HP Megatrends 2020 Refresh

There’s so much change happening around us these days that it’s easy to forget the speed at which things are changing. In fact, some estimate there will be more
change expected in the next 15 years than in all of human history to date.
The rapid pace of change and acceleration of innovation has led to new ideas, products, and services being adopted faster and faster into the fabric of our lives.
With technology continually becoming faster, better and more efficient, while costing less.
All leading to faster time to market, and rapid adoption of new ideas, products, and services. Take for instance that while it took telephone 75 years to reach 50
million users, it took Facebook a mere 3.5 years, and Pokémon Go only 19 days.
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Why HP looks at Megatrends
This increasing amount of change happening in the world today is accelerating, creating a continuous challenge for how companies stay ahead of it all, decide where
to invest, think about the future, and innovate in ways that enable them to do the disrupting, instead of being the ones disrupted. How we manage all this change in
an effort to stay ahead requires a keen understanding of the global forces that will shape our human experiences and our business decisions long into the future. At
HP we call these megatrends. Megatrends in combination with extensive research into disruptive technologies on the rise give us a clearer view of what potentially
lies ahead, and new opportunities for HP, our customers, and our partners.
It’s how we anticipate needs and prepare for opportunities. It’s how we lead and execute our vision.
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HP’s VISION is to create technologies that makes life better or everyone, everyone. And OUR MISSION includes ‘KEEP REINVENTING’
If we truly want to create things that improve peoples’ lives and reinvent ourselves to make this happen, we need to understand the nature of the world people live in,
the social, economic, demographic and technological trends they are and may encounter, and paint a directional view of what this FUTURE may look like.
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HP tracks four big megatrends. The first is RAPID URBANIZATION. The global population continues to grow, and this growing population is moving to cities for the
promise of a better life. While this is nothing new, because of the rapidly rising population the sheer pace and volume of urbanization will be staggering.
By 2030, the world population will be 8.5 billion people. Today, over 4 billion people – more than half the global population – live in cities. By 2050, we will add an
additional 2.5 billion people to cities, meaning 68% of the world’s population will live in cities by 2050. By 2030, there are projected to be 43 megacities – cities with a
population of 10 million or more. Most of these will be in developing countries, with 8 in China and 7 in India.
By 2050, 80% of global GDP will be generated by cities. OECD projects global GDP will be $218 trillion by 2050. 80% of that is $174 trillion.

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CHANGING DEMOGRAPHICS: While the global population is increasing this is not because more people are being born, it’s mainly due to people living longer. This
increased longevity combined with people having fewer babies is creating an aging population, and a shrinking and aging workforce. By 2050, 1 in 6 people in the
world will be over age 65. In the US, 1 in 4 workers will be 55 or older by 2024.
At the same time a new generation is entering the workforce, and they are unlike any who have come before. Generation Z represents 32% of the global population,
and they have never lived without a phone in their hand or a screen in their face. They are a generation acutely plugged into the world around them – 97% of them
have a smartphone, and they spend an average of 4 hours and 15 minutes per day on their mobile devices, the most of any generation. There is no separation of
personal and professional life — it’s all one single identity. Generation Z is a huge market with huge expectations. They are on their way to becoming tomorrow’s
corporate and societal leaders. For them, mobility is essential. Connectivity is a given. Design is a must.

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HYPER GLOBALIZATION: Hyper globalization arguably began 2,000 years ago with the 6,000 km Silk Road that connected Eurasia. However, the interconnection and
“flattening” of the world truly sky-rocketed when the Internet went mainstream. Today we are more connected than ever with 4.5 billion people online, almost 60% of
the world’s population. The proliferation of the internet and mobile devices has enabled the growth of a vast digital marketplace from companies we’ve never heard
of, in cities we’ve never been to, and working on platforms we have never seen. Globally, 100 million new businesses launch every year, and global scale is no longer
the province of well-established companies as start-ups are leveraging digital platforms to scale at an unprecedented rate. In the last 2 years, startups have
generated $2.8 trillion in value. A large number of these new businesses are outside of the US – in the 2019 Fortune Global 500 ranking only 121 companies were
from the United States. At the same time, the challenge to stay in business and be competitive is also accelerating, with half of the S&P 500 companies expected to be
removed from the index in the next 20 yrs.

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ACCELERATED INNOVATION: As we’re constantly bombarded with cheaper, faster, more powerful, and more accessible technology, it's easy to forget that the rapid
pace of technology change is because digital technologies generally follow an exponential trajectory vs a linear one. This is why in 30 years' time, your phone won’t be
30x more powerful, but a billion times more powerful. It’s also why this rapid pace of change is only going to accelerate moving forward, in 4 significant ways:
• Everything Smarter: Everything around us is being infused with AI and machine learning. By 2030, AI could drive $13 trillion of additional global economic activity.
• Automation: This pervasive intelligence is helping us automate everything, from industries to our workforce – up to 30% of our work could be automated by 2030.
• Augmentation: Technology is also changing what it means to be human, helping us become smarter, stronger, and healthier. Biology has become the next big
software platform. As an example, the human augmentation market is projected to grow from $70.9 billion in 2019 to $206.9 billion by 2024.
• Personalization: Everything is becoming more personalized and on-demand, not just digital products but physical products as well. It’s also a key driver in
consumer purchase decisions – 33% of consumers ended their relationship with an organization because their experience wasn’t personalized enough.

Megatrends help us better anticipate what our customers and users will want and need in the future, and the types of experiences that will be important to deliver.
How we enable those experiences often fall to new technologies. Disruptive technologies allow us to innovate and create new experiences that customers might not
even know they need or want yet but can fundamentally change their lives.
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And there is no shortage of Disruptive Technologies. From new technologies that can assist in counterbalancing the depletion of our natural resources, to products
and business models designed for next generation workers and aging urban consumers, to advancements that will make the world smarter around us and allow us to
evolve beyond our current human limitations.
Some of the most disruptive technologies that could have major impact on our future are: Edge Computing, Human Augmentation, 3D & 4D Printing, AI/Software 2.0,
Blockchain, Theranostics/Omics, Microfluidics, Virtual Machines, AR/VR, Cyber Resilience, and many others.
Let’s look at some of the technologies HP Labs is focused on in the next couple slides.
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At HP, we are extremely skilled at manipulating incredibly small things and placing them exactly where we want them. The underlying technology we have developed
for printing can place something as small as one-fifth the size of a human cell exactly where we want it, and precisely pump fluids in picoliters. A picoliter is about
1/100,000th the size of a raindrop. The lab’s research in microfluidics explores applications of this expertise in the realm of life sciences, from pumping blood cells to
counting cell types to sensing technologies. As an example, the team has looked at using this microfluidics technology to separate tumor cells from normal cells in the
body after chemotherapy, to determine whether any of the cancer is coming back.
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Another example of HP Lab’s microfluidics research is the development of highly sensitive nanofinger sensors. These imprinted sensors are so small that millions of
them can fit within the 1mm circle in this picture. They are shown on the left through an electron microscope magnified 100,000x. These nanosensors can be used to
detect very tiny particles of volatile organic compounds, enabling entirely new ways to rapidly test for contamination out in the field, like detecting milk
contamination in processing centers and detecting bacteria by looking at small molecule metabolites. It’s like having a gas chromatograph that fits in your pocket.
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One area of plastic research for HP’s 3D lab is focused on controlling print properties like color, mechanical properties, and texture at a voxel level to enable the
production of multi-material parts. Such control allows for the printing of a single 3D part that can be composed of different materials and properties down to 75-100
microns in size – the thickness of a single human hair.
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In addition to manipulating physical properties like color, texture, and mechanical performance in 3D printed parts, HP’s 3D Lab is also researching 3D voxel for
electronics to create multi-functional and smart parts all in one print. Manipulating the functional properties in this way enables 3D printed parts to be “born” with
smart capabilities like antennas, sensors, and electronics built-in.
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In the area of 3D printing with metals, HP is focusing on advancing the state of the art and creating sustainable differentiation for the HP Metal Jet technology. One
way we are doing this is through the development of new materials like copper.
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HP’s 3D Lab is developing digital process twins that offer a virtual model of the 3D manufacturing process. Modeling these cyber-physical systems provides valuable
insights that can be used to improve their development, making our entire 3D technology more robust and manufacturer ready.
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In the area of edge computing, the HP’s AI and Emerging Compute Lab is researching new designs for edge device infrastructure that can better support heavy
workloads like processing data with artificial intelligence. HP customers are interested in running these workloads on their workstation compute systems so that their
data stays private and secure in the local environment rather than going to the cloud. Researchers in the AIECL are building the infrastructure – both hardware and
software – that will make these tasks possible on premise.
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In the area of bioanalytics, HP’s AI and Emerging Compute Lab has been researching ways to monitor cognitive load, particularly during virtual reality experiences. If a
person is overwhelmed by the content they are seeing, perhaps during a training exercise, that information can be captured and used to augment the training in real-
time to respond to that physiological response.
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HP’s Security Lab is working to secure the infrastructure of endpoints and endpoint ecosystems at the edge. Specifically, codesigning infrastructure to allow software
to do security management and secure management. By creating a way to more securely establish a persistent identity of endpoint devices, we can have increased
trust in device-to-device interactions at the edge. The lab is also looking at using machine learning and AI to detect evidence of malware and other malfeasant
behavior. Traditionally, malware detection has been done by signature detection, looking for exact patterns of binary code that is known to be malware. Increasingly,
the industry is moving to behavioral-based analytics, because it’s very easy to change the binary code of malware, yet it still has the same behavior. While this data
processing is still mostly done in the cloud, it will increasingly occur on the devices themselves at the edge. HP Connection Inspector, which uses behavioral analytics
for anomaly detection in HP printers, is one example of edge-based machine learning for security purposes. When the printer exhibits unusual network behavior
reminiscent of malware, it can be adjusted in a way that won’t disrupt its usability but should disrupt the malware.
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In the area of AI and machine learning for manufacturing, HP’s Digital Manufacturing Lab has been working with the AIECL on AI-enabled design techniques and tools
to help make designers more productive. Using the example of a custom insole, these digital assistants can take inputs for how stiff or flexible various parts of the
insole should be and automate the conversion of those design goals into data, telling the 3D printer what the different material properties should be from one voxel
to the next.
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Impact Points are where the crystallization occurs. It’s where megatrends and disruptive technologies join forces to help HP focus its responses to global issues and in
turn create new opportunities for HP and our customers and partners. Impact Points often span multiple megatrends and involve more than one disruptive
technology.
HP continuously monitors trends and disruptive technologies to fine-tune and reassess impact points and opportunities.
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Megatrends and technology are shaping our world in many ways. Here are a few of the impact points we’ll touch on today.
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The impacts of Rapid Urbanization, Changing Demographics, Hyper Globalization, and Accelerated Innovation are shaping our planet in profound ways. Increases in
urbanization and industrialization are increasing the demand for our natural resources, while climate change is limiting supply. As a result, we are already seeing a
surge of new startups and technologies looking to provide more sustainable solutions, as consumers and businesses alike put more consideration into how their
actions affect the planet.
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Between decreases in supply due to climate change and increased demand as the world becomes increasingly industrialized and urbanized, our natural resources are
being strained. By 2030, we could need 2 planets to sustain our lifestyle. Earth Overshoot Day – the day our resource consumption for the year has exceeded the
earth’s capacity to regenerate enough to supply our demand – has been getting earlier each year. In 2019 it was July 29, in 1997 it was September 30, and in 1977 it
was November 12. At this rate, it is projected the day will be in June by 2030.
This shortage will have profound consequences. For example, it is expected that by 2050, 36% of cities worldwide will face a water crisis. An estimated 400M people
currently live in cities with perennial water shortage, and the number is slated to go up to 1B by 2050 due to rising urban population and the impact of climate change.
It’s not just resources though - rising seas could affect 3x more people by 2050 than previously thought, threatening to all but erase some of the world’s great coastal
cities. New research shows that some 150 million people are now living on land that will be below the high-tide line by midcentury

