The year 2020 has turned our lives upside down, impacted our health, and changed our habits. There doesn't seem to be an area that hasn't been affected by the COVID-19 pandemic. Transforming business through the application of digital technologies - whether social media, mobile, advanced analytics or cloud computing - is an essential weapon in the arsenal of any company seeking to innovate and grow in a world that demands greater operational agility and efficiency.
As the world continues to grapple with the devastating effects of the coronavirus pandemic, the need for a digital transformation is greater than ever. And while companies will undoubtedly face significant challenges in the digital transformation process, slow progress is not an option. Market leaders need to accelerate the digitalization of their core business. Let's take a look at 5 digital trends that will still make their presence felt in post-COVID 2021.
Banking retail began to change rapidly even before COVID-19: customers did not like to go to the office and got used to receiving services remotely. The coronavirus has made this trend sustainable. Banks need to completely revise the customer service channels - this is what the McKinsey analysts wrote in their review, based on the data of the advanced countries of the world, such as the USA, Western Europe, and SE Asia. The use of various distribution channels allowed leading banks to show much better results than others.
According to McKinsey calculations, these banks have 8 times more comprehensive sales per employee than the average bank, and their call centers are 6.6 times more efficient. McKinsey identifies 4 points that the most successful banks pay attention to:
- Digital Service. During the COVID-19 epidemic, banks served customers predominantly remotely. And most are happy with it: in May 2020 about 60-85% of consumers in Western Europe were satisfied with the quality of remote services. An April 2020 survey by the William Mills Agency found that 73% of U.S. adults were also more likely to use digital banking and payments when socially distancing themselves. Respondents earning more than $50,000 a year were even more likely to make financial transactions online.
- Leading banks began developing digital services even before the coronavirus. Most of their customers are active smartphone users, so banks have been developing and continually improving their apps over the past 5 years. But more importantly, the high level of mobile usage has allowed these banks to generate more than a third of all their digital sales through the mobile app.
- Digital Sales. While the crisis has had a negative impact on bank product sales, it has at the same time shown the need for customers to purchase a product remotely. Also, Europe's leading banks invested in advanced analytics to increase personalization, which led to an increase in sales of nearly 25%. At the same time, customers were very satisfied with the service.
- Effective communication. Leading banks use advanced technology to make communication with the customer as effective as possible for both parties. For example, when a client calls the bank's call center, software translates what is said into text and forms an application, so that the operator can quickly analyze the text and the mood of the caller. This way the consultation will be more effective.
As Deloitte analysts point out, as banks adapt to the economic realities of 2021, bank top managers will most likely have to make difficult decisions about the optimal work models. Using the right technology and tools will be critical to the success of these programs.
COVID-19 has caused rapid digitalization and automation in virtually every industry. There is a strong correlation between innovation, e-commerce, video/remote operation, and cybersecurity. Each is closely linked in its ability to quickly and creatively address the challenges posed by the paradigm shift to the online world.
Innovations in e-commerce have allowed companies that had a limited online presence before the pandemic to quickly establish minimally viable online merchandise stores within weeks, not years.
Shoppers quickly adapted to the shift to e-commerce. Use of online grocery stores tripled in the first months of the pandemic, according to BCG, with most users trying online for the first time. About a third of shoppers indicated that they shopped online even after the end of the hard lockdown. In addition, according to an August 2020 B2C e-commerce study conducted by BGC, online shopping increased by 39% during the pandemic. This growth may continue in the future, as 79% of customers indicated that they plan to shop online as much or more often.
However, the shift to a digital economy has led to increased concerns about cybersecurity. As digital data sharing expands, there are more opportunities for cyberattacks. Coronavirus has caused a 238% increase in attacks on banks. Attacks on cloud services increased by 630% between January and April 2020. Attempted phishing attacks increased by 600% between late February and August 2021.
Protecting information is a critical part of a sustainable digital model that would otherwise quickly lose the trust of consumers and manufacturers alike. Security attacks that threaten the viability of the digital economy continue to grow. Analysts predict that increased cybersecurity measures will be an important trend in 2021 and will not lose relevance thereafter.
Before the pandemic, various industries could rely on expertise to make predictions and plans for future development, most relied on standard tools for important business processes, and only a few relied on innovative technology. But with technological advances and the rapid changes that the pandemic has brought, the use of innovation (such as AI, Blockchain, ML) has become not just a competitive advantage, but an urgent need to face new challenges.
This is especially true for the healthcare industry. For example, machine learning can identify its own pattern from historical data and real-time information, without having to train it on a pre-selected data set. So, an artificial intelligence model trained to predict the spread and counteract a particular disease can be retrained on new data about another disease.
By 2021, most large enterprises will provide some type of AI-focused customer experience as companies move forward, proving the concept and moving into production. Indeed, IDC predicts that global spending on artificial intelligence systems will reach nearly $98 billion by 2023. IDC says the retail and banking industries will spend the most on AI, with investments aimed at automated customer service agents and diagnostic and treatment systems. For consumers, this means that most of their interactions with service providers, such as banks and insurance companies, will be through AI-powered intelligent agents rather than humans.
AI can save companies huge amounts of money by transferring tasks requiring human intelligence from a highly paid human being who needs to be hired, trained, and retained on a relatively inexpensive software platform. Juniper Research predicts that companies will save $8 billion by 2022 by using chatbots, particularly in the banking and medical industries. We have already seen how software can handle lower-level tasks, with data entry, and that robots can perform simple, repetitive tasks in a factory. But this is only the beginning as with true AI, intelligent systems can take on the roles of consultants, managers, and executives in complex organizations and situations.
