Despite vaccination advancements, some industries’ economic recovery may take years. However, McKinsey & Company think organizations that rethink their processes will survive in the new normal. In its COVID-19 executive briefing, McKinsey forecasts six industries.
Cars Are Still Made
McKinsey believes a pandemic will cost the car industry $100 billion in sales and 20-30% in 2020. Driverless vehicles, automated manufacturing, and ridesharing plagued automakers before COVID-19 so the sector could recover. Online shopping and software subscription businesses are two McKinsey possibilities. Consumers may pay for programs that unlock heated seats or complete self-driving.
New concepts for restaurants
McKinsey expects restaurant consumption to recover to pre-crisis levels in months or years. Full-service restaurant owners need a new sustainable approach. Drive-thru and takeout businesses may enhance their organization, menus, and rates. McKinsey suggests “high-margin goods including appetizers, sides, desserts, and drinks” promotions.
Digital decision-making aids banks.
The epidemic devastated the financial industry. Risk-management teams are addressing credit risk cascades 24/7, according to McKinsey. The business expects automated underwriting will cut retail and SMB losses. If small enterprises can utilize technology to assess creditworthiness instead of humans, McKinsey expects a 5-10% profit improvement.
Superior Insurance Merger Partners
McKinsey expects conventional insurers, notably insurrect companies, to increase M&A activity. During COVID-19, insurrections and fintech’s were among the most customer-responsive and early adopters of solutions. After only a few months, a Chinese insurrect company covered 15 million users with similar products, according to McKinsey.
With 11% of US consumers adopting telehealth in 2019, COVID-19 has advanced digital healthcare. 46% of McKinsey respondents use it to make up for postponed medical appointments. Apollo 24/7 an Indian healthcare service with over 7,000 doctors and 30,000 support employees, starting in early 2020. The app had four million users and 30,000 daily downloads after six months. McKinsey believes public-private collaborations may “impact the future of healthcare.”
Pandemic-related dropout, social isolation, and educational disparity have increased. McKinsey says that COVID-19 is five times more likely to postpone graduation for low-income students than for higher-income students. Distance and online education are here to stay, giving schools a “once-in-a-generation opportunity” to reimagine physical and virtual space. McKinsey advises turning bigger lecture rooms into performance venues. Rearranging the academic schedule for summer sessions is another possibility.
The Globe Economic Forum’s first Pioneers of Change Summit will bring creative leaders and enterprises worldwide to share ideas, create relationships, and inspire change among the Forum’s multi-stakeholder organizations from November 16-20. The online meeting facilitates brainstorming and collaboration to accelerate a worldwide Great Reset. Companies may join the Forum’s New Champions Community of fast-developing enterprises and monitor the summit.
A once-in-a-generation surge of physical asset investment will promote fast growth. The $130 trillion investment boom may decarbonize and upgrade critical infrastructure. Only some organizations can respond quickly and effectively to this funding surge. Top-down, portfolio-synergistic planning is difficult for corporations and needs stakeholder management, financial markets, and approval procedures.
We must modify the workplace for long-term, equitable development to maximize contributions. Since COVID-19, women have done more housework and are wearier. Women in healthcare may experience these consequences more intensely due to fewer remote career options and increasing pressure to prioritize work over family. Over two-thirds of the healthcare sector, entry-level employees and 53% of senior managers or above are women, 18 percentage points more than the norm across all sectors.
All sectors, industries, and positions must be reinvented for maximum development and sustainability. Procurement executives are confronting one of the most challenging markets ever. Today’s procurement departments must be the front line in defending corporate profit and growth, investing in proven technology and process automation, and studying the supplier market. Two McKinsey and independent experts’ publications say the CFO’s position is changing, requiring new skills and more significant C-suite interaction. The CFO’s involvement in organizational growth and personnel development has grown significantly.