At this point till scripting this article; businesses are operating within the mid of the third quarter of 2020 and second quarter during COVID-19 pandemic, Many business founders and economists agreed that COVID-19 pandemic is a global health crisis which launched a worldwide economy recession, economic analysts are terrified from a depression as a result of long-term recession, they assume that a depression will strike because of demand and supply shocks.
Consequently, during COVID-19 crisis which primarily impacted people’s lives, consumers began to shift their needs toward products and services that serve the momentary necessity resulting in a demand and supply fluctuations. The supply shock occurs when factories and industries lack the enough capacity of production as a result of social distancing and closure of non-essential industries, on the other hand, the demand shock happens when there’s a decrease of consumer’s ability of purchasing goods and services at a given price because of increased demand on related healthcare products in addition to loss of income due to business temporary shutdown in many sectors.
Nowadays, businesses vision for surviving can be divided into two main procedures to be followed as soon as possible in order to overcome the incoming recession and depression; first is organizational agility where a business must merge between speed and stability through its operations to cope with the rapidly changing market and build a dynamic and innovative response based on a solid organizational basis. Agility can accelerate organization’s potentiality to impose pre-established plans where employees must be trained and experienced towards the way of implementing the corrective actions which will reduce the time to think then initiate.
Evidently that living in 2020 where 5G networks are breaking into the technological world; businesses must be remodeled into more digitized and advanced forms, this second procedure is called digital transformation where COVID-19 proved that working online isn't a problem that may affect the effectiveness of a business in different sectors and it also generated new types of services that minimized the cost of production, rent, transportation time and money and led to an efficient pricing methods that competed in the market, the digital transformation has many faces and ways to be implemented and now it became a must for any organization so as to achieve survival, as example for digitizing an organization is when a company convince its customers to buy its products and services by using their own application or website, other example is advertising through social media so it can reach more scope and increase the diversity of customer.
In brief, COVID-19 pandemic taught us whether we are small, medium or big organizations that running any business in the 21st century and in internet revolution era must follow a path where no businesses have followed before in the past; a business can create from scratch and deliver goods and services without dealing face-to-face with the last consumer or a supplier, it may be difficult for some organizations to be agile or digitize due to the lack of experience or resources but businesses must learn lessons from gigantic organizations that neglected or even ignored the new trends and changings and guided them out of market.