DESPITE the gloomy business outlook, parts of the technology sector are benefiting from the Covid-19 crisis due to the hurried pace of digital transformation of businesses.

Just this week, Microsoft posted a stellar quarterly result and said that it saw two years worth of digital transformation taking place in two months, driven by an increase in remote working and learning along with rising demand for critical cloud-computing infrastructure.

Amazon’s sales surged in the first three months of the year, as the lockdown boosted demand for the firm’s groceries, online marketplace and cloud computing services.

In fact, the big tech stocks are contributing significantly to the rise in the equity markets in the US (see charts).

Locally, e-commerce platforms are also seeing brisk business while online payments are rising fast.

One local tech firm GREEN PACKET BHD says it has been working around the clock to help companies resume business once the movement control order (MCO) restrictions are relaxed.

“One area we have developed is by working with our Artificial Intelligence (AI) partner from China, SenseTime, and our associate company G3 Global Bhd, to come up with an AI-driven thermal scanning technology that makes temperature monitoring and identification of people more efficient, even with face masks on, ” says Green Packet managing director and CEO C.C. Puan.

Sensetime South-East Asia regional managing director Martin Huang says the “Sensetime AI Thermal Scanner” is now installed and deployed at the KL International Airport, a number of government offices as well as commercial buildings. “We have also installed it at the Malaysian parliament building and Istana Negara, ” says Huang.

Meanwhile, Puan of Green Packet adds that the company’s Kiple-branded ecosystem is well suited for the new norm in the economy today. “KiplePay, for example, which is approved by the central bank to provide white-labelled e-wallet solutions coupled with the payment gateway, is in a good position to help companies implement their online payment systems and build their digital communities, ” says Puan.

The company’s KiplePark, which makes parking frictionless, ticketless and cashless with Malaysia’s first licence plate recognition system, is also suited for the new “low touch” economy.

“We also have built prop-tech solutions under our KipleHome brand, which functions as a platform and a service that aims to bridge gaps between property management and residents, all via our essential features like the visitor management system, which again is suited for the low touch economy.

“KipleLive – our proptech flagship product – will be launched soon, together with the AI Thermal Scanner – integrating visitor and cashless payment parking to protect the lives and health of workers when they come back to work at the office or go out shopping at the mall, ” he says.

So what exactly is this “low touch” economy’? Europe-based consulting firm Board of Innovation has been one of the first to coin the “low touch economy” term, which is a description of how the concept of social distancing will impact all aspects of business.

As such, new contactless technology applications will become pervasive and those providing them will naturally benefit from this crisis.

“Any company delivering a product or service to the market should be spending a lot of time thinking about their value chain, and systematically working out where the touch points that ‘matter most’ are, and then consider if these touch points can be replaced or delivered in a different way – a ‘low touch’ way, ” PwC South-East Asia Consulting partner Michael Graham tells StarBizWeek via e-mail.

Retailers that historically have not invested in “online” are adapting their business models to survive, he adds.

Deloitte Malaysia innovation leader Justin Ong notes that we are now seeing the future being brought forward.

“The pandemic will accelerate digital adoption in businesses. It is a remarkable trend, especially in Malaysia where we have seen less-than-desired digital adoption rate, especially in SME businesses, over the past years. We expect the online marketplaces and other digitally native brands to outperform, ” he says.

According to Tan Boon Yow of Ernst & Young Advisory Services, new technologies and innovations often find their footing during times of crisis.

“Covid-19 will spur rapid technology innovation and adoption, rise in a demand of contactless technology, and potentially change the working world. For example, fear of contagion is already leading many to abandon cash in favour of digital payments.

“Social distancing is prompting organisations to embrace video conferencing, virtual classrooms and telemedicine at an unprecedented scale. The minimisation of human-to-human interactions to prevent exposure to the virus is also paving way for the adoption of emerging tech.

“Robots are disinfecting rooms, communicating with the quarantined and delivering medications, drones are patrolling public areas to conduct thermal imaging, spray disinfectant and ensure compliance with social distancing directives, ” he says.

Tan adds that public cloud service providers are among the biggest beneficiaries in this pandemic.

“Since the digital transformation process of SMEs has been relatively slow, software-as-a-service (SaaS) is able to meet the demand of remote office requirements quickly at a low cost. In addition to SaaS providers, Infrastructure-as-a-Service (IaaS) providers are also seeing opportunities”.

Digital payments will be another. Says Deloitte’s Ong: “The use of e-wallets such as GrabPay, TnG, and Maybank MAE have all reported unprecedented spikes in use since the beginning of the MCO. As consumers increasingly embrace digitalisation as the new normal, use of contactless payment is definitely set to stay with or without the ebbing of the Covid-19.”

Notably, Graham of PwC points out that maintaining the “low touch” experience, when the MCO is relaxed, will require a rethink.

“In some cases, this might mean a complete rethink of the whole customer process, from on-boarding, service and order taking, fulfillment and service delivery including payment – something that the pure-play digital businesses pride themselves on.

“Digital and technology play a massive role in that – everything that data analytics, augmented reality (AR), virtual reality (VR) or Marketingtech (Martech) and digital payments have been promising, can enhance the customer’s experience in a ‘low touch world’ – be that anticipating customers’ needs with data and algorithms to facial and pattern recognition in the customer’s online and offline behaviour to micro-engineering the small steps that make a difference, for example, a timely WhatsApp that lets customers know that the delivery is 10 minutes away. “

An analyst points out that it will be tech firms that help companies restart their businesses with the right contactless tools that would benefit.

These include firms ranging from those who run e-commerce platforms to digital payment solutions and even companies that help property developers and owners market and sell their products with the least amount of human contact.

Thermal scanning equipment providers will also be in demand.

One other area is contact tracing. Globally, as governments get ready to loosen movement control orders, a key part of this will be the implementation of contact-tracing technology that helps authorities track the virus and warn citizens who may be infected to stay home or get tested.

Tech companies have jumped at the opportunity, with the highest-profile effort coming from Apple Inc and Google.

Many countries are also launching their own, powered by local tech companies, and Malaysia will be no different.

Read more at : https://www.thestar.com.my/business/business-news/2020/05/02/covid-19-speeds-up-ir40