Keywords

Pandemic, Digital Transformation, Digital Technology, E-business, Consumer Behaviour

Introduction

The outbreak of COVID-19 pandemic has dramatically transformed business organization to channelize their operations through adaptive routes. Digital technology became the natural choice for companies from different industry where the several years of conventional business approaches necessitated changing their traditional thoughts and creating innovation. Change is the only inevitable that COVID-19 crisis brought about for accelerating digital transformation for remaining connected with customer groups (Bartsch et al., 2020). The McKinsey Global Survey depicts that interactions with supply chain operations and client associations required digitally lead solutions to modify product promotion, market sales and business operations. The striving for companies to enhance demand curve even during the crisis period of COVID-19 pandemic depended upon the foundations of digital initiatives.

Remaining competitive enough required business owners to acquire new business model and strategic plans. The most inevitable and natural solution gets reflected in the form of abiding by recognition towards emphasized technologically oriented strategies. Government protocols to enforce social distancing made the natural inclination towards digital technology addictiveness. Remodelling the business structure is identified as the need of the hour where quantum leap among organisations and diverse industrial belts unnoticed to create a dramatic paradigm shift towards endurance of digital technology channels. The rates of adapting digital technology have elevated ever since COVID-19 crisis has hit business environment across the world. Creating a digitally transformed niche environment abiding by government protocols enhance benefit not just to reshape business today but for business tomorrow as future adaptive protocol.

Literature review has been conducted about issues concerning Predictive Analysis Theoretical Framework, Consumer Package Goods company techniques and Consumer Behaviour Change Theory Model. The predictive analysis with statistical data figures shall enable the corporate organisations and business industries to take the right decision in adapting transformed digital transactions. As a result of which the continuity of business performances like promotional campaigns, maximising sales and market reach to approach larger customer segments are all conducted through digitally channelized online interface. The overall global picture can be depicted about COVID-19 impact having a significant transformation leap to govern digitalised business practices where the seven years of entrepreneur pattern is drastically changed. The present project is an attempt to create an overall understanding about the impacts and consequences COVID-19 upon the technological transformation followed.

Literature Review

The motivation of creating a future ready business structure companies-initiated drives to absorb robust technological advancement to increasingly orient business with digital paradigm and minimised physical contact. There is a drastic quantum leap observed in the trends of organisations across the world where digital adoption and channelizing business through online mechanism followed as a result of pandemic hit. Soto-Acosta (2020) revealed that surveys and deep insights reflect the unidimensional decision making made by intelligent business minds of industrial giants as well as small scale business. As the sales experienced steep decline ranging from 60% to 90% drop, massive losses of business from different sectors. The inevitable alternative remaining to adapt is the digitally transformed operation to regain market position and increase sales. The lack of demand across product market is the sole reason as COVID-19 has steeply hindered the economy on a global scale. The purchasing attitude and the needs for products and services have gone down during the pandemic, which impacted the demand-supply ratio in a large scale.

Consumer Behaviour Changing Pattern

In case of North American region, the consumer buying pattern and interaction through online channels are found to be reflecting the same orientation where pre COVID-19 scenario was completely different having minimum interaction through digitally inclined technology with mere 25% purchase and sales across 2017 and 2018. When notice in the year 2020 and 2021, a significant rise in sales adoption and online interaction between brands and customers are notice with 41% by 2020 and 65% by 2021 respectively. Each of the above analytical insight created with statistical data figures that helped to contribute towards predictive analysis so that the future business model is possible to be structured adapting COVID-19 protocols.

While analysing and monitoring the behaviour of consumers changing from conventional in store visits towards digital technology embracing approach, the rapid speed is also one significant indicator that strike business minds. The rate at which the consumers are depending upon online shopping and digitally available product information, made the companies realise the significance of business transformation towards digitally adaptive model. Wuest, et al., (2020) indicates that such a leap is revolutionised as a result of COVID-19 pandemic consequence where the digital product portfolio has captivated increasing number of consumer base and discouraged physical contact-oriented sales channels.

