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By Thomas Varan

Trust is in free fall. Change is on the horizon

The Fear & Greed index is flashing red, rapidly approaching the EXTREME FEAR category. The Doomsday Clock was recently set at 90 seconds to midnight – the closest mark to a global catastrophe since 1947. And as if a potential worldwide crisis wasn’t enough, Trump has found time to throw a trade war at Denmark (and the rest of the EU) as “thanks” for not letting him buy Greenland. Not exactly the kind of headlines you want, but thank you Trump – you’re teaching us to understand ourselves and our place in a new, bizarre reality.

Thank you Trump – you teach us to understand ourselves
Trust is in free fall. Change is on the horizon.
Thomas Varan Global Sales Director

We are very much in control

According to Kristian Cedervall Lauta, author of Disasters and What They Can Teach Us About Ourselves, the scale of a disaster is often determined long before the event itself. This is due to the way we organize ourselves, which can either mitigate or escalate the damage of a crisis. The same is true in a business. If a CFO isn’t actively working on risk management, supply chains, supplier relationships and operational flexibility now, they’ll be busy when disaster strikes. And there’s always that one backward-looking person in the boardroom shouting, “I told you so!” Let’s be honest: Few people need that kind of lecturing finger pointing when you’re in the middle of downsizing.

The automotive industry – a study in future changes

A look at the automotive industry gives a taste of what’s in store for other industries. Chinese electric car manufacturers stole the spotlight, while the big guns from Germany, the US and Japan woke up far too late. The result? Factories are closing in Germany and historic car brands are being forced into massive mergers and costly restructuring. The moral is simple: if you sit tight on your existing business without preparing for new technologies and consumer demands, well, you’ll be left behind – and that hurts.

Artificial intelligence: Next stop – a new division of labor

According to Mario Draghi, the EU has been asleep at the switch when it comes to securing a leadership position in AI and digital transformation. It’s not just the automotive industry that is being affected by new technology. The entire fabric of our society is facing an update – from welfare systems and conflict management to the demographic challenges that are piling up. However, one thing is certain: We can’t sleep our way into the future and expect to be competitive on the other side.

What do you do as CFO?

In a world of instability and constant change, the ability to react quickly – to both risks and opportunities – is paramount. Call it due diligence, agile transformation or whatever you like. It’s about being able to both protect and exploit.
  1. Reduce OPEX: Review your running costs. How can you cut IT costs without compromising quality and the bottom line?
  2. Reduce CAPEX: slim down your balance sheet. Consider turning large investments into flexible leasing or pay-as-you-go models.
  3. Build a flexible IT foundation: It’s hard to predict the future, but you can prepare your business to scale costs, projects and resources up and down as things change. Ditch monolithic systems that lock you in and go for solutions that can scale and integrate quickly.

In a nearshore context, this can mean utilizing external IT talent that can be scaled up or down in no time. Why not use uncertain times as an opportunity to rethink recruitment and IT strategy?

Dare to act now?

Crisis or not, your responsibility as CFO is to find new solutions, save money and future-proof the organization. Cutting corners may not be popular – but if you don’t, you can expect a trip to the boardroom when the crisis really bites. So thank you, Trump, for shaking up the global order – albeit in an eccentric way. And thank you to all those who dare to say it out loud: The world is no longer normal. Neither are we, and it’s time to adjust our businesses accordingly. The moral? If you want to survive – and maybe even thrive – in a world that has lost its way, it requires due diligence, agile transformation and the willingness to rethink your entire foundation. This is where nearshoring and flexible collaboration models can be the extra gear that keeps you ahead of the competition – at least until the next big disaster strikes.

Want to talk digital development for your business?

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Contact Thomas today

Call on +45 3190 2803, fill out the form, or book a 30-minute online meeting directly in his calendar here.

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