Innovation is a determining factor in the competitiveness and success of companies

Doing business in Brazil can be a complex and challenging movement, as companies need to overcome numerous obstacles to be successful, such as bureaucracy, tax complexity and inflation.

If surviving this scenario is difficult enough, imagine growing up. However, there are companies that have been expanding their relevance and standing out in the sector in which they operate.

Among them is the TOTVSthe largest technology company in Brazil. Leader in the development of business management software, in just 5 years, it quadrupled its market value.

Behind this robust result is the performance of Dennis Herszkowicz, who, in 2018, assumed the role of CEO of the company. He succeeded the founder, current president of the Board of Directors of TOTVS and one of the main references in the Brazilian IT market, Laércio Consentino.

Since then, Herszkowicz has become one of the most prominent executives in Brazil. His leadership at TOTVS significantly accelerated the company’s growth path.

With a degree in Marketing from ESPM, Dennis believes that having taken a course in the humanities certainly “opened his mind” to a series of views and experiences that perhaps a course in exact sciences would not have opened up. Such as, for example, the development of skills that stimulate creativity and innovation.

The importance of disruptive solutions

For the CEO of TOTVS, innovation is a determining factor in the success and sustainability of companies. “Even if your business is not in a highly competitive sector, we need to recognize that, to survive in this world – in full digital transformation -, it is necessary to invest in technology to come out ahead with new solutions to complex problems, guarantee the best customer experience and adjust to constant market changes.”

Herszkowicz also highlights that countries that invest in technology and innovation tend to have better rates of economic and social development, because they generate more jobs and promote professional qualifications. “In other words, when we advance in research, development and technological innovation, we create a virtuous cycle, where the knowledge generated feeds new business and growth opportunities.”

With more than 20 years of experience in the technology market, it was at TOTVS that Herszkowicz’s innovative side was translated into practice, with the creation of an unprecedented business strategy that significantly expanded the company’s operations and addressable market far beyond the market. of software.

Customer at the center of strategies

Under the CEO’s command, TOTVS expanded and consolidated its portfolio in three business dimensions: Management, with systems to automate core activity processes and the entire backoffice of the operation; Techfin, offering personalized and competitive financial services through its systems; and Business Performance, with solutions for companies to sell more and grow their operations.

From this movement, the company began to offer a complete package of services and technological solutions to support the operations and growth of its thousands of customers, thus consolidating itself as a true trusted advisor.

Robust results

There is no shortage of examples that prove Dennis’ success in leading TOTVS. Under his management, the company’s market value increased more than four times in the last five years, jumping from R$4.5 billion in 2018 to R$19.23 billion in 2023. Another major financial highlight of the executive’s trajectory at the helm of company is the 21 consecutive quarters that the company has recorded double-digit growth, a mark reached at the end of the second quarter of 2024.

The “outside the box” vision can also be seen in the company’s aggressive M&As strategy, with 22 acquisitions in that time. Among some of the main deals in the period is the acquisition of RD Stationfor R$1.8 billion (in 2021), and the joint venture with Itaú-Unibanco to create TOTVS TECHFIN (in 2023), which aims to expand, simplify and democratize access to corporate financial services.

Another important initiative of Dennis’ management, which complements TOTVS’s innovation strategy, was the creation of a corporate venture capital fund, managed by Citrino Ventures. CV has R$300 million in cash for investments in startups with high growth potential and innovation capacity, through acquisitions of minority stakes. To date, it has invested in 10 startups with great potential in the market.

Protagonism on the ESG agenda

Throughout his career at TOTVS, the executive has also been genuinely committed to initiatives aimed at preserving the environment, responsibility towards society and corporate transparency, both internally and externally. This translates into the expression that TOTVS is a company that thinks about and promotes ESG.

As practical results, under the executive’s management, TOTVS joined important B3 indices, such as IGPTW and IDIVERSA, in addition to being among the main technology recommendations in the ESG portfolios of BTG, Itaú, Santander and XP. The company also received important recognitions such as the Human Rights and Diversity Seal, Pro-Ethics Company Seal, ANEFAC Award – Transparency Trophy, and occupying 4th place in the Technology category in the Merco ESG Responsibility ranking.

This content was originally published in Innovation is a determining factor for the competitiveness and success of companies on the CNN Brasil website.

Source: CNN Brasil