Crisis as a synonym for transformation

By Jorge Sukarie, President of ABES

 

We are facing a challenging moment in Brazil, with political instability, which triggered an economic and fiscal crisis, generating uncertainties about the country's ability to return to growth in the short term at attractive rates. GDP is expected to fall by 3% this year and to 1.6% in 2016.

 

The IT sector, like all other segments, has been suffering from this pessimistic scenario for the country. Despite being a market that grows more than the average of the general economy, the expectation of beginning the year to grow around 7% over 2014 should have a final result lower than expected.

 

So how do you turn such an adverse scenario into an opportunity for an IT company? With almost 30 years running my own business, I have had the opportunity to face several difficult times in the past. I can say that the company suffered, but went through the Cruzado Plan, by the late Minister Dílson Funaro; by the Collor Plan, in the early 1990s; by the Real Plan, in 1994; by the Crisis of China, in 99 and more recently by the economic crisis that started in the United States in 2008. What I learned is that this situation always brings an opportunity for companies with good management and market vision to emerge stronger.

 

The recipe is not very difficult and nothing that you have not heard before, but the essence is a determined and persevering posture. And, of course, with a watchful eye for some crucial points of good management.

 

First of all, a firm and strong financial management. Controlling cash flow is essential for success in times of crisis. Having good credit management for clients and reducing expenses by carefully evaluating all sources of business financing are some actions to optimize the financial structure. In this way, we are able to guarantee that the business will be able to face these unstable moments.

 

On the business side, it is imperative to review all processes. At a time of economic growth, it is very common for companies to grow in a disorderly manner and, normally, without much control. “Surfing the wave of the bonanza”, say some. When the business gets more difficult, it is time to evaluate what is working so that you can focus on the essentials and put aside what is not doing so well or that is compromising the company. The time has come to reduce costs to increase efficiency with good revenue management and an assessment of the product lines or units that should or should not remain in business.

 

Adjusted the financial and business areas, the look needs to turn to new opportunities and how to be more innovative. The sector brings numerous technologies, such as Cloud, Big Data and Mobility, among others, that can be the necessary differential for companies from all sectors of the economy to be more productive and competitive. Identifying an opportunity with one of these new technologies can turn your company into a pioneer in offering some solution that can quickly have a large-scale adoption, making it stand out and in the wake of your own business.

 

Always, but especially in troubled times, good financial and business management combined with a differentiated offer of solutions based on the new technologies available, or which are yet to come, will make your company make the most of the moment and thus create your 'wave' itself.