COVID-19 may have ravaged businesses in Australia and the world at large. However, even in the bleakest of economic times, there are always silver linings. From experts to consumers, one sector has stood out as a bastion of strength and potential during the pandemic. With people on lockdown and social distancing mandatory, digital technology has provided a lifeline in almost every sense.
Zoom has helped businesses operate remotely and families stay connected during the pandemic. YouTube and Netflix saw traffic soar during the early stages of the lockdown as people went online to get their entertainment fix. Slack and Skype became even more integral to businesses at a time when physical interactions were almost impossible. By all measures, technology and the companies that utilise it have avoided many of the problems caused by COVID-19.
Tech Has Thrived During a Tough Time
This is a trend many hedge fund managers and investors spotted early on. Other than healthcare and pharma, 66% of hedge fund managers surveyed by IG Prime believe digital technology investments will increase in value over the next 12 months. As quoted in the company’s 2020 Hedge Fund Trend report, Dr Edward Thomas Jones of Bangor University said that the crisis has, so far, been “tech-friendly”. He cites Amazon and Netflix as the obvious examples but there are many more. Some of the standout performers during the pandemic have been BetterConsult and HealthShare Digital. These Aussie companies not only have a footing in the tech sector but healthcare.
By that fact alone, they are in a perfect position to thrive during the COVID-19 crisis. Alongside tech companies directly contributing to and profiting from the fightback against COVID-19, Australian start-ups like WeCurve have been working on COVID-related business solutions. The spinoff company of Curve Tomorrow has developed an app for clinicians that sends out COVID-related advice based on the user’s location. It’s also developed questionnaire apps that consumers and businesses can use to monitor the wellbeing of those around them.
Adoption of Digital Technology is Crucial in a Post-COVID World
This ability to pivot and respond to the crisis is noted in IG Prime’s 2020 report. As well as companies directly entrenched in the tech sector profiting during the crisis, those that have adapted are also making a recovery. According to Claire Williams, Director of People and Services at CIPHR, digital tech has been crucial during the pandemic.
“We are now heavily using tools such as Microsoft Stream (to share internal video updates) and Yammer. Many of our meetings were previously carried out face-to-face. All of this has switched online,” said Williams.
Harnessing technology to overcome issues such as social distancing has allowed many companies to remain active. The importance of this is further exemplified by the struggles of the retail sector and its inability to utilise tech in the same way other businesses have been able to. Head of the Australian Retailers Association, Paul Zahra, said that COVID-19 and the government’s response could wipe out 50% of small businesses in 2020 in the state of Victoria alone.
The retail market is expected to contract by 3.2% and companies such as Blackmores were forced to issue profit warnings after trade dropped due to the pandemic. Like the virus itself, COVID-19 restrictions aren’t necessarily a death sentence for businesses. As long as they adapt, survival is possible. Tech companies and those adopting digital tech have already shown that. But, unfortunately, it’s the ones that don’t switch that may suffer the most from the latest global pandemic.
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