Dawgen Global Insights ( October 2020 Edition )

VOLUME 1 | ISSUE 10 | OCTOBER 2020 |

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INTRODUCTION TO OUR MONTHLY NEWSLETTER DAWGEN GLOBAL INSIGHTS

Welcome to Dawgen Global and our October 2020 edition of our Monthly Newsletter - Dawgen Global Insights.

This Newsletter has been produced to provide you with an overview of our firm and the wide range of services offered by Dawgen Global entities; whether audit, accounting, tax or advisory services.

Over the past 18 years, I can proudly say that Dawgen has significant experience and expertise that we draw upon, day after day, helping our clients to progress.

Our Monthly Newsletter will demonstrate the strength of our firm and the unique and innovative approach we engender.

This is communicated through client case studies on how our team have collaborated to help our clients succeed.

This issue of Dawgen Global Insights explores several management tools and strategies including how Innovation leaders stimulate, support, steer and sustain innovation in their companies. This article summarizes the response to the critical question of how senior executives stimulate, steer and sustain innovation.

Senior executives who stimulate, support, steer and sustain innovation in the organization are the true Innovation Leaders for the enterprise. Innovation Leaders share specific attributes that distinguish them from other corporate leaders—including creativity, vision, pragmatism, reliability, influencing, diplomacy, collaboration, courage, planning, team building, coaching, and commanding abilities.

In this edition we also examine how COVID-19 has changed Consumer Behavior.

This article provides organizations a good understanding of the 10 trends in Consumer Behavior resulting from the impact of COVID-19 on people, society, and businesses in the global economy.

I hope that you will find the information we provide in this Newsletter helpful.

Dawkins Brown

Executive Chairman Dawgen Global

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TABLE OF CONTENT 04 Innovation Strategies & Leaders

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COVID-19 10 Trends in Consumer Behavior

INNOVATION STRATEGIES &

LEADERS

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O V E R V I E W

Innovation necessitates visionary and pragmatic leadership— this article discusses attributes representative of Innovation Leaders

S

enior

executives

who

stimulate,

support, steer and sustain innovation in the organization are the true

Innovation Innovation

Leaders Leaders

for

the share

enterprise. specific

attributes that distinguish them from other corporate

leaders—including

creativity,

The topics covered in detail in this article include:

1

6 Attributes of Innovation Leaders

2

Front-end vs. Back-end Innovation Leadership

vision, pragmatism, reliability, influencing, diplomacy, collaboration, courage, planning, team building, coaching, and commanding abilities.

3

4 Dimensions of Innovation Strategy

4

4 Categories of Innovation Strategy

5

4 Innovation Strategies and Associated Leadership Profiles

This article summarizes the response to the critical question of how senior executives stimulate, steer and sustain innovation.

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6 A T T R I B U T E S O F I N N O V A T I O N L E A D E R S

Innovation leaders stimulate, support, steer and sustain innovation in their companies Innovation leaders share 6 specific attributes that distinguish them from other senior corporate leaders:

Innovation leaders are creative as well as disciplined.

They accept risks and failures, and encourage their staff to learn from them.

These leaders have the courage to discontinue a project—discerning when to persist versus when to pull the plug.

They build and steer winning teams, and have a knack for attracting and retaining innovators.

They are susceptible to innovative technologies and ideas, and have the urge to broaden the horizons of their staff.

They are led by a thirst for innovation and mission, and are always ready to share their passion with the staff.

The hallmark of a true innovation leader is their ability to balance the different demands together.

Source: Profitable Growth through Innovation, A. T. Kearney, 2008

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Innovation Leaders fall under two main categories based on their traits and orientation FRONT-END VS. BACK-END INNOVATION LEADERSHIP Innovation leadership can be classified into the “vague front end,” which concentrates on applied creativity, and the “back end,” which entails disciplined implementation. Innovation leaders must strike the right balance between managing creativity and disciplined implementation.

Perfectly balanced innovation leaders are able to successfully navigate innovation projects. But most leaders possess one of these mode of operations by default.

FRONT-END LEADERS • Front-end leaders focus on exploration and experimentation.

