Articles

Impact and challenges of IT industry in the fight against COVID-19

by Nazar Kvartalnyi COO at Inoxoft

Staying engaged, open-minded, technologically savvy, and embracing continuous learning, not only individually but as a core organizational imperative, are the hallmarks of 21 century leaders. Forbes 

The coronavirus (COVID-19) outbreak is inflicting sizeable challenge and economic complication for clients, agencies and groups across the globe. We’ve prepared some preferred steerage on COVID-19: What US commercial enterprise leaders must realize, overlaying the key regions of crisis management, deliver chain, staff, tax and alternate, and financial reporting.

 

Maximum agencies already have commercial enterprise continuity plans, but those won't fully deal with the short-shifting and unknown variables of an epidemic like COVID-19. Usual contingency plans are meant to make certain operational effectiveness following events like natural screw ups, cyber incidents and power outages, amongst others. They don’t normally consider the considerable quarantines, extended college closures and delivered journey regulations which can arise within the case of a worldwide health emergency.

 

The disaster increases some of specific demanding situations. In p.c’s inaugural COVID-19 CFO Pulse Survey, finance leaders in the usa and Mexico shared their top issues.

 

What makes the era industry one-of-a-kind?

Here is our tackle a few extra issues that companies to your enterprise may additionally face:

 

Disaster management and response

Troubles that the technology industry would possibly face:

Enterprise continuity planning does now not account for the uncertainty of an evolving pandemic.

 

Raft of enterprise occasion cancellations suggest fewer business development possibilities.

Hugely faded commercial enterprise travel effects in fewer customer interactions.

Steps to don't forget:

rent a important, responsible chief, supported by way of a cross-purposeful team, to manage this continually evolving disaster.

Create a framework for records evaluation and decision-making. 

Run simulation exercises based totally on practical situations within the brief, medium and long term.

searching for outdoor help as wanted.

staff

problems that the generation industry would possibly face:

Staffing issues ramp up for complete-time personnel, in addition to gig workers, consisting of drivers, shipping people and retail body of workers, who frequently paintings as contractors.

 

A slowdown in recruiting due to the disaster ought to have an effect on a future pipeline of professional workers.

Cybersecurity dangers are likely to rise due to greater people running remotely.

Steps to recall:

determine which essential functions ought to remain onsite and which can be far flung.

communicate clearly, as it should be and regularly about health and protection considerations.

show off cybersafe structures that assist far off personnel. Having fewer employees within the workplace makes it more secure for the ones whose jobs require them to be there.

Shore up team of workers modeling.

rethink benefits for gig people.

Operations and deliver chain

troubles that the era industry might face:

production slows due to global supply chain disruption.

 

Coins-go with the flow demanding situations will take a look at undercapitalized agencies and may require alternative sourcing and/or the want to subsidize all through the crisis to affirm readiness in its aftermath.

 

As agencies are seeking for commercial enterprise solutions to deal with faraway paintings, social distancing and the want for in-save options, the demand for developer and engineering talent is probable to boom. preserving top expertise will be essential.

Expect fantastically excessive impact on the phone enterprise because of its hard work-intensive supply chain. Cellphone manufacturing is projected to say no by 12% YoY in 1Q20; server revenue is projected to say no by means of sixteen% YoY in 1Q20.

Disinformation proliferates on virtual platforms.

Sharing economy stock takes a success.

a few element manufacturers rely upon one or possibly  main suppliers.

additional containment zones around the arena trigger more shipping and transport bottlenecks.

Steps to don't forget:

set off contingency making plans for dealer control.

assume and plan for deliver chain modifications, ought to the disaster remaining longer than a quarter.

Reset operating version(s) with emphasis on deliver chain and production footprint.

move quickly to counter disinformation because it happens, and talk with employees, clients and business partners.

economic reporting

problems that the era enterprise might face:

Operational, personnel and supply chain disruptions will cause monetary reporting implications in modern-day and destiny reporting intervals.

 

Public agencies will face increasing stress to disclose revised guidance related to the COVID-19 impact.

Steps to do not forget:

examine monetary reporting necessities and audit impact.

Revisit key assumptions in financial projections.

talk contemporary and potential future impacts to shareholders.

Tax and change

problems that the era enterprise may face:

New nation and neighborhood tax implications get up for employees who're now far flung as a result of the crisis.

 

Tax compliance operations may want to lag, as newly faraway employees lack timely get entry to to statistics.

within the brief time period, modifications to profits statements — such as short-time period losses — will have an effect on forecasts.

deliver chain reconfiguration triggers tax implications.

Steps to remember:

Craft a contingency plan to fulfill tax compliance duties on time.

improve tech-enabled functionality to verify well timed get right of entry to to required records.

conduct additional modeling to evaluate how modifications to earnings statements will affect forecasts.

method

troubles that the technology industry would possibly face:

unexpected or extended monetary downturn will lead to businesses considering enormous budget cuts that dispose of discretionary spending.

 

far off paintings, online training and social distancing will create demand for products and services brought by the tech industry.

The disaster underscores the want for flexible, resilient commercial enterprise models, which include multiplied attention on coins-float forecasting and affects on supply-chain and industrial-channel companions.

 

agency valuations might also emerge as greater appealing for acquisitions by using coins-wealthy businesses that have been sitting on the sidelines, while maintaining goals in thoughts.

 

Steps to bear in mind:

experiment for M&A possibilities to shore up resilience.

Reevaluate price structure.

put together for a slowdown with the aid of assessing which organizational levers to drag.

Shore up organization danger-management efforts.

different considerations

further, era corporations may face a few extra enterprise-unique challenges.

 

customers

possible problems:

a few tech area companies rely upon overseas consumption, which has slowed since the outbreak.

 

customers are delaying purchases due to the fact the pandemic has exacerbated an already unsure worldwide economic system.

generation support might also war to keep up with elevated consumer wishes on programs.

Steps to bear in mind:

Reprioritize restrained deliver to the most worthwhile regions, segments and clients.

team with generation channel companions to apprehend where destiny demand may be generated within the short term, along with in countries no longer as difficult hit with the aid of the virus.

compare pricing actions and different countermeasures to bolster current and future quarterly demands.

The way forward

The generation enterprise has weathered beyond crises and found novel methods to emerge more potent every time. In fact, tech corporations have led the way on a selection of strategies different industries like Healthcare are now using to manage in this disaster — from faraway working to a globally dispersed supply chain to dealing with thru disruption. This crisis may well spark in addition creativity and innovation.

Originally published at https://inoxoft.com 


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About Nazar Kvartalnyi Innovator   COO at Inoxoft

19 connections, 1 recommendations, 84 honor points.
Joined APSense since, April 29th, 2020, From Lviv, Ukraine.

Created on Apr 29th 2020 08:41. Viewed 757 times.

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