CEO, AI and the New Challenges of Changing Markets
Octavio Fernandez
Smart Factory via Divirtualigente AI: Digital Transformation, Smart Sensors, Automation, Smart Production & Smart Quality, Medical-Healthcare, Data Science, ML, MES, SCADA, ERP. AI real time. Customers Auto OEM′s -T1-T3
Today, more than ever, the world is changing at a dizzying pace. Competition in the markets, driven by more technological products, competitive prices, and shifting economic policies, shows an intense global battle in the commercial sphere, leading to consequences such as economic crises, unemployment, and increasingly expensive health services.
In this context, companies must adapt quickly to stay competitive, requiring profound strategic changes. CEOs and their teams must find immediate solutions to meet short-, medium-, and long-term objectives in an increasingly challenging environment.
This constant pressure generates high stress levels for owners, shareholders, and CEOs, who strive to achieve double-digit annual sales growth—an ambitious goal that is rarely realized, as linear growth is not sustainable. As a result, many companies resort to aggressive strategies to attract consumers in new markets, often offering products or services at prices that do not reflect their true value.
Despite these efforts, sustaining double-digit sales growth remains unrealistic. Factors such as limited consumer purchasing power, market saturation, a broad product offering, and rising living costs make such goals hard to achieve, forcing businesses to rethink their strategies for more sustainable and realistic approaches. ?Purchasing a coffee has become a luxury, and health services are often unaffordable!
Additionally, new global policies and challenges add further pressure, contributing to the crises faced by businesses. These elements, along with others, negatively impact sales and, consequently, the financial performance of organizations and the regional economy.
In response, corporations, CEOs, and executives implement various traditional solutions, including price increases, cost reductions, renegotiations with suppliers, product component reductions, and the pursuit of new consumer markets. However, not all these strategies are sufficient to maintain competitiveness.
So, what should be done?
According to the experience of Admexus experts in operations, analyzing a company's internal data, combined with market information, allows the creation of models based on Divirtualigente artificial intelligence. These models are effective tools for understanding the behavior of both the company and its competitors in the global market.
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After years of in-depth Divirtualigente analysis, it was concluded that several key factors contribute to improving competitiveness. One important factor is the involvement of actors (people and machines) according to their degree of contribution to the generation of value within the company.
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For example, even if the logistics department has a zero-contribution value in the model, its contribution is essential to ensuring efficient product distribution. Another key factor identified by the model is the organizational structure. In some companies, this structure is too heavy, with too many hierarchical levels and low value-added contributions—what can be described as "many bosses and few workers."
Another critical finding was the detection of production inefficiencies and mismatches between stored product quantities, the consumer market, and production orders. All these elements are interrelated and should be evaluated based on their degree and level of contribution to the organization’s total value using the Divirtualigente concept.
Admexus experts, using the Divirtualigente model, have developed a key practice that revolutionizes real-time production evaluation. Instead of relying on traditional analyses that can take days or even weeks, they can now instantly assess the marginal utility of each production line manufacturing various products for different customers. This innovation allows them to identify immediately which products generate significant value and which do not, enabling the establishment of strategies and solutions quickly.
Finally, the competitiveness of a company in the market depends on the degree of operational and administrative contribution to cost structures and sales prices. If the company has high levels of non-contribution to value, it will struggle to compete with others that maintain lower levels of non-contribution or a higher degree of contribution. Thus, participating in markets where the company's products have low levels of non-contribution (implying high costs and high prices) will make it difficult for them to survive.
Admexus, with its Divirtualigente models based on artificial intelligence, has fostered real competition between markets. The central philosophy of this approach is simple but powerful: if a product is sold in a specific regional market, it should also be manufactured in that region. This practice not only optimizes competitiveness but also helps balance both the regional and global economy. Through this approach, Admexus is actively contributing to a more balanced and sustainable economic model, both locally and globally.
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Board Member, Executive Consulting, Expert Production & Logistics, EVP Institute for Production and Logistics Systems
1 个月Toll Octavio, Du hast die wichtigsten Punkte sehr gut adressiert und auch M?glichkeiten zur Umsetzung nachvollziehbar aufgezeigt. Viele Grü?e Klaus
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