In an effort to get ahead of these challenges, startups are beginning to focus on more sustainable solutions. For example, producing a plant-based Impossible burger
generates 87% less greenhouse gases than a beef burger and uses 75% less water.
Twine is another company looking to save water. Traditional thread dyeing can consume about 70 liters of water per kilogram of thread and release pollutants into
waterways. In contrast, Twine’s process of on-demand thread dying consumes zero water and eliminates dead stock and thread waste seen with traditional textiles.
Finally, Rubicon Global, an Atlanta-based waste management and recycling company, partnered with State Farm Arena during Super Bowl LIII to recycle nearly 12
tons of waste that would have normally gone to a landfill. The company implemented a recycling stream solution to divert mixed metals, wood, paper and old
corrugated cardboard to the appropriate recycling facilities
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But it’s not just startups that should be focusing on societal and sustainable issues. Research shows that doing so can be a good strategic choice for more established
businesses as well when it comes to attracting and retaining both employees and customers.
The 2019 Edelman Trust Barometer found that as trust in media and government erodes, people are turning to what they know and can control: the relationship with
their employer. 58% of employees say they look to their employer to be a trustworthy source of information about contentious societal issues, and 71% agree it's
critically important for their CEO to respond to and talk about challenging times and sensitive topics. 67% of employees expect prospective employers will join them in
taking action on societal issues, and 1 in 4 say they would never work for an organization that lacks greater purpose or fails to deliver meaningful societal impact.
With younger consumers in particular, a 2018 study by WP Engine found that 69% of Gen Z consumers are more likely to buy from a company that contributes to
social causes, while 33% have stopped buying from those with values different from their own.
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Sustainability Startup Example: Loop partners with retailers, as well as manufacturers, to create new packaging for products—orange juice, laundry detergent, you
name it—in durable, reusable metal or glass packaging. Consumers return the containers to a store or arrange for them to be picked up at home after a certain
number of uses, depending on the product. Brands can’t participate unless their packaging can be reused at least 10 times. The 41 brands listed on the Loop web site
include everything from Tropicana and Tide to Colgate, Crest and Clorox.
https://www.forbes.com/sites/annefield/2019/08/31/reusable-packaging-startup-loop-makes-headway-on-store-shelves/#6e251a30209a
https://loopstore.com/
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Sustainability Startup Example: Carbon Engineering, a Canadian startup, is one of three companies in the world building machines that can capture some of the carbon
dioxide that we’ve already dumped into the atmosphere. Early in 2019, in partnership with Occidental Petroleum, the company set out plans to expand its technology
and build a plant that can capture 500,000 metric tons of carbon dioxide from the air each year.
In September, Carbon Engineering announced that it will double the plant, to a size that could capture 1 million metric tons of CO2 annually, even before construction
has begun. “This expansion is in direct response to demand from corporate entities interested in addressing their carbon footprint through negative emissions,” said
Steve Oldham, CEO of Carbon Engineering.
https://qz.com/1713529/carbon-engineering-and-occidental-will-capture-1-million-tonnes-of-carbon-dioxide
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Sustainability Startup Example: Agrisea is growing farms in the ocean by creating floating farms that use only ocean salt water. With this approach, they could
potentially save 70% of global fresh water, which is the portion that currently goes to agriculture. The company is currently participating in life science accelerator
IndieBio which includes $250,000 in seed funding. After two years they developed salt-tolerant rice seeds that could thrive either in oceans or in paddies flooded with
seawater. The seeds also don’t produce methane, which is a major climate concern for rice farming. In addition to rice, Agrisea has developed salt-tolerant kale seeds
and is working on corn and soy.
https://thespoon.tech/agrisea-is-developing-ocean-farms-to-grow-rice-using-saltwater/
https://www.agrisea.co.uk/#HOWITWORKS
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Sustainability Startup Example: Heliogen has discovered a way to use artificial intelligence and a field of mirrors to reflect so much sunlight that it generates extreme
heat above 1,000 degrees Celsius. Essentially, Heliogen created a solar oven — one capable of reaching temperatures that are roughly a quarter of what you'd find on
the surface of the sun.
The breakthrough means that, for the first time, concentrated solar energy can be used to create the extreme heat required to make cement, steel, glass and other
industrial processes. In other words, carbon-free sunlight can replace fossil fuels in a heavy carbon-emitting corner of the economy that has been untouched by the
clean energy revolution.
https://www.cnn.com/2019/11/19/business/heliogen-solar-energy-bill-gates/index.html
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Sustainability Startup Example: Energy Vault is leveraging gravity and kinetic energy for long duration power storage. The company’s technology combines a nearly
500-foot tower (the height of a 35-story building) with machine vision software controlling cranes, pulleys, and cables to raise or lower huge composite bricks. If the
bricks are being elevated, energy is being pulled from the grid. If the bricks are being lowered, they deliver energy and/or capacity back to the grid. As the net
quantity of bricks that are moved up or down over a given duration increases, corresponding amounts of energy are stored or released.
https://www.forbes.com/sites/peterdetwiler/2019/08/14/tower-of-power-110-million-investment-primes-energy-vault-to-take-on-global-energy-storage-
markets/#132e11e77913
https://energyvault.com/
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Consumer Sentiment Example: It’s been a year since teenage Swedish climate protester Greta Thunberg began her solitary school strike outside the Parliament
building in Stockholm. Now she’s joined by swelling and excited crowds of American teenagers at a protest outside the UN headquarters in New York, in a further
blossoming of the youth environment movement given extra thrust by the Swede’s transatlantic boat crossing. They came together to demand politicians and older
generations take urgent and comprehensive action to reverse the climate crisis.
https://www.theguardian.com/environment/2019/aug/30/greta-thunberg-un-climate-protest-new-York
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Corporate Sustainability Shifts Example: IKEA will phase out all single-use plastic products from its shops and restaurants by 2020. The Swedish furniture giant said it
will stop selling single-use plastic products like straws, plates, cups, freezer bags, garbage bags, and plastic-coated paper plates and cups. Its restaurants will also
stop giving out plastic straws, cups, plates, cutlery, drink stirrers and plastic containers for freshly prepared food.
The company announced the ban as part of a broader sustainability strategy, in which it committed to become "people and planet positive by 2030.“ IKEA is aiming at
purchasing 100% renewable energy by 2020, and use only renewable and recycled materials in its products. It also wants to make its home deliveries zero emission
by 2025.
https://money.cnn.com/2018/06/07/news/ikea-bans-single-use-plastic/index.html
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Corporate Sustainability Shifts Example: Coca-Cola has introduced the world’s first bottle created using recycled plastic waste from the ocean. The company has
launched an initial edition of 300 bottles made of 25% plastic from the marine waste collected by volunteers during 84 beach cleanups in Spain and Portugal. The
marine plastic bottle has been developed to show the transformational potential of revolutionary ‘enhanced recycling’ technologies, which can recycle previously
used plastics of any quality back to the high-quality needed for food or drinks packaging. From 2020, Coca-Cola plans to roll out this enhanced recycled content in
some of its bottles. The company already uses 100% recycled plastic bottles (rPET) for their water brands in Mexico and Australia.
More broadly, the company has pledged to collect and recycle a bottle or can for everyone they sell by 2030, make their global packaging 100% recyclable by 2025,
and use at least 50% recycled material in its packaging by 2030.
https://www.designboom.com/design/coca-cola-bottles-recycled-ocean-plastic-10-14-2019/
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Corporate Sustainability Shifts Example: Metal lightweighting is difficult to achieve with traditional manufacturing methods due to longer lead times and the lack of an
economically viable way to produce complex geometries. Unlike traditional production techniques, 3D printing turns complexity into an asset, creating an opportunity
to cost-effectively manufacture lightweight, complex metal parts. The 3D printing process is also typically faster than traditional manufacturing.
General Motors is already using these advanced technologies to make vehicle models with an average weight reduction of more than 150 kg per vehicle, a 70% weight
reduction has been achieved with a topologically optimized, 3D printed titanium bracket for GE Aircraft, and Airbus has already equipped the A380 aircraft with a 3D-
printed titanium actuator valve block, which weighs 35% less than traditionally manufactured counterparts, and is made of fewer parts.
https://amfg.ai/2018/08/23/making-metal-parts-lighter-with-metal-3d-printing/
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Corporate Sustainability Shifts Example: HP is building on WWF and IP’s foundation by working to not only align the print industry on responsible forest management,
but also take decisive action to contribute to a positive future for forests. In collaboration with WWF, IP, the Forest Stewardship Council and other sustainability
leaders, HP is engaging the world’s largest paper producers to help scale their positive impact for forests.
https://www.weforum.org/agenda/2019/09/business-models-inspired-by-nature-are-the-future/
https://press.ext.hp.com/us/en/press-releases/2019/hp-partners-with-world-wildlife-fund-on-forest-protection.html
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Corporate Sustainability Shifts Example: Tango Terra is the first HP product certified as CarbonNeutral in accordance with The CarbonNeutral Protocol by providing
financing to support the conservation of an area of the Amazon rainforest in Peru. The HP Tango Terra printer is made using 30% recycled plastic with 48-73%
recycled content cartridges that include ocean-bound plastics. The Tango Terra is delivered in plastic-free packaging made with 40% recycled content.
https://press.ext.hp.com/us/en/press-releases/2019/hp-tango-terra-is-the-worlds-most-sustainable-home-printing-system.html
https://www8.hp.com/us/en/printers/tango/terra.html
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Corporate Sustainability Shifts Example: From the outside, it looks like any other Windows 10 2-in-1. It sports a beautiful touch screen display, has the latest Intel
10th-gen processors, and even supports 5G connectivity. But what this laptop is made of is what matters. For one, the chassis of the laptop is made of 90% recycled
magnesium. Then, the keyboard is made of 50% recycled plastics from DVDs. Even the trackpad uses some recycled materials. It’s all part of the “circular economy,”
aimed at eliminating waste and the continual use of resources.
https://www.digitaltrends.com/computing/hp-elite-dragonfly-g2-sustainability/
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Rapid Urbanization will put additional stress on city infrastructure and natural resources, yet at the same time create new opportunities for new products and services
targeted and the urban consumer.
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With over half of the world’s population already living in urban areas, cities use a large proportion of the world’s energy supply and are responsible for around 70% of
global energy-related greenhouse gas emissions. As a result, cities need to be planned around people not cars, investing in zero-carbon public transport, footpaths
and protected bike lanes. C40 cities reported that a concerted effort to reduce consumption-based emissions from private transport in cities could result in a 28%
reduction in emissions by 2030. Electric public transport powered with renewable energy could prevent 250 million tons of carbon emissions, improve people's health
and lower noise and air pollution. That’s equivalent to 250 of the Carbon Engineering plants discussed earlier. And if 170 million m2 of on-street parking could be
released back to the public realm in the top 100 cities, that would accommodate 2.5 million trees and 25,000 km of cycle lanes.
Top 5 Green Cities: Copenhagen (windmills generate 140% of city’s electricity), Amsterdam (trains, buses and subways run on renewable energy), Stockholm (100%
renewable energy), Berlin (buildings recycle grey water for rooftop gardens) and Portland, OR (stores for green shopping, purchasing recyclable goods)
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As city populations increase, a greater premium will be put on space, requiring spaces to become smaller, multi-use and more intelligent. Cities are being forced to
evolve to meet this increased demand or collapse under the pressure.
As the demand for housing in cities has increased, so have prices. For the growing contingent of millennials who are faced with a slowly recovering economy,
affordability and availability of housing is a challenge, especially in large cities like New York, San Francisco, London, and Hong Kong. To deal with this supply-demand
imbalance, micro-housing and co-living have become key trends in U.S. cities. Co-working spaces are also on the rise. In 2008, there were 160 coworking spaces
worldwide; a decade later, there were 18,700.
This is also leading to an increase in the number of Smart City projects (smart grids, networked LED streetlights, public Wi-Fi, water management) being implemented
around the world, with the number of initiatives nearly doubling over the past few years. By 2025, it is anticipated that smart city spending could grow to $2.5 trillion

It’s not just individual cities and metropolitan areas that power the world economy. Increasingly, the real driving force is larger combinations of cities and metro areas
called megaregions. Cities are expanding and combining as the population increases, and residents look to surrounding areas for affordable housing and improved
lifestyle. There are 40 megaregions in the world. Home to 1.2 billion people—18% of the global population—these regions combined produce about 66% of the
world’s economic activity and are the source of 86% of patented innovations.
Today Bos-Wash (Boston to Washington DC) is the largest with nearly $4T GDP, making it the 7th largest global economy. China is home to the world’s greatest
number of city dwellers. One of the most notable of the mainland’s urbanization initiatives is the Guangdong-Hong Kong-Macau Greater Bay Area in southern China.
The volume of air freight traffic in the Greater Bay Area was 7.96 million tonnes in 2017, greater than the combined volumes of San Francisco, New York and Tokyo,
according to the Hong Kong Trade and Development Council. Within the Megaregions businesses are creating industry hubs. And the Northwest Europe Megaregion is
the top hub for Tech, Finance, Creative and Tourism industries.
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Between 2017 and 2018, 81,000 residents ages 25 to 39 moved away from US cities with populations exceeding 500,000 (New York, San Francisco, Portland, Houston
all saw population decreases in this age range). High housing costs, poor schools, and a desire for better quality of life are main factors in leaving. These younger
generations are moving to secondary cities and outskirts of larger metro areas, places like Raleigh, NC, Madison, WI, New Haven, CT, Richmond, VA, and Boise, ID to
name a few.
In the majority of the top 10 millennial markets, the unemployment rate is lower than the national average, and home prices are generally lower. Based on average
income, millennials in these markets can afford to buy 1 out of 4 homes listed for sale. In Oklahoma City, they can afford 30%. By comparison, millennials can afford
just 10% of the homes in Dallas, 13% in Boston and barely 2% in San Diego.
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Sustainable Cities Example: Home to more than 1.4mn people, San Diego is the second most-populous city in California. The city is a multicultural hub of business,
finance and scientific research – largely thanks to the prestigious UC San Diego campus. The city is committed to lowering its climate impact while remaining an
economic powerhouse. In the city’s 2018 annual Climate Action report, it was revealed that, since 2010, San Diego’s GDP grew by 35%, while greenhouse gas
emissions fell by 21%. A major investor in clean technology, investment in green jobs in 2017 rose by 27% in the transportation sector, 19% in zero waste, and 15% in
energy and water-efficient buildings.
How they are making it happen: 15% reduction in residential energy use, 14-gallon reduction in daily per capita water use, 2.5% reduction in municipal energy use,
43% use of renewable electricity citywide, 8,800 linear feet of improved sidewalks, 64 electric vehicle charging stations, and 100 hybrids in municipal fleet.
https://wallethub.com/edu/most-least-green-cities/16246/

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Smart Cities Example: Smart Forest City, still in its conceptual phases, would cover 1,376 acres of land originally earmarked for a conventional shopping mall. But
instead of weaving together a mega-cluster of retail endeavors, the Stefano Boeri enterprise has almost 1,000 of those acres devoted to green space, with the rest of
the land going to architecture and environmentally advanced support systems to house and serve some 130,000 residents.
The green space of Smart Forest City would be populated with a whopping 7.5 million plants, spanning over 400 unique species. The assortment of bushes, shrubs,
flowers, and trees (2.3 trees for every inhabitant) will not only occupy personal gardens and public parks, but also be incorporated into energy-boosting structural
facades and green roofs. The firm projects that the city will annually absorb 116,000 tons of carbon dioxide and supply 5,800 tons of oxygen.
https://news.yahoo.com/stefano-boeri-plans-utopian-smart-220031123.html

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Sustainable Cities Example: Purpose-built to be 100% battery-electric, the Proterra Catalyst enables transit agencies to significantly reduce operating costs while
delivering clean, quiet transportation to local communities across North America. With the greatest range and efficiency of any battery-electric bus in its class, the
Catalyst is designed to serve the daily mileage needs of nearly every transit route on a single charge.
With over 100 customers across 43 U.S. states and Canadian provinces including Dallas DART, Seattle King County Metro, JFK Airport, University of Georgia, and
Edmonton Transit Services, , Proterra is leading the transition to clean, quiet transportation for all. Together with our customers, Proterra technology has displaced
more than 55 million pounds of CO2 emissions, creating a cleaner environment and healthier communities throughout North America.
https://www.proterra.com/vehicles/

Smaller Spaces Example: Dense urban areas mean smaller homes and apartments. Skyrocketing rents in big Latin American cities have created a new, profitable
business opportunity for building contractors: tiny apartments in central areas, mostly aimed at students and young professionals. Some are called nano-apartments
as they are as small as 10 sq. m – roughly the size of an individual parking space. Vitacon, the firm behind a micro-apartment project in São Paulo, Brazil, is attracting
buyers and this trend toward tiny living spaces is spreading to cities such as Buenos Aires, Bogota and Mexico City.
https://www.bbc.com/worklife/article/20190703-the-tiny-flats-taking-over-latin-america
https://www.prnewswire.com/news-releases/vitacon-launches-the-innovative-nano-apartment-smallest-ever-in-latin-america-300513415.html
Video link
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Smart Cities Example: Carmaker Toyota has unveiled plans for a 2,000-person "city of the future," where it will test autonomous vehicles, smart technology and
robot-assisted living. The ambitious project, dubbed Woven City, is set to break ground next year in the foothills of Japan's Mount Fuji, about 60 miles from Tokyo.
Announcing the project at the Consumer Electronics Show (CES) in Las Vegas, Toyota's CEO Akio Toyoda described the new city as a "living laboratory" that will allow
researchers, scientists and engineers to test emerging technology in a "real-life environment.”
The new development will be set across a 175-acre site that was previously home to a Toyota factory. Describing the city as "fully sustainable," the company said the
project will be powered by hydrogen fuel cells and rooftop solar panels. Only fully autonomous and zero-emission cars will be permitted to operate on its streets. A
fleet of self-driving vehicles known as Toyota e-Palettes will be used for delivery and retail purposes.
https://www.cnn.com/style/article/ces-toyota-big-smart-city/index.htm

