Impact of Covid-19 & Imperative for transformation

COVID-19: Disruption of Industries

Here we all sit at home, hunkering down as we hold out COVID-19 industry disruption. That is somewhat simplistic, the healthcare professional and service folks – grocery stores, municipal workers, food, construction, etc. – are still working diligently keeping us solid, took care of, and safe. Salute to every one of you. Back to the prompt subject, however—this is what industry disruption resembles. Every industry disruption occasion develops the gap between those that have found a way to change their business and those that have found a way to reconsider their organizations. The more noteworthy the disruption, the more extensive the gap. In taking a gander at COVID-19 industry disruption, those same leaders additionally appear to attempt a comparative advance. Leaders in digital transformation have unmistakably comprehended that when confronted with industrial disruption of this greatness, overhauled objective setting notwithstanding change is basic.

COVID-19 industry disruption is an activity in change management, enhanced by being quick and with not a single perceptible end to be seen. All the negative elements related to change management— shock, denial, frustration, and depression —are present yet additionally happen rapidly. In any case, there is next to zero time to easily use the orders and procedures expected to proactively meet the hierarchical disturbance.

In these uncommon circumstances, organizations that have invested the effort realized what they expected to, and drove themselves to change can all the more likely explore the disruption. They comprehend that the objectives they had initially decided to accomplish should be re-sifted. At the end of the day, they rapidly re-evaluate what the same old thing resembles when business is irregular.

The organization amidst the disruption needs to evaluate the impact of the COVID-19 on their industry and the transformation or the disruption in the working model which might be the next normal for an industry. A long-term view of this would help organizations work in the same direction and rethink and start restructuring themselves in line with the assessment of the impact of COVID-19 on its people, processes, profits, and partnerships. This will include organizations to analyze, think, design, and restructure their ways of operation. The change would be felt in all the departments of the organization whether it is HR, Finance, Marketing, or operations. It doesn’t matter which sector you belong to or the size of your organization; a change is inevitable.

Impact of Covid-19 vs Disruption of Industries

Our analysis of the impact on various industries and the disruption levels that the company is going to see in the future helps us place the industries in 6 major categories:

Neutral/Evolve: The industries which are falling under this category are the one who isn’t having a major impact of COVID-19 onto. In the future, these industries might evolve up to some extent to adapt to the adverse situation of the market presented against them. Although the impact assessment of the industries gives us an idea that in the future, industries falling under this category might not be affected severely but the minor negative or positive impact is expected in these industries.

Positive/Evolve: This category of our matrix consists of the industries which are supposed to be impacted positively in the future past the COVID-19 crisis. The degree of transformation is again going to be in the same range as our previous category of the matrix, we expect some form of evolution in these industries for the adaption but there is no major disruption expected in the working model of these industries.

Negative/Evolve: Industries in this category of our matrix are going to be adversely affected by the COVID-19 situation. They are going to be the ones who are going to face major losses and have to fight to survive. In the quest for their survival, they are also expected to undergo some sort of evolution in their models. But no major disruption is expected here. Also, they need to brace themselves for the impact.

Neutral/Disruption: The change is expected to be imminent for these industries. The disruption of the working model with either a slight effect of COVID-19 either positive or negative. But in any case, these companies might not only need to evolve and adapt; they might have to rethink and reshape themselves.

Positive/Disruption: The industries with the silver lining in the situation of crisis. These industries might be standing in a positive situation with the crisis helping their growth and providing them with a positive outlook. But to grab these opportunities they are expected to get in line with the need of the hour and to address this call they might need to restructure themselves.

Negative/Disruption: The category of the matrix is as tricky as the situation in which some of the industries might fall once the COVID crisis fades away. The industries are expected to be impacted by the crisis negatively. To stop themselves from dying out they may need to restructure themselves too. Difficult times lie ahead for these industries, the need for disruption with the negative impact will be hard to cope with.

Author:

Shubham Mahla: A B.Tech graduate who is currently pursuing his MBA from Institute of Management, Nirma University is associated with J.Hirani as an intern. His keen inclination towards Finance and passion for learning has persuaded him to explore the field with excellent work in research and application tools. His contribution in this article has helped him to develop holistic deep insights.

Guide:

Parth Hirani is a leading strategic advisory practice at J.Hirani & has helped various organizations align strategies across continents. A social & collaborative sapien by nature.  He enjoys being a full time “dreamer” & loves challenging “possibilities”. 

Success mantra- “We believe it’s possible; while maintaining flexibility on “How” we are “Rigid” on our “Goals”

©J.Hirani, COVID-19 Industry impact & Imperative for transformation, May 2020. All rights reserved.

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