UPSIDE OF COVID-19: TAPPING INTO A NEW WORLD ORDER IN BUSINESS
It would be nice if we could go back to the pre-Covid19 days, where business is as usual. We are free to walk into the office and meet our business counterparts without worrying about social distancing. Unfortunately, the influence of the pandemic changes everything including the business trends. It’s time we make a change with the New World Order that emerges as the new norm in our lives.
The New World Order of this sort of economic impact globally only occurs every 100 over years. The unpredictable economic recovery will quickly impact cultural norms, societal values and behaviors. For certain, businesses that are agile enough to adapt to new changes will be more resilient and will emerge as the next business growth. Here are some influencing factors that we can ponder in tapping the new world order
Balancing Profits with People & Planet
Resilience is becoming the ‘new strategic priority’ in business. Business will downplay shareholders returns and dividends. There will be more empathy towards balancing profit with people and planet. The ‘new norm’ is about weighing to maintain cash reserves, ensuring sufficient liquidity and funding, and solidifying hedging strategies.
Safety & Security As a Supply Chain Sustainability
Businesses, we observe, are already bracing challenges in maintaining Days Payable Outstanding in their balance sheet. This is where the business supply chain is more critical than ever. When previously, supply chain was mostly about speed and cost, other parameters now are safety and security are equally important components to achieve sustainable supply chain. Vendor management is even more crucial business component in ascertaining that all supplies are resilient in new and uncertain market conditions.
Emergence of Data Driven Tool
Capital expenditure and business investment will shift towards where resources are constrained. There will be more adoption on digitisation that improves efficiency, security and buffer future unpredictability. New ways of data driven decision making tools will emerge in due time with much consideration on balancing data privacy and data transparency.
Adopting New Technology Channels
With human engagement being more virtual and less physical, more technology channels will be applied across businesses resulting in slower rehiring and lower employee headcount. With sudden changes in demand and speedier decision making, workforce productivity needs to work hand in hand with security risks when adopting new technology channels.
While we will discover business moving quickly towards adopting this ‘new world order’, however, we will be painfully observing the rising inequality of enterprises. Those enterprises with the lower skilled jobs are the most hard hit. While there is a need for automation and investing on digitisation, financial standings of these enterprises do not permit such capital expenditure.
As many western countries are badly hit with the Covid-19 pandemic, the global crisis is unprecedented which will result in dwindling trading partners internationally. We will observe, with government support, even more nationalistic behaviour amongst the corporate sector. More protection and incentives will be placed for those supporting domestic industries as foreign direct investment, activist investments, cross border mergers and acquisitions are not as attractive as pre-covid19.
We, at TFX Islamic, uphold ‘collaborative’ as one of the core values in our organisation. We are hopeful that we can propel ourselves to be the enabler for change during these times of uncertainty. With collective collaboration, business enterprises will emerge and recover from this phase faster and stronger.
TFX Islamic, is part of the TFX Global, a financial services company offering Supply Chain finance like no other. We offer a Shariah-compliant digital platform that is easy to use linking buyers, sellers and financial institutions with security, flexibility and simplicity.
Our platform is part of a vendor management system, which ultimately lowers the financing cost, improves the business efficiency and optimises cash flow for both buyers and sellers, while risk is mitigated along the supply chain system.
At TFX Islamic, we believe in growing the people behind the businesses. With our digital platform, everything is at your fingertips, making it possible for you to focus more on yourself and your business. In short – TFX Islamic allows you to unfold the possibilities in you and your business.