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Which world and which
European businesses in
2020?

     Johan Peter Paludan
The Copenhagen Institute for
Futures Studies


• Founded by Thorkil
  Kristensen in 1970
• Private, non-profit
  organisation
• Memberbased –
  members i DK,S, N
• Crossdisciplinarian think
  tank
• Staff 25
Chance favours only the prepared
mind.

           Louis Pasteur
Ways into the future

-   Trends – short term (fashion, bussiness)
-   Prognoses (ex. Economic growth, demographics)
-   Creativity (out of the box thinking, transdisciplinarian)
-   Megatrends (globalisation)
-   Scenarios (environmental devl.)
-   Paradigms/Logics
-   Back Casting (point of departure: a preferred future)
-   Wild Cards (Mohammed-drawings)
15 Megatrends
1. Knowledge
2. New technology
3. Acceleration
4. Hypercomplexity
5. Globalisation
6. Commercialisation
7. Affluence
8. Democratisation
9. Polarisation
10.Immaterialisation
11.Individualisation
12.Networks
13.Health
14.Environment
15.Ageing
LOGICS
Logics, so far
•   Hunter/gatherer
•   Agricultural
•   Industrial
•   ?
The four value added logics
                        Emotions & stories
                       DreamSociety logic


Standardisation                                 Diversity
Automation                                      Taylored
Specialisation                                  Diy
Maintenance                                     Interactive

  Industrial                                   Creative Man
  society logic                              and Anarchonomy
                                                   logic




                  Knowledge society logic
                         Rational R&D
INDUSTRY LOGIC
• Economies of scale
• Massproduction of
identical products
• To produce and to
consume
•Automation
•Outsourcing
•In services too!
DREAM SOCIETY
 LOGIC

 From function to
emotions
•The immaterial side of a
product more important
than the material
• Branding and brand
loyalty
• ’Superfluous’
Dream Society – the
theory
• Driving forces:
  - the accelerating rate of change: we
  are already entering the Dream Society
  - the immaterialisation of demand
  - automation of whatever can be
  automated
  - the revolt against the tyranny of
  reason
Evolution of consumption
1800


1600
           Totally superfluous
1400
           Luxury
1200       Important
           Basic consumption
1000
           Necessities
 800

 600


 400

 200


  0

  1910   1920   1930   1940   1950   1960   1970   1980   1990   2000   2010
100 ml 43Euro
From Dung to Coffee Brew With No Aftertaste
The six new market
profiles
•   The market for adventure
•   The market for love and belonging
•   The care market
•   The who-am-I market
•   The market for peace of mind
•   The market for convictions
 
Future market segments and past
market categories




                      Love and friendship


                                                   Peace of mind


                                                                              Conviction
                                                                                           Adventure
                                                                   Identity
        Food                                Care
        Housing
        Transport
        Energy
        Finance                                                    ?
        Electronics
Stories

• To send signals about the good life
• The great stories aren’t what they used
  to be, and yet….
• What is abundant is ’cheap’
  - we go for the scarce elements
Scarce resources in the Dream
Society
 ARE NOT :              BUT :
 •   Information        •   Attention
 •   Products           •   Care
 •   Channels           •   Genuine interest
 •   Opportunities      •   Time
 •   Satisfaction       •   Trust
 •   Good Stories       •   Meaning
Create value!
What is the meaning
Of what you do?
                       Meaning
                 Solution
          Product
Technology
CREATIVE MAN
LOGIC

• From experience to
identification
• Creativity and
innovation in work and
consumption
• The prosumer
• Individualised
massproduction
Anarchism + Economy =
ANARCONOMY




      Download FREE report from IFF:
       www.iff.dk/dk/anarconomy.asp
Anarconomy - basics
• Networksociety
• Open source
• Share knowledge without losing it
• Free
• Copyright versus unique
  solutions/experiences
• The consumer takes over the means of
  production
3D printers
Contour Crafting – print
a house
From centrallised
                                     Photovoltaic facade
  energy systems            Trees
  to decentralised                  Greenery air/watercleaning
  production


                     Moss
                                     Thrash = food

                                     Intelligent surface


                                    Furniture recycleable
tio d
                   tri lise
                            n
A wildcard?




                dis ntra
                      bu
                  ce
                De
                       Decentralisatio
Decentralised
development
                       n: everything is
                       in the perifery
                 De prod
                   ce
                     ntr uctio
                        ali n
                           se
                             d
Driving forces towards
     anarconomy
TECHNOLOGY               KNOWLEDGE              PEOPLE                  DECENTRALISA-
                                                                        TION




Ubiquitous IT and        Transparency           Surplus and a will to   Death of Distance
internet                                        share




Dismanteling of          Free content and       Easy networking         Decentralised
technology               knowledge (copyleft)   (social sites)          markets – P2P
monopolies


