Can companies actually enable digital growth in times of crisis and beyond? My interlocutors have asked me this question again and again in countless phone calls and video conferences over the past months. One thing is clear: there is certainly no general answer to this question.

Because as diverse as the perspective on this topic is, as diverse were the people I spoke to. From sole proprietorships to startup founders to experienced entrepreneurs in medium-sized companies as well as board members of listed branded goods companies – across all industries.

To get one step closer to a substantive answer, we first need to dig a little deeper.

The fact is, real growth is simply impossible in some industries during a recession. Demand is almost at zero and global sales markets have collapsed. And what is made even more difficult during this pandemic and completely independent of the sales market: the procurement market and supply chains were/are completely interrupted in some cases.

One man’s suffering is another’s joy…

While many retailers and automotive suppliers are struggling to survive, on the other hand we are experiencing a boom in technology companies. For example at Zoom Video Communications. Over the past twelve months, the share price has increased 4.3 timesfrom around US$88.00 (early February 2020) to around US$382.00 (early February 2021).

In view of these extremes and looking back on my conversations, the question asked at the beginning of this article should first be answered by another question: How can companies drive growth in a recession? And only then to ask whether digital transformation can actually enable growth in times of crisis and beyond.

Also Read: How startups can tap community networks to pivot for growth amidst the pandemic

The example of Zoom Video Communications underpins one fact very clearly: growth in a recession is possible, but only if companies can solve the immediate problems of their customers.

And of course, technology as well as digital transformation can help to get a decisive step closer to this goal.

We have all experienced first-hand how technology can help fight the unexpected effects of COVID-19. Technology has not only helped us monitor the spread of the corona virus but has also enabled us to work productively from home. Technology has also ensured that our children can keep learning. And last but not least, that we can stay in touch with friends and family despite social distancing.

But back to the business area…

The pandemic has hit numerous businesses hard. So do numerous small and medium-sized companies. For many of them, the rapid transition from the analog to the digital world was of crucial importance. Offering and selling services and products directly online to their customers has not only ensured their survival but has even made some of them flourish.

And although there is no tried and tested playbook for our special crisis situation today, the above examples are more than illuminating. The ability to quickly adapt existing products, offers and services to new consumer needs is essential. Adaptability is the key!

Another key aspect is to prioritise the right customers and create an investment plan for the move to digital. See the crisis as an opportunity and sensitise your entire team to the “new normal”.

A look back at 2008 also makes it clear how much potential there is in the current situation. Back then, the financial crisis was the hour of birth for many technology companies worldwide that are successful today. This includes Slack or Cloudera, for example.

Also Read: Survival vs growth: ShopBack co-founder shares 3 golden rules to withstand the pandemic

TechCrunch’s comparison between Asia, North America, and Europe underlines that especially in Q3 2020 with 24 billion raised venture capital dollars in Asia is one of the most successful in recent years.

The future will belong to the prepared…

Lessons from the last two recessions suggest that companies that have balanced growth and cost management have outperformed their competitors in the aftermath.

According to McKinsey’s analysis, B2B companies embarking on digital transformation tend to generate 8 per cent more shareholder returns. And on top of that a five times higher sales growth than its competitors.

Another example is the e-Conomy SEA 2020 report “At full velocity: Resilient and racing ahead” published by Singapore-based investment company Temasek in collaboration with Google and Bain & Company. The report shows that Southeast Asia’s internet economy is on track to hit over US$300 billion by 2025.

Back to our initial question …

Companies can enable digital growth in times of crisis, even beyond. The prerequisite for this is to harmonise the framework conditions of the crisis, the needs of customers and the relevant levers for value creation. It is important to understand that there is a great opportunity in every crisis – for you and for your business.

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In an era where technology dominates the workplace, you either culturally adapt to changing times or get left behind. Cultural transformation and digital transformation go hand-in-hand when developing a framework for advancing the productivity and reach of your business.

Too often, business leaders will push for digital growth without understanding the importance of backing it with cultural transformation. This can lead to frustration, lack of communication, and overall negative performance. Having a strong corporate culture helps retain employees, boost productivity, and attract top-tier talent.

The new digital revolution must first be led by cultural transformation with HR as a key facilitator.

The importance of cultural transformation

We live in a world where we are constantly meeting new people and exchanging ideas. With this comes the necessity of accepting others’ cultures and opinions.

It is important because to maximise the value we bring to a community, we must recognise our piece as a part of the bigger pie. Cultural transformation is an essential tool for all businesses to move forward in the working world.

Recently, 10X Innovation Lab had the pleasure of sitting down with Max Shkud, Head of Learning at Microsoft Silicon Valley. He walked us through understanding the basics of cultural transformation within a workplace, how to set yourself up for success in HR, as well as some thoughts about the coronavirus and opportunities for people working towards creating cultural change in the workplace.

In this article, we share with you his tips and tricks and that will get you to think critically about your role in your organisation.

The digital movement revolution

With the changing times, the majority of the emerging world is pushing to become more technologically literate. Technology is a tool that can be used to set up your business, making it adaptable, easier to communicate within, and even easier to participate in international exchanges.

