Companies are being urged to incorporate greater use of technology into their operations, if they are to survive the continuous measures to contain the spread of COVID-19.

Last week, Prime Minister Andrew Holness announced tighter curfew times and seven no movement days in a bid to curb the current surge in cases. However, experts believe that could impact revenues up to 40% in some businesses.

Equity Trader at Jamaica Money Market Brokers (JMMB), Clive Charlton told Kalilah Reynolds on Taking Stock that the fast ability of companies to recover any revenue shortfall will be key to their survival, pointing to the application of technology as the best solution.

His comments come against the background of the lingering uncertainties with the pandemic, which continues to force more businesses to pivot online to limit interactions within the country. 

Equities Trader at JMMB, Clive Charlton

“They have to reorganize and restructure and we have to look at our business models now and how we run businesses. How they are going to recover is with the application of technology,” he said.

However, for some real segment players, the application of technology could be problematic as not all can work from home, for example, while taking advantage of digital platforms. 

Charlton said while players including those at gas stations, fast food outlets, cinemas and transportation are usually the ones heavily affected by the containment measures, there has been evidence of technology already being used to assist them.

He said more creative ways are needed to help drive productivity in these sectors.

Through the Government’s E-commerce National Delivery System (ENDS) in particular, it has been estimated that over 3,000 Jamaicans have returned to productivity during the curfew hours and no movement days.

According to data from the Ministry of National Security, some eighty-four businesses have been re-registered on the ENDS platform as of August 19. The businesses include supermarkets, restaurants, vendors, pharmacies, courier services and health facilities.

The Ministry has also made calls to vendors who wish to re-apply to submit their applications online as soon as possible, noting that upgrades have been made to the ENDS platform for a better user experience, including improved vendors’ registration and tracking processes for deliveries.

Charlton said technology has allowed the financial sector to remain resilient against the pandemic as they would have been increasing their digital footprint over the last year. For example, in October, the National Commercial Bank is planning to convert another six branches to digital under its Branch Modernization programme.

At their recent quarterly briefing, the Bank of Jamaica also confirmed the success of the banking sector, with Governor Byles stating that the balance sheets of deposit-taking institutions (DTIs) suggest that they are growing, properly capitalised and complying with prudent liquidity standards.

“[Reorganizing with technology] has happened a lot just recently in the service sector, particularly the financial sector; they really have ramped up their technology side of the business but the other sectors of the society, how ready are they, how capable are they, that’s a big question,” reasoned Charlton. 

Meanwhile, Business Writer at the Jamaica Observer, David Rose said continuous containment measures could spell doom for some companies which fail to transform.

Business Writer at Jamaica Observer, David Rose.

He said with the measures likely to limit the movement of potential clients, they could end up closing their doors for good, if they fail to connect with customers digitally.

“With people not moving to spend then where are price increases going to come from? If you’re having low business activity and dollars keep going one direction in a sense, there’s no commerce, then no inflation and that will lead the business to possibly closing,” he said. 

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