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Smart Cities Example: Sidewalk Labs, a subsidiary of Alphabet, agreed to scale down a planned smart city project on Toronto’s waterfront. The plan was first
announced in 2017 with a focus on showcasing how modern technology can benefit cities, with plans to include innovations like heated bike lanes, below-market and
affordable housing, and underground garbage disposal. Waterfront Toronto, the government board overseeing the development, said “there has been significant
movement” on key areas of concern, including the size of the project, as well as data and privacy matters. Among other things, Alphabet agreed to limit the project to
a 12-acre plot, compared to the 190-acre project the company proposed, and to store and process personal information in Canada. The concessions will allow the
project to move forward, although Bloomberg notes that the development “has much further to go.” Waterfront Toronto will now begin public consultations on the
proposal. A deal is expected to be finalized by the end of 2020.
Bloomberg, CNN, CNBC, TechCrunch, Engadget

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Smart and Sustainable Cities Example: Only around 20 buildings have been created this way worldwide, and Dubai seems determined to own the nascent industry. The
Emirate is already home to the world's first 3D-printed office, as well as a 3D-printed drone research laboratory. With a target of having a quarter of all new
buildings 3D printed by 2030, Dubai looks set to become a hub for this high-tech construction.
3D printing buildings could be faster, cheaper and more sustainable than traditional methods. Market trend forecaster SmarTech Publishing predicts the 3D-printed
construction industry will be worth $40 billion by 2027. In the future 3D printed shelters or partitions could be built in areas humans cannot reach because of danger
or toxicity or build underground.
https://www.cnn.com/style/article/dubai-3d-printed-buildings-intl/index.html

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Shared Spaces Example: A group of people paid $2.25 an hour to work at a makeshift 'office' in a San Francisco parking space, and it shows just how expensive and
crowded the Bay Area has become.
https://www.businessinsider.com/san-francisco-residents-paying-to-work-in-parking-space-wepark-2019-5
https://www.bbc.com/news/world-us-canada-48114878

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Megaregions Example: Chinese President Xi Jinping last year officially opened a bridge connecting Hong Kong to Macau and the mainland Chinese city of Zhuhai - the
world's longest sea crossing bridge - as part of China's plan to connect Greater Bay Area.
The Greater Bay Area plan, recently unveiled, would link Hong Kong, Macau and nine other cities in southern China. The blueprint lays out strategic visions for the
major cities in the region to become hubs in different sectors, reports say. Hong Kong would strength.
https://www.scmp.com/native/economy/china-economy/topics/great-powerhouse/article/3002844/greater-bay-area-10-facts-put

Drawing Companies and People to Cities Example: NY State officials offered Amazon.com Inc. $800 million more in incentives than was previously known to win its
second-headquarters contest and were even prepared to pay part of some employees’ salaries if the tech company developed a campus in New York. New York state
and city officials agreed to give $3 billion of incentives to the e-commerce giant to hire as many as 40,000 employees.
https://www.wsj.com/articles/new-york-dangled-extra-incentives-in-initial-bid-to-lure-amazon-hq2-11578153600
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Drawing Companies and People to Cities Example: Anchoring incentives to specific sectors enables more thoughtful investments in related areas that can also boost
economic growth—such as infrastructure improvements and targeted workforce-development programs to attract businesses in those industries. One example of
this is South Carolina’s automotive-manufacturing cluster. In 1992, BMW chose South Carolina as the site for its $600 million automobile-assembly plant and received
an incentive package worth $100 million. The objective was to create enablers that would ensure the success of BMW’s first plant outside of Germany. The state
created a new employment-training program and invested an additional $40 million to modernize and extend the runway at a nearby airport, as a strategic
investment to deepen the state’s automotive-manufacturing supply chain. From 1992 to 2017, BMW invested $9 billion—and it currently employs almost 9,000
people in Spartanburg, SC alone. Local officials estimate that, to date, BMW has helped spur the creation of between 25,000 and 35,000 jobs across the state.
https://www.postandcourier.com/business/bmw-a-transformative-force-in-sc-s-economy-marks-years/article_6778d168-e38a-11e9-ab5a-e7c0b7cb18bd.html
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Growing cities of all sizes and megaregions will create new opportunities for products and services
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As emerging economies industrialize and urbanize, their consuming class will grow. In the next 10 years, APJ (China, India, Greater Asia) will ADD 3X the TOTAL OF ALL
consuming households in the US (>$25k avg disposable income). In the next 10 years, the top 10 cites in Asia will add more new households over $100k than all North
America. (Source: Based upon HP analysis and 2018 Oxford economics data)
Thriving urban centers will be home to Asian workers who have seen their average household disposable income more than triple between 2001 and 2015. They will
have different expectations — whether it be for more flexible work life or more localized services and products — and businesses will need to deliver to meet the
needs of this growing consumer-base. McKinsey projects that Asia will fuel half of all the consumption growth expected worldwide over the course of the next
decade.
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Two factors have driven the rise of the Asian consumer. The first is an increasing standard of living across the region. As incomes increase, rising standards of living
eventually give way to higher levels of consumption.
However, the region’s consumers are as diverse as they are powerful. 61% of affluent Indians prefer luxury items designed by local designers as compared to any
other market in the region. By contrast, affluent Chinese consumers look towards “classic” global brands such as Chanel, Dior, and Gucci. Even at the city level there
are differences. For examole, in Indonesia, consumers in Jakarta tend to choose foreign products for audio and video electronic products, but prefer to buy food and
beverage locally.
Purchase preferences are also changing. In 2019, shoppers spent $7.4bn during Black Friday and an additional $9.4bn on Cyber Monday but even when combined,
these numbers come nowhere close to the $38bn spent during Alibaba's Single’s Day
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At present, there are 710 million people around the world aged 55-64. Assuming these are distributed across 10 years, there are roughly 71 million people who are
64, and will turn 65 this year. 71 million/year = 190 k/day = 8,100/hr. For context, there are 15,600 births per hour. Source: HP analysis
By 2020, the US population of adults over 50 will have doubled in size since 1980, reflecting an increase of 60 million people. There will be 42 million more adults over
50 than those 18-34 by 2020. And by 2030, that gap will increase to more than 55 million.
People over 50 in the U.S. accounts for more than $3.2 trillion in total annual expenditures and 41% of total U.S. consumer spending. Many adults above 50 are empty
nesters looking to travel more and are used to luxury and willing to try new brands.
Baby Boomers value convenience, which is the biggest factor driving online shopping. In fact, Boomers spend on average $203 per transaction online.
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Generation Z (GenZ), comprise roughly 32% of the global population. In the U.S., they are estimated to make up 40% of the population.
Many Gen Zers are now entering the workforce. As a result, their spending power, currently valued at $44 billion, is growing every day.
Gen Z is the most racially diverse generation with, 47% of Generation Z in the US members of ethnic minorities. One-in-four are Hispanic, Asians account for 6%, and
15% are African American.
One of the unique characteristics of Gen Zers is that they have not spent a day of their lives without the Internet, and they were practically born with a smart phone in
their hands. A full 40% of Gen Z are self-identified digital device addicts. More than half of Gen Z would rather give up their sense of smell than their mobile device.
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Improving economic conditions are propelling women as a major force in the global economy. They represent a growing and economically powerful consumer
segment. Women are the primary or only breadwinners in 40% of U.S. households with kids under 18.
Women drive 70-80% of all consumer purchasing, through a combination of their buying power and influence. Influence means that even when a woman isn’t paying
for something herself, she is often the influence or veto vote behind someone else’s purchase.
As an example in Asia, young Chinese women are an increasingly important force in the world’s consumer markets. Women are responsible for three-quarters of
household purchasing decisions in mainland China and their annual spending is expected to rise from RMB3.3 trillion in 2017 to RMB8.6 trillion (about USD1.2 trillion)
by 2022.
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Some cities are becoming markets in and of themselves. Jakarta, for example is expected to grow its average household income to a level exceeding many developed
and western cities.
Source: Oxford Economics (Feb 2018 Data)
All constant 2015 prices, US$
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Because of the growth of cities, more and more products and services are being built specifically for people who live in cities. Ride-hailing ridership varies
substantially in different types of communities. Notably, adoption gaps between urban and rural Americans are present even within groups that collectively use ride-
hailing services at high rates. For example, among Americans who earn $75,000 or more annually, urban residents are more than twice as likely to have used these
services as high-income individuals living in rural communities (71% vs. 32%).
For urban grocery shoppers, crowded stores are the norm so convenience is a major priority. City dwellers are more likely than suburban and rural shoppers to have
groceries delivered, buy groceries at small neighborhood stores, pop into stores for pre-made offerings and dine out rather than make meals at home.
Nearly 60 percent of urban shoppers reported buying groceries online for mail delivery or door-to-door delivery, compared to less than 30 percent of suburban and
rural shoppers. One in four urban shoppers reported ordering groceries online at least once a week.
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Urban Consuming Class Example: Living in a dense urban environment brings many startup-fueled conveniences, be it near instant delivery of food — or pretty much
whatever else you fancy — to a whole range of wheels that can be hopped on (or into) to whisk you around at the tap of an app. But the biggest problem afflicting city
dwellers is not some minor inconvenience. It’s bad, poor, terrible, horrible, unhealthy air. And there’s no app to fix that. From Asia to America the burning of fossil fuels
has consequences for air quality and health that are usually especially pronounced in dense urban environments where humans increasingly live.
https://techcrunch.com/2019/05/25/this-is-one-smart-device-that-every-urban-home-could-use/

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Urban Consuming Class Example: Good Eggs is a pioneering online grocery delivering to families throughout the Bay Area. Order in the morning on our website or iOS
app, and absurdly fresh groceries will be at your door tonight.
https://www.fastcompany.com/40554143/how-good-eggs-came-back-from-the-brink-and-plans-take-on-amazon

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Emerging Market Consumers Example: HP has issued a rallying cry to partners in Southeast Asia, calling on the channel to help drive market expansion on a city by city
basis. In targeting like-for-like city clusters across the region, rather than countries, the technology giant is aiming to capitalize on similar market dynamics through
eliminating border roadblocks.
“Think Jakarta, Bangkok and Manila,” explained Kong Meng Koh, managing director of Southeast Asia and Korea at HP. “I’d argue that Jakarta has more in common
with Bangkok and Manila from a market perspective, as opposed to the closest city which is Bogor. Most vendors traditionally address Southeast Asia on a country by
country basis, focusing on Indonesia, Thailand, Philippines, Malaysia and Singapore as examples. But increasingly, we’re seeing rapid urbanization emerge as a key
mega trend in the region which offers new opportunities for the channel.”
https://sg.channelasia.tech/article/664004/hp-building-channel-strategy-southeast-asia-city-by-city/

Emerging Market Consumers Example: Hyper globalization doesn’t mean the same products shipped globally. In fact, more and more products need to be localized
for regional, local and even city level requirements.
Here is an example of a HP product that has been designed especially for small to medium businesses in emerging markets. The HP Neverstop Laser printer has been
designed with larger capacity toner cartridges to reduce the total cost of ownership and printing costs based on regional demand.
https://press.ext.hp.com/us/en/press-releases/2019/hp-debuts-world-first-toner-tank.html
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Silver Spenders Example: The ad features an aging population having lots of fun trying to recapture the spirit of youth as they try out skateboarding, spraying graffiti,
raving, and a series of other activities – all clearly beyond their physical abilities. The ad is designed to strike a chord with the young (and the young at heart) by
showing how The Beetle reflects their desire to have fun today, and not leave it too late.
https://campaignbriefasia.com/2012/10/18/volkswagen-group-import-china/
Video link
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Silver Entrepreneurs Example: Vodafone ‘LiveMore’ ad campaign features an affable elderly couple inaugurating a new restaurant. Highlighting how technology has
created new opportunities and experiences for this growing population.
https://brandequity.economictimes.indiatimes.com/news/advertising/vodafone-launches-new-campaign-urges-customers-to-livemore-with-its-4g-
network/70102641

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GenZ Consumers Example: Target Corp. has Gen Z in its sights. The new brands were designed for Target’s “younger guests” (described as teens and young adults),
and include the chain’s first electronics owned brand, Heyday, along with two clothing brands.
• Heyday: The electronics-related line includes fun cell phone cases, headphones, speakers and more, with most pieces priced under $20 and nothing more than $60.
• Wild Fable: Designed for mixing and matching, the women’s clothing brand is made up of trendy apparel and chic accessories, with all items priced for less than $40
per piece.
• Original Use: The street style-inspired Original Use collection for men in also available in big & tall sizes, prices ranging from $10 to $40.
https://chainstoreage.com/news/target-unveils-three-new-brands-aimed-at-up-and-coming-generation

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Sheconomy Example: New analysis by Boston Consulting Group (BCG) shows that if women and men around the world participated equally as entrepreneurs, global
GDP could ultimately rise by approximately 3% to 6%, boosting the global economy by $2.5 trillion to $5 trillion.
Examples of women-led businesses making an impact: Canva, the Australia-based graphic design platform; The Wing, women-focused coworking spaces launched;
The Honey Pot Company, natural plant-based feminine care products; Bumble, dating app worth $1 billion; Orangetheory Fitness, reached $1 billion in sales;
23andMe, genetic testing company worth $2.5 billion; Eventbrite, event planning company worth $2.8 billion; CreditKarma, finance company worth $4 billion; Cisco,
worth $248 billion; Cher Wang, Taiwanese entrepreneur and philanthropist; Kiran Mazumdar-Shaw, Indian billionaire entrepreneur
https://hbr.org/2019/10/the-trillion-dollar-opportunity-in-supporting-female-entrepreneurs

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Sheconomy Example: “34% of the senior leadership of Alibaba is women. That’s the secret sauce of Alibaba’s success,” retired CEO Jack Ma said at a dialogue session
during the Forbes CEO Conference in Singapore on Oct 15. Calling the past 20 years “a terrible period” for the company, Ma said Alibaba had weathered the rough
patch thanks to female employees who stayed with the company to “fight for the things they believe in.” Ma added women had, at one point, accounted for 47% of
the tech firm’s workforce. This figure has since fallen following the acquisition of several male-dominated companies, but the former head said he expected it to rise
again.
https://www.businessinsider.sg/i-have-a-lot-of-powerful-women-jack-ma-just-shared-alibabas-secret-to-surviving-a-terrible-20-years/