The move to digital infrastructure is necessary to do business in the modern world. This need is rooted in human resources and stems up through the rest of the business.

Also Read: Values need to go beyond the company handbook, but should be embodied by everyone in the organisation

Understanding the bigger picture

One of the key components in working towards a better corporate culture is to understand the overall objective and mission of the company. When you can put the company’s needs above yours, you become a better team player. You and your peers can set aside personal objectives and focus on the bigger goal.

Max talks about how for years the “business side” and “HR side” of a company have been seen as two different sides. To move forward and be truly transformed, all aspects of a business must come together and understand their position in the bigger picture.

Examples of cultural shifts

Culture is dictated by a set strategic direction established by leadership within an organisation. This is why it is so important that every single tier of the corporate structure can understand their role within the business, as well as what the objectives or goals of the business at large are.

Max references the example of leadership at Microsoft where initially under Bill Gates and then later Steve Balmer, the culture of the company was completely different. He emphasises the importance of social awareness—what might have worked for businesses ten or even five years ago may no longer be relevant. It is important to stay informed about cultural norms and find ways to implement them into your organisation.

Strategies for transformation

The best way to integrate processes for cultural transformation within a workplace is by designing a specific strategy that is tailored to your business. Digital transformation and cultural transformation are by no means a “one size fits all.” Each company, and even divisions within an organisation, must develop its strategy for digital integration.

Sit down with your team and discuss what their priorities and objectives are

Follow this up by asking why these priorities mean so much to them. Are you able to find common ground between employees? Use this to structure how you want developmental digital change to be executed within your organisation.

Send out a survey

Include questions about the company, questions about what employees think their role within the company is, and potential places where employees think there can be an improvement. In the analysis of the survey, you will most likely find common trends or patterns due to miscommunication.

This can be a useful tool to refer to when assigning tasks. It can also help determine what values and culture the people within an organisation seek. Use this to evaluate strengths and weaknesses in your corporate culture.

Also Read: Digital Economy Forum 2020: Accelerating digital transformation for genuine innovation

Having a small focus group can be another way to evaluate the same metrics

Create a cross-functional task force that is assigned to facilitate cultural transformation. Include representatives from HR, leadership, and all parts of the organisation. Having a diverse group of people will help break out from the “one size fits all” model.

Cultural transformation occurs both in and outside the office. To effectively transform you not only have to re-educate your employees but also your partners and other stakeholders. While creating structures and processes is crucial, so is the people’s side. Get to know your organisation’s stakeholders, including employees and partners, on a deeper level. Getting their buy-in is an important step in reaching your cultural and digital transformation goals.

Get better insights into your organisation’s culture through the eyes of your customer

Customers want to buy from companies who they believe are innovators. Customers often will be able to provide an unbiased viewpoint on how your innovation efforts or lack thereof. The customer’s perception will help you not only improve your innovation and transformation processes but will help you better understand how to communicate your progress publicly.

In resolving cultural conflict 

Reconciling cultural differences is often about “ego” as Max puts it. Often, when there is a cultural conflict it has very little to do with the actual culture itself but rather a clash of people who want to be right.

In addressing how to move forward from situations like this, remember the bigger picture and the strategic direction of the company. When we learn to put our egos behind us, we face a more productive and reasonable conversation, which is beneficial to all parties involved.

To wrap it all up, whether an organisation is as large as Microsoft or as small as just a startup with a few people, cultural and digital transformation play an important role in achieving success.

Using strategies to digitise and culturally adapt to your business will help you move forward and outplay competitors. It all starts with being aware and understanding your core purpose within an organisation.

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Singapore-based OrderEZ, which provides a business management platform for F&B suppliers and venues, announced today it has raised over US$374,731 (S$500,000) in a seed funding round from undisclosed investors.

The fresh funds will be used to consolidate its operations locally as well as expand its solution to Australia and New Zealand.

“With our recent funding, our immediate goal is to expand our presence in Singapore and grow into Australia, helping more suppliers and venues minimise human error, grow their revenue, and use data to add value to whoever, wherever they are in the supply chain,” said co-founder Jeffrey Meese.

Founded in 2019, OrderEZ enables suppliers and outlets to centralise critical business processes related to their F&B business.

Also Read: Food Market Hub lands US$4M Series A to grow its cloud-based F&B management biz beyond Malaysia

Its key services include tracking of sales, deal pipelines and ROI, along with bookkeeping, inventory management, automated order tracking and a driver app to capture delivery data.

The company runs on a cloud-based system to keep track of sourcing, food procurement, costs, inventory and operational tasks.

OrderEZ has different pricing for both suppliers and outlets.

Suppliers can avail the lite service for US$150 while the premium service stands at US$224. While outlets can use the service for free , they need to pay US$74 for the premium version, according to the company’s website.

It claims to have onboarded over 500 F&B suppliers and venues in Singapore alone and aims to grow its user base 10x by year-end.

“As the adoption of digital-only solutions grows, there is a strong case to be made for holistic solutions in the F&B sector. Our platform is robust enough to be a standalone solution and yet flexible enough to complement existing ERP systems, allowing users of all sizes access to tools that are catered specifically to their industry,” said co-founder Andrew Creswick.

