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2. The digital revolution and finance I

Chapter 2

THE DIGITAL REVOLUTION AND FINANCE II

 

by: josavere


With the Digital Revolution, virtual and physical manufacturing systems are required to cooperate with each other in a flexible way at a global level; It is no longer an option to work in isolation due to the clear evolution towards collaboration, not competition. The Davos Forum (In /2020) speaking of CONSCIOUS CAPITALISM, defined the purpose of a company in the fourth industrial revolution: "involve all stakeholders in the generation of shared and sustained value, including local communities and society".

The changes that are imposed on economic activity for the recovery from the 2020 crisis caused by the COVID-19 pandemic and the Digital Revolution, require the use of digital models to achieve high levels of productivity, which will lead companies to implement risk salaries based on the results obtained, making the compensation model fairer for shareholders and workers, including the management team, contributing to a business system that actively participates in sustainability with more social justice.

Now there is talk of a "net generation". We live with a large amount of digital media; the new developments rethink the company's relationships with its investors, with consumers, with suppliers, with distributors and even with governments that have already regulated electronic commerce, legally recognize digital documents and admit them as evidence; they give value to digital signatures; they oblige companies to issue electronic invoicing; They require large taxpayers to file income and customs declarations through cyberspace and commit to mass use of the Internet by granting tax benefits to software developers and Call Centers; also reducing rates and creating incentives to found companies dedicated to the design of web page software.

Decision Trees, Neural Networks, Support Vector Machines, Bayesian Analysis, Logistic Regression, Linear Regression, Time Series and Data Mining, K-Nearest Neighbors, Ensemble Models, Gradient Boosting, Incremental Response Models, Replace, Introducing Multiple parameters extracted from Big Data, with many advantages over the models traditionally used by statistics.

Determining where we are requires a careful evaluation supported by quantitative indicators that are representative and solid enough to allow a clear idea of the trend and facilitate the estimation of a possible future value, as a basis for defining the variables to be involved in the strategic plan. , which now with the Digital Revolution, using Artificial Intelligence (AI) that is designed to identify contexts and scenarios, work with some predictive models and make autonomous decisions and Big-Data with the capacity to process huge volumes of information, is facilitated enormously the design of models following the guidelines of CONSCIOUS CAPITALISM (manifesto). The Digital Revolution leads the change from a competitive economy to a collaborative model with a Massive Inclusive Purpose, thinking about the well-being of all humanity.

Intellectual capital poses complex problems in itself because it depends, in a high proportion, on human resources, the most valuable. It is a complex issue that must incorporate the accounting technique to the financial statements due to the Digital Revolution; it is an excellent opportunity to restructure organizations looking for exponential growth to increase productivity; requires reorientation of traditional companies, starting with human resources with a manager with a “can do” mentality that instills, highlights and supports an innovative mindset, committed and active participant, as well as a team with the will, desire and passion for innovation, qualities that come from within and that must meet conditions such as:

Be optimistic, creative, with the ability to generate diverse and original ideas without fear of making decisions, curious, desire to investigate, learn and explore unknown situations, with a lot of information, ability to question, critical eye for any new product, brand, interaction or experience .

People who practice empathy, the ability to feel the same as other people to get to know them better and design inspired by the user. Tolerance and daring to experiment with the uncertainty generated by working on poorly defined, complex problems with high indecision (trial and error).

Technology has made the democratization of knowledge possible; the means to achieve this are within everyone's reach. The competitive advantage is in the ability to execute because productivity depends on managerial activity keeping the group vibrating at the same rate. Technology by itself does not guarantee it and the latest development is not always required.

The ability to adapt, typical of intelligent people, serves to take advantage of the great opportunity that presents itself, with greater life expectancy and a lot of stress, adopting healthy lifestyle habits and taking great care of the mind to lengthen its productive period. A lot of flexibility is required, a very open mentality with positive and optimistic thinking, resistance to frustration, keeping the discipline of study and developing emotional intelligence to the maximum and learning, at least, another language.

Use the Networking network because the possibilities of accessing new opportunities are multiplied for those who know how to interact, complementing it with forums, blogs, debates and professional meetings.

Knowing oneself to enhance the creative side because the ability to generate experiences, provide new points of view; looking for different forms of expression and everything that is not likely to be automated to be executed with a robot, is and will continue to be highly appreciated.

Cultivate empathy, think about contributing to the quality of life, not making tempting accumulations, seek wisdom and live with a collaborative spirit, working in a Holacracy (an organization in which command and decision-making are distributed horizontally, without there being a management hierarchy.

The Digital Revolution, in very little dispute with such practical teachings; To the extent that the subject is taken seriously, it can be concluded that, on the contrary, it complements and synergizes with the traditional approach, the result that can be obtained is catapulted to achieve increased productivity.

