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Throwing Light On the Future Mega Trends That Will Shape the Future of the World By Beatrice Shepherd Agenda for Mega Trends Presentation Introduction and Definition of Mega Trends Presentation of Top Mega Trends of the Future ID: 573447

mega billion cities 2020 billion mega 2020 cities amp smart 2010 future trends energy business plant gdp technology mobility

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Slide1

1

November 2011

Throwing Light On the Future:

Mega Trends That Will Shape the Future of the World

By

Beatrice ShepherdSlide2

Agenda for Mega Trends Presentation

Introduction and Definition of Mega Trends

Presentation of Top Mega Trends of the Future

Urbanisation : Mega Cities, Mega Regions, Mega Corridors and Smart Cities“Smart” is the New Green

Social Trends: Geo Socialization, Age Group 15-34 Years, The Middle BulgeTechnology: Top 50 Technologies, Space Jam, World War 3, Personal Robots, Virtual World and

Haptic Technology, Future Smart MobilityInnovating to Zero !E-MobilityInfrastructure Development: Trans Siberian Rail, High Speed Rail in United States, Infrastructure Development in AfricaNew Business Models: Value for Many

Economy: Beyond BRIC: The Next Game Changers, Economic Engines for Growth in Africa

From Fat to Fit: Health, Wellness and Wellbeing

Key Strategic Conclusions

How To Apply Mega Trends Within an Organisation to Develop Growth Strategies

Question & Answer SessionSlide3

Definition of a Mega Trend

What is a Mega Trend?

Impact of Mega Trends on Key Organisational Functions

Mega Trends are global, sustained and macro economic forces of development that impact business, economy, society, cultures and personal lives thereby defining our future world and its increasing pace of change Slide4

Top Mega Trends of the FutureSlide5

UrbanisationSlide6

Three Main Trends in Urbanisation: Development of Mega Cities, Mega Regions and Mega Corridors

MEGA CITY

City With A Minimum Population Of 8 Million and GDP of $250 Million in 2025 (13 Mega Cities in 2011 and 25 Mega Cities in 2025)

EXAMPLE: Greater London

MEGA REGIONS

Cities Combining With Suburbs To Form Regions. (Population over 15 Million)

EXAMPLE: Johannesburg and Pretoria (forming

“Jo-

Toria

”)

MEGA CORRIDORS

The Corridors Connecting Two Major Cities or Mega Regions

EXAMPLE: Hong Kong-Shenzhen-Guangzhou in China (Population 120 Million)Slide7

Mega Corridors in 2050

Global Snapshot of Future Mega Corridors Connecting Two Or More Mega Cities or Mega Regions

Evolution of Megacities: Mega Corridors (World), 2050

Northern and Southern California Corridor

Hong Kong-Shenzhen-Guangzhou Corridor:

Home to 120 Million People

Tokyo- Osaka Corridor:

Home to 90 Million People

São Paulo to Rio de Janeiro

Corridor:

Home to 50+ Million People

Golden Quadrilateral in India connecting Mumbai-Delhi-Kolkata-Chennai: 5,846 km

Ibadan-Lagos-Accra Urban Corridor: 600 Kilometers

Trans European Transport Network (TEN-T) serving entire Europe

Cascadia

Arizona Sun Corridor

Front Range Corridor

The Texas Triangle

Great Lakes Corridor

Florida Corridor

Piedmont Atlantic

North East Corridor

(BOSWASH)

Source: Frost & Sullivan

Dubai – Abu Dabi CorridorSlide8

Over 40 Global Cities to be SMART Cities in 2020 - More than 50% of Smart cities of 2025 will be from Europe and North America.

China and India to see over 50 New “Sustainable” Cities

Cities built from scratch

Existing eco cities

Existing eco megacities

Treasure Island

Boulder

Arcosanti

Coyote Springs

Destiny

Babcock Ranch

Vancouver

Toronto

San Francisco

Portland

Seattle

Curitiba

Montreal

Bogota

St

Davids

Clonburris

Göteborg

Hammarby Sjöstad

London

Barcelona

Reykjavik

Oslo

Freiburg

Stockholm

Paris

Copenhagen

Kochi

GIFT

Cape Town

Dongtan

Tianjin

Changsha

Khajuraho

Meixi Lake

Waitakere, N.Z.

