Creating Value out of Value Destruction by COVID-19

All of us are suffering from the impact and potential future impact of COVID-19 Corona Virus or COVID-19. Such disruptive events happen often. In public life, it is like a world war, or the financial meltdown in 2008. In private life, loss of a job can be disruptive. Someone’s death may be disruptive for the survivors. For companies, such as Boeing the 737 Max tragedy was disruptive. They all destroyed value.

What are the lessons we can learn:

1. Often these disruptive occurrences can be destroyers of value, but they are also an opportunity to create value. How do we do this? First and foremost our thinking has to change from bemoaning the disruptive event to seeing how we can convert it to our advantage, without impacting our values (that is doing bad things like charging more for masks or hand sanitizers)

2. We will all have more leisure time and less hectic activity. Is this a wakeup sign that the rat race may not be necessary? A slower economic growth may not be a bad thing. Can we re-invent ourselves and our lives. Can we find more time for each other? Can we become more caring? Can we find time for each other?

Will this lead to a happier, more balanced society?

3. Our idea of management and of work has to change. Why is it necessary for office workers to concentrate in an office? For better communication? Efficiency? Our ability to manage and ensure people are working? Are on time? Are disciplined, are following the rules?

Changing this thinking, may bring the same level of efficiency with lower stress. Commute time will be reduced. Infrastructure stress on roads, on mass transport crowds will reduce. People will learn to do things remotely and probably become more self-reliant.

I am not suggesting this will come with no pain or downside, but this has its positives. Value can be created from Value destruction, by changing our thinking and releasing our creativity.

4. Internet payment and services will increase, because people would prefer less personal contact.

5. The idea of globalisation modified by glocalisation may not be the path for the future. Globalisation is a more for suppliers and manufacturers. By and large the consumers are local, although they are made to feel global because they buy goods made globally, China, India Mexico etc. Does it matter if a local product gave the same value?

How do we make that happen?
Maybe our concept of manufacturing of scale is outmoded. This requires huge manufacturing facilities and even larger distribution and supply chains.
What are the products we can make through distributed manufacturing? We may have to use technology such as 3D printing or innovative manufacturing and assembly techniques. An example is machines that can manufacture furniture on demand. They are programmed to manufacture different furniture, a table, a chair and select the raw materials. Inventory and distribution costs are reduced. Scale is no longer important.
Ask yourself, what I can do differently for the future. What is my purpose or what is the purpose of my company. How can I succeed in the future by creating value, and turning value destruction into an opportunity?

This is our global opportunity to re-invent ourselves and move from Value destruction to Value creation.

Best,

 

Gautam Mahajan, President, Customer Value Foundation
Founder Editor, Journal of Creating Value jcv.sagepub.com
New Delhi 110065 +91 98100 60368
mahajan@customervaluefoundation.com
www.customervaluefoundation.com
Twitter @ValueCreationJ
Blogs: https://customervaluefoundation.wordpress.com/
Author of Value CreationTotal Customer Value ManagementCustomer Value InvestmentHow Creating Customer Value Makes you a Great ExecutiveThe Value ImperativeValue Dominant Logic
Come to the Third Global Conference on Creating Value, June 2-3, 2020 in Paris France
Join the Creating Value Alliance at creatingvalue.co

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