Getting Through Lockdown with IT

by Nathan Bennett

Technology companies and companies employing information technology （IT） are well positioned to meet the challenge presented by the COVID-19 pandemic. The mainstay of their business uses exactly the technology required for remote work and study as demanded by health and safety requirements during lockdowns and quarantines. Their products make remote collaboration possible on multiple dimensions. Foreign companies operating in China gain three primary benefits as they help tackle the COVID-19 pandemic： increased data on usage of their products， greater consumer familiarity with their services， and higher prioritization of internet capacity in development. For companies like banks that have always been financial networks， the crisis stimulates their IT network implementation.

Although many companies are offering their online services for free or boosting the features available to lower-tier subscribers as a public service， they stand to concretely benefit from their continued engagement with China. Continued development of Chinas innovation capacities and network infrastructure will mean increased demand for high-tech products and services. Financial services implementing IT are also key to ensuring the flow of cash to companies seeking to resume operations. Companies that continued operating in China during the worst parts of the COVID-19 outbreak will be in a good position when the economy goes back to normal.

Companies face many challenges and their operations in foreign countries stand or fall with the success or failure of their host countries. Foreign managers stuck abroad and office workers stuck at home must be able to communicate effectively with each other. Production lines must get back to work. Logistics must ensure sanitary shipment of products. For the companies responding for this article， network infrastructure and IT implementation was at the core of their continued operations.

Passing Through the Storm

According to Ian Yang， president of Intel China， a subsidiary of American semiconductor chip giant Intel Corporation， there are a few areas in which firms will have to adapt both to get through the present COVID-19 outbreak and to preserve resilience in future crises or public health emergencies. Further， Yang expressed confidence in the value of long-term engagement in China.

Yang highlights the transition from labor-intensive manufacturing to intelligent value-added manufacturing. The demand for implementation of smart technologies in manufacturing is going up， and these technologies enable firms to respond more effectively to serious crises. Automated production lines would remove the human element： in future crises， fewer personnel would be required， so an epidemic would create fewer stoppages than in labor-intensive manufacturing. He further highlights the current priority for remote work and study arrangements， and that this will continue into the future as a necessary domain for innovation. There will be increased demand for the ability to collaborate remotely in many fields of endeavor， and this will challenge infrastructure， operators， and providers of IT services.

Many services are being moved online， such as registration tasks， workplace collaboration， logistics， and shopping. This challenges IT firms to increase processing power in cloud computing， 5G and edge computing will have to support more devices online simultaneously， and internet speeds overall will have to rise. Yang asserts that the shift to online services will accelerate Chinas shift to higher-grade manufacturing and services and that the infrastructure in demand will further support innovation in the Chinese economy， not just alleviate slowdowns in internet speeds during the COVID-19 outbreak.

Noting the fact that some firms are looking at moving manufacturing out of China， Yang declares that this countrys swift response to the outbreak actually shows that China is a reliable place to stay long-term. Chinas capacities in industry and in stable governance cannot be replicated by other countries， asserts Yang， and so multinational corporations should formulate long-term strategies to remain engaged with China and have confidence in this countrys long-term potential.

Stating that Intel has been in China for 35 years， Yang says that Intel has gone through many ups and downs with Chinese industry and will continue beyond the COVID-19 outbreak. The current crisis will challenge whether a company can “run a marathon”and not just a short “sprint.” With its products and services being key supports for some of the key technologies in high demand among many people working or studying from home， Intel is in the game and its own corporate longevity is tied up with guaranteeing future IT reliability for Chinese users and consumers.

Public Service Marketing

American IT company Cisco is helping keep Chinese remote workers connected. Cisco provided information about the usage of their service Webex， which allows for remote working. Traffic on Chinabased Webex connections has increased by a factor of 22， and in Japan， South Korea， and Singapore the number of users is going up by a factor of four to five and the average time spent on video meetings has doubled. Cisco is offering it for free in all 44 countries where it is available as a public service.

For companies like Cisco that are able to offer a critical service during the COVID-19 outbreak， greater public awareness of and familiarity with their products and services give them valuable brain real estate. Many people choose to go with what they know works. During these months of self isolation and social distancing， Cisco is in effect offering a free trial of its products. At least some users who come to rely upon it will become paying customers. Cisco joins Chinese companies offering products free like WeChat Work and DingTalk， and so business competition continues all the way to who can offer a better public service. Competition is being made to serve public interest， and everyone may turn out to be a winner.

Banking on Tech

When Citi China， a subsidiary of American multinational bank Citigroup Inc.， began to formulate responses to COVID-19， IT was a core component. They shared that their priority has been safeguarding the health and safety of their employees and their families and that of the communities they serve. As with many companies， this involves working from home. They invoked their “Continuity of Business （COB） protocols through remote access protocols and then through split operations to ensure that all critical operations can be performed from alternate locations as needed.” Through institutional planning and technological integration， Citi China changed gears to sustain operations during the pandemic. They worked with WeDoctor， a network providing online consultations with doctors， to provide health and wellness support for their employees and clients.

Finance is a critical aspect of sustaining business. Even with guaranteed profits， businesses cant reach the payoff if they cant purchase materials and pay employees. Ready access to loans is key. Citi China reaffirmed its commitment to business in China and its readiness to support industries getting their supply chains back up and running. They have striven to assist liquidity management for clients worldwide， citing collaboration with the New York headquarters， Hong Kong， Singapore， and other locations. During the 2020 Spring Festival， they “urgently implement[ed] a telephone bank redemption process”for their customers to trade local securities. Under the challenging times， they have maintained online and offline channels for clients to access Citi services.

As China goes back to work with a “new normal” of pandemic control measures， financial services both from abroad and within China are key for all companies ramping up operations. Citi China， as part of Citigroups multinational banking operation， is taking advantage of the full range of modern IT infrastructure to ensure reliable internal corporate communications and client access to services.

Problems and Solutions

Problems faced by all companies include travel restrictions， quarantines， supply chain and logistics stoppages and delays， and forced reexamination of ways of working. Intel， Cisco， and Citi China are some of the companies offering connectivity solutions， directly through IT or financial services powered by IT. As demand for internet services has risen and viability of working online is proven， China will continue to develop its already improving internet and IT infrastructure. Deciding to remain in China and carry on with business is not just a matter of public service； it is a matter of remaining in business. For now， enhanced remote collaboration and communication technologies will help companies manage the current conditions while the new normal is figured out.

COVID-19 strikes in the most critical place for business： the human element. Supply chains may shift， to where electronic devices are not manufactured across three continents any longer. Technology， methods， and materials may be copied， but culture and creativity cannot be copied. IT and related companies help keep the world connected to continue linking the human element in every corporation， even if manufacturing becomes more localized to limit the impact of supply chain disruptions. Intel， Cisco， and Citi are deeply integrated with China and look to help the rest of the world remain connected as well.