COVID-19 poses a unique challenge to businesses, forcing them to adopt practices which many only saw further down the road when it came to their digitization plans. In fact, we’ve seen the effects of the pandemic on many businesses who have failed to adapt or adopt plans to build in resilience in these unprecedented times. That said, the big question remains, “How can businesses be more resilient with the COVID-19 reality?”.

There are many factors that lend itself to a business’s resilience but one of the biggest factors is the company’s progress in their plans for digitization. Conor McNamara, Managing Director of ASEAN at Amazon Web Services (AWS), highlights that a company’s progress towards digitization, particularly in their adoption of cloud technologies, has been one of the determining factors of resilience during these times. He has also highlighted that the transition to the cloud isn’t simply a technological one, it’s a multifaceted one that builds in capacity, increases agility, changes mindsets, and transforms the culture of an organisation.

Thriving Businesses Have Used COVID-19 as an Impetus for Digitization

No one can deny it. The COVID-19 pandemic has changed the way that companies and businesses need to operate. Research has shown that the new realities of the pandemic have led to an increase in demand for resources such as the internet. This is inevitably spurred by the increased adoption of work from home policies necessitated by lockdowns the world over – a clear indication that our business realities have changed. This is corroborated by AWS, which reported an increased uptake of services such as Amazon Chime, their web-conferencing platform, Amazon Workspaces and other productivity related services.

“The COVID-19 pandemic has underscored the importance of digital transformation across all industries. So far indications are that organizations, including those in ASEAN, have already adopted DX plans and/or accelerated their transformation plans have been known to have coped better with the crisis.”

Daphne Chung, Research Director, IDC Asia Pacific (excluding Japan) cloud services, and software research group

That said, digitization doesn’t happen overnight. Companies have to create an environment that allows and empowers staff and decision makers to adopt technologies such as AWS. The adoption of public and private cloud technologies have allowed many AWS customers to adapt to the new realities more seamlessly. In fact, Globe Telecom was able to spin up virtual call centers with Amazon Connect which allowed them to adapt to the new realities with ease and even increase staff productivity since the pandemic hit. What’s more, the company was able to affect this transition in 24 hours. Of course, the reality is that not many companies will be able to do this.

“Many businesses and organizations have now understood the importance of the cloud and are committed more than ever to get their business on the cloud. At AWS, we keep many organizations functioning, and allow them to adapt when a crisis such as the pandemic occurs.”

Conor McNamara, Managing Director of ASEAN at Amazon Web Services

The new realities of the pandemic have allowed companies to expedite their plans for digitization and cloud adoption. Those who have been successful in taking advantage of the new realities as an impetus for plans already in the pipeline are the ones who have most demonstrated the most resilience with the current situation.

Executive Driven Digitization Policies Spur Resilience

It’s always been said that digitization is a journey. Yet, we never think to ask who would be the best to guide and determine the course the company takes. Conor McNamara stresses that the business resilience of any given orgranisation is very dependent on the company’s executives. Decisions and policies made by CXOs are what will enable companies to maximize the opportunity that COVID-19 has presented to accelerate a company’s digital trajectory.

It’s pretty simple; when the decision to adopt cloud technologies and further advance the company’s digital journey comes from the level of CXOs, it naturally sets off a cascade which will allow companies to think differently. The CEO’s acceptance that the future of business is in the cloud sets off a cascade of events that start with the search for and upskilling of staff to meet the new needs of the business. The demand for skills that enable the company to be competitive and prepared for further advancements in their journey. It also creates a new mindset mired in the need to be agile and proactive to meet customer needs.

IDC sees an opportunity to manage the downturn better by using technology to minimize the impact of the current crisis and emerge on the other side of the curve resilient, more digitally fit and agile, and ultimately, better equipped to capture their share of the new opportunities as part of the “next normal”.

Daphne Chung, Research Director, IDC Asia Pacific (excluding Japan) cloud services, and software research group

This impetus prepares businesses to handle situations like the current pandemic. The skills, demands and needs of businesses literally changed overnight as countries began to lockdown. Brick and mortar businesses were forced to consider adopting digital and cloud technologies to keep their businesses viable. Businesses which were already making the shift to cloud and digital technologies with CXO driven policies have so far been the most resilient and adaptable.

In fact, the current realities have been used as an opportunity to upskill workforces. AWS shares that since the beginning of the lockdowns, there has been a sharp uptick in the demand for certification courses and trainings in their AWS Education platform.

It’s a People Related Change

Perhaps the most important quote we can share from Conor McNamara is this: “[Digital Transformation] is a People related change”. He said this while he was explaining some of the new realities AWS’s customers have been facing – and when it comes to it, it seems like the statement rings true in every aspect of a business’ digital transformation; every step of the way involves dealing with people.

The digital transformation journey is one that involves a major cultural change. A change that shifts the mindset of preparedness to deal with any given situation. Creating a culture of work which prepares staff for ambiguity and change. In some cases, these businesses have made failure a norm. They adopt providers such as AWS to minimise the cost of failure and continue to innovate. This is one of the hallmarks of a business which has been able to deal with the realities of the pandemic. These companies are ready or have already adopted cloud and are prepared for the new work from home norm; it wouldn’t be too farfetched to say that they may be the ones best prepared for the next norm post COVID.

Adopting cloud and shifting to digital usually has the connotation of being cold and impersonal. However, one take away from businesses that are showing resilience is that it couldn’t be further from the truth. These businesses have shifted their focus to their clients and customers building solutions catered to their needs. Perhaps more importantly, their digital transformation and shift to the cloud has made them more cognizant to the needs of their clients and customers.

Business Resilience is Built from the Top Down and Empowered by the right technologies

Essentially, business resilience is built from the top down with policies spearheaded by CXOs and CEOs that drive a cultural change in the company; one which prepares them for sudden and constant change, allowing businesses to be agile and adaptable. That said, these changes are empowered by companies such as AWS who provide the cost optimizations and technologies that allow this shift to happen. This has been tried and tested with the harsh realities of the pandemic.