The Business Times

Digital trends that will transform South-east Asian businesses in 2021

Successful firms must learn to efficiently deliver digital solutions in fields like training, customer service and communication.

Published Wed, Jan 6, 2021 · 05:50 AM

OVER the past decade, no CEO could have failed to recognise the importance of embracing digital transformation. Nevertheless, numerous companies and in some cases, entire industries, took a slow and steady, gentle and gradual approach to adopting technological solutions and transforming their business functions for the new digital era.

With the arrival of the Covid-19 crisis, digital transformation could no longer be viewed as part of a long-term strategy. Suddenly, it had become an immediate priority. Companies were forced to rapidly transform - to embrace digital tools and communication or risk going out of business.

Equally, while the concept of remote working and teams cooperating across different locations, cities or countries had been commonplace for some time, the circumstances of the novel coronavirus crisis meant companies had no choice but to figure out how to maintain a functional workforce while employees were physically separate.

Leaders who may have been sceptical about the viability of remote work have, in large part, been won over, as the situation we've faced in 2020 has proven that this model can function smoothly. That said, once this crisis is finally over, few expect that pure remote work will broadly continue. Rather, human resource experts predict the widespread adoption of a hybrid model, where staff will spend part of their time in the office or other corporate property, and the remainder working elsewhere.

Adapting to this new model will require innovative thinking in several areas that have traditionally been managed in person, offline.

This year and beyond, successful companies will need to learn to efficiently deliver digital solutions in these vital fields.

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TRAINING AND ONBOARDING

Introducing new employees to a company, and training staff in the latest advanced methods or techniques have traditionally involved bringing people together in a physical space.

But long before the Covid-19 crisis struck, many companies were realising that substantial savings could be made by conducting these procedures via technological means, with no loss in effectiveness.

As far back as 2004, IBM ascertained that some 40 per cent of its training costs were expended on travel and hotel accommodation.

By migrating certain training programmes to a digital format, the company saved nearly US$580 million during the first two years of the new programme.

In a 2010 paper from Microsoft, the company reported savings could be made of US$303 per learner per hour by shifting training sessions from in-person to webcasts. Costs could be cut per individual, per hour, from US$320 to just US$17.

Training staff virtually saves on travel and accommodation for trainers and learners, and has the further benefit of being provided on an ongoing basis.

This means, whenever new staff are brought aboard, they can be trained online immediately, rather than awaiting the next visit from a trainer to their territory or needing to travel elsewhere themselves.

The same advantage exists in the launch of a new product or technique - knowledge is delivered to frontline staff with no delay.

Online training sessions via live or pre-recorded webinar, podcast, video lessons and virtual Q&As have proven both highly effective and great cost savers during this period, when most companies have needed to drastically rein in expenses.

Keeping staff more up to speed than ever while simultaneously tamping down costs, it's one area where the 'new normal' solution appears superior to the old way of doing things.

CUSTOMER SERVICE

Much has been said about the sharp uptick in online shopping that occurred due to stay-home restrictions and social distancing during the Covid-19 crisis.

However, it is not simply the giants of e-commerce, catering to consumers' everyday needs, that need to focus on effective digital salemanship today.

No matter what product or service your business is selling or providing, your customers and clients are increasingly to be found online - and that is where you need to build a relationship with them. Even if, in the past, those bonds were perhaps sealed in the shop, over lunch, or on the golf course.

In an October 2020 post titled "How Covid-19 has pushed companies over the technology tipping point - and transformed business forever", consulting firm McKinsey reported survey results indicating that the percentage of overall customer interaction happening online rose dramatically this year. In Asia-Pacific, as of December 2019, 32 per cent of customer interaction took place online, while in July 2020, that number had risen to 53 per cent. (Similar numbers were reflected on a global scale - 36 per cent in December 2019 versus 58 per cent in July 2020.)

The McKinsey post stated that during the crisis, companies quickly recognised "the need to work and interact with customers remotely" and invested in digital solutions that would allow them to do so more effectively.

Furthermore, the post stated, the investment paid off: "At the organisations that experimented with new digital technologies during the crisis, and among those that invested more capital expenditures in digital technology than their peers did, executives are twice as likely to report outsize revenue growth than executives at other companies."

COMMUNICATION AND CULTURE

Keeping lines of internal and external communication open during the crisis was make or break for businesses.

In a confidential survey of several thousand senior directors at large companies (with more than 500 employees) around the world, commissioned by US cloud communications platform Twilio, 92 per cent of respondents said enabling digital communications for customers and stakeholders was critical or very important in their initial response to Covid-19.

The Covid-19 crisis "drastically accelerated" their company's digital communication strategy, according to 46 per cent of respondents. Companies in Singapore were among the fastest in the world to advance, having moved digital communications strategy forward by more than seven years.

The crisis has tested the capability of a company's digital communications networks to channel important decisions to the relevant parties in a timely fashion, ensuring pivotal instructions are actioned. Moreover, though, communications has played an essential role in ensuring a company's continued cohesion during this trying time.

In order to maintain and strengthen corporate culture while staff members have been situated in diverse locations (and often, operating under enormous stress and uncertainty), leaders have moved beyond the lofty proclamations that were de rigueur not so long ago. Instead of sending a 500-word all-staff e-mail detailing the latest initiatives, challenges or changes, CEOs are seeking to build rapport with their staff, holding digital Q&A sessions, making succinct video presentations and even hosting podcasts.

It is a great irony that while Covid-19 has physically driven us apart, in many ways it has helped foster stronger relationships - both within organisations and in dealings with customers. Zoom may have received all the limelight this year. But the happy reality is, there are now numerous efficient communications tools available to us, allowing companies to transition from the one-sided, top-down act of transmitting a message, to instead, creating engagement and opening conversations with team members and clients alike.

  • The writer is vice president of Asia at Shootsta

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