10. Technological companies and the digital revolution

Chapter 10



by: Josavere

Colombia, a member country of the OECD (Organization for Economic Cooperation and Development), which is equivalent to a quality certificate for public policies and opens doors to institutional investment funds; gives international recognition to its traditional debt-honoring behavior; with a lot of political stability; free trade agreements with the main economies of the world, which gives it the ability to predict the rules of the game for exports and foreign investment, with a tradition of great respect; a lot of power generation capacity and great prospects waiting for the Hidroituango dam to come into operation, in addition to other sources that are friendlier to sustainability; inflation highly controlled by a Bank of the Republic independent of the executive, as occurs in countries with advanced economies; immensely respectful of the freedom of the press and of different opinions.

According to a Dec/2021 report, The ECONOMIST, the country that has reactivated the most in the world of the hundred analyzed to qualify pre-pandemic levels, ends the year with impressive growth (9.9%) and with very good expectations for the future, allowing you to exploit those advantages to boost your economic recovery.

The lack of criteria to harmonize situations such as education requires special attention from the government, whose universities are so clueless that in 2020 they graduated, according to data from the SNIES of the Ministry of Education, ten times more administrators, doctors, engineers, and lawyers than students of the Information and Communication Technology industries (15,222 graduates, while a deficit of 150,000 programmers is calculated).

Innovation is urgent to use new technologies to reinvent products and services; joint government work is required, which is responsible for taking the initiative to meet with companies and universities aimed at offering courses that give competencies and skills in information technology in parallel with other knowledge, opening the way to experimentation, creativity , autonomy and teamwork, taking into account that the digital revolution is just beginning, which opens up opportunities, to the extent that a correct and rapid direction is given, aimed at facing the challenge we face to transform companies into exponential models (capable of generate disproportionately higher results compared to traditional ones, having technology as an ally in the structure and development of the business) to reduce the cost structure, a good alternative to face the inflation that challenges the world and represents the most retrograde of taxes, with clients in urgent need of services to generate value and preserve the purchasing power of its currency.

The possibility of employing programmers in all corners of the country offers the opportunity to find disruption (technology that changes the rules of the game of a market, the lives of people, or an entire society) for companies, as well as economies big ones like the United States, China and countries with good environments to do business. In this ranking, headed by New Zealand, Colombia occupies the sixty-seventh position (67); the most advanced in these early years of the Digital Revolution, which also requires skill development, risk acceptance, teamwork, wireless networks, entrepreneurial culture, technological absorption, human capital, suitability, innovation, and internationalization are far ahead of us.

It is necessary to change the mentality of the financial system to open spaces to the less wealthy, as proposed by Nubank, which without having a single bank branch or safe with physical money, serves 48 million customers in Latin America.

According to Doug Leone, the guru of technology companies, Latin America can do in twenty what it took forty years to build in the United States. Find many possibilities in financial services with global consumer trends like insurance, buy now pay later, cryptocurrencies, motorcycle financing, integrated credit, mobile wallets, and healthcare.

At the government level, it recommends doing everything possible to stimulate innovation, finance research at the university level, and let companies do the development. Take care of the unwanted consequences, when they pass laws; facilitate the entry of capital to finance companies; do not over-regulate.

Recommends to entrepreneurs, the search for investors with experience and willingness to help entrepreneurs expand their companies without being tempted by large amounts of money; protecting the solution; capable of resisting the temptation of mergers and acquisitions and that is very clear that rapid growth is a strategic requirement; they should not consider going public as a final milestone, but as another day in the construction of a great business; have a clear answer to the question: What will my company be in the next five years?

It is very important to keep in mind that once the country is involved in the technological revolution, the speed of growth is very rapid and completely changes the panorama, which requires the corresponding structural preparation considering that Latin America has become a very attractive region for investment because it has great potential to create digital products and a lot of markets to explore, since electronic commerce is below 10% and concentrated in Brazil, Argentina, Mexico, Colombia, Chile, and Uruguay.

The Giving Piedge2, the promise of the world's richest families and individuals to dedicate most of their fortunes to charitable causes as a moral commitment, not legally binding, to establish a two-way street, because listening to people who want to help, you learn a lot from what they know, because all human beings have something to contribute. If financial resources are basic, knowledge, management skills, and contacts also have the potential to generate value, and both need each other to do so.

In Colombia it is very important to invite large national and foreign businessmen to commit to donating part of their wealth in life, and for the government to quickly prepare the people required as social innovators, strategic philanthropists, and ethical leaders to transform the country. Working together, without so many small and separate foundations because it is no longer an option to work in isolation due to the clear evolution towards collaboration, not competition.

Endeavor, a non-profit company, focuses on selecting and empowering entrepreneurs to become high-impact companies because they believe, in the words of its president, Edgar Bronfman Jr., who believes that capitalism is the best system for economic growth and it needs to function for a larger group of people or, it does NOT deserve to survive.

The objective is to attack the employment problem with the most appropriate variable because in this century there is no employment, but there is a lot of work to be done as trained entrepreneurs with the mentality required to be part of the solution and not part of the difficulty.

Thus, with busy people at levels of mobility, we have the seed of development, to the extent that we succeed, placing people in jobs that generate happiness and make it easier for them to reach horizons of productivity that allow them to act internationally.

Simultaneously, we need to work with all the courage and enthusiasm required to strengthen Transparency, a variable in which we occupy a shameful position at the international level, attacking all fronts because governments are corrupt to the extent that individuals allow them, because for there to be a bribe must be a briber.

All of the above helps to correct the very serious problem of the concentration of wealth and income, measured by the Gini coefficient1, a variable that leaves us quite poorly located at the global level and that explains in large part the violence that so destroys and threatens the welfare of society.

Meanwhile, we must contribute to the calculation of the level of happiness, a variable called to be the most important indicator of the quality of life, replacing the GDP (gross domestic product) that is applied today in a very crude way.

  1. The Gini coefficient, certified by the World Inequality Database (WID) measures the degree of concentration of wealth, country social spending (% of the total that a country allocates to health, education, pensions, and subsidies to the poorest). Population: growth rate, density; sustainability, such as deforestation, pollution, trends in the use of "clean" energy as a % of energy from hydroelectric plants vs thermoelectric plants with diesel). Something about women (gender violence, or female schooling, because in Africa there are still countries where women do not go to school, or only go to primary school). Energy consumption KW per inhabitant cost per KW of energy vs per capita income. Crime: Homicides per 100,000 inhabitants. Weekly hours of work, child labor, to the extent information is available
  2. The Giving Pledge is a global, multi-generational commitment by some of the world's richest individuals and couples to create a greater culture of giving to help address society's most pressing problems. Giving Pledge signatories publicly and morally commit to donating the majority of their wealth to philanthropic or charitable causes. They also come together to learn and share knowledge in order to continue to improve the effectiveness and impact of their philanthropic giving.

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