How COVID-19 has driven digital transformation
Mckinsey recently reported that ‘businesses have surprised themselves with the speed and success of their digital initiatives in response to Covid-19.’ In discussion of digital transformation they add that, ‘digital offerings have leapfrogged seven years of progress in a matter of months.’
Data from Statista concluded that ‘between 2020 and 2023 the direct investments into digital transformation are projected to reach a total of 6.8 trillion U.S. dollars.’ Across every industry, digitalization has accelerated, with several factors behind these changes.
1 . Consumer behavior
There’s been a rise in eCommerce all across the world, throughout the COVID-19 pandemic. Online shopping became essential for many products, and so companies had to quickly change their digital strategies.
According to Econsultancy, ‘Online Retail Results for January reveal that UK online sales grew 74% year-on-year in January 2021, which is the largest rate of growth since the start of the first lockdown in March 2020.’ Further data showed that ‘mobile eCommerce sales soared 169.1%’ As lockdowns are lifted it’s predicted that online shopping trends will continue, driven by a need for convenience and safety.
2. Remote working industries
Gulf Business has stated that ‘Digital transformation saved multiple businesses from untimely demise; it will also drive in the new era of the hybrid workplace.’ Working from home was previously a necessity, however, many industries will remain remote in a post-pandemic world. Gulf Business reported that ‘Global companies such as Microsoft have said most roles will remain remote, while Twitter and Square have said more of their workforce can work from home permanently.’
Businesses needed to adopt new digital strategies to support project management, communication, events, and more. Only by adopting an advanced digital transformation strategy have businesses been able to support their employees, stakeholders, and customers.
3. Contactless services & consumer experience
Throughout the pandemic, customers have required contactless services, and so brands have needed to adapt their tech and practices. To support these changes brands have needed to improve their use of automation and ensure that certain procedures aren’t directly performed by their employees.
Hospitality Insights have reported that ‘This trend has become particularly prevalent in manufacturing businesses, as the benefits of automation to reduce humans working in close quarters while also reducing the number of people needed to create a particular product have been tremendous.’
What is the impact on the software industry?
COVID-19 has driven the need for consumer-focused technology and software, resulting in changes in the software engineering industry. Software engineering methods weren’t originally intended to support consumer-facing products. According to Cognizant, ‘In traditional Agile methodology, the team’s goal is to meet specific requirements and make sure the software “works” from a technical standpoint. In contrast, the goal for teams building software products is to create something that customers want – and like using.’ Software engineers are having to closely consider functional vs non-functional requirements, with a focus on the consumer.
Without a doubt, COVID-19 has contributed to growth in the software industry. The pandemic will continue to drive digital transformation through 2021 and beyond. All across the world the economy has suffered due to the pandemic, yet industries are gradually bouncing back. Currently there is a global demand for UK technology, which could help the UK economy to recover from the effects of the pandemic.