• They encourage the search for unarticulated customer needs and promising technology ideas.

BACK-END LEADERS • These are process and execution oriented people.

• They are disciplined and possess operational knowledge.

• They have the urge to commercialize innovation.

• Authorize innovators to break rules and create a challenging environment.

Both front- and back-end leaders share a few common traits—e.g., strong integrity based on their innovation track record; a personal bond

Innovative companies need to ensure that they retain sufficient and balanced number of front- and back-end leaders in their senior management.

with their products, services and customers; and passion.

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Now let’s take a closer look at the 4 dimensions of Innovation Strategy 4 DIMENSIONS OF INNOVATION STRATEGY The four critical dimensions of an innovation strategy are:

1

OBJECTIVE This

dimension

questions

the

3

This

purpose of innovation, i.e., why

This dimension questions focus of

queries

the

i.e., how much to innovate? Radically

business or to create a new one?

FOCUS

dimension

magnitude or intensity of innovation,

innovate? To reinforce a current

2

INTENSITY

or incrementally?

4

BOUNDARIES

innovation, i.e., where to innovate?

This

dimension

queries

the

Products, services or systems?

boundary of innovation, i.e., where to innovate? Internally or externally through partners?

The innovation leaders should be mindful of the key questions that each dimension of innovation strategy entails.

Source: Profitable Growth through Innovation, A. T. Kearney, 2008

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The four dimensions of the innovation strategy also provide an outline of the 4 innovation thrusts The 4 categories of Innovation Strategy are illustrated as under:

FOCUS Where to innovate?

New business creation

Radical

INTENSITY

OBJECTIVE

How much

Where to innovate?

to innovate?

Business reinforcement

Incremental

BOUNDARIES With whom to innovate?

The questions raised in innovation strategy dimensions need to be critically reviewed and answered by the senior management.

Source: Profitable Growth through Innovation, A. T. Kearney, 2008

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4 INNOVATION STRATEGIES AND ASSOCIATED LEADERSHIP PROFILES

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O V E R V I E W

Understanding Innovation Strategy dimensions helps in discerning the thrusts of innovation

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The answers to the questions put forth under strategy dimensions determine the 4 broad thrusts of innovation strategies. Different leaders and leadership styles are required to implement each strategy: New business creation • This is a new product category or service

Business reinforcement • This is a new or improved product, process, or service offering.

offering.

• To implement this thrust, organizations need

• This strategy warrants firms to employ

trustworthy yet challenging leaders, capable

supportive yet tough leaders who are able to

of establishing and driving venture teams and

consistently motivate their teams to exceed their

directing them to market.

development objectives in terms of quality, time, and cost.

Radical • This is a new business model or business system.

• This thrust warrants companies to have

Incremental • This is a new or improved customer solution or system.

• This strategy necessitates diplomatic but

visionary but pragmatic leaders who are able

demanding leaders who can bring the solutions

to assemble internal and external providers of

or system to life.

system elements and make them work smoothly together.

Corporate management must ensure that the leadership style of its executives is compatible with, and supportive of, its innovation strategies.

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We should make our innovation strategies clear to the entire workforce and gauge the availability of skilled leaders to lead these strategies INNOVATION STRATEGIES & LEADERSHIP PROFILES – NEW BUSINESS AND RADICAL New Business Creation

Radical

The thrust of this innovation strategy is to create

To execute totally new business models or system

new products or services. To be able to achieve

innovations strategy, organizations require

this, organizations need “mentors”—dependable

“architects,”— far-sighted yet practical leaders—

yet demanding leaders—who are able to create

capable of pulling together internal and external

and steer teams and lead them to market. Their

system providers and making them work smoothly

focus should be on sponsoring—providing

together. The emphasis of these leaders should

resources and critical support to the teams,

be on visioning—since new business models are

shielding teams from the traditional hierarchical

typically the outcome of developing a compelling

issues that divert them from their objective, and

vision—meticulous planning to ensure all

coaching them during the typical turbulent times

implementation steps are recognized and handled,

during innovation projects.

and partnering with all external system suppliers.

The leadership styles should vary in line with the selection of a particular innovation strategy.

