As we are more than a month past this new world order that is now becoming clearer with this compulsory transition for all countries, especially a multi-world country like India. For most of us millennials, this will be the most difficult phase that we have ever seen. It would be a tipping point for companies and businesses as well for a compulsory digital transformation.
People are scared for their lives and their livelihood, especially when we are trapped inside our homes. The stark divide between classes have never been clearer. Few larger implications or impact I feel (and I might be totally wrong) would be:
1. Unemployment rates would double, and the class-divide widens as companies look towards automation and scale like never before. Obviously, online would get a huge thrust due to the unit economics and scalability front.
2. Disguised unemployment ENDS (at least in the private sector). Any job that can be automated or eliminated will be automated or eliminated or both. The government also has a limited capacity to absorb these unskilled unemployed, especially if they are corporate leftovers.
3. The pay gap between the best and the average will also widen up as specialization and outsourcing gain pace, at least in services. However, manufacturing would be preferred over outsourcing incase of tangible goods by countries.
4. Supply chain creation and optimization would be the most important piece in any industry, as companies realize that an excellent product creation and marketing are not the end-goals of their PLC but the supply chain piece is what takes it all.
5. Skillsets and execution will gain even more importance than certificates and degrees, although they would continue to be used for basic hygiene factors. However, the disconnect between the education systems and real world will have to reduce or companies might just commoditize their key functions to be executed by people with abilities, and we might have another gig economy opening up.
6. Companies might try to form the new normal by eliminating traditional office spaces (private cabins, assigned work desks etc) and allowing flexibility to work from home for some days of the week maybe and thereby reduce their expensive real-estate cost of offices.
To conclude, we all have this question: “Will the world be a worst place after the epidemic?”
Frankly, nobody knows one thing most of us can agree on is it won’t be the same anymore!
Please comment on what you think on the new world post-lockdown or do you feel people will return back to old ways of life once again!