The disasters of COVID-19 consists of the repeated lockdowns, ever-changing safety measures and the resulting politico-social repercussions, and, last but not least, the devastating impact on the business world. For every business emerging from 2020 barely hanging on by their fingertips, there’s one that’ll never be seen again.
Even now, as a possible vaccine seems to be emerging, the business world’s recovery is years away. And according to McKinsey & Company, a management consultant, somehow there’s optimism. The company reports most businesses see a bright ahead.
Let’s take a look at four ways business has changed in 2020 and where they’ll probably go in the coming years.
1. The auto industry
The auto industry will end the year with $100 billion going down the tubes. Sales will have dropped near 30%. COVID-19 only hastened disruptions started before the coronavirus. The industry was already struggling with ridesharing, factory automation and autonomous cars.
The industry plans to return to glory. The rise of services based on software subscription and the shift towards online shopping has given all commerce new opportunities. The industry sees how people are paying for unlocking features like self-driving or heated seating. There is still a great interest in buying vehicles. They hope to find ways to drive consumers to sales through smart and integrated tech.
2. The restaurant industry
It might be said no industry was hit like hospitality and especially the restaurant industry. Thousands of eateries have shuttered. And many are wondering how the rest will survive. Only a new long-term economic model can change what happens next.
Restaurateurs have to develop new ways to keep customers. That’s optimizing drive-through and pick-up operations. It’s rethinking pricing and menus. This could include varying discounts, special delivery services and high-margin menu items like desserts, appetizers, sides and beverages.
3. The banking industry
The banks have doubled down to catch up with credit risk, downsizing and less interest in brick-and-mortar. Risk management teams are doing everything to circumvent what the pandemic is changing. Underwriting automation will come full force as small business and retail customers come back. Software will enhance calculating creditworthiness by a margin of 5%–10%. Banks will come out of the pandemic leveraging transactional data to reduce credit-risk losses and to boost monitoring.
4. The education industry
Educational systems have amplified their efforts to meet pandemic challenges. They’ve had to meet issues of not just COVID but inclusion, drop-out rates and inequalities. A study shows 55% of lower-income students are planning to delay graduating due to the coronavirus compared to high-income students.
Both online and remote learning isn’t likely going anywhere after COVID, and education will continue to reconfigure itself virtually and physically. They’ll reimagine the academic calendar, perhaps making instruction a year-round opportunity.
Digital transformation will be instrumental from educators to innovative leaders and entrepreneurs to the elderly. Industries across the globe will develop and share and inspire and build meaningful connections. We’re leaving 2020 maintaining the connection but we will grow it, initiating a reset across regions and industries.