With the launch of the Covid-19 vaccines, the challenges linked to the pandemic are gradually turning into a series of new opportunities to be seized in the coming months. The recovery, as after any phenomenon of withdrawal, even of quasi-“war”, to use a term frequently used by governments, will be strong, as history has always shown us. However, we will probably not be dealing with new decades of growth similar to the “30 glorious”. Today’s business and innovation cycles are faster and more disruptive. The economy has been structurally affected, and many of these effects will be felt for years to come. Overcoming the crisis will require public and private sector resources to converge to promote a truly sustainable recovery, and not just a passing offsetting effect. Programs like Fit4Resilience show us the way and invite us to build lasting solutions.
Companies must rethink their future now in order to capture the maximum of new growth linked to new behaviors and the adaptation of economic models. Thus, entrepreneurs are led to focus on three dimensions: new growth strategies, the introduction of digital and the reduction of critical dependencies with three levers, namely people, technology and the exploitation of data in the compliance with the GDPR. But also, deploying an “agile” corporate culture focused on the innovation capacity of business teams remains essential for this future to be written.
Develop the right strategy to benefit from the new growth
The development of the right strategy depends in particular on the correct understanding of the evolution of the behavior and the expectations of old and new customers. The end consumer has developed a more ecological and sustainable consciousness. Companies must therefore adapt and anticipate these needs by responding with personalized experiences. Three main hedonistic consumer demands in 2021 must be considered: to make life easier, to make it more pleasant and satisfying. How to readjust its service offering and its products to these new sustainable paradigms are key elements in the “reconstruction” of the post-Covid strategy.
Rethinking growth strategies also means reconsidering the capabilities of your management. What new skills are required? Will the current size, composition and governance structures help or hinder management in acquiring the agility necessary to navigate this new landscape?
Reinventing growth means implementing innovative and flexible business strategies, redesigned ways to use data and technology to deliver renewed customer journeys. Finally, this requires an HR function that is able to adapt the search for new talent.
Accelerate digital transformation “where it makes sense”
Digital has experienced an unprecedented acceleration with the Covid-19 crisis, allowing people to stay connected despite the distance and allowing some companies to find a temporary solution to containment. Even for the most hesitant about digital, it has become a daily imperative.
The digital transformation must accelerate “where it makes sense” and take an increasing place in our lives, in particular through the optimal use of data, which is the key to becoming more flexible and quickly adapting to needs / desires of the consumer.
Transformation must be people-driven and must ultimately serve people, whether they are employees, consumers or inhabitants of the larger communities in which businesses operate. It is your people who will help you to recover and develop in the months and years to come. It is your human capital that will have an impact on your decisions and your success. This is why it is imperative to place the human needs and objectives of both your customers and your employees at the heart of your transformation strategy to capture this new growth.
However, we must remain aware that today, data is in unlimited number and that it is extremely valuable for companies. They must be understood in accordance with fundamental principles, while allowing the company to create a relationship of trust with consumers / customers. Investing in mastering the GDPR and cybersecurity is an essential prerequisite.
The digital transformation also requires that of infrastructure and the establishment of supply chains offering the resilience, flexibility and sustainability necessary for the adoption of digital solutions.
Identify critical dependencies, because the risks are among us
Everyone must also identify the essential elements for the continuity of their organization – technology, human resources, infrastructure – in order to characterize their dependencies and develop alternatives to be able to compensate for a future lack or major disruptions to come. To create a resilient and adaptable business is to digitize it. Make it circular, put people at its heart and revisit its value chain by thinking of internalizing or by considering more the local aspect, so as to better control dependencies.
Thus, more than ever, it is urgent to invest in redefining its strategy for new growth that is more digital, circular and resilient. Let us seize the unique opportunity offered to us in Luxembourg to do so, for example, through the Fit4Resilience program, which, like a post-Covid “Marshall Plan”, is being implemented by the Luxembourg government to reinvent itself in the world of tomorrow.
Three axes that converge in the same direction.
(Photo: EY)
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