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Time to reinvent ourselves, new times, new business models.

Never in recent years has there been a greater urgency to reinvent itself. It is mentioned that humanity itself since 2000 and the next 50 years will change more than in the last 2,000 years.

It sounds like an exaggeration, but technological processes have accelerated life in ways that we still do not yet realize. This change is concentrated in the way of working, of living, although we still lack much in internal changes, there is a strong weakness here, because although the fundamental value resurgence is taking the media, there must be an inner personal effort for this to be consolidated and we are still behind in this path. However, in the outside world, things are in a big blender with the following ingredients:

– Consumer requirements,

– Technological platforms,

– Environment,

– Business Models,

– Globalization of Diseases,

– Globalization of Economies,

– Digital transformation

– Communication Virtualization,

– Practical Applications of Artificial Intelligence

– Quality and Immediacy of Services.

– Sustainable development

– Biotechnology Fusion

Clearly the equation shows variables that were not measured before, some new and some not.

Let’s now add something from Singularity University’s Projections earlier this year:

– Global gigabit connectivity, which will connect everything and everyone, everywhere, at an ultra-low cost.

– The increase in human life expectancy by more than 10 years.

– AI-Human collaboration will skyrocket in all professions. This will lead to the gradual replacement of knowledge-intensive professions.

– Cheap and globally abundant renewable energy.

– The insurance industry is transforming from “recovery after risk” to “risk prevention”.

– On-demand production and on-demand delivery will lead to an “instant economy of things”.

– Advertising disruption.

– Cellular agriculture will provide high quality, cheaper and healthier proteins.

– High-resolution virtual reality will transform retail and real estate shopping.

– Increased focus on sustainability and the environment.

– As society becomes more aware of global warming and environmental challenges, companies will invest in sustainability, both from a necessity standpoint and for branding purposes.

Well, several of these announcements are already installed and others are in process for the very short term. In 2019 at the Singularity version in Santiago, Chile, there was a high-level group of attendees, representing corporations and state entities. I managed to attend thanks to a franchise and listen to experts from around the world, the second day what was on the table seemed an alternative reality, it was not from our country, it was not from our continent, and I doubt it was from most others, there was a lot of cutting edge research that makes you think that this “will come perhaps in many more years to us”, because we are small, we are far, etc.. That thinking may have been true in the last century, but today with the levels of global integration, thinking like that is causing many professions and especially businesses to feel that they are aging at an abnormal rate and the truth is: yes, they are. The adjustment today must be vertiginous, the trend must be integrated as something certain and not potential. Today we are all part of a series of experiments with high success and implementation rates. Even rulings are recycled in an inclusive manner.

PENTALOGUE FOR REINVENTING AN SME BUSINESS

Rule Number 1 Update the business model in the form of Co-creation, that is, integrate the different areas of my business internally and externally in the process of determining added value. Today I must determine the real needs from various points of view, our customers today are of a different generation, I must integrate what has been done historically and see the effective migration to the new.

Rule Number 2 Do not integrate technology first as if it were the solution to change, technology is the MEANS to achieve change, but the BOTTOM is a change in the business model. I then define which technology is appropriate.

Rule Number 3 The transformation process called “digital” is born first from the adjustment of the business model and then from an internal cultural change, the integration of the service modalities of the collaborators of our company must be trained in the new model, otherwise, the failure rate of technological integration is very high.

Rule Number 4 The key or focus to achieve transformation is in SERVICES. If we keep in mind that today the final consumer has online access from the dealer to the manufacturer, we will realize that B2C businesses will have a strong influence on B2B businesses. A normal wholesaler today manufactures based on its standard and the dealer must adjust to its parameters, often far from what the end customer requires. In the past, the only thing left to do was to conform to that standard. Today, the end customer knows who manufactures, where, how it is distributed, deadlines, etc. and therefore has the capacity to complain and, of course, to change.

Rule Number 5 Due to globalization, many products are in the process of commoditization. That means lower sales margins, more suppliers and competitors. Therefore, I must generate space for analysis in my company to give strength to CONSULTANCY. This true “trade” allows us to get closer to the customer and detect the “pain” and “need” he has, integrating with him from this point of view, achieves loyalty, differentiation and above all the possibility of generating RECURRING SERVICES, which will give sustainability to the cash flow of our company.

As you can see, our suggestions are quite logical and perhaps not very new, except for one detail: Today they must be the urgent focus of our strategic gaze, because if they are not activated, someone else will do it, and much more quickly.

“It is not the strongest of the species that survives, nor is it the most intelligent that survives. It is the one that adapts best to change”. Charles Darwin.

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The importance of planning the year-end/beginning of the year

fenixcyc.clEvery year between September and October, large companies define their spending budgets and therefore what they will require from their suppliers of products and services. Therefore, companies of any size that are still in the chain should begin to adopt similar ideas.

However, this 2020 things have changed, new protocols have had to be taken to face the commercial world, especially in addition to the human conditions. Purchasing or consumption behaviors have new seasonalities, new logistics and demands.

At a general management level, this last quarter, it is urgent to take a fresh look at digital markets and trends, a survey conducted by us on linkedin http://t.ly/SqTB established as a general second priority to enter the world over cost savings and organizational climate, which shows that the perception of digital transformation has spread to all environments, although without a clear path.

Being able to segment markets into those that are safe and those with a future and thus generate loyalty activities is also relevant, since post-pandemic there are clearly areas of the economy that have been very hard hit by the change in behavior and the crisis, we must refocus our efforts on markets “with a future” and lastly, as a strategy, we must initiate the variabilization of fixed costs.

Financially, the administrators or managers must activate all the activities of financial shielding, the reality is that this crisis left many companies highly indebted with credits guaranteed by the state and whose payment burdens begin at the end of the year, this has generated a lethargic reaction of banks to renew the lines of working capital that the only thing that seeks is that the companies pass the stress test and thus renew who “supports the storm”. This is common in crises, but it seems that the lack of memory and novice companies in these periods make them rely more than necessary on these obligatory financial partners.

The finance manager should use all franchises to reserve resources for the eventual non-renewal of lines. In addition, the company will be able to take advantage of accounting and tax exemptions that will allow it to privilege future cash flows.

Commercially, the leaders of these areas have a great mission, to update the business models due to all the behavioral changes already mentioned, to use tools such as the canvas or other and to determine the new added values of the customers that have a future in the market with service and customer orientation. On the other hand, digital marketing activities emerge today no longer as a complement but as the spearhead of the commercial activity, due to the strong penetration of this world, omnichannel and content oriented to improve the customer’s shopping experience become even in the sales channel with more future than the face-to-face ones. Joining this trend is absolutely VITAL if you want to stay. Training salespeople on virtual tools, CRM uses, pipeline concepts, forecast applied in real life, must be on a daily basis. Of course you must also set your sales budget now on this new reality.

It is not a simple task to plan “this” year-end closing because in addition to the classic expense and sales budgets, tax, labor and accounting adjustments, we must make an adjustment of the business model, which if properly done could even give extreme options, from a total adjustment or an inevitable disappearance from the market because our added value has disappeared, the latter is hard but it is better to accept it and reinvent ourselves soon than after a long agony.

We are optimistic because human nature is resilient, and tends to adapt in surprising ways. So let’s plan ahead and see what 2021 brings.