Government protocols further aggravated industrial operations to be carried out with critical significance and emphasis upon physical distance encouraging practices. Without digital transformation and online adaptability business continuity and growth across pandemic situation would have come to a sorrowful situation. The predictive analysis and in-depth statistical figures shows the findings which suggest companies to absorb the huge leap within a few months to redesign products and optimize digital connectivity with customer and stakeholders. Paradigm shift to endure technological digitalization has been the largest leap that the business world across the globe has ever witnessed. The COVID-19 pandemic has resulted in drastic transformation in not only the product offering pattern but also the warehouse, logistics and supply chain operations to embed technological robustness by creating niche environment. Abiding by the government protocol and regulations under World Health Organization WHO, companies have given importance to health protected practices where social distancing is encouraged. As a result of which, the continuity of business performances like promotional campaigns, maximising sales and market reach to approach larger customer segments are all conducted through digitally channelized online interface.

For the business entities to take future decision compatible to current new normal environment created post pandemic scenario, proper insightful evaluation is carried out. Distinguished area segregated leaps undertaken by business decision makers to transform their corporate culture and operational premise with robust digital technologies are conducted using predictive analysis. After COVID-19 has hit the world, tremendous change in strategic approach and business models are experienced where product dimension and marketing performances have shifted paradigm from physical in store activities two partial online presence and those performing with partial digital technology shifting towards fully digitalised offerings.

Digital Transformation

Business area based digital transformation has been witnessed over the span of 2017 to 2021. The business organisations’ strategic decision-making transformation is well evidence from the nature of digital dependence changing over the years on a global front. Wuest, et al., (2020) stated that making the Asia Pacific region of business patterns into analytical framework, 31% of entire digital activities are observed to be taken up during 2017. Such operations using online channels for sales generation and connecting with customers and carrying out marketing campaigns were reduced to 26% during 2018 as major dependence was upon physical in store shopping and offline availabilities. This trend drastically changed with the onset of COVID-19 pandemic when business establishments across small to large enterprises realised how lack of transportation, physical store outlets and offline accessibilities showed ineffectiveness and non-productive behaviour during crisis period. The adoption pattern regarding digital technology and online business access has elevated during 2020 with a 33% leap towards online presence of products and services. This pattern further experienced a giant leap with 54% of entire business performance carried out using digital technology during end of 2020 and early 2021.

Across European countries, the business minds merely depended upon digital technology for conducting robust supply chain logistical and warehouse operations along with product availability and delivery system using online chains. Ding, et al., (2020) revealed that the 26% and 25% operative indication during the spans of 2017 and 2018 are vivid picturing of the same business pattern. However, revolutionised transformation with complete paradigm shift giving increased importance towards digital channelized marketing and sales along with product availability and delivery services came into significant picture from 2020 after the pandemic hit the world. Increasing from 34% 2 currently perform with 50% of online dependent digitally active business operations are clear indications of accelerated technological robustness. When the industrial picture of North American region is tried to be analysed, a significant change over the six years regarding adoption of digitally transformed technological online channel usage for business activities can be witnessed.

There was a large scale of interest towards online shopping and technologically driven with the significance of 33% buy 2017 and 34% by 2018. This picture underwent significant and drastic transformation towards digital leap in business configuration with 41% during the initial phase of COVID-19 pandemic and rose to 60% during the current times. The overall global picture can be drawn about COVID-19 impact having a significant transformation leap to govern digitalised business practices where the seven years of entrepreneur pattern is drastically changed. From 29% during June 2017 and 28% during May 2018 of digitally dependent partial product service operations across the global business organizations transformed and embraced fully digitalised performances with a gradual leap of 35% during 2020 and 55% during the current times.

It is from the above statistical figures and factual data that a clear prediction can be made about digitally offered products and services to be governing the future premise of business industrial approaches. Meiler (2020) revealed that the fully revolutionised transformation by making manufacturing, logistical, supply chain, warehousing, distribution and marketing or sales performance towards digitally dependent channels can be brought into progress. Both the dominant business interfaces depicted in the form of B2B as well as B2C are possible to be undergone complete digital transformation from physical product and service establishment. As the business organizations are continuously analysing the market behaviour and consumer approach to adapt to new normal situation post code 19 crisis, a critical aspect is observed that abiding by government regulation becomes a social norm. Maintaining social distance and health protective measures are critically observed by consumers across the world. Hence business company establishments have realised the disadvantage of having physical in store outlets with no visitors during the pandemic. Hence, in response to changing consumer behavioural pattern, the Consumer-Packaged Goods or CPG is taken as the revolutionised approach to cater to market demands. In order to enhance and regain market productivity with active enhancement in demand curve rise, responding to consumer indications with sensitive analysis becomes the driving force for global organisations.

