At Xenatus Global we monitor global trends in terms of people and industries. In recent years the trends have been accelerating in speed, and breadth of reach to become a flagrant part of business and life. The trends in the world have been pointing towards:
Internet applications have nullified the importance of geography and location
New technologies that enable products and services in ways that have never been possible in the past
Global competition is becoming more real and is demanding innovation
The increase of personal and business information to be voluntarily available electronically
Here at Xenatus Global, we believe that it is imperative to harmoniously adapt to the fast-growing and changing world around us. We draw inspiration from change and we adapt to it in a manner that would suit the interest of our trusting clienteles. In the technology genre, change is inevitable and rather refreshing. We are no strangers to making this change work for our clients and partners. Our mission is about being the trusted counselors to our clients and partners in this dynamic world.
The following ten macro trends, based on steep analysis, and compiled by Trend Watching, McKinsey, and others, name the major worldwide shifts that will affect every consumer and business in the future:
Demographics and spending power - Global populations are aging, urbanizing and becoming more ethnically complex. New consumer groups will require higher degrees of customization that respect their uniqueness. McKinsey reports: “By 2015 the Hispanic population in the US will have spending power equivalent to that of 60% of all Chinese consumers.”
The evolution of the information economy - Ubiquitous connectivity and access to information are encouraging heightened individual and collective knowledge creation. Vast parts of personal lives will be voluntarily shared (and involuntarily) mined for, in the process of global information production. Maintaining the safety of the networks and the foresight to navigate these new developments will be increasingly contested and difficult.
Globalization, politics and security - While borders are dissolving in the virtual landscape, the “real world” is witnessing serious military conflict and aggressive nationalistic tendencies that could last for decades. Globalization, mixed with a general feeling of powerlessness and anxiety, will drive an increase in religious fundamentalism, nationalism and tribalism. On the other hand, the even playing field of economic globalization will also continue to present a peaceful, creative and integrating alternative to threatening forces.
The reworking of industry - Businesses will need to simultaneously become more global and local, maintaining oversight on worldwide operations while remaining sensitive to local market conditions. The emergence of multinationals from the developing world has intensified competition. Now more than ever, innovation is crucial to remain successful in all global regions and markets. Changing market regulation and the advent of new technologies has led to the proliferation of non-traditional business models. Corporate borders are blurring as networked ecosystems of producers and consumers emerge. The pressures on the corporation are changing as private equity tinkers with life-cycles and performance expectations. Companies that find efficiencies with new structural possibilities will capitalize on these transformations.
The abundance of labor and the shortage of talent - Economic development across the Asian continent, coupled with regional and global outsourcing, have radically altered the labor landscape. Low cost jobs will continue to migrate to developing countries, and there will be a scarcity of high-skilled talent. Gifted employees will gain bargaining power as renewed competition amongst employers will reward and motivate advanced education and unique expertise.
The Evolution of Technology - The appearance of a global technological environment will reshape both the lives of individuals and the industries that support them. Geography and location will continue to lose importance as technology increasingly defines human behavior and industry. Practices of work, leisure, and love will be revolutionized to the point of unrecognizability.
Consumption and Production Shift - Economic power, as measured by investment and output, will continue to shift to Asia. Yet the growth of the economy will continue to be fuelled by the consumption of developed markets. For the first time, the world will witness a truly global middle class, though income inequality will continue to rise.
Natural Resources Dwindle: Basic resources are under threat, including water, energy, food, habitats and climate, as consumption is rising faster than the planet can sustain it. Prices for commodities will continue to rise and we will witness great ingenuity in the development of renewable energies. In addition, public and institutional awareness and activism will surge, making its-self known in the consumer marketplace, governmental policy and in corporate practices.
Growing Stakeholder Demands on Business: In light of recent losses of faith in corporations, more public and institutional stakeholders will demand transparency and accountability from the business world. Businesses will continue to be seen both as part of our society’s problems, and as agents that can bring about lasting solutions.
Public-sector activities will balloon, making productivity gains essential. Aging populations will demand near private-sector management and efficiency of the public sector. Without clear productivity gains in the public sector, pension and health care obligations will call on raising taxes. Maturing governments in emerging-market economies will be faced with many decisions about the degree of social services they will provide to populations demanding state-financed health care and retirement security. If public institutions fail to deal with these issues, then trust will all but evaporate leading to a growing feeling of powerlessness.