Singapore City

Songdo

Moreland, Australia

Amsterdam

Masdar

Legend

Source: Frost & Sullivan

ParedesSlide9

Why is this Important? Because Cities - Not Countries - Will Drive Wealth Creation in the Future

What are the Micro Implications ?

High Economic Power

With 85% of Scientific and Technology Innovation from These Cities

Hub and Spoke Business Model

will

evolve with Logistics, Healthcare, Retail and many other industries

New Mobility Solutions

like

Bike and car sharing,

Transit oriented development and zoning

The extension of transit lines to the suburbs will move businesses out of the central downtown to the suburbs

Social Polarization: High Gap Between Rich and Poor

A highly diverse and dynamic socio-economic-cultural mix

Techno savvy and connected citizens with high speed broadband, 4G technologies and free Wi-Fi to enable connectivity 24X7.

Fast Forward City Facts: Did You Know?.....

Over

60% of Worlds Population to Live in Cities by 2020

Cities like Seoul account for 50% of the country’s GDP; Budapest (Hungary) and Brussels (Belgium) each for roughly 45%.Slide10

With 10.8 M Population and GDP of $425 B in 2025,

Seoul Will Be a Key Business Hub in Asia

Why Seoul?

Seoul to account for 50% of South Korea’s GDP in 2025

Seoul to receive around $4 billion in FDI annually by 2025

Seoul to have highest Broadband Penetration Rate in the World in 2025 at 60% (currently highest at 34.4% - 2010 with second lowest price of $0.08)Mobile Ownership to increase to 150% in 2025 (currently 101% -2010)Seoul has a robust retail sector with 25,000 shops open 24X7 (2010) In future, Seoul is expected to be connected by land with Mainland China, Siberia and Europe.Industrial clusters have already formed in Gangnam , the downtown area , Yeoungdeungpo

.

5 Pronged Vision of Seoul’s Metropolitan Government for 2025

Source:Seoul.gov.krSlide11

Seoul: The Hub Vision to House Facilities and Infrastructure for 6 Growth Engines in 2025:

Digital Media, ICT, Biotech, Fashion, Finance and Tourism

Digital Media City(DMC) Scheduled to Be Completed in 2015 is slated to be the World’s First Media Complex . Project cost is around $3 billion

$28 billion

Yongsan

International Business District development project will open new paradigms of urban development and intl. business in 2016Slide12

“Smart” is the New “Green”Slide13

“Smart” is the New Green

Smart Cities

Smart Technology

Smart Infrastructure

Smart Energy

Smart Mobility

Smart Buildings

Smart Grids

Smart Clouds

Smart Materials

Smart Bandages

Smart Phones

Smart MetersSlide14

Factory of the Future: SMART and GREEN: “Flexibility in Capacity” And “Robotic Technology” Combined with Artificial Intelligence

Current Plant

Material Handling conveyer

Mixing Plant

Processing Plant

Heating Plant

Batching & Blending

Plant

Cleaning Plant

Packaging Shop

Waste Water

Processing Plant

Separation Plant

Quality Plant

Chilling Plant

Drying Chamber

Material Handling conveyer

Mixing & Processing Plant

Heating Plant

Batching & Blending

Plant

Cleaning Plant

Packaging Shop

Future Plant

Waste Water

Processing Plant

Separation Plant

Quality Plant

Chilling Plant

Drying Chamber

Work Simulation

10% decrease in production time; 30%

savings in project cost; 20% reduction in

manual labour; Reduced CO2 emissions

Remote Support and Diagnosis of Production Equipment, Virtual Reality based maintenance and Planning

LV and MV drives coupled with energy efficient products

Premium efficiency class motors, pumps and compressors; all requiring low voltage drives

Factory of the future will Lower Production Costs and shorten Innovation and Production Cycles

SMART Factory 2020

FUTURE TECHNOLOGIES

Current Sensing

Cloud Computing

Digital Factory

Mobile Applications

OELD Displays

Reduced Complexity

Software as a Service

Software configurable hardware

Sustainability

VirtualizationSlide15

“Smart” Market Opportunity: Convergence of Technology Will Lead to Convergence of Competition

IT Players

Automation/Building Control Players

Energy/Infrastructure

Players

Source: Frost & Sullivan.