The entertainment industry has gone online
In media and entertainment, the pandemic has accelerated many trends. For example, with movie theaters closed or allowing only a limited number of viewers, major studios are increasingly making movies available for direct viewing by consumers through streaming services. In addition, as streaming content consumption grows, we are seeing an increase not only in the number of subscription services but also in the number of ad-supported models designed to meet consumer needs.
According to the Deloitte report, there are some critical issues for the telecom, media, and entertainment industries to consider in 2021:
- Renewed focus on customer needs
Streaming providers should focus on value and content, becoming more nuanced in attracting customers. To improve customer retention, they must address customer concerns and preferences and emphasize tiered pricing, customized services, and social experiences. Customer retention will increasingly depend on having a single platform that can satisfy a wide range of entertainment desires. In addition, a number of niches in the entertainment industry have shown steady growth thanks to the pandemic. According to the report:
- 48% of U.S. consumers have participated in some form of video game-related activity since the COVID-19 pandemic began. In addition, 29% of U.S. consumers say they use their free time more often to play video games than to watch videos. The global video game market is expected to reach $159 billion in 2021.
- U.S. subscription music streaming revenues have grown from $1.2 billion in 2015 to $5.9 billion in 2019, a compound annual growth rate of 49%. Deloitte's Digital Media Trends Study found that 12% of U.S. consumers began using paid music streaming services in the early stages of the pandemic.
- Spending on podcast-based advertising is estimated to have increased from $678.7 million in 2019 to $863.4 million in 2020. By helping to meet consumer demand for original content, podcasts now reach more than 100 million Americans each month, an increasingly diverse audience.
- Combining an entertaining experience
The COVID-19 pandemic has accelerated consumers' desire to experiment with their entertainment experiences. The boundaries that once existed between content and distribution channels are becoming increasingly blurred. The evolution of entertainment and technology is helping fuel new service offerings and entertainment packages for consumers, requiring new strategies and flexible approaches for companies and creators.
One innovative example of remixed entertainment is how musicians pioneered a new channel for releasing music: video games. Rapper Travis Scott hosted a virtual concert within the video game Fortnite, which attracted 27.7 million unique players. This made it the most successful gaming event in Epic Games history and helped release the rapper's new single "The Scotts," which reached No. 1 on the Billboard Hot 100. Meanwhile, Block by Blockwest, a virtual music festival inside the Minecraft video game, saw about 30 bands perform on three stages (servers) during the event, broadcast to 134,000 users.
Healthcare also gone digital
It's not cyberpunk yet, but it's no longer leech therapy either. The new generation that is seeking medical care goes by the name of Generation Z. Since convenience is a priority in almost every aspect of their lives, this is one aspect that is considered a prerequisite for any young person looking for health care options. Generation Z, along with Millennials, is defining what patient retention will look like in today's digital age, and if your healthcare facility does not integrate convenience, then patients will go to another clinic.
So, what does convenience mean for patients seeking technology? It starts with personalizing the experience and allowing patients to choose when and where they want to access their health care. Millennials are likely to find the availability of telemedicine most important, and that will ultimately determine who they choose in the long run. This, along with a seamless online experience and the integration of all platforms, is at the top of the list for patient retention.
Tools such as predictive analytics have helped providers not only track a patient's customer journey but also offer treatment at the right time and place to provide more accurate and timely care. For example, data such as medical records, consumer data, and financial information can be processed and organized to provide patients with a truly personalized experience.
Telemedicine is one useful tool for ongoing chronic disease monitoring and treatment. The adoption of telemedicine is likely to grow with the implementation of "smart gadgets." Telemonitoring services are used to monitor congestive heart failure (CHF), stroke, and pulmonology for chronic obstructive pulmonary disease.
Also, in terms of revenue, the telemedicine market is expected to grow at a CAGR of more than 28% between 2019 and 2025. Factors such as the emergence of robots and robotic platforms in telehealth and strategic company mergers and collaborations are likely to boost the telehealth market during the forecast period.
Machine learning technology also has a lot of untapped potential in medicine. In a nutshell, artificial intelligence simplifies the lives of patients, doctors, and hospital administrators by performing tasks that would normally be performed by humans, but in less time and at a lower cost.
Notably, artificial intelligence is one of the fastest-growing industries in the world. Accenture predicts it will be worth about $600 million in 2014 and is projected to reach $150 billion by 2026. From finding new connections between genetic codes to controlling surgical robots, AI is reinventing and revitalizing modern healthcare with machines that can predict, understand, learn, and act.
Also, according to a recent Deloitte report, there are now more than 500,000 medical IoMT (Internet of Medical Things) technologies. With their ability to collect, analyze, and transmit health data, IoMT tools are rapidly changing the field of health care delivery. These applications play a central role in tracking and preventing chronic diseases. And for patients and clinicians, they are poised to evolve in the future.
Not only does IoMT technology help improve patient care by eliminating the need for in-person doctor visits, but it also helps reduce costs. Goldman Sachs estimates that IoMT will save $300 billion a year in costs, primarily through remote patient monitoring and improved medication adherence.
No matter how complex digital business transformation is, very often without it, a company is much less likely to stay afloat, especially in a COVID and post-COVID world. According to Markets and Markets, global digital business transformation products and services will grow from $469.8 billion in 2020 to $1 trillion in 2025. And that's almost a third of the entire global IT market.
But remember, you can always make lemonade out of lemons, so consider the pandemic situation as a springboard to jump on. If you've been thinking about going digital for a long time, now is the time to do it. Or maybe you want to create something new? Whatever the case, MassMedia Group will help and guide you.