Running a race like the Dakar has its complexity and multiple requirements. Perhaps the most relevant are having a state-of-the-art vehicle, an expert driver and a support team, which allow them to overcome the demands of a difficult and unpredictable road. But how is this extreme competition similar to the dynamics of any company in Argentina? In a lot.
Let’s start from a base, the route that shows an impressive landscape, but challenging at the same time, is nothing more than the Argentine economy itself, which in a consensus offers great opportunities in the long term, but that in the short term imposes decisive challenges: acceleration in acceleration (from 4.9% m/m nov-22 to 8.4% apr-23) that annualized exceeds 163.3%, multiple exchange rate and uncertain future (blue dollar at $750 in December? ?), high interest rates (current TEA of Leliq at 154%), recession that makes the market shrink (estimated GDP drop of 3.2% this year), contained imports (-12.6% yoy in April). 23) that the productive and commercial dynamics arise; negative net reserves that have already drilled US$ -1.5 billion, among other issues.
This is similar to a route in poor conditions that make it difficult for the vehicle (the company) to drive, but which simultaneously revalues the virtues of the driver (the corporate decision maker) who, with experience, usually travels broken roads, full of curves and counter-curves. To this is added another external factor such as the weather (election year) that makes it even more difficult.
It is key to realize that, at times of demanding races, resorting to the support team as “entrance to the pits” gives air to tone up the vehicle (something like updating the firm and its strategy) and face the journey with renewed strength adapted to the new reality. What seems obvious is the most difficult thing in these circumstances, since the company leader is usually obsessed by the current scenario, minimizes the implications of this strategic decision and can make him succumb.
After all, the great challenge is learning to manage the Double Agenda: the Short Term that aims at “subsistence in the career”, with the Medium-Long Term, which “promotes alternatives throughout the journey to reach to the goal”.
Complexities in the race: the example of Artificial Intelligence. The Medium-Long Term Agenda, which becomes more dynamic every day, forces us to be attentive to the new challenges in the race, which combine resistance and speed of adaptation. It is that the framework of action goes beyond the Argentine Macro and must also consider three global megatrends that impact all types of companies: capacity for continuous innovation, sustainable vision and adaptation to the consumer experience, which leads to models of more versatile businesses
Faced with this complex and competitive world, one of the key pillars is technological adoption. According to The Economist for the post-pandemic scenario, one of the twenty principles by 2030 is that companies that will not invest in new technologies will disappear. And along the same lines, the report “The Future of Work” from the World Economic Forum (WEF) shows that nine out of ten companies worldwide believe that the main trend that is changing the way of doing business is the adoption of new technologies.
To deepen this, a test case is what happens with Artificial Intelligence (AI), a disruptive technology currently mandatory, which seeks to provide computers with capabilities and autonomy to decide and solve any problem that is recommended to them (according to WEF and McKinsey agree that 70% of companies have already adopted it or plan to do so in the near future). Although the best known case is the GPT Chat, there are already multiple developments: from transforming texts into images, analyzing legal documents to “translate” them into a simple and accessible language; collaborate with the diagnosis of diseases with high precision analysis of samples; or make it easier for cars to “drive themselves”; and the list goes on…
This (increasing) possibility that machines think and decide on their own unleashes a multiplicity of discussions: ethical (how to ensure that AI, for example, is not racist?), legal (who is responsible before the Justice for the decisions an AI makes?), governance (who controls the structure and ownership of the data the AI uses?), employability (what will happen to the people who could be replaced by the AI?), regulatory ( How will states control companies and their AI developments?). Without going any further, many scientists and personalities from the technology sector are expressing their growing concern regarding the development of AI and the threat it could represent to Humanity. But its use is accelerating in companies.
A second question about AI concerns the degree of impact on the way of doing business. Because AI tools transform at least four dimensions of companies: (i) development of new business models and capitalization of assets; (ii) greater operating efficiency by reducing costs, simplifying tasks, optimizing processes, and eliminating errors; (iii) more robust decision-making, thanks to the use of large volumes of data and generation of insights; and (iv) transformation of the customer experience, through greater immersion, personalization, and real-time assistance in the purchase or use process.
Based on the above, a third question arises: how the different productive sectors incorporate AI to boost their businesses. The impact is widespread in all kinds of areas, here are just a few examples. In Energy, it makes it possible to detect new exploration areas, predict energy demand to make production more efficient, distribute energy and reduce environmental risks. In Mobility, from predictive vehicle maintenance and real-time management of the best routes to use, to dynamic traffic optimization and autonomous vehicle driving. Or in Commerce, where it provides solutions in autonomous inventory management, makes the supply chain more efficient, personalizes customer service, plans demand and uses analytics to boost marketing.
In short, new technologies, and the specific example of AI, can “modify the car, streamline the virtues of the driver and make the route more predictable.” Faced with this, although it is clear that for any company in Argentina the challenges along the way are many and varied, it is necessary to combine the day-to-day economic-financial tension, with reflection on the long-term strategy to face the race with resilience. Either we learn to manage the Double Agenda or, with luck, we will be relegated in the peloton. It is not easy, but it is necessary, or more than that determining.
*Senior Sustainability and Innovation Advisor at Abeceb.
You may also like