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Over the past two decades, firms across many industries have gone through digital transformation. This level of digitalisation has paved the way for small to medium enterprises (SMEs) to be able to utilise innovative solutions to gain a competitive edge in a cutthroat business world.

Now, technology-driven innovations have lowered the barriers to entry in the finance sector, one that has been long regarded as a traditional industry. These disruptive solutions have the capability to reshape the face of financing in a once-conservative sector, be it for traditional banks or fintech companies.

The love-hate relationship with fintech and traditional banks

With the entry of fintech firms into the market, retail banks are faced with a new and direct competition. Both function as a financing option for businesses. However, there is also a seemingly ideal allyship in this scenario. Retail banks have the capital and know-how to develop in-house operations to power their digitised processes.

Also, they have the resources and foundation that fintech companies can benefit from in a partnership between the two. Typically, digital banks can choose to outsource aspects of their business to fintechs, resulting in a dual-situation of competition and partnership.

As practical as it seems, it may not always be that easy. Traditional banks have access to multiple partners, potentially harbouring fierce competition among fintech companies. As banks start to embrace technology, these established ‘big fish’ can leverage cutting-edge solutions from fintechs of their choosing without the same level of reciprocity.

Discovering new models to combine their strengths

It goes without saying that in an era of digitisation, it is impractical to work solely on the traditional business model. Banks need help. Fintech companies have a narrower focus, which translates into expertise, on certain aspects that can power the processes of traditional-style banking.

Also Read: The SEA startup ecosystem kicks off the new year with a flood of fintech investment

A prime example is through open banking platforms. The integration of third-party services into digital banking platforms has given financial services a whole facelift, from improved customer experience to round-the-clock accessibility, among others.

Collaboration between fintechs and digital banks allows for a more flexible and holistic experience for the end-consumer. The use of technology can also accelerate financial decisions. To put it into perspective, this coexistence can be seen in origination and lending platforms, omnichannel merchant platforms, and cloud services with cybersecurity and IT infrastructure requirements.

Digital banks and fintech can collaborate to benefit each other

One obstacle that comes with this high-tech upgrade is an almost directly proportionate increase in regulation. The need for digitalisation is almost a necessity in current times, but in doing so can bring in its own host of challenges. Since traditional banks have built a rapport for secure and safe banking, the market may be wary of this shift to an all-online model. To gather the same amount of trust that traditional banks have fostered over its history may be a gruelling process for new market players.

As the Neobanking phenomenon continues to take over the world, these virtual-only banks move users from physical branches online, and in turn, raise the prominence of the issues.

To combat issues such as security risks and fraud in the acceleration of digital banking, governments have been pushed to develop new regulations. These legislation frameworks are put out to reassure and protect customers.

At the same time, smaller companies may be vulnerable to new regulations. For instance, digital banking licenses can put a dent in the financial plan for startups. Traditional banks looking to tap into digital banking will need to provide proof of expertise in several industries for an operating license.

These requirements also include a need for “further financial inclusion, technological innovation, customer analytics, and a solid understanding of banking risk management and compliance.”

Fintechs, however, are currently not grappled by the same rules and regulations that digital banks may face as they start to pivot. This gives them an edge since their growth is not constrained by the same decree.

Also Read: From professor to fintech entrepreneur: why David Chen of Atome decided to make the switch

Now is the time to break tradition and shape to future of banking

Fintech startup Jenfi, provides financing options in the same market share as many online banking providers. This, however, does not eradicate the possibility of a complementary partnership with digital banking services. The said partnership between Jenfi and digital banks could set a precedent for improved digital banking services – underwriting in specific market segments such as eCommerce and analysis of ROI of productive spending and investments.

Around the world, internet penetration rates is at an all-time high. In conjunction with digital transformation in organisations, this rise in online consumption from tech-savvy individuals drives the demand and need for innovative and digitised financial solutions. When it comes to the latest innovations in fintech, the generally positive media buzz and the fresh image seem to appeal to consumers.

Increasingly, consumers are realising that financial management and embracing technology is the way forward – a public sentiment that has evolved over the years. Technology-driven solutions, including digital banking apps and eWallets, are dominating the market right now, as a result of convenience.

In the last decade, the interaction between financial institutions and the market has evolved drastically as banking goes through transformations. Today, people demand control. Enter the partnership model for fintech and digital banking; they work together hand-in-hand to leverage on new technologies, in a win-win solution. With continuous disruptions and higher adoption, the alliance between banks and fintech will only grow to shape the future of banking in the years to come.

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How people do business has changed over the last 30 years, and the internet has been an incredible catalyst for such change. Learn from Greg Zen, an entrepreneur and futurist exactly the why, how and what that’s changed.

We discuss:

• Introduction of the internet
• Dot-com bust
• Recovery and 9/11 mini-crash
• The rise of social media and accelerators
• What the future might look like
• And more!

If you don’t see the Apple player above, click on a link below to listen directly!

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This article was first published on We Live To Build.

Image Credit: Michal Czyz on Unsplash

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