Covid and the Industrial Revolution

8 Ways COVID Will Transform the Economy and Disrupt Every Business - RBC Thought Leadership

Impact of COVID-19 on the Fourth Industrial Revolution:

1. Work Transformation:

   • Work-from-home, blended workforce, and reliance on local suppliers.

   • Employers face challenges finding the right balance for remote work preferences.

   • Need for investment in technology to support remote work and enhance productivity.

   • Changes in workplace infrastructure, PPE, and flexible work arrangements.

   • Increase in remote technology, decrease in meeting centers, business hotels, etc.

2. E-commerce Boom:

   • Surge in online shopping, buy online pick up in-store, and shifts in consumer spending.

   • Malls face challenges, and companies need to invest in data analytics for consumer connection.

   • Growth in e-commerce, blended delivery models, and online loyalty programs.

   • Decrease in department stores, secondary malls, and high-density commercial properties.

3. Home Entertainment Dominance:

   • Rise in at-home entertainment, with a focus on video games and online cultural experiences.

   • Importance of personalized content, recommendation engines, and targeted ads.

   • Arts and culture adapting with new immersive experiences, including AR and VR.

   • Increase in global streaming platforms, virtual and augmented performances.

   • Decrease in museums, sports arenas, and cinemas.

4. Internet Growth and Risks:

   • Concentration of internet traffic on major tech companies (Apple, Amazon, Microsoft, Alphabet, Facebook).

   • Increased demand for data services, IoT strategies, and investments in bandwidth.

   • Rise in cloud security, business continuity planning, and distributed software protection.

   • Decrease in communities without consistent internet, businesses lacking resilient platforms.

5. Shift in Travel Patterns:

   • Decrease in international and interprovincial travel.

   • Rise in staycations, road trips, and localized adventures.

   • Increase in home recreation equipment, wilderness experiences, and agro-tourism.

   • Decrease in large hotels, cruise travel, and high-volume tourist destinations.

6. Health Technology Focus:

   • Growing concern for public health safety and increased focus on technology.

   • Transformation of health budgets towards long-term care, telehealth, and digital solutions.

   • Adoption of smart technologies, home testing kits, facial recognition, and contact tracing.

   • Decrease in traditional seniors' communities and healthcare providers without a digital-first culture.

7. Education Evolution:

   • Fewer international students, rise in online learning, and increased use of educational technology.

   • Post-secondary education shifting to a hybrid model with global learning platforms.

   • Employers turning to colleges and universities for workforce development.

   • Increase in online degrees, corporate learning systems, and digitally augmented internships.

   • Decrease in schools with weak digital teaching capabilities and in-person international enrollment.

8. Global Trade Changes:

   • Decrease in global trade, increased pressure in North America to reduce China trade.

   • Focus on technology and government interventions in supply chain resilience.

   • Growth in economic nationalism, strategic stimulus, and regional trade agreements.

   • Decrease in foreign procurement and international air freight.