A Case Study Digital Leap Model in Saudi Arabia

A leap on a large scale toward digital transformation has been observed in a global perspective. Analysing the impact that the pandemic has caused provided a clear insight on how companies adopted digital technologies to overcome this outbreak. The Saudi Arabian government represented an excellent role model on encouraging a digitalized environment to adapt the new norm. Although Saudi Arabia have implemented a strict social distancing constrains, several measures have been conducted to ensure that restrictions are not affecting business operations. In April 2020, Saudi Arabian government decided to enforce curfew to minimise the spread of COVID-19. As a result, doing business became difficult given the circumstances. The effective use of technological solutions is vital minimizing the negative impact that the curfew have caused. The Ministry of Health launched an application called “Tawakkalna” to monitor the overall status of all residents. “Tawakkalna” does not only monitor the health status of individuals, it can also perform several functions to enforce physical distancing. “Tawakkalna” can manage permissions to leave the house during the curfew period by ensuring lower gathering which could increase the spread of COVID-19. Moreover, the application has helped business owners to minimized risk of spreading the virus among customers. No entry for individuals to any facility without proving health status using “Tawakkalna”. Effective implementation of digital solution has helped business operations run smoothly even with the current circumstance.

Methodology

Predictive Analysis Theoretical Framework

Deep analytical survey and expert strategic decisions to predict the transformed pattern of consumer behaviour required to be critically formulated by business organisations at different industrial levels. Since the market demand drop and sales figures depict a sorrowful picture of global business overview across the years 2020 and 2021, consumer purchase behaviour needs to be redesigned for which digital technology becomes unavoidable alternative. More than 80% off customer buying inclination is analysed to be created through online mechanism which naturally indicated the companies to reinforce and encourage through increased focus. Interactions adapting digital channels enable the development to be in progress and incurred continuity through sustainable solutions. Abdulrahim & Mabrouk (2020) stated that from the statistical facts and data entries graphically plotted, the clear indication leading towards digitalised solutions adhering to COVID-19 crisis in regaining customer interaction continuity. The predictive analysis with statistical data figures shall enable the corporate organisations and business industries to take the right decision in adapting transformed digital transactions.

On a global platform, the adoption of customer interaction is found to accelerate from 20% to a level of 58% comparing from June 2017 to the current situation of June 2021. The drastic increase in the pattern of consumer behaviour gives a natural impression about dependence upon digitally transformed business model where the inevitable outcomes are tried to be used at an advantage by the business organisations. Getting into a region-specific study, insights are developed with statistical facts and figures adopted across the four years research analysis. Across Asia Pacific, the consumer interaction using online portals as digital technology dependence was 22% during June 2017, which declined to 19% during May 2018. However, it is from 2020 March onwards that a significant rise in the customer buying approach using digital channels unnoticed depicting 32% by the beginning of 2020. According to Mhlanga, et al., (2020) this ultimately led to 53% of entire customer interaction concentrated only upon Asia Pacific region of the world by different industrial brands and companies till June 2021. Addressing the European zone, a similar pattern is revealed where 18 to 19% of digital adoption was reflected from customer interaction by different business organisations during 2017 and 2018. This pattern significantly transformed to elevate by 32% and 55% during 2020 March and 2021 June respectively.

