How Is Global Digitalisation Accelerating?

How Is the Pandemic Accelerating Global Digitalisation?

From Wuhan to New York — local businesses, large companies, startups, organisations and even schools are quickly educating themselves about the possibilities of new technologies. The COVID-19 pandemic has made the whole world discover new uses for digital tools at an accelerated pace. Experts are assessing which of them have a chance of settling in for the long haul.

The internet has, in a sense, returned to its roots. In the 1960s, a computer network was meant to be the USA's safeguard against a threat — at the time, the danger of nuclear war. Today we are dealing with the first pandemic in the era of digital technologies, and it is precisely thanks to them that the economies of countries affected by the coronavirus have not come to a complete halt.

Barely a few days had passed since governments issued recommendations for voluntary self-isolation at home when the European Commission asked streaming platforms to reduce the load on internet connections. Netflix and YouTube, among others, responded by blocking the transmission of video in the highest quality. In doing so, they freed up network resources for teleconferences (for several days now the basis of operations for many companies) and for conversations via messaging apps that allow loved ones to stay in touch.

— We quickly realised how heavily we depend on the smooth operation of networks in this new situation. The pandemic has verified the usefulness and effectiveness of many online channels. Popular social networks had to admit that they had become a source of disinformation about the virus. After clicking on the hashtag #coronavirus, Twitter itself suggests that reliable and verified information about the threat should be drawn from the websites and profile of the Ministry of Health. The latest government update of safety rules was sent as an SMS Alert RCB with a link to the text of the regulation. Natural disasters in recent years have proven that this old, tried-and-tested channel is reliable in such situations. Even when internet connections are overloaded, SMS messages reach their recipients — notes Maja Wiśniewska, PR & Content Marketing Manager at SMSAPI.

A new challenge for thousands of businesses is forced closures of premises, as well as voluntary self-isolation at home recommended by authorities and specialists. These have meant that many service outlets have lost customers. In the food service industry, ghost kitchens — that is, restaurants selling only online and only for takeaway — became a trend overnight, and platforms for this type of service are seeing rapid growth in interest.

Not everything can be delivered to your home, however, so the idea of selling vouchers to be used in a few months quickly emerged, with the proceeds allowing businesses to pay rent and other expenses today and survive a difficult period. The vouchers are, of course, distributed online, e.g. on the Lunch Next service, and offers to purchase them spread thanks to social media. In the USA, the popular app Yelp, which gathers reviews of venues, introduced the ability to mark which of them are still operating and offering contactless takeaway delivery, and also began cooperation with the crowdfunding service GoFundMe, allowing users to make small donations to their favourite local businesses.

Where to Look for New Trends?

A similar cooperation was established between the Soundcloud service for independent musicians and the streaming platform Twitch. Thanks to it, artists — who these days already live mainly off concerts — can more easily earn money from online concerts organised now.

— Both examples from across the ocean show that, as consumers, we are becoming aware of how our individual choices affect the economy, and we are ready to use them to save businesses close to our hearts. However, we need solutions for this that work quickly and conveniently, preferably integrated with the apps we already use. Sometimes it is good to offer something as a gift for the quarantine period, as some book publishers are doing, to relax cancellation rules, as Airbnb did, or to help the city deliver meals to seniors, as Uber drivers did in New York and the delivery providers of the Szopi platform did in Poland. This is an opportunity for businesses to do something non-standard that current and potential customers will remember for a long time — suggests Maja Wiśniewska.

Will We Be More Online After the Pandemic?

Digital Transformation After the Crisis

Global Digitalisation: What Has Accelerated the Latest Trends?

One of the companies whose share prices have risen in recent weeks contrary to general trends is the maker of Zoom, the programme used for group conferences. The number of its downloads increased several-fold in March. The reaction of financial markets suggests that online video calls will not be just a passing fad, and that even after the threat disappears, companies and organisations will use them more willingly. There had already been suggestions that, for example, in connection with the climate crisis, the number of business meetings should be reduced in favour of contact via messaging apps. The current situation may simply accelerate the general trend, just as World War II quickly popularised antibiotics, which found wide application in peacetime as well.

— The Netflix Party plug-in, which allows you to watch the same films and series with friends simultaneously and comment on them live, has existed for several years, but only recently gained enormous popularity. It would not be at all surprising if this way of consuming video content became established, and was even officially supported by the service itself. Companies should closely observe what works in communication with customers and what does not in this exceptional time, in order to prepare for the realities of the future. Since in recent weeks chatbots, micropayments, SMS messages and online coupons have found new applications and proved helpful in the pandemic situation, there is a good chance they will stay with us for longer — concludes Maja Wiśniewska of SMSAPI.

Concepts from the Article

PR — Public Relations. Activities that build an organisation's reputation and relationships with its environment: the media, customers, employees, partners and communities. PR encompasses communications, media relations, crisis management, events and brand narrative.

Why it matters: It builds what no advertisement can buy: credibility in someone else's voice. An editorial publication and a well-handled crisis weigh more than a campaign — because it is a third party speaking, not the brand about itself.

When it is used: Continuously: media relations, press releases, interviews, events; especially in a crisis and during changes at a company.

What the omission risks: Without relationships with the media, a company speaks only through paid channels, and in a crisis it is left without spokespeople and without trust.

Summary

The digitalisation accelerated by the COVID-19 pandemic covers not only remote work. The European Commission appealed to relieve connections, and platforms such as Netflix and YouTube limited video quality. In food service, ghost kitchens developed, and online voucher sales are saving local businesses. Examples from across the ocean show the integration of services, such as Yelp with GoFundMe, or Soundcloud with Twitch.

Experts, including Maja Wiśniewska of SMSAPI, predict that tools such as Zoom video conferencing or watching content together via Netflix Party may stay with us for longer. Companies should observe which solutions are working now in order to prepare for the future. The growing importance of chatbots, SMS messages and micropayments suggests a lasting change in consumer habits.