Technology and increasing digitization were existing broad themes across the world economy. The pandemic has provided a surge in these trends, and businesses need to continue pushing in this area.
Technological advances over the past 20 – 30 – 40+ years have led to a continually evolving world. COVID-19 is only serving to speed up and reinforce these trends. Whether it is technology stocks pulling the stock market higher, consumers accelerating their switch to digital shopping channels, or staff needing to work from home as travel comes to a standstill, the signs of the technological revolution are everywhere.
Comparisons of results from the July 2020 McKinsey survey with past years’ surveys showed that, on average, businesses have accelerated the digitization of most aspects of their organizations by 3-4 years. In North America, the average share of digital customer interactions has jumped to 65%, from 25% in May 2018. Organizations need to effectively address this trend, identifying how they can capture and exploit the benefits of technology to adapt and improve the way they do business. Whether it is insurance providers moving to digital policy offerings, or banks moving to scale technological offerings to substitute in-person branch visits, businesses need to consider how technology can help them grow.
According to BCG's Digital Strategy Roadmap 2020 Global Study, prior to the pandemic, approximately 50% of companies were “prioritizing digital transformations.” However, the number currently sits at over 80% of companies indicating that “accelerating their digital transformation is a strategic necessity.” Technology is not an undiscovered opportunity; businesses need to act quickly to get the most significant benefit possible. Digitization can be the equalizer – levelling the playing field between competitors of varying sizes and opening new markets for organizations to capture. As leadership considers future growth, proper care and consideration needs to be given to ensuring businesses take advantage of technology as it becomes more and more the backbone of how businesses operate and serve their customers. Technology must enable strategy and provide a strong platform to support a digital workforce and customer base.