Cases Results and Discussions

Without adoption of automotive assembling tasks creating gradual transformation with low level changes the business organisations would not be successful in embracing the new normal patterns of digital technology-based performance. Wuest, et al., (2020) indicated that treating digitally active product portfolio and emphasising upon digital marketing and sales promotion with increased investment upon online campaigns and use of social media has boosted the robust channelling of digital interface to connect between brands and consumers. Each of the industries engaging business mentality across healthcare, pharmaceuticals, professional services, educational organisations, financial services retail sectors, technological equipment and automotive have transformed their business with the unanimous opinion of delving deep to get the benefits of digitally mechanised business outcomes. With the help of CPG company techniques, the execution from each of these industries has endured huge jumps to incorporate digitally transformed online service operation. From online schools and classroom set up with digital technology to the pattern of adapting work from home rather than walking up to office workplace the entire scenario of business performance is transforming to adapt a consistent pattern.

As consumer demand observed to rise gradually, responding to them with speedy digital robustness and fast transformation business model becomes the need of the hour for each organization. Meiler (2020) revealed that COVID-19 related changed protocols have transformed the conventional approach and environment of workplace where the industrial working patterns add insidiously indulging technological automation and use of artificial intelligence into action. Executing demand-oriented service supply with maximum diligence is possibly implemented with a consistent response pattern adapted by companies with 20 to 25-times faster transformation ability. The crisis mitigation strategy to even make remote location working equally productive has only been possible with absorption of digital technology advancement by moving towards new normal transition. The companies have shown tremendous speed and radical change to observe robust digitally dependent paradigm shift with 40-times faster adaptability and quick learning skills under pandemic regulations. Such a response initiated from the urge of getting the business going after extreme rough situation and sudden sales drop during initial phase of COVID-19 situation. Within an average span of ten to eleven days of relentlessness work and operative prominence effective solutions received with company strategic approaches making expectations turn into reality. Within a few months of time, the global organizations were successfully able to implement the digitally transformed output giving response to the demand rise among consumers. The changing patterns observed among companies from different industrial backgrounds as a result of COVID-19 related transformation and adoption towards digital technology to mitigate the crisis word witnessed as follows:

The enhancement of making remote locations to make them equally productive is expected by making changes to 454 companies. However, this actually turned to be practice for 10.5% which accelerated 43% of industrial operations. When the customer demand rise addressing online buying pattern was indicated, more than 585 companies were expected to respond. Ding, et al., (2020) indicated that more than 21.9% actually became successful in responding to the expected outcomes to meet consumer satisfaction and supply to the demands. This indicated 27% of industrial operations across digitally robust transformation. When use of advanced technological equipment are made a priority for global organizational operations to be expected for 672 companies, 26% of them were able to bring 25% elevation of industrial operations to match the technological expectations within a limited span after COVID-19 pandemic. The business decision making responding towards consumer demand was able to successfully mitigate the crisis by 25% activation among industry wide changes. Use of cloud mechanism as a beneficial asset for increased migration, 547 companies was expected to adapt the technological change.

Papagiannidis, et al., (2020) expressed that out of them 23.2% were able to successfully utilise cloud as an asset by undergoing robust technological transformation with 23% of entire change observed in an industry wide proposition. When in-sourcing practices were found to get boosted with empowerment and optimization of near shoring, 547 companies required to respond to the demand as expected. However, 26.6% of organizations were actually able to perform to meet the results as expected. This led to 21% of complete industry wide transformation using digital robustness as transformation precursor. When the average investment spending amount towards data security was required to increase among 449 different companies, 23.6% of organizations work possible to make it in reality. This resulted in 19% of total industry-based changes to be made within the short span of pandemic erupt crisis situation. When supply chain and logistical performance is required to undergo restructuring through redundancy build-up, more than 537 organizations were expected to transform their operative framework. 29% of them were able to respond evidently. This was able to bring about industry wide change by 18%.

On analysing to the in-depth insightful reasoning behind the in capability of companies to observe such required transformation over the years, use of survey techniques were administered. Most of the respondents revealed the fact that before the COVID - 19 pandemic they did not feel the crisis to be as significant to prioritise their business to be remodelled and restructured with elevated importance towards digital technology dependence. Kang (2021) is of the opinion that it is only 14% who revealed that barriers in the form of lack of resources and ineffective decision making from leadership management structure that led to execution of changes only after the COVID-19 pandemic hit on the world. More than 11% responded stating that consumer faced business model was failed to prioritise the significance of technological robustness as a transformation precursor which often became a challenging factor towards B2B Operational paradigm. 9% of them responded that business executives and directors did not provide importance towards need of robust technology and rather endured issues regarding advancement in technologies. It is often directed towards The IT infrastructural insufficiency which remained as a factor responsible for organizational failure to deliver optimised commitment in executing required transformation to embrace technological enhancement.

