A strategy is one of the key elements of organizational success. Companies that have strategic plans and actively work to achieve them are 12 % more profitable. By developing strategies, organizations can create a clear and shared vision of what they hope to achieve and identify the necessary steps to take. It also enables them to foresee potential obstacles and develop mitigating measures.
However, at this time, businesses around the globe are in disarray. Only a few, if any, had set up responsive measures suitable to address a pandemic such as Covid-19. Now a global crisis, the disease has forced cities to go on lockdown, rendering businesses unable to operate, and those that can, are doing so with disrupted production and supply chains.
As a result, companies are taking measures such as salary cuts and layoffs not to safeguard profits but ensure the survival of their businesses. Management teams and board members are now scrambling to find ways to mitigate the effects of a challenge they have never experienced before and have no training to call upon for solutions.
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Enterprise Response to Pandemics
To respond adequately to disruptions, organizations have disaster recovery and crisis management plans. However, compared to natural disasters and emerging threats such as cybercrime, pandemics are low-probability threats and rarely get as much focus. However, the threat that pandemics pose is significantly higher.
Threats such as natural calamities and cybercrime affect a particular business or specific geographical areas. And, the disruptions they cause to businesses last a few days or weeks. As such, it is easy to mitigate its effects.
However, the case is different with pandemics. As the world today is highly connected, an outbreak in one region of the world, as with covid-19, can reach hundreds of countries in weeks. This, in turn, causes a major disruption to the global economy as business operations are halted. Pandemics affect organizations in the following ways:
- Can result in the shortage of workforce reducing production capacity
- Supplies of key production materials can be affected
- Supply chains could be interrupted when markets are on lockdown
For businesses, pandemics result in up to several months of halted or minimal operations. In such scenarios, likely results include massive layoffs and a slowdown of economies. The effects of a pandemic can be felt for years. This is because, even if normalcy is restored, the impact on the economy will result in reduced spending and thus taking companies a long time to recover fully.
As such, pandemic-specific policies are crucial for organizations going forward. These should focus on setting frameworks and procedures that make organizations more agile and resilient when faced with such threats.
Data and Emergency Response
Data is arguably the most valuable resource for businesses today. It is what distinguishes good ideas and successful ones. Today, organizations rely on data to identify suitable consumers, understand the market, and redesign their products accordingly. As such, the burgeoning industry of big data is expected to reach a market value of $ 274.3 billion in 2022, up from $168.8 billion in 2018.
However, data analytics is also crucial in periods of disaster and pandemics. Rather than rely on intuition, management teams can access real-time data and make short-term decisions based on credible information. However, in the era of big data, there’s a lot more data than organizations can process. As such, the key to capitalizing on data is for organizations to take up data-driven approaches to management and operation, as well as invest in powerful data analytics tools.
In light of organizations’ data needs, firstmile helps companies review their state of data and identify critical data elements. Get in touch with us to get a data strategy that will ensure your business is always prepared.