The SARS Outbreak in Hong Kong: Use of the Internet in Times of Crisis

BUSINESS CONTINUITY

Since the September 11 attacks, multinational companies have been devoting greater resources to business continuity and contingency planning, but according to IT advisory firm, the Gartner Group, most of these preparations focused on developing the ability to continue operations through relocation or backup facilities.⁵ Few companies had focused on establishing true "virtual workplaces" to address the possibility of health threats that might impede an employee's ability to travel. The SARS outbreak has highlighted the potential of IT to give power over uncertainty and the benefits in this regard are becoming evident to many businesses.

In late-March, with SARS spreading in the community, Hong Kong authorities encouraged employers to allow their staff to work from home. Many businesses promptly imposed restrictions on nonessential travel, while IT departments rushed to support secure telecommuting (e.g. through ip-based Virtual Private Network facilities) and to prepare corporate networks for greater use. The community at large experienced a short-term surge in broadband usage and wireless communications, as people preferred to conduct their affairs from a distance.

During the outbreak, some businesses found themselves facing outright travel bans and cancellations of important tradeshows and conferences. Alternative means of communication, such as video-conferencing and online ordering were crucial to mitigate losses. The Hong Kong Computer Society, a non-profit professional body announced it was partnering with Microsoft to offer free IT support for individuals and companies seeking to implement telecommuting capabilities. The resulting "Work@Home" service offered advice on basic business continuity solutions such as web-based email, removable storage and videoconferencing.

Most severely affected by SARS were those businesses with members of staff suspected or diagnosed with the virus. One such company was IT giant Hewlett-Packard (HP) that had part of its Cityplaza offices closed when an employee was suspected of having contracted SARS. Nearly 300 of its staff had to work from home using remote network connections to access the corporate Intranet. Fortunately, HP had long-since supported telecommuting and disruptions to its operations and customer services were not severe. ⁶

SUPPLY CHAIN

In the early stages of the outbreak, some observers issued dire predictions that the SARS crisis could result in major supply chain disruptions and cause manufacturers to fall far behind schedule.⁷ Concern was especially great for high-tech companies, as global technology production was so heavily concentrated in some of the worst affected regions. However, in spite of restricted travel and closer employee monitoring, surveyed tech executives reported little more than minor inconveniences. ⁸

The ability to weather the storm was greatly boosted by business-to-business (B2B) e-commerce systems that support channels of communication between raw materials suppliers, manufacturers and logistics providers. B2B e-commerce systems that automate financial processes and track the physical movement of goods were initially touted for their ability to cut costs and eliminate time-consuming manual processes. Recent events have shown that these systems can become even more valuable in times of uncertainty by allowing visibility and tight control over the entire supply chain.

5. Bien Perez, "Scramble on for continuity; The Sars outbreak is forcing companies to turn to telecommuting, with staff advised to work from home," South China Morning Post, April 1, 2003.
6. Bien Perez, "Scramble on for continuity; The Sars outbreak is forcing companies to turn to telecommuting, with staff advised to work from home," South China Morning Post, April 1, 2003.
7. Jason Dean, "SARS Hurts Tourism, but Tech Firms Persevere," Asian Wall Street Journal, April 8, 2003.
8. Ibid