Organizations look for long term sustaining changes to be optimised as a result of post COVID-19 pandemic business remodelling. The largest transformations are found to be for long term observation where critical significance towards digital technology dependence contributed towards remote location working productivity, permanent attitude change among customer buying process and switching towards hygiene sensitivity and Health Protection as a crucial part of business remedy. Industrial sectors and business observers have come to the crucial understanding that consumer buying pattern and response to buying practices have undergone revolutionised transformation. Banga & Velde (2020) stated that this triggered the initiative among large scale companies to involve cloud mechanism for indulging enhanced migration optimization. The response pattern in result to the demand curve shall be twice as effective when cloud solutions to boost the shift in paradigm from physical offline stores to embrace the digital transformation of online technology-based operatives. Taking the pandemic norms of social distance into critical priority, one of the largest shifts taken into consideration by the organisations for crisis management is to recover from the sales drop and poor performance outcomes.

Engaging new skills with technology adaptive knowledge has dominated the reshuffling process of entire workforce for all organisations prioritising change post COVID-19 situation. Some of the long-term sustainable changes observed by the companies to respond with transformed business model is in the form of changing customer needs and preference or priority expectations. 63% of the organizations were able to understand and react to such customer sensitive changes. The remote location working productivity in collaboration with digitally transformed online support is possible to revolutionise 93% of industrial productivity. Agostino, et al., (2020) explained that with the help of cloud as an acid increased migration is possible to revolutionise companies by 34%. Online purchase demand has been accelerated as prominent customer buying pattern to which companies have been able to experience specific changes by 62%. The increased investment to spend up on data security factors is likely to change the companies by 37%. The advancement of technology and changed operations across business organizations has transformed industries by 37%. The last mile delivery ownership has transformed the entire value chain operative for impacting the industries by 20%.

The overall enhancement in the technological robustness to make significant transitions in decision making has impacted industries by 21%. The change of staff recruitment preference and criteria of qualification to build technology-based workforce strength has transformed the industrial interface by 21%. Priyono, et al., (2020) indicated that with a 15% change in in-sourcing practices, the industrial patterns have transformed by increasing importance towards near shoring. The range of expectations to sustain as a long-term change across the industries indicates from 41 to 62%. There is a high propensity of the industrial belt to believe that the changes brought about as a result of COVID-19 pandemic are likely to stick for long term sustainable transformation made as a permanent optimization approach across business remodelling performances.

Technology drive strategies have become the key to win and succeed for business organisations post COVID-19 pandemic crisis. The corporate agencies and entrepreneur establishments lead towards digitally transformed technological robustness by aligning the overall structure of strategic decision-making framework in a revolutionised manner. Suau-Sanchez, et al., (2020) in of the opinion that to overcome the disruptions and create effective transformation, the differentiated technological abilities in the forms of automation, cloud mechanism, new technological equipment’s, online sales generation and digital marketing campaigns have become increasingly prioritised. The revenue growth and recovery of decline in market demand pattern are likely to be dependent upon these factors. As an experimentation approach many of the globally performing companies have invested into increased use of digital technology. In order to create success for the companies to navigate better to overcome this crisis, result oriented investments and refocusing are insured to live up to the competitive advantage within the market scenario. Some of the prime areas of operation to end your technological enhancement with proper response pattern are employed as follows:

Use of primary source in the form of savings has contributed to 10% of strategic change to embrace new technologies. Creating a modernised structural layout across the company with enhanced technological capabilities has able to sustain the competitive edge in the market by contributing to 30% change. Peek, et al., (2020) stated that investing upon establishing competitive advantage with use of technology has contributed with 38%. Business companies have ensured refocusing strategies to imbibe technological digitalization with 19% contribution. As a response to COVID-19 pandemic, different business organisations were served and analysed to understand the reason behind shift towards technological digitalization. The declining revenues have become the key contributor to change the overall mindset of entrepreneur which could not be possible to bring about in an organic and gradual manner over the last 3 years. Revenues are found to increase by 61% after adoption of digital technology which had declined the revenues by 45% As a result of COVID-19 crisis.

