Impact of Coronavirus on the Digital Economy

The ferocious cloud of the coronavirus has shadowed the entire planet. It has unequivocally feigned umpteen challenges to all the sectors of society. On the other hand, it has also presented numerous opportunities for the digital economy. It’s benefitting the freelancing job platforms as well. The clients and freelancers have the privilege to send and receive payments via cryptocurrencies. Not only is it a hassle-free transaction but secure too.

The organizations that were lagging in the digital transformation field are now unprepared. These digital dawdlers are facing a task to shift their operations and workforce to a virtual environment. The pandemic has opened the eyes of the people who underestimated the importance of the digital economy. The employees of such companies are stressed regarding their health and have sighted a drop-off in their demands too.

However, the organizations that were digitally equipped with all the tools and software are now at an advantage. They have all the relevant tools required to combat the severe storm of the COVID-19. Such organizations have elevated resilience in such edgy times. With better technology and strategies, they can chase growth. Let us have insight into the impact of the coronavirus on the digital economy.

New Data Center Paradigm

Before the coronavirus, the integration of artificial intelligence, machine learning, and other real-time enabled new applications with real-life, was considered to be beyond the reach of technology. But, the pandemic has bolstered this transformation. The results of this augmented transformation are the heightened usage in digitized data. A vast compute and storage capacity is integrated with this data.

Some of these statistics and researches prove that the COVID-19 has boosted the data growth. According to IDC (International Data Corporation) research, the coronavirus’s vicious wave has proved to be a boon for the digital economy and data growth industry. The study demonstrates the fact that the coronavirus would support data growth in 2020 and 2021.

Let us have a glance at other statistics related to data growth and coronavirus.

From the year 2016, digitization has fabricated approximately 90% of the world’s data. The IDC reports show that the usage of data globally will cross the 59 zettabytes mark in 2020. By 2025, this figure is likely to augment to 175 zettabytes. One zettabyte is equal to a trillion gigabytes.

This heightened usage of data owes its importance to various factors. There is an augmentation in the video-based content consumption by the users. Also, the remote working facilities have yielded much to this growth.

Hence, the data centers are emerging as the commerce platforms of the 21st century. This industry has a lot of potential to integrate many adept employees. It is such data centers that are keeping the economy afloat amongst the flood of the epidemic. The businesses are practicing to be technologically equipped during this phase of adversity.

Shift To Digital

The world has now become a virtual market. This is visible from the fact that Microsoft is even holding its most significant event, “Build developer conference” in a virtual environment. This has proffered opportunities for software like Zoom and start-ups like Hopin. The software Hopin integrates Twitch-style live streams. Tim Jensen, the Campaign Manager at Clix Marketing, remarked about the search engine usage. He said,

“As the tradeshow circuit dwindles, some exhibitors are looking for other ways to fill their sales pipelines. I just talked with one client who is seeing several trade shows get canceled, and wants to put more into digital to make up for the lost leads they usually pick up at events.”

Though, to extend a strong base to the digital economy, Stuart Mackay, the General Manager at Reprise Dubai, remarked a few words. He said that these edgy times related to a health crisis have occurred in a digital age. Thus, the organizations must adapt effectively to this shift and procure new advancement opportunities. Retailers can reap the benefits of the changing preferences of the consumers in this digital era.

The digital software and tools facilitate e-commerce and simplify product lines, sales channels, and customer engagement. The introduction of such digital strategies paves a way to optimize business models. In the end, he said that the efficient use of technology to offer benefits to the consumers would decide if this battle is won or lost.

Financial Services

Even the banking industry is going digital to avert the dispersal of physical currency. The physical currency incorporates the infectious notes that have a higher risk of dispersing the virus. Various complex transactions are now done through devices like phones.

Nevertheless, the banks that have invested successfully in the digital economy are proliferating. This is because the research by Bain study exhibits specific facts. It states that the new account openings truncated by 23% on average in the United States during the coronavirus.

On the contrary, there were two banks whose account openings increased by 45% and 43%. The reason behind this heightening of the account numbers was due to the wise investment done by these banks. By having cognizance of customer value and satisfaction, and by helping the customers in the digital transformation, the banks can attain an augmented customer base.

Heightened E-Commerce Opportunities

Due to the worldwide lockdowns, the markets have now been shut. But to survive, humans need the necessities, and hence, the demand for such commodities is still rising. Therefore, the customers who were hesitant regarding online shopping are now shopping online to meet their needs.

There are various apps that facilitate e-commerce like Amazon, Flipkart, etc. The customers can even pay online and leave their feedback for the store retailers. There is a whisk of physical and digital technology to give customers the best experience during this pandemic.

Digital Health Solutions

After sighting the spike in the coronavirus cases in America, the healthcare system has gone digital. This digitalization is helping to combat the strain imposed by the outbreak. People need not go to the hospitals and risk their lives.

This is because remote diagnostics and telly medicines assist the patients to get medical treatment at their homes. Not only this, but 3D printing helps in the production of medical supplies like PPE kits. During these bothersome times, the best prevention against the virus is exchanging information related to it.

About the Author

Parvesh Mittal is a digital marketing and online reputation management specialist who frequently writes about related topics.

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