THE Covid-19 crisis is a global phenomenon the likes of which our generation has never experienced before.
Almost no country is spared and, at the time of writing, most countries in the world are still in lockdown.
The dreaded virus has wreaked havoc on the healthcare systems of most countries and is in the process of destroying many industries.
Before this is over, many businesses will shut down and many people are going to lose their jobs. It's almost certain the world will go into recession.
Yet, amid all these dark clouds, there is one silver lining. The constraints caused by the pandemic has hastened the evolution of business trends, and has sparked innovative collaborations at a scale and pace that would be unimaginable just a few months ago.
WORKING AND COLLABORATING ONLINE
Remote working and virtual meetings are business practices that have long been possible. The technology to facilitate this is available and affordable but few companies — especially local ones — had embraced this idea.
Let's face it, most Malaysian companies, big and small, prefer to have their employees sit at their desk so they can be monitored.
Bosses are generally conservative and are afraid that workers will goof off and not do their work properly if they're working from home.
The Covid-19 situation, however, has forced white collar businesses across the country to adopt this practice. They have no choice. They have to make it work.
Suppliers and clients alike may prefer to meet company representatives in person but during this time of lockdown, face-to-face meetings not possible. So online meetings it is, via video-conferencing applications like Zoom.
Like it or not, everybody's adapting and learning to work and collaborate optimally through online means. Had it not been for this crisis, this development might have taken 10 years or longer to happen.
SELLING DIRECT TO CUSTOMERS
If you use social media at all, you'd have likely seen a deluge of online advertisements offering not only prepared meals but also fresh produce and seafood direct to customers.
Restaurants are allowed to operate but can only offer take-out and delivery.
Since people are discouraged from going out, many prefer to have their food delivered rather than risk getting stuck in a roadblock and having to answer questions about where they're going, etc.
Many are relying on online delivery companies like Grab Food and Foodpanda but quite a few have set up their own delivery service, a sign that they are taking this alternative revenue stream seriously and are in it for the long run.
For sure online restaurant food delivery was already a thing before the lockdown happened but only a few restaurants did it. Today, practically all are doing it because they have to.
Recently, I read about how the government's decision to twice postpone the reopening of the Kuala Lumpur Wholesale Market had resulted in wholesalers holding back on their orders of seafood.
Perhaps that's why I've seen so many "fresh seafood" delivery services pop-up on my Instagram feed.
I have also seen quite a few advertisements touting fresh fruits and vegetables at wholesale prices, delivered to your doorsteps. This is a way for suppliers to reach their customers directly.
It's no coincidence that all these food suppliers have suddenly gone digital. It's brought about because of the disruptions caused by the Covid-19 crisis.
ONLINE SHOPPING PLATFORMS
You may have heard of companies selling their products online through e-commerce platforms like Lazada or Shopee.
Most of us might have bought some gadgets or small items online through these services.
It's very convenient and usually the prices are lower than if you were to buy from a physical outlet. But have you ever thought of buying a brand new house through one of these platforms?
I was surprised to see Gamuda Land offering a limited time deal from April 25 to 30 through Shopee. Prospective buyers can view show units online and book their desired units too.
In line with the e-commerce trend where special offers abound, Gamuda offered a special low-priced booking fee for those who did so through Shopee.
They even threw in thousands of ringgit worth of Shopee vouchers for those who made a purchase.
Of course property developers have long showcased their houses on property portals but this is the first time I've come across one offering houses for sale, together with special offers and shopping vouchers, through an online shopping mall.
It makes sense though. During this time of lockdown, lots of people are shopping online and what better way to ride that wave than to offer deals through a popular online shopping platform, even if that platform usually sells much lower-ticket items.
PRIVATE AND PUBLIC SECTOR COLLABORATION
Another interesting development we're seeing is private and public sector collaboration.
As we all know, protective equipment is in short supply for front-liners working in hospitals. Many companies are stepping up to the plate and doing their part to help combat the disease.
In many cases, companies are creating products that they normally don't produce but are in short supply right now.
You may have read about how BYD, one of the world's largest electric vehicle manufacturers, has created a new plant in one of its industrial parks in China's Shenzhen to produce face masks to help alleviate severe shortages.
Back home, Proton is making face shields — an important personal protection equipment (PPE) device worn by front-liners — at its headquarters in Shah Alam. The company's target is to produce 60,000 face shields which will be distributed for free.
"We have the know-how to produce cars. So we're using that knowledge to produce PPEs to support the brave front-liners in containing the spread of Covid-19," said Proton deputy CEO Radzaif Mohamed.
The production of the face shields followed the loan of 50 units of the Proton X70 to the Health Ministry.
SECRET VALUE OF CONSTRAINTS
Nobody likes to work under constraints. Ironically, it's when you work under restricted conditions that innovation sprouts.
As they say, necessity is the mother of invention. You find ways to work around the constraints you face and sometimes those way end up being better than the old way.
According to an article published in the Harvard Business Review last November, while people tend to intuitively believe constraints stifle creativity, they actually have the opposite effect.
According to the authors of the article who'd looked at 145 studies on constraints, "…when there are no constraints on the creative process, complacency sets in, and people follow what psychologists call the path-of-least-resistance – they go for the most intuitive idea that comes to mind rather than investing in the development of better ideas."
Continuing, they added: "Constraints, in contrast, provide focus and a creative challenge that motivates people to search for and connect information from different sources to generate novel ideas for new products, services, or business processes."
WILL THIS CONTINUE POST-MCO?
So, what happens when the constraints are lifted?
Of course, online activity will be reduced once the lockdown is lifted and life starts to return to normal.
Not all white-collar employees will be working from home and not all meetings will be conducted via video-conferencing anymore.
In fact, it's probably safe to say that much of these activities will revert back to the analogue way of doing things. But, for sure, more will be done online than prior to the lockdown.
Similarly, restaurants and other food-related companies will go back to offering in-store sales once they are allowed to do so.
But you can bet your bottom dollar that online sales will become a permanent additional revenue stream for these companies.
As they say, you can't put the genie back into the bottle. Once people realise this new way of doing things can actually work, there's no reason for them to abandon it just because they can return to the old ways of doing things.
What's likely to happen is that the old ways will mesh with the new, and digital will become an integral part of every company's business model even after the constraints are no longer there.
Oon Yeoh is a consultant with experiences in print, online and mobile media. Reach him at oonyeoh@gmail.com.