Increasing savings through innovation

A basic knowledge acquired in a MBA shows us that we must save money in a crisis time. This thinking is stopping many innovation actions in a lot of companies.

It is important remember that we need to target our business to the long term. If we only think with our money in cash, we are not using adequately our resources.

The differences between managing a crisis period and a growing one must be strategic, not only tactical.

It could be a big error to stop some investments although, of course, some of them must be forgotten. The most important thing to consider is the kind of the investments: A crisis period limits our cash-generating resources, then, a good option can be to finance only the investments that will increase our cash recurrently. The investments that will increase our expenses must be discarded.

The projects oriented to improve our market position increasing expenses can be delayed because: how can we grow if more customers are planning to buy fewer products?

This thinking is commonsense, and the best way to plan a set of investments would need the use of advanced business intelligence tools.

If the environment is turning into a more complex one, to make our business easier to manage will be a good idea.

Quantitative complexity can tell us where and how a crisis is affecting our business. With complexity analysis we can know if our assumptions are correct, and at last but not least, quantitative complexity could give us a map of the changes in our business model, and how the environment changes are affecting it. There is not a better way to plan an investment strategy.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s