Basically free copying   Knowledge easy to      Social capital more     Decentralised
of knowledge             find (search           important than          organisation –
products                 functions)             material capital        networks
Anarconomy vs. Commercial
economy
•   Free copyleft              •   Paid for, copyright
•   Based on volunteers        •   Based on salaried labour
•   Produced/distributed       •   Produced/distributed centrally
    decentralised              •   Updated now and then
•   Continously updated        •   The producer is responsible
•   No one is responsible.     •   Good at streamlining
•   Not good at streamlining



    Challenges and supplements each other
Digtialisation
• Everything that
  can be
  digitalised, will
  be digitalised
• The price of all
  that is
  digitalised
  approaches 0.
• New business
  models
  needed
Knowledge society logic

• Develop, transmit, use and sell knowledge
• Bussiness service: knowledge on the
  interplay between technology and
  customers
• Knowledge embedded in products and
  systems
• Develop new knowledge through research
• Education in focus
- and so what?
• So: know thy logic!
Value creation logics
                          Emotional
                    DreamSociety logic


Standardisation
                                              Diversity
Automatisation
                                              Man-made
Specialisation
                                              Diy
                                              Involvement
  Industrial                                 Creative Man
  society-                                    Logic and
  logic                                      Anarchonomy




                   Knowledge society logic
                          Rational
Value creation logics
                               Leadership
                        Emotional
 Management DreamSociety logic Charisma
 Scientific
Standardisation
                                           Diversity
Automatisation
                                           Man-made
Specialisation
                                           Diy
                                           Involvement
  Industrial                             Creative Man
  society-                                Logic and
  logic                                  Anarchonomy
                                         Empowerment
                                         Facilitate
                                         Servant leader
                  Knowledge society logic Dual:
                        Rational          purse or
Value creation logics: Motivation
                        Emotional     ‘Hooked’
                   DreamSociety logic Excited
  9-17
Standardisation
                                             Diversity
Automatisation
                                             Man-made
Specialisation
                                             Diy
                                             Involvement
  Industrial                                Creative Man
  society-                                   Logic and
  logic                                     Anarchonomy
                                            Empowerment



                  Knowledge society logic    ‘Going
                        Rational             places’
Value creation logics: Marketing
                        Emotional     ‘Seduction’
  Data             DreamSociety logic Push
  Push
Standardisation
                                              Diversity
Automatisation
                                              Man-made
Specialisation
                                              Diy
                                              Involvement
  Industrial                                Creative Man
  society-                                   Logic and
  logic                                     Anarchonomy
                                            Interactive
                                            Data pull

                  Knowledge society logic    Informatio
                        Rational             n
Value creation logics: Innovation
                        Emotional
                   DreamSociety logic
                                        Storybased
  Closed
Standardisation
                                              Diversity
Automatisation
                                              Man-made
Specialisation
                                              Diy
                                              Involvement
  Industrial                                Creative Man
  society-                                   Logic and
  logic                                     Anarchonomy
                                            Open
                                            User driven

                  Knowledge society logic    Knowledg
                        Rational             e
The market situation for
Nordic companies 2020
• Growth rates
  - moderate
• Barriers to growth
  - humans
• Global competition
  - polarisation: cheap labour vs. Innovation/automation
• Future markets
  - realistic: the usual;
  - hopefully: BRIC and beyond
• Regulation
  - the more automated, the better
Thankyou

Stay curious

 Read on:
www.cifs.dk

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Conference_20130305_Johan Peter Paludan

