Low touch economy: discover the new trend
Posted: Thu Dec 26, 2024 4:41 am
Without the world having time to prepare (if that were even possible), COVID-19 required the confinement of almost half of the world's population, thus preventing physical proximity between people from spreading the infection to uncontrollable levels. Once the first wave has been overcome, any viable deconfinement strategy will have to be based on a low-touch economy , in a version in which daily interactions with people, products and services will have to be limited to the bare minimum and, even so, subject to the new precautionary rules.
The lockdown period triggered a drastic change in habits and routines. Mobility restrictions required a profound change in the way people interact with each other, as well as in the way they interact with economic agents, first and foremost when purchasing products and services. From one moment to the next, we stopped going to work, students could no longer go to school and cities and towns were deserted with shops and restaurants closed. Our deep-rooted and mechanized routines disappeared completely and we witnessed a new logic of work, teaching and experiences based on the concept of Low Touch Economy . We implemented remote working and new distance learning methods, as well as started celebrating birthdays via Zoom.
Low-Touch Economy : the new reality
In just a few weeks, we have relearned how to live in a new era, without kazakhstan whatsapp number database of movement and with the imposition of rules that many of us have never experienced. At first, this context was uncomfortable and unnatural, but over time, we were able to adapt and even find positive aspects. Now, there are routines and practices born out of this pandemic crisis that we want to continue doing. According to some studies related to habit formation, when a behavior is repeated on average 21 times, it becomes a habit. Therefore, the longer the period of restrictions, the greater the disruption to the economy.
The consumer who emerges from this crisis will not be the same as the one who entered it!
And this is where the concept of Low Touch Economy comes in . Who, after being used to shopping online, choosing their shopping basket comfortably, at a time that suits them best, without traffic, parking difficulties and queues at the checkout, receiving their purchases in the comfort of their home, would want to go back to doing everything the way they used to?
On the other hand, what lies ahead is a process of gradual and slow deconfinement that will possibly lead to new waves of the outbreak. In this process, we will continue to live in a context of significant restrictions that continue to shape our behaviors and transform our economy into a Low Touch Economy . Until a vaccine or effective treatment emerges, it is inevitable that we will live with the virus and, with social distancing being the only known antidote, behavioral changes in the way we live and work can be expected.
This will be the “new” and ongoing normal. An economy that will have to adapt to new habits and regulations based on reduced physical interaction and stricter restrictions on mobility (travel) and hygiene.
The drive for digital transformation
A considerable part of these changes were happening under the aegis of digital transformation. For different reasons, since no one was counting on this pandemic, a significant part of companies have been digitally transforming processes and the business itself.
A number of companies were already better positioned in this new digital era and, as a result, ended up adapting better to this new context. From one day to the next, most of them had their employees working from home, online sales channels ensuring business continuity and, based on communication and collaboration tools, an entire organization was operating remotely.
In contrast, other organizations had to do in just a few weeks what they had been putting off for years, and others ended up realizing, in the worst way, the cost of inertia and poor digitalization.
The acceleration of digital transformation has triggered rapid and unprecedented digitalization by companies that are lagging behind digitally , at the risk of losing their competitive advantages and, ultimately, jeopardizing their very survival. A company that, for example, does not have one (or more) online sales channels is not a company!
Although it is a cliché to say so, crises bring opportunities and this one is no exception. Many organizations have discovered remote work and the advantages inherent in not having to commute dozens or hundreds of employees every day, combined with positive results for the company, employees and the environment. Others have discovered new sales channels and their full potential.
The lockdown period triggered a drastic change in habits and routines. Mobility restrictions required a profound change in the way people interact with each other, as well as in the way they interact with economic agents, first and foremost when purchasing products and services. From one moment to the next, we stopped going to work, students could no longer go to school and cities and towns were deserted with shops and restaurants closed. Our deep-rooted and mechanized routines disappeared completely and we witnessed a new logic of work, teaching and experiences based on the concept of Low Touch Economy . We implemented remote working and new distance learning methods, as well as started celebrating birthdays via Zoom.
Low-Touch Economy : the new reality
In just a few weeks, we have relearned how to live in a new era, without kazakhstan whatsapp number database of movement and with the imposition of rules that many of us have never experienced. At first, this context was uncomfortable and unnatural, but over time, we were able to adapt and even find positive aspects. Now, there are routines and practices born out of this pandemic crisis that we want to continue doing. According to some studies related to habit formation, when a behavior is repeated on average 21 times, it becomes a habit. Therefore, the longer the period of restrictions, the greater the disruption to the economy.
The consumer who emerges from this crisis will not be the same as the one who entered it!
And this is where the concept of Low Touch Economy comes in . Who, after being used to shopping online, choosing their shopping basket comfortably, at a time that suits them best, without traffic, parking difficulties and queues at the checkout, receiving their purchases in the comfort of their home, would want to go back to doing everything the way they used to?
On the other hand, what lies ahead is a process of gradual and slow deconfinement that will possibly lead to new waves of the outbreak. In this process, we will continue to live in a context of significant restrictions that continue to shape our behaviors and transform our economy into a Low Touch Economy . Until a vaccine or effective treatment emerges, it is inevitable that we will live with the virus and, with social distancing being the only known antidote, behavioral changes in the way we live and work can be expected.
This will be the “new” and ongoing normal. An economy that will have to adapt to new habits and regulations based on reduced physical interaction and stricter restrictions on mobility (travel) and hygiene.
The drive for digital transformation
A considerable part of these changes were happening under the aegis of digital transformation. For different reasons, since no one was counting on this pandemic, a significant part of companies have been digitally transforming processes and the business itself.
A number of companies were already better positioned in this new digital era and, as a result, ended up adapting better to this new context. From one day to the next, most of them had their employees working from home, online sales channels ensuring business continuity and, based on communication and collaboration tools, an entire organization was operating remotely.
In contrast, other organizations had to do in just a few weeks what they had been putting off for years, and others ended up realizing, in the worst way, the cost of inertia and poor digitalization.
The acceleration of digital transformation has triggered rapid and unprecedented digitalization by companies that are lagging behind digitally , at the risk of losing their competitive advantages and, ultimately, jeopardizing their very survival. A company that, for example, does not have one (or more) online sales channels is not a company!
Although it is a cliché to say so, crises bring opportunities and this one is no exception. Many organizations have discovered remote work and the advantages inherent in not having to commute dozens or hundreds of employees every day, combined with positive results for the company, employees and the environment. Others have discovered new sales channels and their full potential.