Climate Risk of COVID-19 and Imperative Considerations in Business

Outbreak which spread rapidly in the beginning of 2020 as we called COVID-19 has been attacking many country economy all around the world. Nowadays company which has supply chains operation will be vulnerable, face slow economic turnover in their business or the worst possibility become stuck because they wouldn’t able to get their needs of stock, raw material, available worker and etc. There are 5 consideration which company needs before new normal economy started based on my research and analysis:

  • Strategic Cost and Efficiency
    Cost as business activator is pivotal key to evaluate business development. Companies, such as multinational company, using technology to enhance their strategic cost and build efficient system to maximize their profit and effective turnover. In Indonesia, specifically a few national company and mostly small business, still didn’t maximize their profit through technology and integrate it with strategic cost. If a company planning and implementing their strategic cost planning by technology properly, their business more likely be survived in this outbreak season.
  • Digitalization
    In recent implementation of automation business process, AI (Artificial Intelligent) specifically, has several or even massive change in some industry. The revolutionary come from how traditional work in a division is changing to simplicity with new pattern of work. Automation help and assist a lot of complex work become more easy to handle by unskill or semi-skill employee. Nowadays, a company could has a lack of concern aboutdevelop their employee if they have intention for moving to another company. Automation in business process could easier to use and understand with no high skill required.
  • Change Business Model
    Direct selling from store or outlet still become the main pattern of consumers behaviour to supply their daily needs. We knew, online marketplace already accelerate a change in shopping habits. Ongoing outbreak make this online marketplace grow faster and become the best option to solve this problem. In the end, online business model which no required or lack required face to face interaction will always grow, remembering high effeciency offered by this business model.
  • Making Backup Plan
    No doubt, backup plan always prepared by company to face uncertain condition in business through many strategy. But, in usual way, the worst scope of business still cover politic, social, and economic area, not cover this outbreak situation. Therefore, backup plan in this occasion could be raised other plan as emergency door for business to reach sustainbility in variety of condition.
  • Workplace Innovation
    Company would be face challenge such as how supply chain operation needs could process faster or even cut some points in supply chain, how to make efficiency from traditional interaction to advance interaction using technology, and devise simpler operation ways.

Based on profit orientation which company make and impact they give to the environment and society, investor will make a note about this outbreak. Investor will review their financial condition, potential, even failure in this condition. After normal, new business, depend on kind of product or services, will be considered deeper and more comprehensive to get funding from investor. Its because high cost in lack of digital implementation or harnessing AI  factor in company will guide to ineffeciency in the future, especially for unprepared company who doesn’t well prepare for upcoming uncertainty in economy and business ecosystem. Those 5 consideration will bring many imperative innovations in the future company through technology in system, procedures and workflow.

 

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