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Many firms struggle to define the right balance of topdown management guidance versus bottom-up participation in the strategy process INNOVATION STRATEGIES & LEADERSHIP PROFILES – INCREMENTAL AND REINFORCEMENT Incremental

Business Reinforcement

Organizations require “conductors”—tactful

In order to be successful in their strategy to improve

yet commanding leaders—for the design

product, process or service offering, companies

and delivery of new solutions. The emphasis

need “sports coaches,”— encouraging yet strong

should be on translating customer insights to

leaders—able to consistently influence their

enhance their real experience, coordinating the

teams to exceed their development objectives.

interaction of different actors and incorporating

Their emphasis should be on inspiring their

their input to create a truly flawless solution.

teams, compelling them to keep progressing and accelerating their process, setting stretch goals and gauging performance according to the goals.

Creating innovation teams helps in developing innovation strategies, aligning top leadership by getting their buy-in, and then implementing those strategies.

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COVID-19 10 TRENDS IN CONSUMER BEHAVIOR

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OV E RV IE W

COVID-19 has changed Consumer Behavior

COVID-19 has taken the world by a storm. Financial markets, manufacturing, services, and tourism have been hit hard. In fact, it has also changed the way we work, communicate, interact, and shop more than any other disruption in the decade.

As a result, there have been key changes in Consumer Behavior. There is the growing reluctance to visit crowded places, the increasing shift of work from office to home, and the higher propensity for digital adoption. The changes are inevitable. For businesses to stay relevant, businesses have to adjust to the new norms.

This article provides organizations a good understanding of the 10 trends in Consumer Behavior resulting from the impact of COVID-19 on people, society, and businesses in the global economy.

1

Mental Health

2

Hygienic Concerns

3

Travel

4

Remote Home

5

Personal Conflicts

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Unemployment

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Last Mile Optimization

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Social Gatherings

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Work-Life Cohesion

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Certified Immune Status

With the 10 trends in Consumer Behavior, we will realize that traditional business models are now incompatible with the challenges the world is facing now.

Entrepreneurs and business owners must start creating flexible business models to adapt to the changing trends.

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Low Touch Economy is here to stay OV E R V I E W

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The post COVID-19 era will pose an economy that is shaped by new habits and regulations. There will be reduced close-contact interaction, tighter travel, and hygiene restrictions.

The global economy will transition into a Low Touch Economy, an aftermath of the COVID-19 2020 crisis. A Low Touch Economy will be characterized by entirely different rules and policies, habits and behaviors.

Business reinforcement

Top Down Enforced • Ongoing A/B experiments globally

• Discovery of new way of living and working

• Best practices copied in other regions and

• Remote working

industries

• Mixed work/life balance

• Rules and policies that will swing up and down: • Limited gatherings

• Access to e-commerce and logistics • Virtualization of industries and verticals (e.g.

• Travel restrictions

e-health/tele-medicine)

• Hygiene requirements • Protecting vulnerable groups

With the Low Touch Economy, traditional business and lifestyle norms will be greatly challenged.

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As COVID-19 changes human behavior, shifts will happen on many fronts 10 TRENDS IN CONSUMER BEHAVIOR – OVERVIEW

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Shifts in consumer behavior is gradually happening with the onslaught of COVID-19. These gradual shifts will accelerate to become more immediate behavior change.

There are 10 trends in Consumer Behavior that are evolving today.

1 2 3 4 5 6 7 8

The 10 trends in Consumer Behavior are here to stay and can turn industries upside down.

9 10

Mental Health Developing a state of anxiousness, loneliness, and depression

Hygienic Concerns Damaged trust in hygiene of people and products

Travel Extended travel restrictions, even within a country

Remote Work Optimizing work from home setups

Personal Conflicts Rising tension and conflicts at all levels

Unemployment Unprecedented levels of global unemployment

Last Mile Optimization Optimizing Supply Chain options

Social Gatherings Limited contact with older generations

Work-Life Cohesion Mixing work and private life

Certified Immune Status Increasing value of certified immune consumers

Source: The New Low Touch Economy, Board of Innovation, 2020

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Mental health is the first trend we anticipate—focused on addressing increasing states of anxiety, loneliness, and depression MENTAL HEALTH – OVERVIEW DESCRIPTION • Developing a state of

Impact • Feeling of isolation

anxiousness, loneliness,

• Lower productivity and loss of job

and depression

• Increased healthcare costs • Higher mortality

The pandemic has spotlight both existing and new barriers to accessing mental health and substance use disorder services.

