The whole world is looking for a way out of the crisis. Although we do not know exactly what awaits us at the exit, we do know that we should all have a roadmap for business continuity. As governments take the necessary precautions, businesses are trying to adjust to the changing environment while coping with the financial and operational challenges.
Companies Will Tend to Protect Cash Revenues
For most of us, the first thing is to acknowledge that we’ve never experienced anything like this situation. The last time there was a global economic disruption on this scale was WW II. More than 30M people filed for unemployment in two and a half months. That’s going from historic lows of 4% to about almost 15% unemployment, meaning every single market will see disruption. Enterprises in sectors where revenues have dropped off a cliff (such as travel) will stop investing in ERP and any digital initiatives for the foreseeable future. Other industries that are seeing increased demand, such as healthcare, will likely invest more to keep up with the surge in users.
For the vast majority, the focus will be on conserving cash and preserving revenues. So, they will invest in systems that can help them do that in the near term. ERP vendors will need to adapt to this mindset.
On the technology front, the trend towards low- and no-code software that can be quickly developed and deployed for specific applications will accelerate. Immediate ROI will be the order of the day.
Contract life cycle management (CLM) software is about reducing costs, preserving revenues, and minimizing risk, so we expect the market to continue to grow, if at a slower rate.
Crisis Invites Opportunities for Successful Change
The COVID-19 pandemic, which has affected more or less every business, actually helped us to learn many lessons from the past. Although we cannot see the complete economic effects yet once we check out things today, we see how unprepared we were for uncertainty.
In the short term, the focus is on withstanding the economic impacts, supporting both the workforce and customers and managing the unpredictability of supply and demand.
The pandemic is driving most organizations to rethink how they work and structure their business. Many practices such as remote working, reduced travel, fewer in-person meetings will remain.
Crisis invites opportunities for successful change. Businesses need to make and execute decisions with foresight, developing intelligent IT strategies, and applying critical adaptations that can lead to more effective practices and disaster preparation in the long run.
With the resumption of economic growth, it will be the industry’s most resilient players that come out ahead—those companies that best address the needs of their customers while shaping a forward-looking business continuity plan. Companies that display confidence, accelerate investments in growth, protect innovation funding, and identify their future teams will be rewarded with a sustained advantage over their competitors”. And while parts shortages and unpredictability of supply and demand chains in the current business environment are impediments to performance, the software may be headed for a growth catalyst.
COVID-19 Will Change Our Lives Permanently
As everything comes to an end, this situation will not last forever. Businesses caught off guard are now preparing themselves for this uncertain end. As life and ways of doing business changes, we will all need the support of digitalization on the way.
COVID-19 will change our lives permanently, reshaping our relationships with the government, the world, and each other. The way we do business will also never be the same; traditional systems are becoming more obsolete, and remote work may remain in place for many. One certainty is that, whether for medical, government, business, or personal use, reliance on technology will continue to gain momentum and become more widespread, sophisticated, and flexible. This, in turn, will propel future developments.
Digital Transformation is the Only Way to Survive
There is little doubt that COVID-19 will accelerate transformation in the digital arena. Reliance on digital technology will continue to surge across all areas of our lives—from personal to business—continually increasing demand for technologies that offer ease of use, bandwidth, space, and security.
A particular beneficiary will be no-code software that can be quickly developed and immediately deployed.
