IS ANOTHER MATTER
Here, In Brief, Are
The world will add a billion new people by 2030, and 90% of that population growth will occur in Asia and Africa. We are becoming a world of aging populations in developed countries — and young populations in developing countries.
We have become a world where most people live in cities, and more of us are crowding into urban centers every year. 75% of this accelerating urban growth will occur in Asia and Africa.
Along with the 4 BRIC economies, the “Next 11” countries are catching up to the G7 in gross domestic product. Globalization will continue to be the single biggest fact of economic life, but we are now also seeing greater localization of production, processes, and customization for consumer communities.
Rising demand for food, energy, water, and other resources is intensifying geopolitical tensions as well as commercial competition. Resource constraints also apply to ready cash: Large institutions, including governments, will not be able to borrow as much as in the past to sustain their growth. Sooner or later, expect massive de-leveraging in the G7 countries.
Purchase equations for consumers are becoming more complex: Value is not necessarily about cost. Performance is not necessarily about horsepower. Quality of life issues — health, security, the world we will leave to our children — are the new priorities. And many more consumers are deciding not to purchase at all.
The digitalization of work and society is only in its adolescence, and the pace of change is accelerating. Smartphones have re-democratized innovation, with major advances achieved by small teams as well as industry. Less visible technologies are transforming healthcare and changing every aspect of how we live, work, produce, and buy.
A “fast follower” strategy becomes ever more difficult in an environment of accelerating change and shorter cycle times. All companies will have to innovate just to keep up.
Like tectonic plates shifting under the Earth’s surface, all of these trends are affecting your operating environment. Deciding which to address first is today’s imperative. But a decade from now, the winners will be those who saw most deeply into the entire moving landscape.