A new style of management is required for small and medium-sized companies, a management that understands the way in which markets are developing, that is focused on the long term and that is capable of developing rapid and complex movements, not to survive, But to evolve and lead, SMEs have to be able to keep up with the pace of change, since change is an intrinsic element of nature and also in the business world.
Globalization and technological advance as fundamental variables emphasize the following aspects:
- Open and aggressive economy with a level of international, national and regional competitiveness Priority in training and internal cohesion International quality standards Efficiency, innovation and new products with greater added value Dynamic business management, in a sense of continuous change in business context where the company is immersed. High technology and competitive advantages. Interdisciplinary groups, predominant role of economics.
All this brings with it different changes that entrepreneurs must be aware of:
- Change in consumer preferences: Consumers are increasingly selective, looking for more individual products, away from the mass market, this allows the formation of new niches, which makes new companies or new products appear to solve customer needs, SMEs have strength in this if they are dynamic and flexible. Dynamic Positioning is born: Where it is unlikely to maintain a long-term positioning over time without taking strong actions to sustain it. Today more important than occupying a sector in the market or in the mind of the consumer, is to develop the essential skills necessary to sustain the fight in the long term. Change in innovative dynamics - technological revolution: Technological changes are increasingly rapid and surprising, time and space barriers with communications and computing disappear. Today there is a virtuous circle between globalization and technology, since the former drives the latter and vice versa. Change in the way of competing: In globalized markets the tendency is for there to be a greater number of competitors competing for the space with much greater dynamism. There are no limits to finding buyers, but there are no limits to determining who the competitors are. This kind of competition is different from the traditional one, where each company competed in its own market. Analysis of a new way of competing Complementation cannot be ignored: What does it mean to win by enlarging the market instead of dividing it. To do this, you have to change the mental scheme of the businessman, in order to build alliances and not fall, like most SMEs, into the prisoner's dilemma: The police have arrested two suspects of an offense and interrogate them in separate rooms. Each of them has two options: confess or keep quiet. If both are silent, they are locked up for a month for background checks. If the two confess, they are imprisoned for six months. But if one of them confesses and the other is silent, the police release the first by imprisoning the second for nine months. This game poses an optimal option: Silence. The problem that arises in this game lies in the degree of confidence that each prisoner has with respect to his companion.This game can be seen in the business environment when there are problems related to associativity and cooperation. The alliances between different entities to attack, strengthen or defend a market, are presented in a package very similar to the one posed by the dilemma.
What does it take to Lead in this New Paradigm ?
- As a first step, a degree of knowledge and learning of the organization is needed, taking advantage of and developing the talents of its human resources and integrating capacities towards common objectives. Developing the ability to establish associative and cooperative relationships. Designing dynamic and flexible business models. capable of surviving complexity, understanding that in the new paradigm the rules are not fixed or partial, that is, it is necessary to adopt a comprehensive vision of business, that is, to work on the perceptions of other players and find the balance between short and long-term Be versatile: Traditional solutions will not give results, SMEs have to learn to reinvent themselves and increase their ability to innovate, with a work culture that encourages creativity,the development of new products and services. Versatility is the quality of the new knowledge-based economy. In this new economy there is a new way of thinking, where you have to develop special skills that allow you to face business in different environments, obtain new competitive advantages and strengthen current positions.
Remember the words of Henry Mintzberg "The company does not compete today, because today there are already winners and losers, the company competes for the future."
You have to prepare for it.
Bibliography:
* The new business game, Roberto Serra
* The competitive company greatness and decadence, Jorge Etkin