• Relationship issues • Anxiety and depression

What to Expect • Tremendous need for remote therapy and coaching • Increased demand for pets and animal companions • Online social games and tools

Response Mechanism • Provide risk-stratified crisis counseling and support.

• Frequently share information about policies, programs, benefits, resources, and training to support mental health.

• Offer comprehensive benefits that center on mental health.

• Engage employees to take part in decision-making about mental health in the workplace.

• Involve community stakeholders in executing the mental health plan.

• Continuously enhance offerings to improve employee wellbeing.

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Hygienic concern is the 2nd trend in an evolving Consumer Behavior focused on limiting COVID-19 exposure on the job HYGIENIC CONCERNS – OVERVIEW Impact • Increased caution when interacting with people and products • Increased demand for formal proof of hygiene and current health status

What to Expect • Packaging redesigns • Sharing of personal health records and temperature • Retail/hospital formats with free service add-ons focused on cleanliness

DESCRIPTION • Damaged trust in hygiene of people and products • Ability to respond to varying levels of disease transmission through prevention and control measures.

Decreasing the spread

• Preference of science forward products over natural

of COVID-19 and

• Contact-free deliveries and drop-offs

lowering its impact

Response Mechanism • Reduce transmission by actively encouraging sick

on the workplace can promote a healthy work environment.

employees to stay home.

• Strict adherence to healthcare protocols.

• Educate employees on how to reduce spread of COVID-19.

• Identify a workplace coordinator responsible for COVID-19 issues and its impact at the workplace.

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Travel and tourism is the 3rd trend that will have the biggest impact as an industry TRAVEL – OVERVIEW

DESCRIPTION • Extended travel restrictions, even within a country

Impact • Extended travel restrictions, even within a country • Feeling of risk for consumers who may not be able to get back home • Feeling of uncertainty if tourists be covered in a foreign land

Travel must now be approached with caution.

should another outbreak occur.

What to Expect • Local tourism to flourish • Longer extensive holidays with quarantine taken into consideration • Combined travel with work • Rural and remote as luxury escapes

Response Mechanism • Take health considerations seriously.

• Value high-tech cleaning protocols on planes and hotels.

• Explain cleaning/sanitizing procedures.

• Require employee health screening.

• Make visible cleaning activity in public areas.

• Ensure contact-less check-in.

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Remote Work is the 4th trend that is a COVID-19 preventive measure that used to be an office perk REMOTE WORK – OVERVIEW Impact • Individuals and families will figure out new ways to balance work-life needs within the confines of home • Many individuals and families may move away from expensive cities (or even countries) if the work allows them flexibility to work from anywhere they want

What to Expect • Reduced office space and infrastructure • Special equipment, machines, and advanced video/audio setups at home to accommodate change in lifestyle • Need for new policies and insurances

Response Mechanism

DESCRIPTION • Optimizing work from home setups, beyond typical office jobs

The principles of remote work are different, the approach to conducting work is different.

• Establish a written policy that will ensure that all parties know how to safely and sustainable make the change from physical to virtual.

• Enable flexibility as a contingency plan to enable continuity during disaster.

• Do not replicate your office environment.

• Create a safe and effective foundation for remote digital access.

• Secure remote access to business assets and online services.

• Provide access to productivity, line of business applications, and communications/ collaboration tools.

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Personal Conflicts is the 5th trend in evolving Consumer Behavior that shows the effect of the coronavirus outbreak on personal life PERSONAL CONFLICTS – OVERVIEW DESCRIPTION • Rising tension and conflicts at all levels

The incidence of Personal Conflict is expected to rise, knowing how to effectively manage them is the key.

