We are in the in era for digital transformation (DT), lot of existing business model ceased to be working anymore like in the past. For those who proactive and adapting to the change (and let go the past), the are undertaking massive digital transformation an embarking in the digitlization journey to hope so continue to be relevance in the market they used to be served.
For passive one, just reading it and treat it just another new that pass by, but will never thought it will impact to them somehow, in particular for those serving long years (they start to thought they are immunise to those external change and challenges . They forgot each year the market is producing younger and better education qualification pool of candidate can be a mean for better replacement, the supply of the economy).
If you reading carefully for all the news across sector and industry, one theme is emerge, “rightsizing” is happen everywhere, from banking industry who pursue volume of retail outlet to concentrate on the mobile and online banking and adapt to fintech challenge.
For insurance industry, use to had massive of agency structure now transforming for “insuretech”. In whatever name you use it, business optimization or rightsizing, it did downsizing due the fundamental fact that under new technology empowered world, lot of works and paperwork already being “automated” or “customer self services”.
For manufacturing industry and electronics industry, once upon a time certain brand is dominance the market for so long, and other lower cost alternative is being accepted as the replacement in the high speed due to the fact, the specific product no more unique and substitution is matured enough to replace them.
Younger pool of potential new workforce is provide better education and qualification. When in compare with elder staff, it make the calling for voluntary separation scheme (VSS), layoff, outsourcing, relocating to bring down the operating expenditure for the company a logical move for all the company who intent to survival in the digital transformed economy and market place.
For the retail industry, we notice for lot of physical store being replaced with online store. Even giant size ecommerce company is calling for “rightsizing” due to the fact for the technology automation, artificial intelligence (AI), chatbot all bring down the requirement for manpower needed. Slowly we notice for bookstore is being impact too, as world consumer behavior already change. The way they consume information is moving toward online or mobile search and get direct answer from the web.
For large scale manpower change, it involve relocated entire operation center or plants to another countries due to overall better cost efficiency operation, this happen for manufacturing industry and IT services industry. For the market outlook, we will notice for more business transformation will take place pursue for digitalization, it include government and public sector, ie government transformation. Let take the bright side for it, it actually happen for the good, as the running of those essential function need less manpower and those exceed manpower should be deploy into different sectors and industry for maximize the resource utilization, from the national economy point of view.
E-SPIN being active and involve in enterprise IT business since 2005, being one of the early adopter for the digital transformation. Feel free to engage E-SPIN for the various change and assisting in your digital transformation journey, from technology transformation, consultancy, optimization, consolidation, outsourcing or managed services requirements.