterprises need to take action in three key areas.

Lead, encourage, and support the workforce in new ways: develop inspiring leadership; enhance trust; support more flexible work options (e.g., a hybrid of telecommuting and field work); emphasize mental health and well-being; and focus on skills development.

The application of AI, automation and other exponential development technology makes workflow more intelligent. Focus on supply chain resilience, network security and adoption of automation and AI technologies.

Improve operational scalability and flexibility, including giving priority to hybrid cloud and migrating more business functions to the cloud.

In this new world, we have no time for complacency or nostalgia. The old normal is gone forever. Great opportunities are accompanied by great risks, and the “bet” is too high. Executives must help companies prepare for continued uncertainty, inevitable disruption, and constant change.

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