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Sheconomy Example: Nike has worked alongside a team of athletes (weightlifter Amna Al Haddad and figure skater Zahra Lari) to develop a single-layer stretchy hijab
that could "change the face of sport for Muslim girls.
https://www.dezeen.com/2017/03/08/nike-pro-hijab-design-female-muslim-athletes-sportswear-fashion/

Cities as Markets Example: Adidas’ AM4 (Adidas’ made for) line of sneakers are custom-designed for the needs of runners on a city by city basis. For example, the
AM4NYC running shoes are specifically designed for the sharp turns of New York City’s street grid and were created using sport-science data and feedback from local
athletes. In addition to NYC, the line includes shoes designed for London, Paris, Los Angeles, Shanghai, and Tokyo. The shoes are produced in the company’s two
Speedfactories, located in Germany and Atlanta, which have faster production times to allow them to more easily adapt to customer preferences and customization.
https://www.cbinsights.com/research/nike-target-adidas-local-stores-trend/
https://mashable.com/2017/11/03/adidas-speedfactory-future-tech/
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Cities as Markets Example: Called Keyo, the technology works directly with landlords, displaying listings, handling the application process and using a network of
"scouts" to facilitate quick viewings without a broker fee. Tenants can also pay rent using the app and Keyo says it has partnered with major credit bureaus to boost
tenants’ credit scores with every on-time payment and offers them incentives and rewards for paying on time.
https://www.forbes.com/sites/lisachamoff/2019/06/27/is-this-rental-app-the-future-of-real-estate/#4102f6b4152e

The impact of Megatrends will be felt across industries, most notably in Retail, Manufacturing, and Education. Retail will become increasing omnichannel, blurring the
lines between ecommerce and brick and mortar storefronts, while manufacturing becomes smarter, more sustainable, and more personal as a result of the next
industrial revolution. At the same time, education at all levels will be forced to shift and change as new technology is introduced in the classroom, and in the
workplace.
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We are moving to a retail model that blends offline and online shopping as a result of changing consumer preferences, growing desire for convenience and rising real
estate costs. More than 9,300 store closings were announced in the US in 2019, smashing the previous record of roughly 8,000 store closures in 2017, according to an
analysis by Business Insider. Retailers are expected to close more than 2,200 stores this year, following record-high rates of closings last year.
According to Periscope by McKinsey, most US consumers (56%) are multichannel shoppers, shopping at brick-and-mortar stores as well as online, making blended
retail the new norm. Interestingly those who have a clear tendency to shop at physical stores outnumber those who make most or all their purchases online.
Furthermore, 78% of customers say they would be more likely to visit a store that offered self-service for finding products or brands. Imagine a world of smart fitting
rooms, kitted out with technology that can identify products, suggest complementary items and feature interactive mirror systems. Or self-serve kiosks and
interactive digital displays that flash up personalized offers based on historical engagement.
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The Fourth Industrial Revolution is upon us thanks to innovations like 3D printing, the Internet of Things (IoT), artificial intelligence, and robotics, just to name a few.
It’s disrupting almost every industry, business model, and country with manufacturing leading the wave of transformation.
The global manufacturing industry is growing at a healthy rate of 3% over year on year contributing 30% to the global GDP. New technologies like automation, 3D
printing and a surge in automobile and electronics production has elevated the manufacturing industry up to a higher level, as well as offset labor shortages
throughout the industry. GlobalData estimates that the 3D printing market will be worth $32bn by 2025 and over $60bn by 2030.
Organizations growing investments in smart factories are focused on both efficiency by design and achieving operational excellence through closed-loop operations..
IDC predicts embedded Intelligence (the combination of AI, IoT and Blockchain) will automate processes and increase execution times by up to 25 percent. As a result,
smart factories will add $1.5T to $2.2T to the GDP by 2025.
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Technology will also drive new methods of teaching, learning and assessment. Research on the number of children out of school worldwide reveal that, despite
decades of efforts to get every child into the classroom, progress has come to a standstill. According to data from the UNESCO Institute for Statistics (UIS), about 263
million children, adolescents and youth worldwide (or 1 in every 5) are out school – a figure that has barely changed over the past five years.
With less classrooms and teachers there is a movement to on-demand learning across the globe, propelling the market growth of e-learning and MOOC courses. In
2018, education spent $142b on digital. This is forecast to grow to $342b by 2025, but is still less than 5% of overall expenditure. One major impact of technology on
education is the move to online learning creating more access for a wide variety of students and adults. Online learning for college students saw 1 in 6 students
exclusively enrolled in online learning in 2017. Now in its eighth year, the modern MOOC movement has reached 110 million learners (excluding China). In 2019,
providers launched over 2,500 courses, 11 online degrees, and 170 microcredentials.
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Retail Example: While retail stores continue to shutter at record numbers, beauty retailer Sephora opened nearly 50 new stores in 2019. And in 2020, Sephora is
preparing for its biggest expansion ever, opening 100 new stores across North America. So what’s Sephora’s secret?
For one thing, the company is creating a mix of retail formats. It now plans to open a range of smaller-format stores in neighborhoods, designed to blend into the
community, with a rotating array of brands on display. The company also uses cost-effective building materials so it can invest more in “client centric experiences,
services, and employee development.” And finally, with this expansion, Sephora is focusing on sustainability, an issue that is increasingly important to consumers.
These stores will run on 100% renewable energy, which will help to reduce its overall energy consumption and its greenhouse gas emissions.
https://www.fastcompany.com/90460438/sephora-is-defying-the-retail-apocalypse-with-100-new-store-openings-in-2020

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Retail Example: Powered by the HP MP9, the countertop kiosk is a multi-functional self-checkout and endless aisle solution. The self-checkout feature allows
shoppers to quickly scan and pay for items in-store, while the endless aisle feature enables shoppers to browse, order and pay for items that are unavailable in stores,
online.
The automated smart locker is powered by the HP Engage One all-in-one and serves as a simplified way for customers to pick up orders or drop off returns by simply
scanning a unique QR code.
https://www.retailcustomerexperience.com/news/meridian-teams-with-hp-on-countertop-kiosk-automated-smart-locker/

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Retail/Manufacturing Example: IKEA’s spirited Frekvens collection designed in cooperation with Stockholm-based audio geeks Teenage Engineering was already
unlike anything out there in the consumer audio category: a limited edition selection of modular Bluetooth-enabled speakers offering a playful reinterpretation of the
boombox in various forms, designed to customize with a selection of add-on components – speakers, lighting, and accessories. Teenage Engineering couldn’t leave
well enough alone, and are now offering thirteen additional customization accessories to 3D print gratis, adding an extra level of the practical and occasionally
wonderfully weird to the IKEA line. The addition of 3D printable accessories adds to the playful-experimental personality of the audio line, offering those with access
to a PLA filament 3D printer the ability to imbue components with an amusing degree of personality in the form of floor stands, handles, wheels, and holders.
https://design-milk.com/teenage-engineerings-3d-printables-transform-ikea-speakers-into-something-cool/

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Manufacturing Example: HP has announced a collaboration with insole brand Superfeet and sportswear company New Balance. Together, the companies will produce,
and market customized 3D printed insoles based on customer’s biometric data.
HP and Superfeet have worked together in recent years to accelerate mass customization in the footwear industry. In 2017, the partners teamed up with Brooks
Running Company to create tailored sneakers using the FitStation powered by HP platform. They have also worked with others, including Steitz Secura. Now,
sportswear giant New Balance is teaming up with the partners to utilize HP’s FitStation and Multi Jet Fusion technologies.
https://www.3dprintingmedia.network/hp-superfeet-new-balance-3d-insoles/

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Manufacturing Example: NTU and HP have launched a corporate lab to help manufacturers move towards Industry 4.0. The facility showcases digital manufacturing
technologies that can make manufacturing and supply chain operations more efficient, cost-effective and sustainable. The university also worked with HP to develop
SkillsFuture courses to prepare employees in the manufacturing industry for the future.
The aim is to recruit 100 researchers to work in the lab to develop innovative products such as intelligent design software tools that can automate advanced
customization, as well as supply chain models that can help companies achieve a faster time to market while lowering their carbon footprint.
https://www.straitstimes.com/business/ntu-and-hp-inc-launch-corporate-lab-to-help-manufacturers-move-towards-industry-40

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Education Example: Schools all over the world have remained closed as a result of COVID-19. Several schools are trying to have their students “attend” a regular
school day. Some are providing students with an interactive classroom experience via Zoom, a web-based video conferencing tool. They are working to continue live
interactions between teachers and students as online instruction is adopted, as well as more collaborative interactions among students with online instructional
programs.
https://www.scmp.com/lifestyle/family-relationships/article/3049458/schools-closed-over-coronavirus-use-e-learning-video
https://www.zdnet.com/article/online-learning-gets-its-moment-due-to-covid-19-pandemic-heres-how-education-will-change/
https://www.weforum.org/agenda/2020/03/covid-19-10-steps-online-learning/

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Education Example: More than 130 million girls around the world continue to lack access to education, and women account for two thirds of the 750 million adults
who lack basic literacy skills. To celebrate International Day of the Girl, HP Inc. and Girl Rising launched a three-year education partnership of curriculum and
technology solutions for up to 10 million students and teachers in the US, India and Nigeria.
The program is part of HP's global commitment to enable learning outcomes for 100 million people by 2025. The new curriculum supports the organizations' goals to
develop the next generation of female leaders by providing educational content, technology, multimedia assets, activities, and lesson plans to students and teachers.
To facilitate this, HP will include a suite of software consisting of Girl Rising's teacher training modules, focused on youth empowerment and life skills, as well as a
library of content, pre-loaded onto HP Education Edition PCs.
https://www.techrepublic.com/article/hp-and-girl-rising-debut-education-program-for-10-million-students-and-teachers-in-us-india-and-nigeria/

Education Example: Nearpod provides a host of pre-made, fully-interactive lessons developed by subject matter experts for all school levels and subjects. Nearpod
also allows teachers to import lessons from any file type and begin adding interactive elements, web-links or video snippets to them. Educators can then synchronize
their prepared lessons to all students’ devices, casting the lesson simultaneously to each student and monitoring their progress throughout the lesson.
What really sets Nearpod out from the crowd is their innovative ideas for further enhancing interactive lessons. Nearpod users have access to Nearpod 3D, providing
fully rotatable 3D images to use for teaching, and Nearpod VR, allowing integration with Smartphone VR headsets like Google Cardboard to create virtual field trips
for students.
https://tutorful.co.uk/blog/the-82-hottest-edtech-tools-of-2017-according-to-education-experts
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Education Example: Kiwi students will be the first in the world to have a digital teacher enter their classrooms. The digital teacher is unlikely to replace human ones
any time soon, but the Auckland software company that created the avatar sees education as a key future use of their technology. Will, a digital human avatar, will
teach primary school students about renewable energy as part of a free education program offered to Auckland schools by Vector, in partnership with Soul Machine.
Children trialing the program said talking to Will was different to talking to other artificial intelligence systems, such as Apple’s voice-based assistant Siri because you
could see and interact with him: “He’s there, looking at us, like a real human.” It’s this two-way interaction, including non-verbal communication, which sets this
avatar apart. Auckland-based company Soul Machines is the only company in the world which has developed autonomously animated avatars.
https://www.newsroom.co.nz/2018/08/22/203646/digital-teacher-in-kiwi-schools#

