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The Capgemini Research Institute note “Fast-Forward to the Future – Defining and winning the Post-COVID New Normal” details the impact that the COVID-19 crisis on organizations’ value chains (extent of the impact and immediate steps taken to address the crisis), discover trends in business and ways of working that would define the new normal and provide action points for organizations to adapt themselves and win in the new normal.
The research draws on a two-pronged approach: Primary survey of 1,000 executives covering more than ten countries including the US, the UK, France, Germany, Sweden, Norway, Netherlands, China, and India across ten sectors including automotive, consumer products, retail, financial services, and energy & utilities followed by Focus interviews with industry experts spread across sectors.
The research note identified that pandemic has cemented technology’s role at the heart of transformation, driving new ways of interaction, sharing, engaging and decision making:
o Remote working as part and parcel of our working lives
o A digitization and automation boom
o Organizations will rethink production and supplier networks with nearshoring top of the agenda
Key highlights for India
- 21% of organisations in India see COVID-19 as a challenge that their organization will not be able to overcome
- Lack of customer demand and rigidity of supply chain emerge as top reasons for the impact
- 50 % of Indian organisations indicated that our supply chains lacked flexibility to allow change based on real time events
- 36% of Indian organisations indicated supply chains were disrupted hugely by the current crisis
- 44% of organisations in India indicated that their IT infrastructure was inflexible to quickly changing consumer demands of the pandemic
- 36% of Indian organisations operate in a business where customer demand has been seriously impacted by the pandemic
- 33% of Indian organisations indicated that usual sales channels are stopped due to the lockdown/pandemic
- COVID-19 crisis has acted as a catalyst for transformation in organizations
- 35% of Indian organisations aim to cut back/decelerate existing transformation
- 50% of Indian organisations have already accelerated existing or launched new transformation initiatives
- Top 3 Functions that will be the focus of transformation initiatives
- 57% of Indian organisations will focus on IT function followed by 43% in Finance and accounting and 39% of organisations will focus on supply chain
- Top 5 areas organizations associate with the “new normal”
- 68% of Indian organizations will use remote workforce for white-collared workforce
- 52% of Indian Organizations will use remote workforce for field-staff and blue-collared workforce
- 52% of Indian organisations will see production shifting to nearshore locations
- 80% of Indian organisations see Digitization as a competitive advantage
- 50% of Indian organisations will focus on automation (robotics, process automation, intelligent automation etc.)
- Two-thirds of financial services and automotive firms view remote working as part of new normal
- 68% of Indian Organizations associating remote workforce for white-collared workforce as part of the “new normal”
- 52% of Indian Organizations associating remote workforce for blue-collared workforce as part of the “new normal”
- More than two-thirds of organizations in Singapore and India view remote working as part of the new normal
- 68% of Indian Organizations associating remote workforce for white-collared workforce as part of the “new normal”
- 52% of Indian Organizations associating remote workforce for blue-collared workforce as part of the “new normal”
- Ranking of top priorities within customer experience:
- 49% of Indian organisations are focusing on Health and safety measures for customers and employees at customer touchpoints
- 46% of Indian organisations are Enhancing customer loyalty (prioritize loyal customers/going above and beyond usual customer expectations/rewards)
- 31% of Indian organisations will use AI to improve customer experience (chatbots, voice bots, virtual assistants, recommendation engines etc.)
- Close to half of manufacturers in India will look to nearshore their production
- 52% of Indian Organizations will consider “Production shifting to nearshore locations” as the new normal
- 52% of Indian Organizations will consider “nearshoring of suppliers/changing suppliers mix” as the new normal
Key Highlights globally
- 10% of organisations globally see COVID-19 as a challenge that their organization will not be able to overcome specifically 16% of organisations in Germany see COVID-19 as a challenge that they will not be able to overcome followed by 12% of organisations in France, UK and US
- Lack of customer demand and rigidity of supply chain emerge as top reasons for the impact
- 42% of global organisations indicated supply chains lacked flexibility to allow change based on real time events including 48% of organisations in France and 58% of organisations in Germany and 33% of organisations in US as well as 44% in UK
- 41 % of global organisations indicated that supply chains were disrupted hugely by the current crisis including 48% of organisations in Germany, 52% of organisations in Italy, 43% of organisations in US and 39% of organisations in UK
- 38 % of organisations globally indicated that their IT infrastructure was inflexible to quickly changing consumer demands of the pandemic including 57% of organisations in China, 30% of organisations in US, 50% of organisations in Sweden and 44% of organisations in France
- 42% of Global organisations operate in a business where customer demand has been seriously impacted by the pandemic including 48% of organisations in France, 43% of organisations in US and 33% of organisations in UK
- 38% of global organisations indicated that their usual sales channels are stopped due to the lockdown/pandemic including 51% of organisations in Germany, 38% of organisations in US and 35% of organisations in UK
- COVID-19 crisis has acted as a catalyst for transformation in organizations
- 22% of global organisations aim to cut back/decelerate existing transformation including 28% in France, 47% in China, 25% in US and 22% in UK
- 38% of global organisations have already accelerated existing or launched new transformation initiatives including 41% in US , 58% in Sweden and 38% in UK
- Top 3 Functions that will be the focus of transformation initiatives
- 52% of global organisations will focus on IT function followed by 37% in Sales and Marketing and 35% of organisations will focus on product design and development
- Top 5 areas organizations associate with the “new normal”
- 56% of global organizations will use remote workforce for white-collared workforce
- 46% of global Organizations will use remote workforce for field-staff and blue-collared workforce
- 41% of global organisations will see production shifting to nearshore locations
- 52% of global organisations see Digitization as a competitive advantage
- 49% of global organisations will focus on automation (robotics, process automation, intelligent automation etc.)
- Two-thirds of financial services and automotive firms view remote working as part of new normal
- 56% of global Organizations associating remote workforce for white-collared workforce as part of the “new normal”
- 46% of global Organizations associating remote workforce for blue-collared workforce as part of the “new normal”
- Ranking of top priorities within customer experience:
- 39% of global organisations are focusing on Health and safety measures for customers and employees at customer touchpoints
- 39% of global organisations will enhance customer loyalty (prioritize loyal customers/going above and beyond usual customer expectations/rewards)
- 43% of global organisations will use AI to improve customer experience (chatbots, voice bots, virtual assistants, recommendation engines etc.)
Close to half of manufacturers in Nordics, Netherlands and France will look to nearshore their production
- 47% of manufacturers in Nordics will consider “Production shifting to nearshore locations” as the new normal
- 44% % of Nordic Organizations will consider “nearshoring of suppliers/changing suppliers mix” as the new normal