Impact • Organization and people operating in survival mode • Occurrence of breach of contracts and regulations

What to Expect • Spike for “Force Majeure” (superior force) • Increasing legal battles • Shift to digital way of working • Automation of legal work to operate at scale

Response Mechanism • Seek online counselling on family issues that are found disruptive.

• Focus on managing those that are within your control.

• Maintain regular communication with friends and family.

• Observe health protocol at all times.

• Undertake a de-stressing activity within a safe environment.

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Unemployment is the 6th trend in Consumer Behavior that can be highly disruptive to human and economic sustainability UNEMPLOYMENT – OVERVIEW Impact • Increasing review of career path • Switching to another struggling competitor in the

DESCRIPTION • Unprecedented levels of global unemployment

same industry is not an option

What to Expect • Peak in remote reskilling and training • Switch to an entrepreneurial side business to boost family budget

Current options will bring valuable experience once the economy catches on at a later moment in time.

Response Mechanism • Undertake new trainings and skills that have increased demand.

• Identify gaps in capabilities and capacities.

• Strengthen network and collaboration in areas that have become essential.

• Go digital.

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Last Mile Optimization is the 7th trend in an evolving Consumer Behavior focused on minimizing last mile delivery logistics LAST MILE OPTIMIZATION – OVERVIEW

DESCRIPTION • Rising tension and conflicts at all levels

Whatever the final impact of the pandemic, one legacy will be the creation of an expanded base of new customers comfortable with e-commerce transactions.

Impact • Switch of retail businesses and product distributors to delivery and/or remote first.

• Regular details will evolve.

What to Expect • Specialized delivery solutions • More advanced Supply Chain optimization • VR shopping and mass drone deliveries may soon be considered.

• Contactless delivery and pickup options

Response Mechanism • Adopt new safety rules, giving drivers with gloves and masks.

• Give customers the option not to sign on delivery but have the driver sign instead.

• Consider smaller, nimbler, and more fuel-efficient options to meet on-road demands.

• Consider delivery vehicles that offer better fuel economy, greater driver comfort, a tighter turning radius, and a variety of upfitting options to increase productivity.

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Social Gatherings is the 8th trend that emphasizes on restricting interaction SOCIAL GATHERINGS – OVERVIEW Impact • Restricted interaction with +65-year old people • Social gatherings to be rethink

What to Expect • Acceleration in digital adoption • Normal day-to-day activities to be redesigned • Special retail options • Tweaked ceremonies/rituals • Rise of communities for those with special needs

DESCRIPTION • Limiting or restricting interaction

Social Distancing is considered one of the most effective methods to tackle the outbreak of COVID-19.

Response Mechanism • Observe social distancing.

• Maintain a distance of 2 meters (or 6 feet in the US) from other people.

• Reduce general contact with people.

• Avoid non-essential use of public transport.

• Work from home.

• Avoid large and small gatherings.

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Work-Life Cohesion is the 9th trend where people get to mix work and private life WORK-LIFE COHESION – OVERVIEW

DESCRIPTION • Maintaining a balance of work and life

By making a clear distinction between work-life and home life, energy and quality time with family is restored.

Impact • Colleagues will be known at a deeper level • Use of live stream to interact • Superficial layer will be debunked

What to Expect • Video interaction replacing physical interaction • More experiments with digital alter egos

Response Mechanism • Heighten meeting to establish a sense of community.

• At the end of workday, take concrete steps to physically distance oneself from work.

• Establish necessary boundary between work and life.

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Certified Immune Status is the 10th trend in evolving Consumer Behavior that gives value on certified immune consumers CERTIFIED IMMUNE STATUS – OVERVIEW Impact • High restrictions on business models that require packing people in tight spaces.

• Restrictions on cruises, theaters, events and festivals

What to Expect • Rise of solo dining booths or human-free interactions • Rise of new consumer segment with an official health record to prove an immune status

DESCRIPTION • Heightened requirement of proving one’s immune status

The certified recovered from COVID-19 could lead the economic recovery.

Response Mechanism • Test people directly for SARS-Co V-2 antibodies.

• Issue immunity certificates to help the world revive.

• Verify applicants’ claims ad identities before the issuance of immunity certificates.

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