What is the Low Touch Economy? – Board of Innovation
Forced isolation and social distancing restrictions, put into place during the Covid-19 health crisis, are expected to have a lasting effect on the world as we know it. Or should I say, once knew it.
In just a few weeks time, society has already undergone a major overhaul in the way companies and citizens live and work. It’s truly impressive how adaptable human-kind can be when it needs to.
But with every passing day and with every bit of extra time added to our confinement, it is becoming harder and harder for us to return to the way things were before.
That’s not to say this new world will be better or worse. Just different. With many isolation-induced behaviors becoming ingrained habits that usher in a whole new set of societal norms. During this period of influx, some businesses will thrive in this change and reach accelerated success, while others will struggle to find their footing in all of the chaos.
No matter what. We are all in store for a period of rapid learning, marked by plenty of ups and downs and economic uncertainty.
Welcome to the Low Touch economy.
The economy needs to improvise to keep businesses, both big and small, afloat, and in order to do so, we need to rethink and redesign the value that is exchanged between companies and consumers.
In case you’re not sure where to begin, Board of Innovation has developed a 4-step plan to help you get to an actionable strategy.
Step 1 – Asses the impact
Don’t jump straight into predictions that no one can be sure of. Start by taking a hard look at all the ways in which your business has felt the effect of the Low Touch economy to date. Then start to understand the impact it has had on your supply chain, your industry, your consumers, and lastly society at large.
Step 2 – Develop the strategy
They say history repeats itself. Start by understanding how similar economic crises have played out in the past for your industry, and then use those learnings to envision the many potential scenarios that could play out in today’s current context. Ask yourself ‘what do I need to do to grow in each of these scenarios” and “what aspects of my portfolio should I lean into?”. The below framework from Board of Innovation can help you in the development of these future scenarios and act as a starting point for your preferred strategies.
But if this crisis has taught us anything, it’s that even in our darkest moments, when we are forced to avoid our need for connection and touch — humans are resilient and the world will always find a way to shine through.