Education Example: HP has committed to support the education of another 100,000 learners across Africa over the next three years through the HP Foundation’s HP
LIFE program. The company kicked off its commitment by opening an HP LIFE Center in Johannesburg, South Africa. The new center is a technology-enabled hub that
facilitates learning, collaboration, and skills development in a physical, face-to-face setting with the HP LIFE program at its heart.
HP LIFE offers users all over the world access to 30 free online courses focused on developing business and IT skills – from business planning and marketing, to raising
capital and design thinking. To date, HP LIFE has reached more than 748,000 learners in 200 countries and territories. All users need is a computer and Internet
connection to access HP LIFE, and the new, physical center in South Africa will create a more formal educational environment.
https://africa.com/my-vision-for-africa-embracing-technology-as-a-catalyst-for-growth-on-the-continent/
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The Megatrends will shape how we do business in profound ways. We are already seeing new business models emerge in response to new technologies and changing
consumer preferences, while digital platforms are reshaping the business landscape, forcing companies to constantly reinvent themselves before they are disrupted.
And while our connected world makes it easier than ever for businesses to expand globally, local competition will make it increasingly necessary for multinationals to
localize in order to succeed in emerging markets.
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Bigger cities result in more desire for access and less desire for ownership, opening up new types of services and business models. The global Anything-as-a-Service
(XaaS) market is expected to grow at a CAGR of 24% from 2019 to 2024.
Despite WeWork’s issues, the coworking company was still NYC’s largest office tenant in 2019 with 8.2 million square feet, beating runner-up JP Morgan Chase by
nearly 3 million square feet.
Bike sharing has also been on the rise. The number of bike-sharing programs worldwide doubled between 2014 and 2018, while the number of public bikes increased
almost 20-fold to 18.2 million.
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Companies are exploring tangential markets through new business models that expand their expertise. Uber Eats is one such example. What’s most exciting to Uber
executives is that 4 of every 10 people who used Eats last year were new to Uber, giving the company access to fresh customers for their core ride-sharing business.
Other companies are looking to expand their service offerings to existing customers, giving rise to superapps like WeChat. Tencent announced that its users spent 800
billion yuan (US$115 billion) through its mini programs in 2019, a 160% increase from the previous year. Mini programs allow customers to do everything from renting
bicycles to buying tickets to playing games within the app. There are now estimated to be more than 2 million mini programs on the app.
Traditional retailers are also offering their customers new experiences by blending online with in-store, including curbside pickup and buy online pickup in store. In
2019, Target’s digital sales rose 19% thanks to more people using same-day options like these when they buy online. Target said use of its same-day services grew
more than 50% during November and December compared with 2018, driving about 75% of the retailer’s overall digital sales growth this past holiday season.
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New business models are also changing what it means to work. 36% of U.S. workers participate in the gig economy through either their primary or secondary jobs.
This includes everyone from online platform workers (think Uber or TaskRabbit) to freelancers to contract nurses to temp workers.
So is the gig economy good or bad for workers? Well, it's complicated. 71% of traditional workers say they are doing their preferred type of work, compared with 64%
of gig workers. But that still means a majority of gig workers do this type of work out of preference.
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Amazon, Uber, Google, Facebook, Microsoft and many other big companies have something in common. They’re all platforms, providing underlying technologies that
others use to build or facilitate their own businesses. In fact, 7 out of 10 of the most valuable companies in 2018 have platform-based business models.
Platform companies will continue to lead markets for the foreseeable future, and startups and mid-market companies who adopt platform-based business models
will be best positioned to dominate their niches. For evidence of this, we turn to an interesting data point about platform performance in the S&P 500 Index. As of
midsummer 2019, there are 21 public platform companies in the S&P 500. Yet these companies make up 20% of the S&P 500’s net income. These platforms represent
just under 5% of the companies in the S&P, but the fact that they are responsible for such an outsized portion of the net income proves a key point: platforms at scale
are the dominant business model, and with that dominance comes outsized profits.
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Digital platforms provide a springboard for startups to compete globally. More than half (58%) of Amazon’s sales in 2018 came from independent third-party sellers –
mostly small- and medium-sized businesses – as opposed to Amazon retail’s own first party sales. From 1999 to 2018, third-party sales have grown from $0.1 billion
to $160 billion – a compound annual growth rate of 52%. For comparison, eBay’s gross merchandise sales in that period grew at a compound rate of 20%.
But it’s not just retailers that are using Amazon to scale. Startups can save 76% of the costs of running a standard web application by using Amazon Web Services. The
ability to scale up and down as traffic changes means a business can pay only for what they need. Using an example application sized for 10,000 pages views per day:
$109,718 on-premises vs $26,786 AWS
Similarly, since the App Store launched in 2008, app developers have earned $120 billion, with more than a quarter of that in the past year alone.
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Growing competition from startups and new businesses in emerging markets, coupled with consumer preference for local products, will put additional pressure on
companies in developed countries to create localized products and services in emerging markets.
McDonald’s is able to adapt its menu and business plans to each culture in the over 100 countries it operates in.
Netflix offers mobile-only plans in India, Malaysia and the Philippines, giving viewers a way to see its shows without having to pay for the more expensive tiers.
Uber developed a cash payments system to make their services more accessible in markets like India where credit card usage is not as common.
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But doing business in local markets can be complex and offer new business challenges. GM’s exit from India in 2017 was especially notable, in part because the
massive country has a rising economy and growing automotive market. GM opened two factories in the country and introduced a number of products tailored to the
value-conscious Indian buyer. In spite of these efforts, GM watched its share of customers shrink from 4.7% in 2010 to about 1% in 2016.
The middle class is growing in Vietnam, and the market for specialty coffee and tea shops is worth more than $1 billion. Starbucks has captured less than 3% of that.
Local Vietnamese chains are expanding faster and performing better because they charge less for coffee, adapt more quickly to new trends and have a huge footprint.
Best Buy suffered significant losses in its first five years in China and eventually withdrew. By 2011, Best Buy closed down all six of its branded stores, 5 years since
entering in 2006. Most analysts summarize the fiasco under one broad theme: the failure to localize.
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And while corporations in developed countries face new challenges, new corporate powerhouses are rising in emerging markets and impacting the rest of the world.
Chinese e-commerce giant Alibaba announced its platforms sold goods worth 268 billion yuan, or $38.4 billion, on Singles’ Day in 2019, easily exceeding last year’s
record $30.7 billion haul. More than half a billion people from a number of countries participate in the event, which is China’s equivalent to Black Friday and Cyber
Monday, except Singles’ Day is much larger. The five-day Black Friday clocked less than $25 billion in sales last year. Cyber Monday clocked less than $8 billion.
Alibaba said that it had netted its first $1 billion in sales in just 68 seconds and the first $10 billion in half an hour.
TikTok became China’s first global app with more than 1.5 billion downloads worldwide, outperforming Instagram.
Huawei surpassed Apple to become the second largest smartphone brand in the world in 2019, despite government sanctions.
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Growing competitive pressures is forcing corporations to constantly reinvent themselves. Imagine a world in which the average company lasted just 12 years on the
S&P 500. That’s the reality we could be living in by 2027, according to Innosight’s biennial corporate longevity forecast. At the current and forecasted turnover rate,
the Innosight study shows that nearly 50% of the current S&P 500 will be replaced over the next ten years.
Tesla’s stock jumped nearly 5% in early Jan 2020, closing at a record $492.14 per share and elevating its market capitalization to almost $89 billion, or $2 billion
larger than the sum of General Motors’ and Ford’s respective market caps of $50 billion and $37 billion.
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New Business Model – Xaas/Sharing Economy Example: Landing is a startup offering flexible leasing “memberships” for long-term living. Landing works directly with
property managers and apartment owners to offer studio, one and two-bedroom apartments in neighborhoods with features such as easy access to public
transportation and shopping. Renters pay $199 a year for the ability to pick up and move whenever they want within the Landing network.
The company says it takes care of all the hassles that come with renting, such as setting up utilities. Users move into a fully furnished apartment that has “a kitchen
stocked with essentials” and an on-call concierge service. “We’re seeing a growing mobile workforce in need of more flexible living solutions that empower them to
embrace opportunities as they arise–no matter where they’re located on the map,” the founder said. “Landing is the first company addressing this.”
https://news.crunchbase.com/news/next-chapter-for-shipt-founder-landing-a-flexible-leasing-startup-that-just-raised-30m/
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New Business Model - Gig Economy Example: Collective Benefits is a startup aimed at tackling this growing “protection gap” created by the gig economy where so-
called “self-employed” workers must often go without basic benefits such as family leave and sick pay, not to mention mental health support and critical injury pay.
Collective Benefits has set out to build a tech platform that gives gig workers access to a full range of affordable, portable protections and benefits which they can
carry around with them between the platforms they work on.
So instead of your benefits being tied to one employer, as is the current case, they can apply to any gig economy “employer” someone works for. It’s also working with
a number of on-demand service platforms who are giving their workforces access to these benefits.
https://techcrunch.com/2020/02/25/insurance-platform-collective-benefits-raises-3-3m-to-give-gig-economy-workers-a-safety-net/
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New Business Model – XaaS Example: A combination of Uber Eats, TaskRabbit, and Instacart, Rappi is one of the few services that truly delivers “everything.” Founded
in Bogotá, Colombia in 2015, the company started out delivering alcohol and drinks from local stores. Now the Rappi service not only offers food and groceries, but
also includes on-demand services ranging from personal training to healthcare to even withdrawing cash from an ATM and delivering it.
Rappi took off quickly in Bogotá and Mexico City and now serves more than one million customers across Colombia, Mexico, Brazil, Chile, Uruguay, and Argentina with
its fleet of more than 30,000 couriers. Rappi recently became the country’s first unicorn startup following its US$200 million Series D round in late August and has
been growing its presence beyond its core markets of Colombia and Mexico to the rest of the region.
https://www.forbes.com/sites/jonathanmoed/2018/11/15/why-delivery-apps-from-ubereats-to-rappi-are-taking-over-latin-america/#2c5160987bf7
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New Business Model – XaaS Example: HP bets that industrial customers will adopt the as-a-service model for additive manufacturing. The company outlined a base
subscription service (3DaaS) that features automatic replenishment of supplies, billing, and usage tracking and on-site support.
The base pay-per-build service is available for HP Jet Fusion 5200, HP Jet Fusion 4200, and HP Jet Fusion 500 series 3D printing equipment.
https://www.zdnet.com/article/hp-launches-3d-printing-as-a-service-models/
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New Business Model - Expertise Expansion Example: Amazon remains very focused on building financial services products that support its core strategic goal:
increasing participation in the Amazon ecosystem. From Amazon payments, to amazon cash and credit cards … the retail magnate is increasing it’s portfolio with new
financial products and services.
https://www.cbinsights.com/research/report/amazon-across-financial-services-fintech/
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New Business Model – Customer Expansion Example: Grab Financial, a unit of Southeast Asian ride-hailing giant Grab, said Tuesday it is rolling out several financial
services across the region. Those include launching an online checkout system that would let sellers accept Grab’s digital payment service, GrabPay. The company
also plans to provide a post-paid payment credit option, where users accumulate spending on the company’s products like ride-hailing and food delivery and pay the
total amount at the end of each month without additional costs.
That credit service will first be available in Singapore before expanding to other countries. Another option, to buy goods and pay for them in installments through Grab
Financial, is also in the works.
https://www.cnbc.com/2019/03/19/grab-rolls-out-new-financial-services-in-southeast-asia.html
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Platforms & Ecosystems (also Emerging Market Powerhouse) Example: In the 3 years since TikTok launched in China, it has been downloaded over 1.5 billion times
from the App Store and Google Play, is the #7 most downloaded app of the past decade and is available in 155 countries & 75 languages.
https://www.businessinsider.com/most-downloaded-apps-of-decade-facebook-instagram-whatsapp-tiktok-snapchat-2019-12
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New Business Model Example: HP said it plans to begin phasing out its discounts for printer models that are capable of using non-HP supplies. Thus, customers will
still have an option to buy HP printers that can use third-party supplies, but those printers will come with a higher price tag.
Meanwhile, the company said it will continue to subsidize the sale of models that only work with HP-branded supplies.
https://www.crn.com/news/components-peripherals/hp-shaking-up-its-print-business-model
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Hyper Localization Failure Example: Uber exited markets in China, Russia and Southeast Asia after failing to compete with more localized rivals. As part of their exit
strategy, in each case they sold their market share to a more localized rival: Didi Chuxing in China, Yandex.taxi in Russia, and Grab in Southeast Asia.
While Uber has spent close to a decade figuring out what Western users want out of a ride-service, the company has struggled to adapt to parts of the developing
world. By contrast, Grab has solved a puzzle facing companies in places that are just coming online: How to make e-pay work in nations that lack financial
infrastructure. When Grab first launched, it had to teach drivers in many of its markets how to use smartphones. The company held sessions every two weeks to train
them to use the app. Most riders didn’t have credit cards, so from the very start, Grab accepted cash. It took Uber 2 years to accept cash in some parts of the region.
https://techcrunch.com/2019/04/11/uber-global-exits-billions/
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Hyper Localization Success Example: “It’s really been about looking at how are people are moving around our cities. Is there something which we are currently not
catering to and how can we localize our product offerings to ensure that we can really form part of that mobility framework in our cities?” – Alon Lits, Uber’s General
Manager for sub-Saharan Africa
https://qz.com/africa/1368732/uber-in-africa-cash-payments-are-shaping-global-operations/
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Emerging Market Powerhouse/Platforms & Ecosystems Example: The number of connected IoT devices on Xiaomi’s IoT platform reached approximately 213.2 million
in Q3 2019, up 62.0% YoY. The number of users who have five or more devices connected to Xiaomi’s IoT platform increased to 3.5 million, an increase of 78.7%.
MAUof MIUI. Xiaomi’s Android-based operating system, reached 291.6 million. In September 2019, Xiaomi’s AI assistant had 57.9 million MAU
https://economictimes.indiatimes.com/news/international/business/xiaomi-becomes-youngest-company-on-fortune-global-
500/articleshow/70331240.cms?from=mdr
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Disruption/Corporate Reinvention Example: Walmart and Target had bigger jumps than Amazon in online customer spending during the first two weeks of November
compared with the same period last year, according research firm Edison Trends, which looked at more than 1.2 million transactions.
“Retailers have gone from being in denial about the potential threat of e-commerce to accepting that e-commerce is a real threat and investing to take advantage of
the omnichannel asset.”
https://www.cnbc.com/2019/12/02/target-and-walmart-are-a-threat-to-amazon-this-cyber-monday.html
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Platforms & Ecosystems Example: Crypto goes mainstream with Facebook’s Libra
https://techcrunch.com/2019/06/18/facebook-libra/
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Platforms & Ecosystems Example: Users of Brave — which is an open-source blockchain-powered browser that blocks ads and website trackers — can now receive
70% of the ad revenue share as a reward for their attention in the form of the browser’s native cryptocurrency, Basic Attention Tokens (BAT).
Brave Ads purportedly ensures that brands are connecting with people who are interested in advertising, eliminating costs, and risks regarding privacy, security, and
fraud.
Brave recently partnered with TAP Network connecting consumers with over 250,000 top brands and merchants in the TAP Network.
https://cointelegraph.com/news/blockchain-browser-brave-to-reward-users-with-bat-tokens-for-watching-ads
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Platforms & Ecosystems Example: Ripple is a privately held company that is building a payment and exchange network (RippleNet) on top of a blockchain (XRP
Ledger). The main goal of Ripple is to connect banks, payment providers and digital asset exchanges, enabling faster and cost-efficient global payments, moving
money in seconds rather than days.
XRP is the token used by the Ripple network and plays in a key role in the commercialization of ODL (On-demand Liquidity). Ripple has seen significant growth and
customer interest with two dozen customers signed on to use the product worldwide, including Moneygram. Some of the notable customers committed to using ODL
include goLance, Viamericas and FlashFX. Today, ODL is available in corridors including: USD-MXN, USD-PHP, AUD-USD and PHP, and from EUR-USD.
https://ripple.com/files/xrp_cost_model_paper.pdf
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Platforms & Ecosystems Example: VeChain is a dual-token, blockchain-as-a-service (BaaS) platform primarily focused on supply chain, and on delivering Internet of
Things solutions. VET is VeChain Thor’s proprietary cryptocurrency, and VTHO is used to pay for tokenized transactions.
Walmart China has launched a blockchain-based platform aimed to address food safety concerns in the country by teaming up with VeChain, PwC and others on the
initiative, which comes as the latest in a line of food tracking projects launched by the firm.
By the end of 2020, Walmart China expects to see the fresh meat products tracked on the platform accounting for 50 percent of its total sales in that category.
Further, blockchain-tracked products will account for 40 percent of total vegetables sales and 12.5 percent of seafood sale.
https://cryptobriefing.com/what-is-vechain-introduction-to-vet-thor/
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Platforms & Ecosystems Example: Until now, singers, musicians, graphical artists, author, and video makers have been at the mercy of companies with monopoly
power over access to their platform. Because of this, these same platforms have not rewarded these creative people with a fair share of the revenue that results from
their content. With Coil, creators can for the first time post public and exclusive content via a customizable creator page on Coil which is automatically enabled for
streaming payments. Creators who have their own website can monetize it with a simple tag.
Those who want to support creators and the new Coil ecosystem can now join the community with a $5 monthly subscription. There are no subscription or
membership fees to be a creator.
https://www.coindesk.com/ex-ripple-cto-launches-blogging-platform-to-pay-content-creators-xrp
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Megatrends impact every aspect of where and how we work. From smaller and shared workspaces, to a multigenerational workforce with varying needs and
expectations, an increasing desire to work anytime, anywhere…even across the globe, and digital advances are leading to immersive ways of working that blend the
digital and physical, augment workflows, and make work smarter and and more automated.
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The share of workers ages 55+ is expected to increase to 25.2% by 2028. Conversely, the labor force participation rate for those ages 16 to 24 is projected to continue
to decline to 51.7%. This decline is due to increased time spent in school and displaced opportunities as older workers fill jobs historically held by younger workers.
The fact is the US labor market has a big problem in the form of a low labor force participation rate. In October 2019, the US labor participation rate was 63.3%.
Eighteen years before, in October 2001, it stood at 66.7%. Much of the projected decline in the overall labor force participation rate from 2018 to 2028 is due to a
decrease men’s participation from 69.1% to 66.1%. However, women’s participation is also expected to decline over the decade, from 57.1 percent to 56.6 percent.
Given the divergence between a shrinking labor participation rate and record low unemployment, the historically low US unemployment rate hardly reflects the true
US employment picture. And the opportunity deficit perpetuates itself. So much surplus labor impedes wage growth. Which is why, even amid “full employment,”
workers’ wages have stagnated. There are other implications: Less labor participation means a weaker consumer and consequently weak inflation.
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118
Yet at the same time we have a new generation entering the workforce. Generation Z is expected to make up almost 35% of the global workforce by 2030. It is the
first generation of digital natives, with a new set of expectations and a different style of working. Efforts to increase diversity are not enough. A lack of diversity is a
notable difference from the world they have grown up in. Even though Generation Z is the first fully digital generation, they want human elements at work. In fact,
72% of Gen Z want to communicate face-to-face at work. If given the choice of accepting a better-paying but boring job versus work that was more interesting but
didn’t pay as well, Gen Z was fairly evenly split over the choice. 91% said technological sophistication would impact their interest in working at a company.
More than 80% of Gen Z think that embracing failure on a project will help them to be more innovative and 17% believe that it will make them more comfortable to
take on new risks. Gen Z also understands the workplace is changing because of technology. The majority (59%) don’t think their current jobs will exist in the same
form 20 years from now. 76% of Gen Z professionals feel that the skills necessary in today's workforce are different from the skills necessary in past generations.

