At a time like the present in which it is moving from cooling to crisis, organizations must prepare for the moments that are approaching and the knowledge of the possibilities offered by New Technologies and the Internet can be very important.
Compared to the classic indiscriminate cost reduction, the most interesting proposal in these periods is " cut two, invest one ", that is, cut costs that do not add value and concentrate and invest in the areas that add more value to the organization.
On these occasions, the most natural option, which is the indiscriminate reduction of costs in strategic areas (information systems, training, marketing, machinery, etc.) may, in the short term, improve the income statement, but they are bad solutions in the medium and long term as they weaken the basic structures of the company.
Therefore, it is important to highlight the opportunities offered by new technologies and the Internet in times of recession / crisis since they can help us in:
1. Improvement of business processes: With the use of new technologies, there is a great opportunity to redefine business processes, significantly improving them and reducing costs
2. Improvement of communication actions: Internet can be used to improve communication with both customers and suppliers. This will have a direct impact on communication costs, drastically reducing them.
3. Customer loyalty: Right now, no organization can afford to lose customers. For this, having the correct customer loyalty strategies supported by new technologies and the Internet can be definitive.
4. Attracting customers at "reasonable" costs: using the Internet to develop actions at an attractive cost, which will affect the company's income with an investment, and therefore risk, permissible.
5. Reduction of purchasing costs: thanks to the elimination of intermediaries, the discovery of new suppliers and the use of auctions in virtual markets (e-marketplaces).
Clearly, the aforementioned reasons are interesting enough for investment in New Technologies even in delicate moments, but it must be taken into account that they must be integrated into a company plan in which it is important to highlight the following elements:
1. Have a plan
Having a strategic plan that defines the path, objectives and deadlines to perfectly overcome the crisis is critical in difficult times since, together with internal communication, it is the only way to keep calm and prepare the organization for the next cycle positive.
2. Have leaders who can execute the plan
After defining the plan, leaders are needed within the organization to develop and communicate the plan creating effective and efficient teams.
3. Focus, focus and focus.
Know exactly what adds value and focus on it. This is not always easy and requires different prior analyzes aided by tools such as strategic cost management, customer satisfaction studies, process analysis, etc.
In conclusion, at this time, your competitors may have the natural temptation of an indiscriminate cut like the one mentioned above with what they are mortgaging their future in the medium and long term. You can have a clear chance.
