Black swan events by definition are rare, difficult to predict, and have severe consequences. I remember my first encounter with one such unusual, distressing event back in 2000 when the dotcom bust happened. While working in Saudi Arabia, I had started a used-car showroom. The business did well initially, but had to be shut down after the dotcom bubble burst.
It was totally unexpected and traumatic — both emotionally and financially.
I had lost all hope of ever becoming an entrepreneur again. Yet, here we are, two decades later, dealing with another black swan event. In many ways, the current pandemic presents unprecedented business challenges. From concerns about a liquidity crunch and supply-chain disruptions to shifting consumer mindsets and an uncertain global business environment, the Covid-19 crisis raises a lot of questions. And the answers are not comforting.
Across industries, every organisation will have to find its own ways to tackle this adversity. At iD, we are making conscious efforts to learn from our cumulative experiences and implement them to come back stronger. Here are some of the key lessons:
1. Be proactive in your response to change
In March 2020, we saw a 50% to 60% surge in consumer demand. While the global health crisis was making it hard for us to procure raw materials and transport the products to all markets, we were proactive in our response to the changing reality. The business stepped up to the challenge, adapted and re-emerged in a position of strength. Last month, iD recorded sales to the tune of INR 23.71 crore — among our highest monthly sales numbers so far.
When the 21-day lockdown starting March 25 was announced, one of the toughest decisions we had to make was whether to continue with our operations or to shut down temporarily. Keeping in mind the safety of our employees and vendors as well as the demand from our customers, we scaled down the operations and now provide only essential products such as idly and dosa batter, chapatti, and paratha in select markets.
At a crucial time when hospitals, pharmacies, grocery delivery, and other essential services were working round the clock, we couldn’t shy away from our social responsibility. We had to ensure that our customers get fresh, preservative-free food, while we mitigate the risk of exposure to the virus for all our employees and vendors. To cope with the changing dynamics of each market, we decentralised the decision-making process within the organisation.
And I must admit, it has been a great learning experience. The essence of a team is truly defined in the hour of a crisis.
2. Innovate to address gaps
The biggest challenge with any black swan event is that there is no template to follow. Uncertainty is the only certainty. So, when customers started complaining about unavailability of products due to grocery stores being shut or e-grocers struggling to clear backlogs, we had to find a way to address the gap.
Within a week of virtual brainstorming sessions, we were ready to roll out a unique Store Finder feature on our website that helps customers identify the exact quantity of fresh iD products available in their neighbourhood stores. Our tech team also added the “Notify me” feature, which offers customers daily SMS alerts when fresh stock is refilled at a store.
To address the pandemic response, we needed an innovation that could help keep panic buying and hoarding tendencies in check. Right now, we are working out ways to extend the fresh-stocks alert feature to fruits and vegetables supplied by other vendors. To win this war, we need to prioritise our health and wellness. Access to fresh and healthy food cannot be a challenge.
3. Reimagine the supply chain
The Covid-19 pandemic has led to an unprecedented supply-chain crisis, exposing the lack of agility and transparency, and the myriad vulnerabilities in the current system. To build resilient systems for the future, we need to reimagine the global supply chain.
At iD, we are looking at the current challenge as an opportunity to gain a deeper understanding of our supply chain and create contingency plans. In the near future, businesses will be exploring predictive supply-chain management solutions powered by data analytics, machine learning, and smart technologies that can help predict future disruptions.
The biggest learning for us has been to invest in more collaborative and resilient relationships with our suppliers. It’s also important to have diversified sourcing strategies for better mapping and flexibility to deal with any supply disruptions. Organisations need to gather insights about supplier performance, supply-chain diagnostics, market intelligence, and risk management. This is the time to change.
4. Go digital
If you were waiting for a good reason to embrace digital transformation, the current pandemic is the perfect one. Core digital technologies for industry 4.0, such as Internet of Things, artificial intelligence, and blockchain, have the power to help businesses cope better with crises.
The lockdown has got us to assess our digital business strategy. Now is the time for businesses across the world to accelerate digital-transformation initiatives. From making critical systems available on the cloud to helping employees remotely access them while working from home to adopting blockchain technologies — to ensuring the integrity and security of goods as they travel across geographical borders — the new business normal will be digital more than ever.
The complexities of the 21st-century business ecosystem, especially in the post-pandemic era, will make it difficult for late responders to survive. Organisations that strive for digital solutions to deal with current challenges, though, will find opportunities to thrive.
5. Connect with compassion
I must admit that I miss going to office!
More than anything, it is the distinctive vibe of the place that I yearn for. There’s something very comforting about working in a collaborative environment. So, as you can expect, I was not too enthusiastic about virtual meetings, until we made it a daily practice at iD a couple of weeks ago.
Now, I look forward to these video calls, as they offer a chance to stay connected with my iD family. While we discuss daily reports and future projects, we also spend a lot of time talking about our lockdown lives and coping mechanisms. As an employer, it’s important to thank people for their support, appreciate their efforts, and reassure them that you have their back.We are not looking at any layoffs; in fact, we are hiring.
I send out a message every day to iD employees across regions in their respective vernaculars. We also conduct a hotline video call daily, wherein employees are free to join discussions on the current scenario and challenges while the board of directors and senior management of the company address questions about remote working, safety measures, financial security, and other issues that the employees may be facing. These are testing times, and it is important that we stay together to raise each other’s spirits.
6. Focus on nature
I read a thought-provoking report by the World Economic Forum on how this pandemic is a stark reminder of our dysfunctional relationship with nature. Studies show that deforestation is increasing the emergence of animal-to-human diseases, emphasising the domino effect of putting undue pressure on the natural environment.
For iD, the current outbreak has strengthened our resolution to build a fully organic company that makes organic food affordable and accessible for all. We are working hard to find a sustainable replacement for plastic packaging — even if it is at the cost of profit margins. For a healthier future, we are investing in green packaging solutions.
Unless we make nature a part of the solution, we won’t be able to mitigate the socioeconomic consequences of such pandemics. The focus on nature will also help to support the rural economy, empowering the future of sustainable foods and commodities.
And the lessons continue
Even as we wonder when life will get back to normal after the pandemic, let’s not miss this opportunity to learn from our mistakes and build something better. How can we pave the way to recovery in the not-too-distant future? How can we look beyond short-term cost cutting? How can we create resilient businesses that can withstand the next black swan event? Because, the question is not if it will happen or not: but when?
Yes, we need to ramp up our digital transformation, restructure supply chains, and make sustainability an integral part of business to be ready for the future. However, we cannot do this without trust and compassion.
This year, iD launched the Khaana khaya? campaign for Mother’s Day a month in advance to drive home the message that each one of us needs to play the role of a mother to help humanity sail through these difficult times.
Don the role of a mother and ask, “ Khaana khaaya? (Have you eaten?), ” to those who need to hear it, especially in the current circumstances. Let them know you’re thinking of them, let them know you care.
Let’s draw strength from our sense of community and shared sense of purpose.
via Disruptive events don’t come with survival kits. Here are six tips on how to build one. – ET Prime
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