The 3 megatrends that are shaping the world (world population growth, the exponential advance of technology and hyper-connectivity) are going to trigger a great tidal wave which will move the economic and commercial center (of gravity) to the East.
3,000 million new people will emerge in the next decade, generating a new generation of consumption but with a clear feature: they´ll get the state-of-the-art technology, which will dramatically increase competition. This being so, economies, companies and institutions cannot waste more time and must get ready for challenges.
As in climate change, there will be losers and winners. Markets and wages will be polarized and the education gap will become larger. Here I collect 5 key points to build a winning project.
As the US withdraws from the Climate Change Paris Agreement, the world enters a new era of uncertainty about a better future for all. The worst predictions about Donald Trump’s presidency and new policies seem to become realities and therefore rough times are ahead of us, maybe for the next four years, perhaps eight, until he is either removed or finishes his mandate or mandates. He might be the dimmest President the US has ever had. The US is missing the target on Climate Change. Nonetheless, this is not a crisis, it’s just a setback and it can be fixed. Information has become essential for citizens. I’m trying to contribute here with these lines to spread light.
As the IMFWEO (World Economic Outlook) report points out, after a lackluster outturn in 2016, economic activity is projected to pick up pace in 2017 and 2018, especially in emerging markets and developing economies. But let’s analyze 2016 activity. Economic growth was estimated in 3.1%. Nevertheless, World Trade Organization stated that world trade would be around 1.7% below world economic growth. In fact, this has been quite remarkable, as world trade, for the last fifteen years, hasn’t grown below economic rhythm.
This post title comes from a sentence by Matt Ridley, a British journalist, businessman and author of popular science books with a very strong scientific background, who when pointing this idea out was making a word game which is easy to accept. Yes, ideas have intercourse taking into consideration that an idea is a combination of several ideas.
Tinder combines match.com with a smartphone. Pizza Hut melts Mc Donald’s and pizza. Mc Donald’s takes hamburgers through a production chain. There would be a wide number of success cases and all of them have in common the conjunction of different ideas.
Market polarization as a trend is not new. On the contrary, it has been going on for the last years. What it is happening, maybe, due to fast changes taking place, is that has been unnoticed for some, while for others has become something normality.
New industrial revolution, known as the fourth industrial revolution, implies a set of important factors deeply concerning current social system.
Previous industrial revolutions transformed all productive sectors, which came along with migration from towns to cities and to industrial areas. In those places, machines took over manual worker. Currently there is a new component that is growing unstoppable: technology.
Oil has gone down to its minimum historical rank within the last decade, the barrel was below 30 USD. Now is at 50 USD. In June 2014 it was at 115 USD.
Beyond geopolitical issues that might have influenced this current situation, there are other aspects to take into account. The increase of oil supply -even higher due to Iran becoming a stakeholder again; low demand, due to China’s crisis; and USA’s reserves, are responsible for this situation.
In one of the last posts, technology was spotted as a driver for social, economic, political, legal and environmental change.
Technology, as a tool to improve efficiency and competitiveness, can be regarded as an economic lever, responsible for 25% of GDP growth.
Avoiding to adapt to this new reality is not, therefore, an option. Due to its huge impact, the outcome is that citizen, client or consumer, becomes the center of everything instead of the product.
Current citizen’s profile has evolved in different areas in how she/he communicates, socializes or builds up an identity. This new citizen gets information through multichannel platforms, assuming a key role in debates and having an opinion about matters in which he/she might be interested. Her/his voice, amplified and critical, demands quick and quality answers, in a more sophisticated way.
This new situation rises a challenge as a new paradigm: the business management of the citizen in his/her role as client in the technological environment.
I DO NOT LIKE THE TERM “ENTREPRENEUR “ NOR THE ADJECTIVE “DISRUPTIVE” . NOT BECAUSE THEY ENJOY SENSE AND RELEVANCE BUT BECAUSE, INTO FASHION, ITS ESSENCE IS BLURRED.
MORE CLEAR, STRAIGHTFORWARD AND CONSISTENT WITH THE TIMES WE LIVE IN TODAY AND, ABOVE ALL, THAT THOSE WHO COME TO US, WE HAVE ANOTHER SERIES OF QUALIFIERS SUCH AS “ADVENTUROUS”, “CREATOR”, “INCLUSIVE”, “PASSIONATE” AND “MAVERICK” WHO HAVE TO TAKE CENTER STAGE, ALONG WITH THE ABILITY TO SACRIFICE AND SPIRIT OF OVERCOMING.
Analysing competitiveness key factors becomes essential to successfully tackle the present and future economic environment. This has been so far the goal pursued in several previous articles in this blog.
The most relevant factor to take into consideration in order to become competitive and play the field in big markets was a complex operation.
Coming up with it involved dissecting the list of countries by R+D investment rating and establishing a difference between this indicator and the set of variables that determine the innovative character of a country.
This factor will conclude, in terms of international competitive relevance, which countries lie at the forefront of international influence and which must face difficulties and limitations for being placed right behind or even farther.
So, taking these elements into consideration, current global economic power epicentre is being moved towards the East by new prominent areas specialized in trading goods, along with countries from other parts of the world like the USA.