1. 1

2. 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.
2

3. 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.
3

4. 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.
4

5. 5
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.

6. 6
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.

7. 7
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.

8. 8
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.

9. 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.
9

10. 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.
10

11. 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.
11

12. 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.
12

13. 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.
13

14. 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.
14

15. 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.
15

16. 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.
16

17. 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.
17

18. 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.
18

19. 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.
19

20. 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.
20

21. 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.
21

22. Megatrends and technology are shaping our world in many ways. Here are a few of the impact points we’ll touch on today.
22

23. 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.
23

24. 24
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

25. 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
25

26. 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.
26

27. 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/
27

28. 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
28

29. 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
29

30. 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
30

31. 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/
31

32. 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
32

33. 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
33

34. 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/
34

35. 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/
35

36. 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
36

37. 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
37

38. 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/
38

39. 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.
39

40. 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)
40

41. 41
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

42. 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.
42

43. 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.
43

44. 44
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/

45. 45
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

46. 46
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/

47. 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
47

48. 48
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

49. 49
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

50. 50
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

51. 51
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

52. 52
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

53. 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
53

54. 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
54

55. Growing cities of all sizes and megaregions will create new opportunities for products and services
55

56. 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.
56

57. 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
57

58. 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.
58

59. 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.
59

60. 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.
60

61. 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$
61

62. 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.
62

63. 63
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/

64. 64
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

65. 65
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/

66. 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
66

67. 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
67

68. 68
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

69. 69
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

70. 70
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

71. 71
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/

72. 72
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/

73. 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/
73

74. 74
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

75. 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.
75

76. 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.
76

77. 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.
77

78. 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.
78

79. 79
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

80. 80
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/

81. 81
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/

82. 82
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/

83. 83
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

84. 84
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/

85. 85
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/

86. 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
86

87. 87
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#

88. 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/
88

89. 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.
89

90. 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.
90

91. 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.
91

92. 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.
92

93. 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.
93

94. 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.
94

95. 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.
95

96. 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.
96

97. 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.
97

98. 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.
98

99. 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/
99

100. 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/
100

101. 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
101

102. 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/
102

103. 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/
103

104. 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
104

105. 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
105

106. 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
106

107. 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/
107

108. 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/
108

109. 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
109

110. 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
110

111. Platforms & Ecosystems Example: Crypto goes mainstream with Facebook’s Libra
https://techcrunch.com/2019/06/18/facebook-libra/
111

112. 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
112

113. 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
113

114. 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/
114

115. 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
115

116. 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.
116

117. 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.
117

118. 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.

119. 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.
119

120. 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
120

121. 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.
121

122. 122
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.

123. 123
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

124. 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.
124