The researcher, doctor and psychologist Edward de Bono, founder and director of the Cognitive Research Trust and the Center for the Study of Thinking, created Parallel or Lateral Thinking, which provides a great complement to logical thinking, adding an infinite number of ways to get there. To a solution, through different paths as a way of escaping fixed ideas that often block creativity.

Both methods complement each other. One to create ideas and the other to develop, select and use them. Just as alternative and traditional medicine synergize and mutually show their benefits when simultaneously caring for a patient, Logical and Parallel or Lateral Thought must work simultaneously for the benefit of humanity.

Until now, the educational system has taught very little about how to think because according to it, it is enough to memorize and repeat. We are overdue to begin to analyze everyday thought because we have believed that we all know how to do it spontaneously, such as breathing and walking.

Lateral or parallel thinking helps us to question, allows us to bring light and power to the mental pictures that are created with meditation, use intuition, generate new ideas, awaken ingenuity and develop creativity.

The day we change our mentality and begin to massif the learning of "how to think", a revolution will begin, understanding this as a rapid change through education. Thus, using technology as a practical tool that helps us live better, and that allows us to get out of the mud where we have gotten into the plague of poor quality information, generated by demagogues who manipulate social networks and end up misinforming and preventing its assimilation. LIES disguised as news that have generated great distrust that affects the institutions and the leaders who direct them, losing credibility, affecting reputation in a world threatened by climate change, and with the accelerated technological advance and the urgent need to recover the world economy. . Governments have the task of dignifying their profession by openly promoting a change in the educational system to move from the traditional model (memorizing and repeating) to lateral or parallel thinking, so that both systems work simultaneously and produce the value-generating synergy that constitutes the raison d'être of the management, a message that the academy must accept with all its enthusiasm.

Emmanuel Kant, the great German philosopher teaches us that all human beings have a development potential based on freedom (which he defines as when we act with the best intentions and slaves when we do it under the domination of our passions or those of the others), a faculty that we must jealously guard and that for no reason can we allow ourselves to be taken away from anyone. Individual responsibility consists in knowing oneself Emmanuel Kant, the great German philosopher teaches us that all human beings have a development potential based on freedom (which he defines as when we act with the best intentions and slaves when we do it under the domination of our passions or those of the others), a faculty that we must jealously guard and that for no reason can we allow ourselves to be taken away from anyone. Individual responsibility consists of knowing oneself, to reach its maximum potential and act correctly, doing good for good, contributing to the benefit of humanity, through reason and responsible work that allows us to make the best use of the time, respecting the rest of the days to recover energy.

The human being is the center of his philosophy and as such, beings should not be treated as simple means, taking into account that each one is an end in itself, whose purpose is to achieve its maximum perfection.

Kitimbwa Lukangakye, a humanist from the Congo, says that both the employer and the worker are first people in search of growth; they need each other and must see each other as brothers in order to interact with common goals while each retaining their role.

From a philosophical point of view, Miguel A. Giusti and Amalia Boyer, professors of the subject, focus on globalization as the increase in relationships maintained by the various groups in the world; of reducing cultural barriers when exchanging products, ideas or services. The term global refers to the interrelation between different aspects that cannot be seen as isolated issues due to technological advances such as the Internet, nor due to political ideologies such as neoliberalism that promote trade.

The main factor that contributes to the accelerated growth of exponential organizations is the ability to plan a service of total relevance to the consuming public, having technology as an ally in the structure and development of the business. With this, the exponential companies that are operating in the world have achieved a great evolution by introducing new ways of offering common services based on agility, accessibility and low cost.

Thinking exponentially, in the business world, requires considering the variables of the business model that could behave exponentially and developing a suitable model for it. Thinking exponentially is not easy, because we have not been taught to do so; we learned to think in a linear way, according to which, whoever earns 100 and wants to double it, will have to invest twice as many resources to double production. If he sells professional services and wants to double the profit, in principle, he will need twice as many employees. That is linear thinking.

Before talking about continuous improvement, the urgent need to carry out Digital Transformation should be analyzed according to the type of industry and a careful review of the advances that can be implemented should be made. In the case of construction, for example, the use of Drones for preliminary and control analyses, Virtual Reality for new projects, Internet of Things to connect devices for different uses, Three-Dimensional Printing to build elements, Innovative Materials and Control Programs for administrative use and Predictive Analysis to improve efficiency and reduce costs, incorporating circular economy concepts to design the treatment of construction debris and user waste, reusing water, using renewable energies, family orchards and vertical gardens with production of nutrients. In addition, verify that Sustainability standards are met, using the National BIM Strategy (Building Information Modeling) published by the Colombian government.


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Josavere