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South African businesses are embracing digital to survive Covid-19
18 May 2020
CAPE TOWN – South Africans are changing the way they do business to align with the lockdown restrictions and current operating constraints, according to Derek Cikes, commercial director at payment fintech, Payflex.
He said that businesses across South Africa have remained confident while transforming and adapting their business models during a time of economic stress.
“The are embracing a more emerging digital service offerings,” he said, “and by being proactive, these innovators will remain relevant in a time of uncertainty.“
He added that the current crisis had fast-tracked the use of disruptive technology and out-the-box thinking.
“Covid-19 has forced digital transformation to the top of the agenda, with companies pivoting their business model to provide service offerings that are compatible to Covid-19 lifestyle changes.”
South Africans had responded to the current crisis by restricting and transforming their business offerings to accommodate the current lockdown. Cikes looked at some of the businesses’ innovative ideas.
Digital disruption disrupts the norm.
It would seem that the opportunity is not possible for many retailers whose businesses deal directly with consumers. However bathroom company, Bella Bathrooms and Tiles, has has used digital technologies to pivot its business by recreating its operating model.
“Homeowners can now download the Bella Bathrooms décor app which accesses the consumer’s cell phone camera once permission is granted by the consumer,” he explained. “This allows homeowners to enjoy a virtual consultation with a bathroom designer from the safety and comfort of their homes.”
Cikes said, “If you believe your sales and consultations can only be done face-to-face, it might be time to re-evaluate your entire sales process and transform it.”
He added that businesses were finding innovative and interesting ways of digitally engaging with potential clients, whilst figuring out how their services could be adapted to fit the ‘new normal’.
“By using technology to create alternative avenues of communication and engagement,”said Cikes, “businesses can enhance their service offering while accommodating lockdown regulations to support customers’ goals of staying safely at home”.
Being social in a social distancing world
Cikes mentioned boutique liquor company, Dry Dock, which had come up with virtual wine tasting events while alcohol sales are prohibited. “Attendees who have a wine collection at home can open the same bottle of wine,” he said, “Or if they choose to open the same type of wine such as a sauvignon blanc from a different brand, the sommelier webinar host will then discuss the differences between their wine and the other brand.
“Here’s a perfect example of how a company digitally updated an age-old way of doing something in order to accommodate the current restricted parameters. They’re staying relevant even at a time when many businesses in their industry have ground to a halt,”says Cikes.
He added that these interactive digital experiences allowed for a more relaxed environment where participants had the opportunity to enjoy a more personalised engagement with the host. Making use of a digital platform also extended the expertise of a business to an audience across the globe, acquiring consumers worldwide who would have access to this expertise at the click of a button.
Innovative Covid-19 testing
Cikes said that healthcare technology platform, Epione, had introduced a symptom checker for pre-screening Covid-19 onto its platform which provided sound access to health professionals. This innovative service enabled patients to monitor and evaluate the progression of their symptoms remotely.
“An important lesson from this crisis is creating flexible solutions to meet people’s needs within the current environment. By using expertise in their particular domains, businesses can focus on a key feature that addresses consumer demand and pain points at a given time,” said Cikes.
We’re all in this together
Pivoting a business for gain or profit was not always the goal, he explained. Some businesses and organisations had pivoted to create services and solutions to help South Africa beat the pandemic.
Kim Whitaker, a hospitality broker who founded Ubuntu Beds while her own business had come to a halt, was a great example, he said. Ubuntu Beds is an initiative that aims to bring together hospitality businesses, that are currently empty, with healthcare workers who are fighting the virus.
Cikes mentioned The Lockdown Digital Classroom, a voluntary virtual classroom created to support student learning during the pandemic, and sponsored by the Sasol Foundation, as another example.
Payflex, the-buy-now-pay-later fintech, has also come to the frontlines, said Cikes, by providing a payment infrastructure for the Solidarity Fund, making it possible to pay donations over four instalments.
Cikes explained, “By giving South Africans the opportunity to donate in instalments, we are providing a more flexible option to those wanting to make a difference, accommodating different budgets in the process.
“Pivoting to address specific needs of groups such as the education community allows a brand to demonstrate empathy and understanding. This communicates a message of solidarity with a focus that goes beyond profit,” said Cikes.
He added that,“By striving to make a meaningful difference to those around you, brands can foster brand loyalty and alignment both during as well as long after the crisis has dissipated, while making a positive impact on people’s lives.”
Optimizing existing infrastructure
Redshift website developers had expanded their business offering to help support retailers providing essential services, by onboarding local suppliers onto their platform. This allowed suppliers and supermarkets to accept orders from consumers.
Cikes said, “This is an example of using current digital infrastructure to expand offerings, enabling retailers to remain operational and viable in a challenging economic time. Think about your core infrastructure and how this can be leveraged to create a new revenue stream.”
Rethink the solution
The digital communication provider, Registered Communication, which facilitates the signing of legal documents, said Cikes, had enabled innovative digital disruption in the legal arena by transforming the traditional paper-based notifications and hard-copy delivery of contractual documents into a legally compliant digital alternative.
“Businesses like Registered Communication are coming up with new and innovative ways of solving the challenges we are met with during the lockdown,” said Cikes.
To find the soloutions to the challenges faced during the pandemic, businesses needed to rethink the way they were solving problems, he said, adding that restructuring a service model to include digital platforms would expose a business to a bigger audience, in turn increasing its revenue.
“Even though pivoting has always been an important part of any business,”said Cikes,”the impact of Covid-19 has forced businesses to act swiftly and radically to ensure business survival and long-term success.”
Cikes concluded by saying, “Businesses are re-imagining themselves and using disruptive technology to remain relevant. Although pivoting comes with risk, inaction can pose a far greater threat to survival in the face of the economic and health challenges of this unprecedented time.”