The lack in technological capabilities found to further aggravate the crisis during COVID-19 is indicated in the following manner as responded by the companies:

Having the potential of building effective workforce was critically challenged with gap in technologically based talent groups. Butu, et al., (2020) revealed that this led towards pandemic crisis elevation by 75% response agreeability. The precision required to handle digital technology-based business operations were lacking in the companies which made the progress delayed after COVID-19 to create an immediate response pattern by 67% impact. With the experimentation of new digital technologies, the COVID-19 pandemic crisis was tried to be first moved by 56% of the companies as responded. Creating market innovation as a result of COVID-19 crisis was found to be impacting on the overall industrial pattern by 52%. The cutting-edge digital technology robustness to analyse sufficiency of talent inclusion as workforce effectiveness was desired by 48% of companies. Creating a successful management with the help of cyber security support along with data analysed risk processing ability to mitigate the crisis has impacted by 42%.

Fitriasari (2020) indicated that when the chief information officers across different IT organisations and business minds word served, 45% of them responded that it is as a result of this pandemic that initiatives to improve the business channels were established. This led to 45% increase in relationship between business leaders and performers, a drastic change with 50% focus efficiency by channelize in the cost centre to enable business solutions were indicated. Enhancement in the form of creating credibility was effectively adjusted by 45% of efficacy rate. More than 55% of the scope for opportunity use using cloud mechanism was incorporated into business post COVID-19 pandemic crisis. Large scale migration in the form of cloud enabled quick demand supply was possible through 27.5% of provision in essential supplies for survival, 27.5% for decision making strategic changes in business, 11% through innovation, 23.5% using technologically based pure decision making and 10% of game changing attitude.

Recommendations

Further recommendations are proposed to enhance the result and gain more insights related to impact of covid19 on digitalizing business:

Use of primary data in the form of survey response, interview administrations and case study specification would enrich data insight.

Investigating the impact in Saudi Arabia since it shows an excellent example of crisis management by effective implementation of digital technologies

Industry based comparison regarding the impact analysis as a result of COVID-19 crisis to show the changes in capacity across each business sector would be more detailed evaluation.

Addressing each of the challenging areas and proposing ways of recovery incorporated with technological solutions across business organizations during pandemic should be addressed.

Conclusion

The world has never seen a bigger challenge opposed upon the entire industrial belt engaging diverse business sectors such as COVID-19 crisis. According to Misra, et al., (2020) it is in response to such a dramatic event that a series of strategic reformation became the natural urge for the business entities to create survival skills and overcome from the adverse impacts. The above report creates a live data based factual and critically analytical understanding about the impact analysis led through COVID-19 consequences upon the overall business sectors. Data from McKinsey Global Survey Form revealed reliable and valid understanding about the sudden change in consumer attitude towards product and service attainment. As companies underwent severe loss of sales across the globe as well as Saudi Arabia, a strong sensitivity is derived regarding consumer buying pattern prediction.

In order to strengthen the future steps to reform the business in a consumer adaptive mechanism, the accelerative dependence towards digital technology became the inevitable indicator. From supply chain activities to logistical operations and delivery distribution to consumer interaction, the entire network reflected critical significance to be focused upon digital robustness to amplify technological advancement. From redefining the product portfolio with digitalised optimization, companies initiated the execution of crisis mitigation plan. Governments led regulations as a result of COVID-19 pandemic to encourage social distance create significance upon health and hygiene along with working hour’s pattern shifts word given crucial prioritization by the business organisations to increase efficiency and serve the demand curve rise depending upon technological role.

Acknowledgment

Author of the article is grateful to “Deanship of Scientific Research (DSR), Imam Abdulrahman Bin Faisal University, Dammam, Saudi Arabia for support under project # COVID19-2020-039-CBA.

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