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,
– 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.