Future Management Challenges :: Making Better Decisions Today -- Looking at Challenges in 21st Century -- Most significant changes affecting organizations know no borders or markets and affect every part of society today and tomorrow. Countries, governments, businesses, and institutions continue to witness ever increasing surprise as complexity increases. New surprises impact us far faster, and more profoundly, than we might think, e.g., pandemics, changing weather conditions, terrorist events, health crises, altered social values, economic and political uncertainties, and technological advances.
Organizations, too, face additional new challenges including:
1. Intelligence
2. Climate
3. Water
4. Cities
5. Consumer
6. Education
7. Energy
8. Food
9. Health
10. Manufacturing
11. Poverty
12. Resources
13. Security
14. Geopolitics
15. Science
Dr. Michael Jackson, a founder member and chairman of Shaping Tomorrow not only listed major challenges above, but also gave the scenario lenses with Implications for Asia. His Shaping Tomorrow is a futures intelligence, trends research tool and knowledge management portal (website) that helps people and organizations to better anticipate what's next through collaborative foresight.
4. Challenges: Intelligence & ConsumersChallenges: Intelligence & Consumers
Bi d t [ i it d] A tifi i l T h l ill b th• Big data, [revisited] Artificial
Intelligence (AI), the Internet of
Things (IoT)‐ Internet of
• Technology will become the new
sales assistant, always on, always
friendly, always delivering. g ( )
Everything (IoE) and intelligent
robots are set to take advanced
analytics to unimaginable
y, y g
Consumers will co‐create and
share products to their exact
needs Brands will have to focusanalytics to unimaginable
heights. By 2020 there will be
50 billion connected devices and
needs. Brands will have to focus
on seizing mobile moments on
apps that already have
40% of existing (traditional) jobs
may have disappeared.
pp y
consumer's attention.
7
Challenges: Climate & WaterChallenges: Climate & Water
D li ith li t h f S t f th ld• Dealing with climate change of
the next 15 years will require $6
trillion USD in annual
• Some parts of the world are
going to suffer from long and
persistent drought while millions
investment. Organizations, large
and small, will increasingly be
pressured to deal with the
p g
of others are at severe risk of
finding their cities and homes
under water The world willpressured to deal with the
effects of global climate change
or face increased costs through
under water. The world will
have only 60 percent of the
water it needs in 2030.g
not fully adopting sustainable
policies.
8
5. Challenges: Cities & EnergyChallenges: Cities & Energy
S t iti th t lk f th E d d i t t i• Smart cities are the talk of the
town right now and so they
should be to cope with a world
• Energy demand is set to increase
by more than one third by 2035.
But the mix of technologies is p
where over 60% of us will live in
cities by 2030. E‐bikes,
Driverless connected vehicles
g
changing rapidly towards
renewables. Businesses are now
increasingly taking seriously theDriverless‐connected vehicles,
buildings that talk to each other
will help but many cities are
increasingly taking seriously the
need to reduce their energy
costs.p y
susceptible to climate change
and pandemics.
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Challenges: Education & HealthChallenges: Education & Health
B 2020 f ll li t d t R idl i l ti d• By 2020, fully online students
are projected to reach 5 million
globally. Online education such
• Rapidly aging populations and
growing disease burdens will
require a large and specialized g y
as Massive Open Online Course
(MOOC) will democratize and
disrupt global learning But at
q g p
health care workforce by 2025
aided by the rise of health
analytics wearables geneticsdisrupt global learning. But, at
the same time there will be
severe talent shortages in newly
analytics, wearables, genetics,
robots, home treatments,
personalized medicine and care.g y
emerging industries and sectors
such as security and renewable
energies
p
energies.
10
6. Challenges: Food & ResourcesChallenges: Food & Resources
• World population is set to grow • With 2 billion more mouths to feed• World population is set to grow
from 7 billion people today to 9
billion by 2050. The resulting
increased demand for certain types
• With 2 billion more mouths to feed
by 2050, pressures on already
scarce resources (food, energy, raw
materials skilled workers etc ) areincreased demand for certain types
of food will put considerable strain
on the world's natural resources
and agriculture New types of
materials, skilled workers, etc.) are
set to dramatically magnify but
opportunities to innovate and grow
are plentiful for smartand agriculture. New types of
food, new weather
resistant strains,
3D printing and
are plentiful for smart
organizations. Huge resource shifts
are on the way resulting from
the shift to robots doing much3D printing and
vertical farms
are coming to
fill the gap
the shift to robots doing much
of the work of humans in
future years.
fill the gap.
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Challenges: Manufacturing Science & SecurityChallenges: Manufacturing, Science & Security
• A new industrial revolution is looming as • Scientific discoveries and new methods of• A new industrial revolution is looming as
3D printing, Industry 4.0, robotics and
new, sustainable materials replace old
technologies. With the size of the global
middle class expected to increase to 4 9
• Scientific discoveries and new methods of
doing science are on the rise and promise
all manner of change for society
especially in health, cognitive
technologies and artificial intelligencemiddle class expected to increase to 4.9
billion by 2030 demand for goods is
unlikely to slow down.
In intelligent
technologies, and artificial intelligence.
• Issues abound, cybersecurity is an ever‐
present threat, new forms of terrorism
are increasing and organized crime is
h i it f i 51% f lIn intelligent
factories,
machines and
products
communicate
changing its foci. 51% of large
organizations expect the number of
security breaches to increase next year.
with each other,
cooperatively
driving production.
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7. Challenges: Poverty & GeopoliticsChallenges: Poverty & Geopolitics
• Global poverty is reducing but the rich‐
• The real difference between the rich and
the poor is that the rich spend a larger Global poverty is reducing but the rich
poor divide is widening and new forms of
poverty are emerging. The poor spend
relatively more on what will keep them
alive, because they must, and the rich
p p g
share of their much larger income on
insurance, education, technology, and,
when you drill into the housing
component, mortgages—all of which are
di tl l t d t b ildi lth
, y ,
spend more on what will keep them rich,
because they can.
i li d ld
directly related to building wealth,
preserving wealth, and passing it down in
the form of inheritance of direct
investments in the lives of their children.
• Income inequality and poverty could
prove destabilizing over the longer term if
not addressed and undermine economic
growth prospects for the region.
• Rising tensions around are bringing new
and regional geopolitical threats and the
possibility of eventual globalpossibility of eventual global
(economic/physical) war.
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Scenario Lenses
Gl b li ti
Global Uncertainties
& Future Risks
Globalization
Increasingly Sustainable
ldUnhappy World Happy World
Global GrowthGlobal Recession
Probable
F
Getting there by
Global GrowthGlobal Recession Future
World in Turmoil
ourselves
Where do
you want to
LocalizationIncreasingly Unsustainable
you want to
be?
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8. Implications for AsiaImplications for Asia
• Asia a growing potent force • Invisible/always on technologyAsia a growing potent force
• Everything customer centric and
global
Invisible/always on technology
• Sharing Economy
• Smart phone at the center ofg
• Everything sustainable
• Waste and costs being
• Smart phone at the center of
everyone’s world
• Need for continuous futureWaste and costs being
eliminated – growth!
• Joined up
Need for continuous future
thinking
• Concentrate on Efficiency and p
thinking/partnerships/alliances/
mergers
y
Effectiveness
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