Business And Economics In The Age Of Complexity

  • A company is the structured and meaningful compendium of a series of sensible intentions of an entrepreneur to transform society and generate value.
  • This generation of value has an internal aspect, which translates into profitability and development for the community of people who make up the project; and another external aspect that is transformed into a product or service that covers a need, solves a problem, improves or simplifies some aspect of life, creates well-being or produces an innovation.
  • Companies are open systems that are in constant relationship with their environment and with the circumstances of the context in which they find themselves. The evolution of business projects is influenced by the current scenario at all times. Although it is true that an entrepreneur can handle more variables than it seems and that he can directly influence the circumstances of his business, it is also true that we are in an interconnected world, related and made up of a network of variables that They intertwine like a network and compose a chess board whose pieces make unexpected and unusual movements, which complicates the rules of the business game.
  • The environment variables that affect companies are included in two subgroups, the microenvironment, which makes up the specific factors that have a direct influence on the organization, such as customer behavior or the movements of the competition; and the macroenvironment that includes the general elements that affect strategic decision-making, such as economic, political, demographic, environmental, sociocultural, legal or technological variables.
  • The elements of both environments affect each other and are in constant interaction and evolution, this being one of the most important characteristics of the era of complexity. Entrepreneurs must know and analyze the environments and their variables to make a fit between their businesses and the setting in which they are developed, to adapt and to respond to changes.
  • We know that starting a business is a risky adventure and that to tackle it an entrepreneur must develop a brave mindset with a global vision, creator of value and wealth, balanced, focused on opportunities and attentive to the calculation of the risks that may arise and the consequences arising from them. An entrepreneur, therefore, must prepare for a demanding scenario in which the star variable is changed.
  • However, it must also be considered that the backdrop for government policies may be elastic or rigid. Elasticity helps economic and business expansion, while rigidity overshadows possibilities.
  • An uncertain scenario, full of doubts and strewn with ambiguities is not a good fertilizer for the business field. The company needs certainties, security, stability, word, and commitment.


The legacy of the 20th century

  • The 20th century was a dynamic period, full of modifications and transformations, in which they laid the foundations for starting what is now the 21st century. We have moved from the society of labor to that of knowledge, from locality to globality, from close relationships to distant relationships, from the physical to the digital, from the complicated to the complex, from competition to hyper-competition. These changes have opened a new chapter in which change is sought and it is understood that risk is inherent in the business. In this sense, business professionals know that they must widen their sights because future vision goggles are required in a turbulent environment.
  • The uncertainty effect has a creative aspect in business and in the creative vein when both entrepreneur and intrapreneur are aware that the exterior is changing and they want to be an active part of these transformations and lead trends. This phenomenon occurred from the 80s of the twentieth century when the evidence of the emergence of the new techno-economic paradigm in which we are clearly looming. This new model was based on innovation and the main business players wanted to be part of it and bring disruptive news.
  • This type of creative uncertainty has an effect of attracting and developing talent, boosting ingenuity and developing volubility or the ability to detach from what works, from what is established and to change one’s mind, always with an ethical and common purpose.
  • But when uncertainty is created and generated by lack of coherence, direction, meaning, logic, and lack of collective interests, what appears is the blockade and, as a consequence, capacities for development are hidden in a prey shell. of fear of the environment.
  • The twentieth century has shown us through different episodes that the contexts in which there was too much political and economic intervention did not serve for progress, that generated inequalities, poverty, lack of opportunities, that killed any hint of initiative and drowned illusions.
  • Companies need oxygen, an open field for their growth, consensus on labor, economic, legislative, and business initiatives, and it is strong and firm liberal democracies that allow entrepreneurship to be promoted and companies to be created that enhance their skills to cope. in an uncertain macro environment.
  • In the global world, supports are needed, not obstacles; platforms and shuttles are needed, not brakes; Authentic and upright leaders with ethical and moral values are needed.

The Administration as guarantor of progress

The main function and the great responsibility of the Administration is to smooth the way and remove the stones so that innovation can take place so that a country can progress and its inhabitants prosper. The Administration must guarantee evolution and ensure collaborative and sustainable environments for companies to create jobs.

The opportunity cost in slowing down strategic decision-making and in the loss of investments may still be difficult to quantify, but it will affect job creation and investment, both nationally and from other countries. , which will affect the health of our economy, damaging our immune defenses at a time also uncertain from the point of view of the global economy.

The relevant change of scheme

That is why it is necessary to reorient our business models so that they are more flexible, fast, and competitive; model organizational structures to be lighter and more agile in decision making; as well as promoting knowledge as a new strategic capital. The XXI century company must overcome the classic management scheme, characterized by iron control and planning, and make a quantum leap towards a model that encourages innovation, creativity, learning from mistakes and continuous improvement, in the that coexists with the balance of stages of greater calm and certainty with the imbalance of convulsed and uncertain times.

Also Read: Big Data As A Fundamental Element In Business Strategy

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