  • 1. Which world and which European businesses in 2020? Johan Peter Paludan
  • 2. The Copenhagen Institute for Futures Studies • Founded by Thorkil Kristensen in 1970 • Private, non-profit organisation • Memberbased – members i DK,S, N • Crossdisciplinarian think tank • Staff 25
  • 3. Chance favours only the prepared mind. Louis Pasteur
  • 4. Ways into the future - Trends – short term (fashion, bussiness) - Prognoses (ex. Economic growth, demographics) - Creativity (out of the box thinking, transdisciplinarian) - Megatrends (globalisation) - Scenarios (environmental devl.) - Paradigms/Logics - Back Casting (point of departure: a preferred future) - Wild Cards (Mohammed-drawings)
  • 5. 15 Megatrends 1. Knowledge 2. New technology 3. Acceleration 4. Hypercomplexity 5. Globalisation 6. Commercialisation 7. Affluence 8. Democratisation 9. Polarisation 10.Immaterialisation 11.Individualisation 12.Networks 13.Health 14.Environment 15.Ageing
  • 7. Logics, so far • Hunter/gatherer • Agricultural • Industrial • ?
  • 8. The four value added logics Emotions & stories DreamSociety logic Standardisation Diversity Automation Taylored Specialisation Diy Maintenance Interactive Industrial Creative Man society logic and Anarchonomy logic Knowledge society logic Rational R&D
  • 9. INDUSTRY LOGIC • Economies of scale • Massproduction of identical products • To produce and to consume •Automation •Outsourcing •In services too!
  • 10. DREAM SOCIETY LOGIC From function to emotions •The immaterial side of a product more important than the material • Branding and brand loyalty • ’Superfluous’
  • 11. Dream Society – the theory • Driving forces: - the accelerating rate of change: we are already entering the Dream Society - the immaterialisation of demand - automation of whatever can be automated - the revolt against the tyranny of reason
  • 12. Evolution of consumption 1800 1600 Totally superfluous 1400 Luxury 1200 Important Basic consumption 1000 Necessities 800 600 400 200 0 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
  • 14.
  • 15. From Dung to Coffee Brew With No Aftertaste
  • 16. The six new market profiles • The market for adventure • The market for love and belonging • The care market • The who-am-I market • The market for peace of mind • The market for convictions
  • 17.   Future market segments and past market categories Love and friendship Peace of mind Conviction Adventure Identity Food Care Housing Transport Energy Finance ? Electronics
  • 18. Stories • To send signals about the good life • The great stories aren’t what they used to be, and yet…. • What is abundant is ’cheap’ - we go for the scarce elements
  • 19. Scarce resources in the Dream Society ARE NOT : BUT : • Information • Attention • Products • Care • Channels • Genuine interest • Opportunities • Time • Satisfaction • Trust • Good Stories • Meaning
  • 20. Create value! What is the meaning Of what you do? Meaning Solution Product Technology
  • 21. CREATIVE MAN LOGIC • From experience to identification • Creativity and innovation in work and consumption • The prosumer • Individualised massproduction
  • 22.
  • 23. Anarchism + Economy = ANARCONOMY Download FREE report from IFF: www.iff.dk/dk/anarconomy.asp
  • 24. Anarconomy - basics • Networksociety • Open source • Share knowledge without losing it • Free • Copyright versus unique solutions/experiences • The consumer takes over the means of production
  • 26. Contour Crafting – print a house
  • 27. From centrallised Photovoltaic facade energy systems Trees to decentralised Greenery air/watercleaning production Moss Thrash = food Intelligent surface Furniture recycleable
  • 28. tio d tri lise n A wildcard? dis ntra bu ce De Decentralisatio Decentralised development n: everything is in the perifery De prod ce ntr uctio ali n se d
  • 29. Driving forces towards anarconomy TECHNOLOGY KNOWLEDGE PEOPLE DECENTRALISA- TION Ubiquitous IT and Transparency Surplus and a will to Death of Distance internet share Dismanteling of Free content and Easy networking Decentralised technology knowledge (copyleft) (social sites) markets – P2P monopolies Basically free copying Knowledge easy to Social capital more Decentralised of knowledge find (search important than organisation – products functions) material capital networks
  • 30. Anarconomy vs. Commercial economy • Free copyleft • Paid for, copyright • Based on volunteers • Based on salaried labour • Produced/distributed • Produced/distributed centrally decentralised • Updated now and then • Continously updated • The producer is responsible • No one is responsible. • Good at streamlining • Not good at streamlining Challenges and supplements each other
  • 31. Digtialisation • Everything that can be digitalised, will be digitalised • The price of all that is digitalised approaches 0. • New business models needed
  • 32. Knowledge society logic • Develop, transmit, use and sell knowledge • Bussiness service: knowledge on the interplay between technology and customers • Knowledge embedded in products and systems • Develop new knowledge through research • Education in focus
  • 33. - and so what? • So: know thy logic!
  • 34. Value creation logics Emotional DreamSociety logic Standardisation Diversity Automatisation Man-made Specialisation Diy Involvement Industrial Creative Man society- Logic and logic Anarchonomy Knowledge society logic Rational
  • 35. Value creation logics Leadership Emotional Management DreamSociety logic Charisma Scientific Standardisation Diversity Automatisation Man-made Specialisation Diy Involvement Industrial Creative Man society- Logic and logic Anarchonomy Empowerment Facilitate Servant leader Knowledge society logic Dual: Rational purse or
  • 36. Value creation logics: Motivation Emotional ‘Hooked’ DreamSociety logic Excited 9-17 Standardisation Diversity Automatisation Man-made Specialisation Diy Involvement Industrial Creative Man society- Logic and logic Anarchonomy Empowerment Knowledge society logic ‘Going Rational places’
  • 37. Value creation logics: Marketing Emotional ‘Seduction’ Data DreamSociety logic Push Push Standardisation Diversity Automatisation Man-made Specialisation Diy Involvement Industrial Creative Man society- Logic and logic Anarchonomy Interactive Data pull Knowledge society logic Informatio Rational n
  • 38. Value creation logics: Innovation Emotional DreamSociety logic Storybased Closed Standardisation Diversity Automatisation Man-made Specialisation Diy Involvement Industrial Creative Man society- Logic and logic Anarchonomy Open User driven Knowledge society logic Knowledg Rational e
  • 39. The market situation for Nordic companies 2020 • Growth rates - moderate • Barriers to growth - humans • Global competition - polarisation: cheap labour vs. Innovation/automation • Future markets - realistic: the usual; - hopefully: BRIC and beyond • Regulation - the more automated, the better
  • 40. Thankyou Stay curious Read on: www.cifs.dk