STRATEGIC IMPLICATIONS OF COVID-19
As organizations start to think about planning for 2021 it will be important to identify scenarios that could have a material impact on your business and could reasonably occur as long-term consequences of the COVID-19 pandemic. Examples to consider could include:
Work from home increases to almost 40% of the workforce with a commensurate reduction in local travel.
Videoconferencing becomes the norm, reducing business travel and expense by 30% and credit card volumes by 20%.
Gatherings of more than 50 people are not feasible until 2022.
Increased grocery sales and reduced dining out continue well after the pandemic ends.
Some elements of social distancing become the norm.
Contactless payment increases; cash usage is almost eliminated to reduce spreading risks; ATM networks disappear.
Large corporations significantly reduce their dependence upon China or other markets.
Stress-testing akin to that applied to financial institutions after the financial crisis is instituted across industry sectors where significant weaknesses were exposed.
Only 50% of lost oil demand reappears over the next five years.
New coronavirus strains emerge in two of the next five years with 80% of the impact of COVID-19.
To read more on this topic check out my article in FM magazine https://www.fm-magazine.com/issues/2020/jun/strategic-implications-of-coronavirus-and-its-aftermath.html