They followed each other and do not replace each other, but rather they are enhanced and synergized between them. Based on our experience on a sample of 120 cases during those years, we developed a series of sequences of five generation reengineeringwhich all Argentine businessmen must reformulate in order to establish priorities, given the vast set of problems they face.
Our economy has been bimonetary for a long time. Before the exchange and monetary stability of the 10 years of the convertibilitythe enormous imbalances produced by the situations originated at the beginning of Carlos Menemin macroeconomic events such as the devaluation of Sunday Cavallo in 1991, which caused companies’ dollar debts to double in terms of our currency and accounts receivable to reduce by Dollars 50%. This immediately led to apocalyptic cash flows.
The businessmen From one day to the next, with half of the income they had to cover twice as many commitments in the same terms originally agreed upon. It already happened, and it can be repeated in less than 180 days. Nervous, forgetful creditors were unaware of their responsibility for the prior risk assessment and put pressure on them dangerously, ignoring the macroeconomic context. To resolve these issues it was necessary to renegotiate terms and interest rates, reschedule the debt, change its profile, etc.
2nd generation, DOWNSIZING REENGINEERING (LOWER COSTS AND EXPENSES)
The need to achieve better competitive positions led companies to get into the habit of carrying out diagnoses and action plans with professional help. The popularity of lowering doses of all company expense accounts began its journey. Changes in structure, radical modifications to specifically correct existing organizations.
Argentina opened to the world with Cavallo. Now companies were facing low tariffs that allowed the entry of products at more convenient prices from all over the world. Unprecedented tasks were faced, such as lowering inventories, reducing staff in the factory and offices, relocating the plant layout, selling unproductive fixed assets, lowering the break-even point, etc.
3rd generation, REENGINEERING OF THE CULTURE OF THE ORGANIZATION
During and after making the 2nd gear changes. generation, the only way to achieve commitment and continuity on the part of the actors of Argentine companies, was and will be to work on the culture of the organization. Understand your myths, values, daily beliefs.
Change environments “bad vibes”, “skepticism”, “conformism”, “fear of moving”. Work to form united teams instead of plots, occupying no man’s lands, sometimes reconciling and negotiating old situations. Swapping hostile environments for environments of optimism, managing to instill security and support, transforming “concentration camps” into “country work clubs,” were our challenges. Many times having to kill “sacred cows” facing celebrities, mythological heroes, distinguishing people from problems, in unbreathable days.
4th Generation, BUSINESS REENGINEERING
– How is it possible to break everything and start from scratch? – Well, using techniques from other environments, applying imported “models”. Projective simulations, to analyze operations in the coming years. Identification of strategic processes that add value to develop them.
Working “in focus”, to guarantee in the short and long term the customer and shareholder satisfaction at the same time. We begin to open ourselves to thinking about bustling inventions: do we buy or sell a division or the entire company? – We partner, we make a “Joint venture” with a former competitor.
Seeing old enemies as cooperating colleagues? -Everything began to be possible at that time. We will have to think about Risk Capital and get out of Bank financing, knowing how much the company is worth, thinking about exporting, with scalability.
5th generation, DIGITAL ECONOMIC REENGINEERING
We have standardized technology and the best technicians in the world. AI in full swing offers opportunities in a framework like the current one, we can access millions of potential clients through the networks. The popular “The Network” technology available to everyoneallows us to be closer to the world.
Now we are going to get more convenient prices with one click. We will examine the satisfaction of our services, save steps and therefore reduce costs. We will be able to cope with complex issues, thanks to the transformation brought about by technology. There is no coexistence with the conceptual reasoning we had about our own businesses 4 months ago. We have to put 5th.
employment companies
freepik.es
Although it is premature because we do not know how everything will go, a businessman is not a macroeconomist, he has to play with what he sees. He must establish the best practices right now, “there are pearls” in a frame of reference based on observations that we have been able to make in different cases, there are some truths.
- Gain customer loyalty through better content and benefits with digital marketing. (TRUE)
- Rapidly transform business innovations by converting them into content and technology. (TRUE)
- Understand that time today runs ten times faster than it did in the last decade (true)
- Develop tailored strategies (true)
- Produce with one customer at a time, sell more products to the same account (true)
- Spare no means for the assembly and maintenance of the system (true)
- Avoid carelessness, time and diligence in responding (true)
- Refrain from offering static, vulgar information with little added value. (TRUE)
The digital economy and AI are incommensurable
The detonation of the coming years cannot be compared with the internet or social networks. It goes higher, faster and deeper. Due to this trend that skyrocketed and, taking into account international projections, we are optimistic because we firmly believe in Argentine talent and the ability to adapt.
*Chairman of Hace.com.ar, thesis director and LOS jury MBA, CMO, CFO, Master in Economics; from the UADE Business School, author of 6 books and more than 500 business articles.
Source: Ambito
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