The impact of the coronavirus to the economy challenges policymakers, businesses, and individuals on multiple levels. For example, everyday needs, medical care and business must be ensured. In addition, new adjustments to the new normal constantly require attention.

The impact of Corona on businesses

The Corona crisis is more profound than most crises before. Governments around the world have taken action to protect people from the virus, actions that have had a huge impact on the economy. Companies also have a responsibility to care for their employees. People’s health is above all else. However, this creates a challenge for companies to maintain: disrupted supply chains, declining demand in many industries, vastly changed work structures. It cannot be precluded that new waves will further weaken the economy. But the example of China proves that things are moving forward again, even after deep losses. The German government and the ECB have taken aid measures, and companies are being provided with loans from the KfW, short-time working allowances and economic stabilization funds (WSF).

Permanent changes

In the wake of the Corona pandemic, we all learned new lessons that may permanently change attitudes and behavior. Consumers changed their buying behavior. That, in turn, is bringing fundamental changes to the consumer goods sector. As the risks of the virus diminish, companies should assess how they want to shape the customer experience in the future. The rollout of digital channels has accelerated. Retailers have expanded their offerings and now offer new services. These include, for example, contactless delivery through to pick-up services. The challenge is to rethink previous strategies, seize new market opportunities and expand digital capabilities.

Strengthening resilience

A lot has changed during the crisis. As a result, it is clear how important flexible working methods and adjustments to the value chain are in order to survive uncertainties in the future. This further development requires teams that are able to set a common goal. The classic top-down decision-making path seems to have had its day. Rigid structures and fixed responsibilities must transform into permeable organizations that can be adapted quickly and easily. Cloud computing also plays a role in this to control smart processes. The automation of routine work provides relief in the acute situation, but it also offers the opportunity for growth after the pandemic.

A smooth supply chain is especially important now. Goods should be able to be delivered safely and at short notice, and services should be provided quickly. This is particularly true for vulnerable target groups and in the medical sector. Rapid responses to any disruptions and supply chain redesign are required. The key to this is resilience.

Generating resources for the future

In the face of the Corona crisis, companies need to build resilience and find the right balance between liquidity and risk. As business slowly ramps back up, new growth opportunities should be considered. A company’s success depends on how quickly it acts. Not only are short-term stabilization measures important, but also strategic steps for future opportunities.

Immediate measures can solve short-term liquidity problems, reduce costs and secure profitability. Companies require investment capital. This is all in the face of increased costs and declining sales. One possibility now would be to invest in important technology and employees. Any action now can impact the company’s future competitiveness and how quickly it recovers from the downturn.

Technologies to ensure success

Even before the crises, many businesses were facing significant IT challenges. Now, the pandemic is forcing them to develop new ways of working in the very short term. IT is massively at the forefront of this. There are a lot of different IT priorities to weigh. In addition to normal business, sudden load peaks occur, decision-making must be ready, as must a reasonable working environment for employees. There are also security risks to consider. Speed is of the essence to ensure IT resilience and lay a foundation for the future. After the pandemic, it is then a matter of learning from these experiences and preparing the IT systems for future crises.