The coronavirus pandemic has undoubtedly left a considerable toll on the global economy. The struggle to maintain a business in COVID-19 can be found in almost all sectors across the world. Yet, some industries, including ICT, have managed to thrive under the pressure, benefiting from the global health crisis.
The harsh conditions under the pandemic have allowed such economic sectors as Medical Supplies & Pharmaceuticals; Finance, Banking & Insurance; e-Commerce; and ICT to be at center stage. These industries are expected to become major players in the business world post-COVID-19.
1. Medical Supplies & Pharmaceuticals
COVID-19 has undoubtedly put global attention on the Healthcare industry as well as related fields. Furthermore, the current situation has become a wake-up call for the world to put more emphasis on medical preparation and prevention, lest another dangerous virus should arise. This sentiment is reflected in the expansion in the field of Medical Supplies & Pharmaceuticals.
Firstly, the market for medical supplies has long been on the rise due to the increasing prevalence of chronic diseases across the globe. During COVID-19 in specific, the business for face masks and ventilators has been blooming. According to IBISWorld, the fastest-growing industry by revenue growth in 2020 worldwide is Respiratory Ventilators Manufacturing with 54.8%. Businesses big and small are flocking to this market in a race to produce medical supplies. In Vietnam, for example, corporations and companies such as VinGroup and Bkav quickly caught onto the trend and turned themselves into ventilator manufacturers, alongside many new independent face mask providers.
For big pharma, they have also been able to benefit from the pandemic as the hype for a prevention or cure for the virus grows. In the name of anti-COVID-19 research, pharmaceutical companies can expand their business by calling for investments and funding. At the same time, consumers are also stocking up on more medicines to brace themselves for social distancing and travel ban, giving rise to the pharma industry during the health crisis.
2. Finance, Banking, & Insurance
In such an uncertain and hectic time as a pandemic, it is no surprise to find an increased reliance on financial services. Professional financial accounting and consulting agencies became trusted partners for businesses to guide them through the crisis. Banks benefited from the hype among citizens to have their finances safely secure or to borrow funds to get them through these harsh times.
One of the greatest beneficiaries of all in the finance industry is definitely the Insurance sector, which is responding to the outbreak from multiple angles. Since the start of the pandemic, many insurance companies have launched new packages to guard against COVID-19, from medical or life insurance for individual buyers to assets and losses insurance for businesses. The situation has also driven insurers to come up with new protection packages for dark scenarios such as another pandemic or even wars.
Such prompt responses have enabled the Insurance industry to turn challenges into opportunities.
The first reason for this phenomenon is that people are trying to minimize their outdoor activities as much as possible, including trips to supermarkets and food vendors. This, in turn, allows online shopping to flourish, especially the novel service of grocery online delivery. Instead of exposing themselves to infection risks by going outside to buy food and supplies, people can order whatever they need and want from home and have their purchases delivered to their front door.
Another reason is that staying at home limits the recreational activities that one can take part in. And, the more people are bored at home the more likely fingers are going to venture towards the eCommerce apps to spend the money which has been saved from not going to the pub. According to Yahoo!JAPAN, a major online shopping site in the country, saw an increase in its number of users by 26% in March 2020 compared to December 2019.
In addition, a rise in e-Commerce and online shopping is also synonymous with the expansion of delivery services.
4. Information & Communications
Social distancing means so face-to-face interactions. So people and businesses across all sectors are all going digital amidst COVID-19. It is safe to say that the ICT industry is among the biggest beneficiaries of the global pandemic.
- Video Conferencing & Telecommunications
The most prominent players in this field are Video Conferencing services. Everyone, from friends and family gathering to classes and lectures to business meetings, across the globe is trying to adapt to the situation and find new alternatives to direct contact. The answer is Video Conferencing. In just a short amount of time, sites such as Zoom, Microsoft Teams, Google Hangouts, etc. became all the rage. For example, Zoom, its share has skyrocketed nearly 263% from its $36 initial offering price on April 18, 2019. New competitors have also entered the market, seeing the abundant potential, namely Facebook Room.
More traditional telecommunications business is also benefiting from COVID-19. Internet and Mobile network providers are sought out more than ever before. However, this demand also comes with the pressure to keep connections smooth, a heavy feat considering the overwhelming number of users.
- Digital Transformation
Yet the great business transformation COVID-19 has to be the Digital Transformation with Cloud Computing as the front runner. For years, this has been a rising trend for companies around the world. Now, with the coronavirus outbreak and its implications, organizations have a direct incentive to migrate to the cloud and undergo a rapid digital transformation.
This is because Cloud Computing allows enterprises to store data and resources digitally, facilitating remote work with ease. Thus, all processes of business can function normally even during social distancing periods. Moreover, once these firms have begun their journey towards a cloud-based business model and environment, there is little chance that they would go back.
This could be a catalyst for accelerating the already fast-blossoming cloud segments. From an IaaS perspective, it means more money, from SaaS it means more engagement, and PaaS more opportunity.
Other routes to complete Digital Transformation include implementing RPA and AI into every corner of life. In fact, for every industry mentioned above, like Healthcare and Banking, DX can be the new key to future success. For example, in South Korea, Digital Transformation is being put at the forefront of “new normal” initiatives, focusing on telemedicine, smart factory, e-education/ e-learning, etc. through AI and Robots.
With 30 years of experience in the ICT industry, CMC Global is one of the leading providers of IT solutions and Digital Transformation services in Vietnam and the region. The 10 RPA Automation Anywhere certificates and AWS Certified DevOps Engineer “ Professional from Amazon and Azure Fundamentals from Microsoft among our staff is confirmation of our capability in carrying out DX projects. CMC Global aspires to constantly create and deliver the best technological breakthroughs to our domestic and international clients.
With our 4-C Core Values: Creativity, C-speed, Commitment, and Customer Centricity, CMC Global is proud to have been the trusted partner for many organizations, and determined to bring our cutting-edge solutions further to the global market.
Read more on CMC Global’s products and services and equip your business with top-of-the-field Digital Transformation here.