Can the US stay globally competitive?

Pop quiz: which country was the richest in the world, had the largest military, was the center of world business and finance, had the strongest education system, was the world's center of innovation and invention, had a currency that was the world's standard of value, and had the highest standard of living?

It was England. In 1900.

One thing that the current economic conditions are telling us is that the US and US companies may not be as competitive as they need to be. Over the past few weeks we have seen stories that claim that the US is falling behind other countries in terms of innovation, like this recent article from The Economist. As it states in the article, emerging markets are making steady gains, while the US has dropped one spot. The rankings, which measure innovation through the number of patents granted and factors that help or hinder the ability to innovate, are a sign that other countries are catching up to the US. The big question is: will the US go through the same changes that England did?

Innovation and technology is one area where the United States can grow and expand. Competition is always good for the global market. Competition breeds innovation, which helps the market to continually evolve. Businesses, especially businesses in the US, need to realize that they are competing on a global front, not just domestically.

Businesses need to focus on technology and innovation in order to have sustained global competitiveness. One example of a company experiencing hardships right now is GM. We all heard the joke "Government Motors". This is because the U.S Gov. loaned them billions of dollars. We can argue back and forth if this was the correct thing to do or not, but the point was that GM failed to be competitive globally when it was facing new threats from foreign auto makers. There were many articles about the company's emergence from bankruptcy last week. Many people say that one of GM's biggest challenges is to build cars that people want to drive. The company is also competing against various foreign car companies -- companies that consumers feel more confident in. It will be interesting to see what GM is able to do against this competition.

Can GM build customer confidence and innovate in order to become more competitive in the US and throughout the world? Can other US companies focus their business on innovation to become more globally competitive?

So what can the US, and other countries that need to become more globally competitive do? As stated in one of the articles we highlight in this month's Intelligent World newsletter, the countries can develop an innovation policy. Many leading Asian nations including Japan, South Korea, Singapore, and China have explicit national innovation policies that include generous tax incentives and direct funding for innovation. These incentives could be the thing that helps the economy to recover more quickly and not become the England of 1900.

How to Improve Your Competitiveness in a Global, Internet Economy.

Now that you understand that your business competes not just domestically, but internationally, virtually, and environmentally, how can you use it to your advantage? You can take this knowledge to make decisions and take action to make your business more competitive in the global, Internet economy.

We have laid out a few strategies you can easily take action on to become more competitive. These strategies are fairly easy to initiate, and they can help you to reduce costs, innovate, become environmentally sustainable, empower your company and yourself, and build your network.

Reduce Costs:
This is something every business constantly tries to achieve. But are you focused on reducing the right costs? You might want to think about looking into your supply chain management options. You could work on collaborating with your suppliers to consolidate goods into fewer shipments, reduce packaging costs, and work on simplifying your process, among other strategies.

You could also cut costs by looking at the technology you use every day. Are there any programs with monthly subscription fees that you don't really use? Are there other programs that you use, and you know there are less expensive versions available? Do you have the right collaboration tools for your workforce?


Innovate:
In stiff competition, the companies that can innovate and adapt to the ever changing business environment are the ones that succeed. One way that companies innovate is through research and development. This could be as simple as surveying your customers to understand what your company could be doing better. You may spend a bit more money in the short term, but the results will pay off well into the long-term. If you focus on improving your products and services to a point where you are better than your competitors, customers will notice.


Become Environmentally Sustainable:
Environmental sustainability is not just another buzzword. In fact, the idea will grow in importance as we realize that the world's non-renewable resources are becoming scarce. Improvements that you can undertake in your own business include starting a recycling program, and building improvements that help to cut down on your use of electricity. You can also reduce your travel by taking advantage of Internet and Communication Technology to collaborate with employees and clients.


Empower Your Company and Yourself:
Gathering market intelligence on domestic, international, virtual, and environmental markets is one of the most important things you can do to empower your business. If you know what is going on in all of the various markets you compete in, and the ones you do not compete in, you can clearly define your challenges, and devise strategies to overcome those challenges.

Additionally, you can take the time to improve yourself. No one is perfect. Attend a seminar, join a professional organization, or even take some time to read case studies pertaining to your industry. Whether you are in management, sales, or HR, there are always chances to develop professionally.


Network:
How many times have you heard that "It’s not what you know, it's who you know?" Well, that model of thinking is somewhat true, especially now. Your company does not need to own manufacturing plants or distribution centers to get products to customers. You can develop a global and virtual business network to orchestrate a network of suppliers, manufacturers, and buyers. On a smaller scale, who do you know, and how can they help you to make your network more powerful?

You can even use social media like Twitter, blogs, and LinkedIn to expand your virtual network, and make your company active in the global, internet economy. Sign up for an account, build your profile, and watch how your network grows.