Economic growth and a shrinking working age population is driving a rising labor gap. By 2030, we can expect a talent deficit of 85.2 million workers across the
economies analyzed—greater than the current population of Germany.
For example, The Labor GAP in Singapore is expected to TRIPLE over the next decade, growing to more than 1/3rd of all the Labor Demand (Workers needed).
This is forecast to drive wages up by as much as $29k per high skilled worker ANNUALLY by 2030. If this were to occur, it would mean for every 1,000 high skilled
workers in Singapore, you might see a $29M increase in TCOW by 2030, above and beyond inflation.
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As the workforce gets older and smaller there is a greater need to back fill the workforce and for automation of mundane and repetitive tasks and and greater need
for to find new ways to increase productivity.
The World Economic Forum estimates that in the next two years 42% of task hours may be performed by machines. Studies from The University of London report that
businesses that use automation have employees who are 31% more productive compared to non-automated companies. Automation in the workforce will lead to
increased productivity, new types of jobs, and a need for reskilling to fill these new positions.
AI could contribute up to $15.7 trillion to the global economy in 2030, more than the current output of China and India combined. Of this, $6.6 trillion is likely to come
from increased productivity and $9.1 trillion is likely to come from consumption-side effects
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To tap into the full benefits of automation our workforce will need to undergo additional education and reskilling. More than 1 billion jobs, almost one-third of all jobs
worldwide, are likely to be transformed by technology in the next decade, according to Organization for Economic Co-Operation and Development (OECD) estimates.
By just 2022, the World Economic Forum estimates 133 million new jobs in major economies will be created to meet the demands of the Fourth Industrial Revolution.
To proactively realize the benefits of automation, at least 54% of all employees will need reskilling and upskilling in the next two years. We will all need to become
lifelong learners with WEF finding on average, employees will need 101 days of retraining and upskilling in the period up to 2022. Emerging skills gaps — both among
individual workers and among companies’ senior leadership — may significantly obstruct organization’s transformation management.
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The workplace is approaching new fronts of mobility, the ability to work anywhere, anytime, with the power that you need is no longer a luxury for users, it’s the
necessity of business. According to Global Workplace analytics 5 million employee (3.6% of the workforce) currently work-at-home half-time or more. Studies show
that desks are frequently empty 50-60% of the time.
Yet the need to collaborate remains high – over 90% of knowledge workers collaborate weekly, with 65% collaborating multiple times a day. And while work is always
collaborative, it’s the flexibility to be effective from anywhere that ensures success. While the PC is how we express ourselves, it’s also where the real work gets done,
so it must be powerful and capable.
Technology is also changing worker perceptions. According to a Harvard Business Review Analytic Services survey of 677 executives, the overwhelming majority—
86%—believe that technology has a greater impact on employee engagement today than it did three years ago.

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Each incremental percentage of employees who become engaged would predict an incremental 0.6% growth in sales. Therefore, a 5 percentage point improvement in
engagement predicts a 3% increase in operating income.
Companies with top quartile engagement attain 50% higher TSR than the average organization. Likewise, companies in the bottom quartile have 50% lower TSR than
the average organization.
Disengaged employees are roughly 2x as likely to leave the organization as engaged employees. This gap is even higher for new hires, who are roughly 3-3.5x as
likely to leave if they are disengaged.
Source: Kincentric

