The Immediate Effects of COVID-19 Enterprise Digitization
In contrast to other economic shocks, the economic downturn following the outbreak of the respiratory coronavirus disease COVID-19 will inevitably continue to affect every enterprise vertical. However, the magnitude of this effect differs between different verticals, since each of them will be hit in a different way, depending on whether the disturbances are induced by the supply side (due to supply chain disruptions or the unavailability of raw material for production purposes) or the demand side.
In the United States alone, the volume of industrial production in 2Q 2020 decreased by 15% as compared to 2Q 2019. Furthermore, global car sales in 2020 have shrunk by 22% in the first half of 2020 as compared to the first half of 2019.
While the source of economic disturbances for industrial manufacturing has been the supply side (due to forced production standstills or the unavailability of production data as well as disruptions to the supply chain), the energy sector (specifically the oil and gas industry) has been faced with a drastic reduction in demand (…
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