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ACADEMIA Letters COVID-19 and the Digitalization Pace Fernando Almeida COVID-19 is a disruptive force that has brought numerous challenges and uncertainties to organizations. One of the most visible effects is the financial and social costs caused by the pandemic. In a short period of time, many businesses had to close their activities and, consequently, no longer have any turnover. The way companies have responded to this huge challenge is very diverse. However, two trends can be identified: (i) closure or reduction of their activity that led to layoffs and layoffs; or (ii) change of their business model to respond to the challenges posed by the pandemic. In this last scenario, the companies tried to find ways to survive, investing in the adaptation and reinvention of their business. Technology was a key element for a business to continue in times of pandemic. However, its role as recognized by Brown [1] and Furlonger & Uzureau [2] is much more comprehensive and ensures itself as a fundamental element for the operation and growth of an organization. However, the role of technology cannot be seen in isolation. The role of people in the relationship with technology cannot be ignored. Varadarajan [3] states that the basis of sustainable innovation is people and, consequently, the recovery from this crisis requires the involvement of people as the greatest differentiating element of recovery and growth. Several examples can be found about the role of technology in times of pandemic. There was a need to use digital communication tools for different areas such as economy, education, or social relations. The need for physical isolation made technology assume a determining role in telework. The meetings stopped being physical and migrated to applications such as Zoom, MS Teams, Google Meet, among others [4]. E-commerce has experienced exponential growth with the risks inherent to physical purchases and home isolation [5]. Associated with this, we have experienced an exponential increase in the use of electronic means of payment, which leads society in the direction of cashless payments [6]. Tele-school and online learning were also a reality in several countries with the closure of schools and universities [7]. Difficulties Academia Letters, March 2021 ©2021 by the author — Open Access — Distributed under CC BY 4.0 Corresponding Author: Fernando Almeida, almd@fe.up.pt Citation: Almeida, F. (2021). COVID-19 and the Digitalization Pace. Academia Letters, Article 644. https://doi.org/10.20935/AL644. 1 have arisen in the implementation of these solutions, particularly in terms of digital inclusion. Not all people and organizations were at the same level of maturity to immediately adopt these solutions and digital exclusion became a serious problem, which governments have difficulties in mitigating the abrupt effects of the pandemic. The crisis caused by COVID-19 has generated a learning effect in many organizations. It is evident that companies with a high degree of digital maturity are better able to overcome the crisis significantly better than their competitors [8]. However, this perception came too late for many organizations. They recognize that it is important to take advantage of digitalization as soon as possible. However, a great obstacle to overcome this challenge is the lack of experience in digitizing, especially among managers. Digitization is not a mere purchase of technology and implies the reformulation of business processes, integration with stakeholders, and the search for new ways of working that allow for increased efficiency without reducing levels of social interaction within organizations. In this sense, the acceleration of the digitalization processes will lead to the info-exclusion of many companies, since not all will have the same conditions for this technological revolution in a short period of time. From the economic and social perspectives, the effects of digitalization acceleration make themselves felt in a very abrupt way and promise to change paradigms of consumption and social interaction. The increase in online shopping can put physical stores at risk, which will lead to an increase in unemployment in the traditional public services field and destroy the shopping center of cities. Simultaneously, the digitalization of production processes with the growth of industry 4.0 may also result in an increase in unemployment among less qualified workers. The increase in distance learning may also alter the paradigm of how universities operate since the location of institutions is no longer a relevant criterion in the choice of students, but rather universities compete on a global scale. This situation means that geographical proximity factors that sustain many businesses are no longer sustainable. This new way of thinking and acting in the market will provoke a new positioning of the various stakeholders. In the government dimension, it is necessary to redefine social protection models to guarantee a basic income in times of unemployment and personal qualification. Also, in this field, it becomes necessary to think about green infrastructures that offer more attractive places for sports and leisure practices and encourage the use of sustainable energy sources. Working at a distance will allow people to leave the periphery of large cities and choose more distant places with a better quality of life. Less demand for mobility means less noise and pollution but, at the same time, more demand for energy from large digital installations. Shopping over the Internet means less storage space is needed and will encourage delivery, support, and advice services. Innovation will be a key pillar that will guide the processes of digitization, in which it is intended to be human-centered and guided by sustainable Academia Letters, March 2021 ©2021 by the author — Open Access — Distributed under CC BY 4.0 Corresponding Author: Fernando Almeida, almd@fe.up.pt Citation: Almeida, F. (2021). COVID-19 and the Digitalization Pace. Academia Letters, Article 644. https://doi.org/10.20935/AL644. 2 objectives and the public interest. References 1. Brown, S. (2020). The Innovation Ultimatum: How six strategic technologies will reshape every business in the 2020s. Hoboken, New Jersey: Wiley. 2. Furlonger, D., & Uzureau, C. (2019). The Real Business of Blockchain: How Leaders Can Create Value in a New Digital Age. Old Saybrook, Connecticut: Gildan Media. 3. Varadarajan, R. (2017). Innovating for sustainability: a framework for sustainable innovations and a model of sustainable innovations orientation. Journal of the Academy of Marketing Science, 45, 14-36. 4. Sidpra, J., Chhabda, S., Gaier, C., Alwis, A., Kumar, N., & Mankad, K. (2020). Virtual multidisciplinary team meetings in the age of COVID-19: an effective and pragmatic alternative. Quantitative Imaging in Medicine and Surgery, 10(6), 1204-1207. 5. Natter, B., & Turner, C. (2021). The Impact of COVID-19 and Accelerated Growth of E-commerce on Gray Market Sales. Available at: https://www.jdsupra.com/legalnews/ the-impact-of-covid-19-and-accelerated-4288334/ 6. Balz, B. (2020). COVID-19 and cashless payments - has coronavirus changed Europeans’ love of cash? Available at: https://www.bis.org/review/r201022h.htm 7. Rapanta, C., Botturi, L., Goodyear, P., Guàrdia, L., & Koole, M. (2020). Online University Teaching During and After the Covid-19 Crisis: Refocusing Teacher Presence and Learning Activity. Postdigital Science and Education, 2, 923-945. 8. Almeida, F., Santos, J. D., & Monteiro, J. A. (2020). The Challenges and Opportunities in the Digitalization of Companies in a Post COVID-19 World. IEEE Engineering Management Review, 48(3), 97-103. Academia Letters, March 2021 ©2021 by the author — Open Access — Distributed under CC BY 4.0 Corresponding Author: Fernando Almeida, almd@fe.up.pt Citation: Almeida, F. (2021). COVID-19 and the Digitalization Pace. Academia Letters, Article 644. https://doi.org/10.20935/AL644. 3