Work and contribution is a 24/7/365 activity that happens everywhere. Working less could result in higher productivity. According to Stanford research, productivity
per hour decline sharply when a person works more than 50 hours a week.
Workers at Microsoft Japan enjoyed an enviable perk this summer: working four days a week, enjoying a three-day weekend — and getting their normal, five-day
paycheck. The result, the company says, was a productivity boost of 40%.
Microsoft Japan says it became more efficient in several areas, including lower electricity costs, which fell by 23%. And as its workers took five Fridays off in August,
they printed nearly 60 percent fewer pages.
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Because women bring new skills to the workplace, the productivity and growth gains from adding women to the labor force are larger than previously thought.
According to the International Monetary Fund, for the bottom half of the countries in their sample, closing the gender gap could increase GDP by an average of 35
percent. Four fifths of these gains come from adding workers to the labor force, but fully one fifth of the gains are due to the gender diversity effect on productivity.
Boston Consulting Group found a strong and statistically significant correlation between the diversity of management teams and overall innovation. Companies that
reported above-average diversity on their management teams also reported innovation revenue that was 19 percentage points higher than that of companies with
below-average leadership diversity—45% of total revenue versus just 26%.
According to the Economist in 2019, Iceland led the way to women’s equality in the workplace. Women hold nearly half of the country’s board seats, thanks to a
mandatory quota of 40% which came into effect in 2013.
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Aging Workforce Example: The presence of physical trainers on the factory floor is one-way BMW, the luxury German carmaker, is reinventing the assembly line to
accommodate an aging workforce. From special ergonomic chairs to expansive exercise rooms, flooring easier on the knees, to rotating jobs during a shifts it is finding
new ways to make senior workers comfortable while crafting some of the world's most coveted cars.
https://www.csmonitor.com/World/Europe/2012/0902/How-BMW-reinvents-the-factory-for-older-workers
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Gen Z in the Workforce Example: Bumble, the dating and networking application, has employee "Beekeepers" who volunteer to welcome new hires. They get to know
new hires, provide a personalized tour, and go get a coffee or smoothie together.
The company’s Austin, Tex., headquarters is known as the Beehive and promotes a cheery sense of community, bolstered by sunshine-yellow walls, playful decor
(signs that say bee kind), and plenty of happy hours, volunteer sessions, and even some parades.
https://www.inc.com/ryan-jenkins/hiring-generation-z-ensure-their-first-day-includes-this.html
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Automation – Man + Machine Example: 6 River has built “the first and only collaborative robot with the associates in the aisles doing the work.” In other words, 6 River
aims to help humans be more efficient.
Chuck (6 River’s robot) keeps warehouse employees on task by guiding them through the facility through each step of the packaging process. It can glide around the
room and also has a touchscreen to help workers locate items. Chuck uses sensors to help detect worker productivity. It’s also been designed to help with employee
training.
https://techcrunch.com/2019/03/03/the-shift-to-collaborative-robots-means-the-rise-of-robotics-as-a-service/
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Automation – Man + Machine Example: Rather than replacing humans, Augean Robotics’ approach is to alleviate today’s agronomy inefficiencies by augmenting
farmhands with mechanical donkeys called Burros. After observing how table grapes were picked and collected, Augean Robotics launched a self-driving wheelbarrow
to autonomously steer through vineyard rows as a shopping cart for harvesters.
If you automate in-field transit you can enable people doing high-value/high-dexterity work like picking to be much more productive,” Augean Robotics, CEO Charles
Andersen said. “A crew of 10 people harvesting table grapes with one of our robots running them back and forth can pick 40% more fruit per day, and the payback on
one of our robots is accordingly just 30 and 40 days.”
https://www.therobotreport.com/augean-robotics-mechanizing-food-production-farm-table/
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Automation – Man + Machine Example: Samsung subsidiary STAR Labs has officially unveiled its mysterious “artificial human” project, Neon. Each Neon avatar is
“computationally generated” and will hold conversations with users while displaying “emotions and intelligence,” says the company. Their likenesses are modeled
after real humans, but have newly generated “expressions, dialogs, and emotion.” Each avatar (known individually as “NEONs”) can be customized for different tasks
and is able to respond to queries “with latency of less than a few milliseconds.” In the future they could be your next co-worker – Financial Analyst, Company
Spokesperson, Sales Rep, Web Designer, Engineer. Or they could be your own avatar, that you telepresence to a meeting superimposed over a spacious home office,
one that is a virtual representation.
https://www.theverge.com/2020/1/7/21051390/samsung-artificial-human-neon-digital-avatar-project-star-labs
Video link
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Automation – Man + Machine Example: Several prototypes of a diplomatic system using artificial intelligence are under development in China, according to
researchers involved or familiar with the projects. One early-stage machine, built by the Chinese Academy of Sciences, is already being used by the Ministry of Foreign
Affairs. The ministry confirmed to the South China Morning Post that there was indeed a plan to use AI in diplomacy.
When a policymaker needs to make a quick, accurate decision to achieve a specific goal in a complex, urgent situation, the system can provide a range of options with
recommendations for the best move, sometimes in the blink of an eye. The AI policymaker, however, would be immune to passion, honor, fear or other subjective
factors. “It would not even consider the moral factors that conflict with strategic goals,” according to Dr Feng Shuai, senior fellow with the Shanghai Institutes for
International Studies.
https://www.scmp.com/news/china/society/article/2157223/artificial-intelligence-immune-fear-or-favour-helping-make-chinas
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AI + Blockchain Example: Numerai is an AI-powered hedge fund using crowdsourced machine learning from thousands of data scientists around the world. It remains
the only hedge fund built on blockchain and using ML and data science in a novel way. The novelty lies in changing the incentive and compensation structure of the
fund manager.
https://numer.ai/
https://builtin.com/artificial-intelligence/examples-ai-in-industry
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Automation – Man + Machine Example: As the name suggests, iCEO is a virtual management system that automates complex work by dividing it into small individual
tasks. iCEO then assigns these micro-tasks to workers using multiple software platforms, such as oDesk, Uber, and email/text messaging.
For one task, we programmed iCEO to oversee the preparation of a 124-page research report for a prestigious client (a Fortune 50 company). For instance, to create
an in-depth assessment of how graphene is produced, iCEO asked workers on Amazon’s Mechanical Turk to curate a list of articles on the topic. After duplicates were
removed, the list of articles was passed on to a pool of technical analysts from oDesk, who extracted and arranged the articles’ key insights. A cohort of Elance writers
then turned these into coherent text, which went to another pool of subject matter experts for review, passing them on to a sequence of oDesk editors, proofreaders,
and fact checkers.
https://venturebeat.com/2016/03/20/robot-ceo-your-next-boss-could-run-on-code/
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Reskilling Example: Amazon’s goal is to “upskill” 100,000 of its U.S. employees for more in-demand jobs by 2025 — or, one in three of Amazon’s U.S. workers.
Amazon has its eye on job roles like data mapping specialist, data scientist, solutions architect and business analyst, as well as logistics coordinator, process
improvement manager and transportation specialists. Based on a review of its workforce and U.S. hiring, these are the fastest-growing highly skilled jobs over the
past five years.
https://www.fastcompany.com/90380050/amazon-upskilling-100000-employees-and-the-future-of-work
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Reskilling Example: AT&T initiated a massive retraining effort after discovering that nearly half of its 250,000 employees lacked the necessary skills needed to keep
the company competitive. Known inside the company as Future Ready, the initiative is a $1 billion web-based, multiyear effort that includes online courses;
collaborations with Coursera, Udacity and leading universities; and a career center that allows employees to identify and train for the kinds of jobs the company needs
today and down the road. An online portal called Career Intelligence lets workers see what jobs are available, the skills required for each, the potential salary range
and whether that particular area is projected to grow or shrink in the years ahead. In short, it gives them a roadmap to get from where they are today to where the
company needs them to be in the future.
https://www.cnbc.com/2018/03/13/atts-1-billion-gambit-retraining-nearly-half-its-workforce.html
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How People Work – Collaboration Example: At GitLab they encourage having meetings with webcam. They believe there's something to see in the other person even if
it is via video. To put this into perspective, every day, employees have a company call, and it's a thing they do with a limited set of people.
In this regard, there are about 20 in each group, and they just hangout. During the group calls there are all types of topics discussed that vary from movies to
magazines. Topics are not necessarily work-related.
https://www.forbes.com/sites/alejandrocremades/2019/07/21/he-built-a-1-billion-business-where-all-700-employees-work-remotely/#37bfc9102aa9
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How People Work – Collaboration Example: Spatial, which has developed a “holographic” collaboration platform that people use to speak and work together in virtual
rooms through the use of strikingly effective avatars — think of a supercharged, virtual reality version of Zoom or a Google Hangout. Spatial turns the space around
you into a shared augmented workplace. Remote users use AR/VR to collaborate, search, brainstorm and share content as if they were in the same room.
Spatial is operating, with technology that it has built to be interoperable with any headset or AR glasses — currently including Microsoft HoloLens, Oculus Quest,
Magic Leap One, Qualcomm XR2 or an Android/iPhone mobile device — or even a basic PC, if that’s all a person has to use, to let companies build out what might best
be described as videoconferencing on steroids: placing people into virtual rooms where they can speak to each other, or look at and manipulate holographic models
together, and more.
https://techcrunch.com/2020/01/30/spatial-raises-14m-more-for-a-holographic-3d-workspace-app-a-vr-ar-version-of-zoom-or-hangouts/
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Where People Work – Self-Driving Meeting Rooms and Offices Example: US drivers travel 3T miles a year and spend 75B hours driving. Cars of the future will become
our movie theaters of the future, and our offices of the future.
http://www.theverge.com/2015/3/20/8263561/mercedes-benz-f-015-self-driving-video
https://www.cnn.com/style/article/mercedes-benz-f015/index.html
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How People Work – Mobile and Remote Example: The HP Elite Dragonfly—an ultralight PC designed for mobile business professionals who need to move freely
between conference rooms, campuses, airports, rideshares, and wherever work strikes.
Weighing in at under one kilogram and running on Windows 10 Pro, the HP Elite Dragonfly offers a long battery life—up to 24.5 hours. In addition, Wi-Fi 6 connectivity
offers faster file transfer speeds and HP Sure Sense uses the power of artificial intelligence (AI) to defend against malware attacks on mobile workers.
https://www.microsoft.com/en-us/microsoft-365/blog/2019/09/18/introducing-hp-elite-dragonfly-ultralight-pc-mobile-workforce/
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Work Less – More Productive Example: In August 2019, Microsoft Japan trialed a 4-day work week for its entire workforce, calling the project the "Work-Life Choice
Challenge Summer 2019". Approximately 2300 employees were given 5 Fridays off, with no reduction in salary and no days taken out of their annual leave.
The experiment was hugely popular with the company's employees, with the shortened week increasing productivity by almost 40 percent — thanks in part to
shorter, more efficient meetings. Electricity use was down 23.1% and employees also printed 58.7% fewer pages.
Microsoft Japan reportedly plans to repeat its 4-day work week experiment next summer, and possibly expand it to other times as well. Hopefully other businesses
will find their results compelling enough to give it a try.
https://mashable.com/article/microsoft-japan-4-day-work-week-trial-3-day-weekend/
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Work Less – More Productive Example: In May 2017, Wildbit shifted to a four-day week, with Fridays off. At first, it went smoothly, since summers are slower. By the
fall, they realized they needed to make some adjustments; some members of the support team now work on Fridays but have Mondays off, and vice versa, so that
there’s consistent coverage throughout the week.
The payroll firm Kronos found that 40% of Americans would prefer a four-day workweek, as long as their pay remained the same. The number of ZipRecruiter job
postings that mention four-day weeks is up 67% so far in 2019, following jumps of 65% last year and 51% in 2017.
https://www.fastcompany.com/90277702/this-company-shifted-to-a-four-day-workweek-and-its-going-great
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Diversity Example: HP’s Board of Directors is purportedly the most diverse of any U.S. tech company, comprised of 45% women, 27% underrepresented minorities,
and 54% total minorities. We understand that diversity and inclusion starts at the top. The company’s executive leadership team is made up of 33% underrepresented
minorities, from 8 different countries, and 26% are women. Looking across HP, women make up 37% of the company’s global workforce—while still a far cry from
50%, this is still quite a feat in the traditionally male-dominated tech industry. In certain branches of operation, such as Finance, HR, Legal, and Marketing, women
represent over 60% of HP’s employees. In other areas, women’s representation is growing, accounting for 21% of HP’s engineering roles and 22% of its IT roles.
Minorities make up 25% of HP’s total U.S. workforce.
Obviously, if you want to improve these numbers, you have to start at the hiring process. 54% of all of HP’s U.S. hires in 2018 were from historically underrepresented
groups, which, in addition to women and minorities, includes veterans and people with disabilities. This represented an 8% increase in minority hiring over 2016.
https://www.forbes.com/sites/patrickmoorhead/2019/03/07/hp-demonstrating-commitment-to-diversity-and-inclusion/#3b41469af855
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The Megatrends will shape every aspect of our lives, including how we live - and for how long. They will have an impact on our physical and mental capabilities, our
privacy (or lack thereof), how we communicate, and what we eat, not to mention the homes we live in and the way we move from place to place.
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112,600 people are in need of organ transplants, but donor supply has limited transplants to less than 40,000 per year. 3D printed organs could close the gap
between organs needed and organ donations available.
One of the biggest investment opportunities over the next decade will be in companies working to delay human death, a market expected to be worth at least $600
billion by 2025, according to Bank of America analysts.
Technology won’t just extend the limits of human physicality - it will also have an impact on our mental capabilities. One of the most established clinical uses of neural
implants is in a treatment called deep brain stimulation (DBS). Electrodes are surgically placed deep into the brain where they electrically stimulate specific structures
in an effort to reduce the symptoms of various brain-based disorders. It is estimated that more than 150,000 people globally have received a DBS implant.
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Since 1900 the global average life expectancy has more than doubled and is now above 70 years. The inequality of life expectancy is still very large across and within
countries. In 2019 the country with the lowest life expectancy is the Central African Republic with 53 years, in Japan life expectancy is 30 years longer. By 2050, global
life expectancy is expected to continue to increase to an average of 77 years.
Living longer will have ripple effects on retirement savings. The World Economic Forum’s Investing in (and for) Our Future report looks at life expectancy and saving
provisions across 6 major world economies. The findings show that people should expect to live longer than the pot of money they have saved for retirement, by
between eight to almost 20 years on average, with the highest burden on women.
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Improvements to quality of life continue around the globe. The World Bank reports that the world-wide rate of extreme poverty fell more than half, from 18.2% to
8.6%, between 2008 and 2018.
The world today is also getting steadily richer—about half the world is now middle class or wealthier (3.8 billion people). In 2030, there will be 1.8 billion more people
who will have at least $11 per day in spending power (5.6 billion people), while the number of poor and vulnerable with less than $11 per day will shrink by 1.1 billion
(to 2.7 billion people).
Specifically, household incomes in cities of all sizes are expected to increase, with large cities – those with 5-10 million people – expected to grow the fastest with
3.2% CAGR vs just 2.0% in megacities. (Source: HP Analysis from 2018 Megatrends report)
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Our ability to buy more for less is in part thanks to better, cheaper technology. For example, the price of a 50-in 4K HD television declined by roughly 80% to $467
between 2012 and 2017. This is due in part to cheaper components and circuitry, new Smart TV advertising business models, and new streaming services.
When Americans are asked what has brought the biggest improvement to their lives in the past five decades, they name technology more than anything else. As they
think about the next 50 years, Americans expect technology, along with medical advances, will continue to have a major impact, according to Pew Research.
Technology is also improving the standard of living in developing countries by giving people access to critical services. Africa is currently the fastest-growing mobile
telecom market in the world. Since 2000, mobile phone connections have increased by 30% annually, making Africa the world’s 2nd largest mobile market after Asia.
Almost half of all Africans report going online on a daily basis. The spread of mobile phones has rapidly increased mobile money accounts, raising the number of
people who have access to either a financial institution or mobile-money service provider to 43%, according to World Bank data.
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The world’s food system is responsible for about 1/4 of greenhouse gases humans generate each year. That includes raising and harvesting the plants, animals and
animal products we eat, as well as processing, packaging and shipping food all over the world. Meat and dairy, particularly from cows, have an outsize impact, with
livestock accounting for around 14.5% of the world’s greenhouse gases each year – roughly equal to all the cars, trucks, airplanes and ships combined.
Eating habits are already shifting as more people become aware of these impacts. Nearly 1 in 4 Americans (23%) report eating less meat in the past year than they
had previously. As a result, the plant-based food market is growing rapidly. UBS forecasts the plant-based meat market will grow by 28% a year and reach $85 billion
by 2030. UBS analysts predict the way we produce food is going to change rapidly, in part due to changing tastes for alternative meat sources. Vertical farming, lab-
grown food, and AI are expected to usher in a new generation of food production. "Overall, we estimate the food innovation opportunity represents a $700 billion
market by 2030," researchers write.
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Online interactions are moving increasingly to smartphones. Almost three-quarters (72.6%) of internet users will access the web solely via their smartphones by
2025, equivalent to nearly 3.7 billion people. Around 2 billion people currently access the Internet via only their smartphone, roughly 51% of the world’s mobile users.
At the same time, AI is changing who we are communicating with. As of 2019, there are an estimated 3.25 billion digital voice assistants being used in devices around
the world. Forecasts suggest that by 2023 the number of digital voice assistants will reach around eight billion units – a number higher than the world’s population.
Finally, increased connectivity from 5G will open up new methods of communcation. First-generation wireless gave us voice, then 2G added text, and 3G enabled basic
mobile computing. With 4G, we got higher speeds and zillions of apps to help us work and play while we're using our phones. 5G opens the floodgates to download
speeds of one gigabit per second, or more than 10 times what we're used to. In a 5G world, augmented reality will become truly ubiquitous, so common that the
technology could be table stakes for businesses like retailers and gyms.
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As the number of cyberattacks increase, and take more time to resolve, the cost of cybercrime continues to rise. Organizations are seeing a steady rise in the number
of security breaches—from 130 in 2017 to 145 this year. That’s an 11% increase in the last year, and a 67% increase in the last 5 years.
Consumers’ online habits make them (and their children) more susceptible to data breaches. 92% of Americans have taken at least one big data security risk in the
past year. 82% of U.S. adults recycle passwords, with 61% using the same password at least half the time, and 22% using the same one all the time.
Barclays believes that ” sharenting" - where parents share personal information about their children on social media - is the "weakest link" in risking online fraud and
identity theft. The bank is forecasting that "sharenting" will account for two-thirds of identity fraud facing young people by the end of the next decade and will cost
£667m per year. Another decade of parents over-sharing personal information online will produce 7.4 million incidents per year of identity fraud by 2030.
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College debt is the #1 obstacle towards homeownership for Millennials and Gen Z. Half of Americans born between 1980 and 1995 still rent – just as many as their
younger Gen Z peers. With the highest levels of student debt in history, Millennials have been locked into the rental market far longer than previous generations.
What buyers look for in a home is also changing. By 2030, 43% of households worldwide will consist of just one or two people, increasing demand for smaller living
quarters. At the same time, an aging population will encourage the development of larger housing to accommodate multiple generations living under one roof,
especially in eastern countries such as China and India.
At the same time, technology and automation are making our homes increasingly smarter and more connected. By the end of 2019, consumer spending on smart
home systems will have reached around $103 billion. Spending is expected to rise through 2023, to a projected $157 billion.
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The average American spends 18 days driving per year, with an average of eight hours and 22 minutes per week. Automation can help make that time much more
productive and less stressful. Over 40 companies are developing road-going self-driving vehicles. They are a diverse group of players, ranging from automotive
industry stalwarts to leading technology brands and telecommunications companies.
J.D. Power polled more than 100 auto and tech experts as part of its first Mobility Confidence Index. The goal: measure what automotive and tech industry insiders
think about the future of self-driving vehicles. The findings: Auto and tech industry experts predict it will be at least 12 years before fully autonomous vehicles are
being sold to private buyers. Industry insiders think robotaxis will not be ready for widespread public use until 2025. By 2034, autonomous vehicles will make up just
10% of all vehicles being bought and sold, they said.
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Bypassing Physical Limits Example: For Christophe Debard, an amputee since age 13 as a result of cancer, 3D printing is making possible a years-long goal: producing
unique prosthetics that make a statement of personal identity. The problem with prosthetics, Debard thought, is that they often try, unsuccessfully, to look like a real
limb. The solution he came up with was Print My Leg, a project he founded to create personalized prosthetic covers that are functional and beautiful.
Using a 3D scanner, Debard takes a scan of an amputee’s intact leg to approximate a similar leg volume for the prosthetic limb. He then designs interchangeable
covers to envelop the prosthetic leg, giving it a fuller look. Next, the covers are customized with unique designs and decorations –– leaves for the plant enthusiast, for
example, or a geometric pattern. The hull, or cover, is then 3D printed using an HP Multi Jet Fusion printer.
https://www.digitaltrends.com/cool-tech/3d-printed-prostheses-revolution/
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Bypassing Physical Limits Example: Winter Mraz is a transhumanist who had her keys implanted in her left hand in the form of a microchip. She has her business card
implemented in the form of another microchip in her right hand, where she also stored her medical information. She also has a magnet in one of her fingers that
allows her to sense electro- magnetic fields and fully 3D printed kneecap.
https://www.bbc.com/news/uk-scotland-49893869
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Bypassing Mental Limits Example: Neuralink is building a supercomputer, linking human brain to a computer. The goal is to eventually begin implanting devices in
paralyzed humans, allowing them to control phones or computers. The big advance is flexible “threads,” which are less likely to damage the brain than the materials
currently used in brain-machine interfaces
https://www.neuralink.com/
https://www.theverge.com/2019/7/16/20697123/elon-musk-neuralink-brain-reading-thread-robot
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Extending Lifespan Example: Scientists at the MDI Biological Laboratory, in collaboration with scientists from the Buck Institute for Research on Aging in Novato, Calif.,
and Nanjing University in China, have identified synergistic cellular pathways for longevity that amplify lifespan fivefold in C. elegans, a nematode worm used as a
model in aging research.
The increase in lifespan would be the equivalent of a human living for 400 or 500 years, according to one of the scientists.
https://www.sciencedaily.com/releases/2020/01/200108160338.htm
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Quality of Life Example: A critical element for eradicating extreme poverty is understanding where poor people live. But there is no official cross-country dataset that
distinguishes between urban and rural poverty - the World Bank only provides such a breakdown for China, India, and Indonesia. Poverty is such a geographically-
specific phenomenon, with drivers and potential solutions of poverty alleviation dependent on the context that surrounds and connects communities and markets.
Responding to this challenge, World Data Lab, with support from the International Fund for Agricultural Development (IFAD), has developed new rural and urban
poverty data for all countries in the world. With this data now made publicly available on the World Poverty Clock, policymakers have a point of departure for
quantifying, forecasting, and analyzing rural/urban poverty dynamics.
https://www.brookings.edu/blog/future-development/2020/02/21/to-move-the-needle-on-ending-extreme-poverty-focus-on-rural-areas/
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Shifting What We Eat Example: As the world population continues to expand, so too does the amount of fruits and vegetables needed to feed the world, but we are not
creating new farmland to accommodate the increase in fresh food required. Vertical farming can be part of the solution to this problem. At AeroFarms, a leader in the
space, their plant scientists monitor millions of data points every harvest. The company says their LED lights are used “to create a specific light recipe for each plant,
giving the greens exactly the spectrum, intensity, and frequency, they need for photosynthesis in the most energy-efficient way possible.” This lighting allows them
to control size, shape, texture, color, flavor, and nutrition of their plants. The company has received $100 million in venture capital and has two patents.
Benefits of vertical farming include being limited food-borne illnesses, smaller footprints, faster-growing plants, and year-round harvests.
https://www.forbes.com/sites/stevebanker/2020/02/03/vertical-farming-transforms-the-farm-to-fork-supply-chain/#2b19ccf91cd5
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Cybersecurity Example: In November 2018, Marriott International announced that cyber thieves had stolen data on approximately 500 million customers. The breach
actually occurred on systems supporting Starwood hotel brands starting in 2014. The attackers remained in the system after Marriott acquired Starwood in 2016 and
were not discovered until September 2018.
The attackers were able to take some combination of contact info, passport number, Starwood Preferred Guest numbers, travel information, and other personal
information. The breach was eventually attributed to a Chinese intelligence group seeking to gather data on US citizens, according to a New York Times article. If true,
this would be the largest known breach of personal data conducted by a nation-state.
https://www.csoonline.com/article/3441220/marriott-data-breach-faq-how-did-it-happen-and-what-was-the-impact.html
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Communication Example: The world’s introduction to Google Duplex — technology both impressive and a bit on the creepy side — featured a human-sounding robot
having a conversation with a person who couldn’t even tell that they were talking to a robot. In October 2018, Google announced that Duplex functionality would
start rolling out to Pixel phones in November 2019 on a city-by-city basis, starting with New York City. Now, however, the company has noted that the tech is far more
available. In a blog post, the company announced that Duplex is available on all Pixel phones in as many as 43 U.S. states. Now, Duplex has grown beyond the confines
of Google’s Pixel range, and as of April 2019, you can now use Google Duplex on a wide range of Android and iOS devices in the U.S.
https://www.digitaltrends.com/home/what-is-google-duplex/
Video link

