At present, the more extensive impact of the crisis is more frequently presented with higher intensity. Unlike the past, the occurrence of unforeseen risks, such as the Tom Yum Kung, the Hamburger, the Tsunami, and many other crises, has a gap of over a decade or more. This gap makes it possible for businesses to perform during the usual situation where the market goes smoothly until a new risk has arisen. As you can see from the last three years, more than three structural crises have occurred and each of them has led to enormous changes in the business world.
2018: Digital Transformation
In 2018, Digital Transformation became one of the hottest topics that was discussed among companies of all sizes. A number of them have tried to adopt digital technology at different levels ranging from digitization, digitalization up to digital transformation. The power of digital technology has attracted a large number of new players to enter the market. This has led the incumbents who adhere to the conventional business method to confront a much larger of new competitors resulting directly in their generation of profits. In combination with a higher speed and ease of digital technology, new entrants are empowered to run their businesses with greater efficiency and faster market expansion.
2019: Environmental Issues
Although companies were barely used to digital disruption, they were faced with one of the most important problems in society such as global warming, air pollution, and plastic waste, which has led to the question of who should be responsible for these ongoing issues. Consequently, the business sector is expected to be more or less responsible for saving, nurturing, and recovering the planet because they profit the most from natural resources all along.
Is it the time for growth that is not limited to just business growth but also contributes to a better world?
2020: The COVID-19 Pandemic
COVID-19 has completely changed our year of 2020. Digital disruption may have has an impact only on the business sector while the social sector has benefited from it. Environmental issues that seemed so far away despite PM2.5 breathing down our necks, COVID-19 has raised awareness of the relationship between People, Profit, and Planet as never before.
When something affects people's quality of life, everything else has to be changed. Previously, the primary concern for the restaurant business would be how the seating capacity can be fully maximized because it simply means the more money the business could make. Today, however, the restaurant is told to reduce the number of seats by more than 50 percent for the practice of social distancing. Moreover, we have seen a change in consumer behavior from dining in to takeout and delivery. However, the business still has to pay the same rental amount because the cost of space doesn't change.
This is the direct impact that the restaurant business is grappling with, not to mention airline business, retail business, spa business, and many others over hundreds of businesses that are facing similar sweeping changes which will occur more rapidly. The only answer to this situation is businesses could no longer be run as what conventional MBA classes might have taught. It requires a total change in "operation", but for changes to effectively take place, "mindset" and "communication" are the two preceding changes required.