COVID-19 has significantly changed the way businesses operate. As a premium technology company, Aware Group’s success depends on the performance of our customers. We are especially interested in how this can influence our customers.
We are seeing organisations fall into one of the following groups:
- Business as Usual (BAU) – The organisation is largely running normally however has seen an increase in support to minimise OPEX.
- Survival – The organisation is in survival mode and has abandoned all programmes of work.
- Opportunity – The organisation is taking advantage of or is untouched by the pandemic.
Business as Usual (BAU)
Organisations in this category are focusing on core business functions that must continue. Side effects of preferring projects that minimise OPEX include:
• Incurring a heavier penalty for
cancelling “innovation projects”.
• Industry regulations or contractual obligations require some projects to continue.
Organisations that fall into this category are ceasing all unnecessary spending. This usually includes major reprioritising of resources to increase revenue, such as Marketing. We are observing:
• Reductions in contractors and full-time
• Freezes on non-essential capital spending.
• Changes or adapting the core business model.
• Putting policies in place to limit exposure to future “black swan” events.
These organisations have either flourished in the circumstances or have taken the opportunity to reinvent their products and services. In this case, we are observing:
• Innovation to help other organisations
get through these tough times.
• Innovation of new products and services.
• Innovation in business processes leading to even greater resiliency for future black swan events.
• All of this innovation leads to an increase in available budget and leads to a greater stronger position in the market.
What does this mean for you?
Companies need to adapt to best provide for the needs of our customers – this means:
• An increase in pre-sales efforts to
reduce risk to customers. For example, requiring additional ‘proof of
• Understanding organisational pride and more often “Maybe” really means “No”.
• The vendor may have the greatest idea in the world, but if there is no money to purchase – it will remain only an idea.
• A vendor will need to be creative in all ways – pricing models, billing, quoting and solutioning.
• A vendor is going to see changes in their sales pipeline and how it moves.
What can a customer do to help?
• Be honest and clarify your position –
don’t vendors lead on.
• Share the organisation vision and plan.
• Optimise the procurement process within the organisation.
• Commit to longer contracts where feasible.
These events affect everyone personally and in business. This is the best time to be curious and kind.
Interesting read: Have a look at the study provided by Deloitte, showing the outlook of the sector for the Australian market post COVID-19 here: https://aware.to/deloittecovid19.