Home Example: Dvele, a San Diego-based company known for its luxury prefab designs, announced it would start exclusively building fully self-powered homes going
forward. Since its founding in 2017, Dvele has branded itself as a sustainable option in the prefab space, but its new initiative takes it a step further with homes that
run entirely on solar power and stored energy.
To do that, Dvele developed a new building envelope with a thermal barrier that ensures any heating or cooling produced in the house stays in the house. The
company claims its homes utilize 84 percent less energy per square foot to operate than a traditionally built home, which means running totally on solar power is
achievable. All new Dvele homes will come with solar panels plus a backup battery system to hold any extra energy generated.
https://www.curbed.com/2020/2/14/21135428/prefab-homes-self-powered-dvele
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Transportation Example: For several years, Waymo has offered its autonomous taxi service to a small group of people in Phoenix, AZ but the rides typically included a
safety driver behind the steering wheel. Now, Waymo is saying more of those rides will take place sans safety driver, a sign that the company is growing confident in
the accuracy of its technology.
These driverless cars aren’t totally alone in the wilderness. Waymo has a team of remote employees that watch the real-time feeds of each vehicle’s eight cameras
and can help, with the push of a button, if the software runs into a difficult spot and needs a human eye to figure out what’s going on.
https://www.theverge.com/2019/12/9/21000085/waymo-fully-driverless-car-self-driving-ride-hail-service-phoenix-arizona
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Megatrends impact on health and living are forcing us to try and find ways to bridge this supply/demand imbalance and provide better healthcare outcomes. From
treating to preventing, from one size fits all to personalized care, and from in hospital to care anywhere.
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An aging population and unhealthy habits are putting more demand on healthcare at a same when there is a shrinking medical workforce. Unless something changes,
the number of people with chronic diseases and the cost of treating them will continue to rise. An aging population compounds these challenges as the prevalence
and severity of chronic diseases increase with age. By 2030, 83M people in the U.S. will have 3 or more chronic health conditions, up from 31M in 2015.
This trend highlights America’s health care dilemma. We spend over $10k per person per year on health care, more than any other country, yet our life expectancy is
below the average of other high-income countries. Behavioral factors are among the reasons, but this isn’t just a US issue. Poor diet quality was linked to nearly 11
million deaths globally in 2017 - 22% of deaths among all adults - making unhealthy eating habits responsible for more deaths than tobacco and high blood pressure.
These lifestyle factors will be compounded with healthcare worker shortages, putting increased strains on the industry. The US will see a shortage of nearly
122,000 physicians by 2032 as demand for physicians continues to grow faster than supply.
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At the same time healthcare expenses are on the rise. The average annual premiums for single coverage in 2019 are $7,188, and $20,576 for family coverage for
workers covered by their employer’s plan in the US. That’s a 4% and 5% increase over 2018. At the same time, wages increased by 3.4% and inflation by 2%. The
average premium for family coverage has increased 22% over the last 5 years and 54% over the 10 years, significantly more than either workers’ wages or inflation.
Up to 5 billion people will be unable to access health care in 2030 if governments don't increase spending on primary health care, according to a report by the World
Health Organization. If governments choose to increase annual spending on primary health care by $200 billion a year, they can save up to 60 million lives in low and
middle-income countries. Globally, $7.5 trillion is already spent on health care but it barely covers half the world's population. Additionally, nearly 925 million people
have to shed 10% of their household income on healthcare alone. According to the Fidelity Retiree Health Care Cost Estimate, an average retired couple age 65 in
2019 may need approximately $285,000 saved (after tax) to cover health care expenses in retirement.
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Technology could help to relieve some of the stress by allowing healthcare to happen anywhere and be more personalized to the individual. Telemedicine or “virtual
care” has been picking up momentum because of the clear benefits it offers: time, convenience, and cost. Just as riders are connected to an Uber driver based on
proximity and availability, telehealth can connect patients to the most available doctor, thereby circumventing wait times that may result from a doctor shortage.
Wearable technology is another tool that can help make healthcare more personalized to the individual, while also incentivizing behavior that reduces hospital visits
and readmissions due to poorly managed personal health. Business Insider Intelligence research found that 75% of users agree that wearables help them engage
with their own health, and 15 hours per week could be saved by doctors whose patients use wearable technology.
Overall, the mHealth market is expected to reach $289.4 billion by 2025. Already, 59% of Gen Y patients said they would switch healthcare providers for one with
better online access.
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1 in 20 primary care patients have a health problem misdiagnosed every year, and 41% say in surveys that their clinicians have gotten it wrong at least once. For a
patient, a diagnostic error can mean the difference between life and death. While estimates vary, likely more than 100,000 Americans die or are permanently disabled
each year due to medical diagnoses that initially miss conditions or are wrong or delayed.
Researchers found that diagnostic errors were the most common, most catastrophic and most costly of medical mistakes. Diagnostic errors leading to death or
serious, permanent disability were associated with misdiagnosed cancers (37.8%), vascular events (22.8%) and infections (13.5%). Furthermore, reports estimate
that 30% of annual healthcare spending in the United States, approximately $750 billion, is wasted on unnecessary services and other inefficiencies.
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Cancer remains the leading cause of death in Australia, with almost 50,000 deaths from cancer estimated in 2019, that’s about 140 people each and every day.
Including 3051 deaths from pancreatic cancer, 1549 deaths from brain cancer, and 1046 deaths from ovarian cancer anticipated this year alone. Therapeutics and
diagnostics (theranostics) are making it possible to now simultaneously diagnose and treat some forms of cancer. Researchers in Australia are looking to theranostics
to develop new therapies against some of the most fatal and difficult-to-treat cancers affecting Australians, using agents that act like 'homing missiles' to find and
latch onto target markers on cancer cells.
In the US, researchers have developed a new, three-step system that uses nuclear medicine to target and eliminate colorectal cancer. In this study with a mouse
model, researchers achieved a 100-percent cure rate–without any treatment-related toxic effects.
Globally, the theranostics market is anticipated to reach over $20.52 billion by 2026 according to a new study published by Polaris Market Research.
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Corporations are also innovating healthcare to address their internal costs structure. Amazon’s pilot program for providing healthcare to Seattle-area employees
through telemedicine and at-home visits is only the latest in a concerted effort by companies to cut costs and improve care for employees.
This year, annual family premiums for employer health insurance rose 5% to an average $20,576. Workers pay roughly $6,015 toward the premium cost, leaving the
other 75% up to employers, according to a new survey by The Henry J. Kaiser Family Foundation.
Companies are beginning to band together to try to combat these rising prices. The Healthcare Transformation Alliance (HTA) is a co-op consisting of 51 large
companies with more than 7 million employees worldwide. The Alliance is leveraging its size and data insights to help its members save money. In the past four years,
the HTA says it has saved its members at least $400 million in overall health care spending.
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More Personal & Ubiquitous Healthcare Example: New research shows that artificial intelligence (AI) could someday replace invasive glucose testing. Hypoglycemia
affects the electrophysiology of the heart, and because it has slightly different effects on each individual’s heart, an AI system makes it possible to monitor glucose
levels in a highly personalized way.
In the recent pilot study, the team used AI to automatically detect nocturnal hypoglycemia from just a few heartbeat signals recorded by a wearable device. This could
result in a real-time alarm system that alerts individuals if their blood sugar levels change dramatically. Having such an early warning could drastically shorten the
amount of time that a person experiences hypoglycemia, which can be very dangerous, especially for people with diabetes. While there is still some way to go before
this technology becomes available, the initial results are promising, and it could represent a vast improvement in the way that people mange diabetes someday.
https://www.medicalnewstoday.com/articles/could-ai-replace-the-finger-prick-glucose-test
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More Personal & Ubiquitous Healthcare Example: UnitedHealthcare recently launched an on-demand virtual visit app for plan members gives 27 million Americans
access to health information 24/7 to help encourage a more simplified and convenient health care experience
https://www.unitedhealthgroup.com/newsroom/2019/2019-10-10-uhc-new-app-virtual-visits.html
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More Personal & Ubiquitous Healthcare Example: Driven by healthcare consumerism, hyper-local community healthcare is on the rise (Walmart Health Care Center or
CVS’s HealthHUB) as it provides an upfront low pricing structure for local customers that also include dental, audiology, x-ray examinations, and mental health
counseling. This is in direct competition to regional hospitals opening urgent care centers in malls and cities.
Walmart Health was designed to offer affordable, transparent pricing so the underinsured or uninsured — even insured — can choose the option that fits their needs,
including cash payments and financial options. Walmart Health clinics offer prices at about 30 to 50 percent less than what people are paying now
https://www.forbes.com/sites/brucejapsen/2019/09/13/walmarts-first-healthcare-services-super-center-opens/#16138ec179d2
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More Personal & Ubiquitous Healthcare Example: The process of printing the heart involved a biopsy of the fatty tissue that surrounds abdominal organs. Researchers
separated the cells in the tissue from the rest of the contents, namely the extracellular matrix linking the cells.
The cells were reprogrammed to become stem cells with the ability to differentiate into heart cells; the matrix was processed into a personalized hydrogel that served
as the printing "ink.“ The cells and hydrogel were first used to create heart patches with blood vessels and, from there, an entire heart.
If researchers are successful, they plan to transplant the 3D-printed heart in animal models and, after that, humans. "Maybe, in ten years, there will be organ printers
in the finest hospitals around the world, and these procedures will be conducted routinely," Dvir said.
https://www.cnn.com/2019/04/15/health/3d-printed-heart-study/index.html
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Improved Diagnostics Example: An international team, including researchers from Google Health and Imperial College London, designed and trained a computer
model on X-ray images from nearly 29,000 women. The algorithm outperformed six radiologists in reading mammograms. AI was still as good as two doctors working
together.
https://www.nature.com/articles/s41586-019-1799-6
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Improved Diagnostics Example: Researchers at Illinois are developing a lab-on-a-smartphone system that will enable healthcare professionals to detect disease at
the point of care. Funded by the National Institutes of Health, the 4-year grant will enable the team to develop a handheld instrument that can detect and report the
presence of pathogens in less than 30 minutes using a single drop of blood - all with a smartphone clip-on instrument that costs less than $10.
https://www.igb.illinois.edu/article/smartphone-diagnostics-kit-infectious-diseases
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Improved Diagnostics Example: Microfluidics is currently used in labs all over the world to cut the cost of analyzing drugs. But this same technology could be used at
scale to effectively print custom medications that could be adjusted to each patient uniquely). This solution could apply to combination drugs, chemotherapy, insulin,
even pain killers and anti-inflammatories. Initially most useful in remote areas where there is no doctor, or in doctor’s offices, this could evolve to become common
for every home with a hard encrypted lock to the hospital or doctor and tied to a PC specifically designed to monitor the patient using sensors to determine the time
and exact dose needed before printing each pill or liquid.
This device would fundamentally change both the cost of medicine and much of the aggravation because it could remove the need to go to a hospital or doctors’ office
for some types of recurring treatment, while the scanner could be used broadly for remote diagnosis.
https://www.itbusinessedge.com/blogs/unfiltered-opinion/how-hp-could-revolutionize-personal-technology-and-medicine.html
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Improved Diagnostics Example: At least 2 million people in the U.S. become infected with so-called “super bugs” and at least 23,000 people die as a direct result of
these infections each year, according to the Centers for Disease Control (CDC). Now, HP’s Biohacker technology is working with the CDC on a pilot program to “print”
and test antibiotics in an effort to catch these antimicrobial resistant strains from spreading faster.
The HP D300e Digital Dispenser BioPrinter technology works by using the same set up as a regular ink printer, but instead dispenses any combination of drugs in
volumes from picoliters to microliters to be used for research purposes.
https://techcrunch.com/2018/08/27/hp-is-printing-drugs-for-the-cdc-to-speed-up-antibiotic-testing/
https://garage.ext.hp.com/us/en/innovation/inkjet-technology-helps-scientists-fight-drug-resistant-superbug.html
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Corporate Healthcare Investment Example: Amazon launches Amazon Care, a virtual and in-person healthcare offering for employees
Amazon's pilot program for providing healthcare to Seattle-area employees through telemedicine and at-home visits is only the latest in a concerted effort by
companies to cut costs and improve care for employees
https://techcrunch.com/2019/09/24/amazon-care-healthcare-service/
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Change is the only constant. You must embrace change or risk having your job, business or industry disrupted.
179

Using megatrends you can be ready for whatever the future holds. Be a megatrends-ready business following these steps:
• Be clear in your mission – a mission defines your company
• Keep tabs on megatrends and technologies
• Keep tabs on disruptive startups in your industry
• Have an open mind, adopt open innovation, look at corporate venturing and partnering
• Create a ‘safe space’ for new business incubations in your corporation
• Disrupt yourself before someone else does
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Decades ago, one of our founders, Dave Packard stated: “The betterment of our society is not a job to be left to a few. It is a responsibility to be shared by all.”
Our leadership has the same commitment to ensuring that we, as a company, carry on the legacy of our founders. We are committed to making a sustainable impact
because it enables all of us to capitalize on what we do best, anticipate the next wave of challenges, and create opportunities through the power of technology.

HP Megatrends 2020 Refresh

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