IP Networks

Digital Technology

Analysis Software

Wireless Communication

Technology Integration

Network Security

Etc.

T&D Technology

Power Electronics

Renewable Energy

Integrated Distribution Management

Substation Automation

AMI-Enabled Metering

Etc.

Building Automation

Demand-Side Management

Connectivity of devices

Monitoring and Sensing

Smart Grid Integration

Etc.

Point of ConvergenceSlide16

Social TrendsSlide17

Six Degrees Apart: Geo Socialisation in 2020

Used For:

Meet Ups, Restaurant and Nightclub Reviews, Concert Events

Used For:

Networking in Business Conferences: Updates on Potential Contacts

Used For:

Local Real Estate News, Geo Socialising with Friends

Used For:

Digital Marketing: Receiving Updates on Promotion and OffersSlide18

Global Population in 2020: Out of 2.56 Billion Population Between 15-34 years (Gen Y today) - Around 61% from Asia Alone

Source: US Census Bureau, 2010 and Department of Economic and Social Affairs of the United Nations

Note: Gen Y: Population between 15 – 34 Years

2010

2020

World Population: Breakdown by Region (Global), 2020

6.83 Billion

7.55 Billion

Around 37% of Gen Y Population Will Live in India and China Alone

Population in BillionSlide19

Age Group 15-34 Years: Goods and Services Catered to Values, Beliefs, Interest and Lifestyle

Personalization and Individualization

Techno Savvy and Connected 24 X 7

Civic and Environmentally Friendly

Demanding and Impatient – “Fast and the Furious”

Personalized Search and News

Social Networking Profiles

Personalized Products

Gaming Gizmos

Smart Phones

Facebook-on-the Move

Microblogs

Eco- Transport

Bag-For-Life (Paper Bags Instead of Plastic)

Paperless Banking

Instant Text Messaging

Instant Chat

Speed Oriented Gaming (Car Racing)Slide20

The Middle Bulge: Middle Class Will Account for 52% of Global Population in 2020.

Over 65% of the Middle Class Population are from Africa, China and India in 2020

China

CEE

LA

Rest of Asia

ME

India

Africa

Percent of Global Middle Class Across Developing Regions in 2020

Note: The Middle Class in the graph are defined as people with Incomes between

$6,000 and $

30,000 found in developing regions.

However, this definition differs marginally from country.

Global Income Pyramid, 2010 and 2020

2010

2020

$6,000

$30,000Slide21

TechnologySlide22

TechVision 2020 – Top 50 Technology WebSlide23

SPACE JAM: New Satellites Launched By 2020: Over 900 Satellites to Be Launched Globally This Decade Creating Multiple Innovative Applications

By 2020, there will be approximately

927 Satellites (Communication – 405; Earth Observation – 151; Navigation – 85; Reconnaissance – 212 and R&D 75)Slide24

World War 3: With Advancement in Technology, Information Warfare to be the Next Domain of Conflict

Space

Photographic Satellites, GPS, Communications, Ballistic Missile Defence, Signals, Astronauts

Air

ISR Platforms, Combat Aircraft, Transport, Helicopters, Maritime Surveillance, Communications, Airmen

NavalCombat Platforms, Communications, ISR, Transport, Sailors

Land

Combat Vehicles, Transport, Communications, Soldiers

Information Environment

Physical, Cognitive, Informational DimensionsSlide25

Future Personal Robots: Pervasive Robotic Technology in 2020 That Will “Act as a Butler” in Everyday Life

Robots To Help With Strategic Planning and Business

Robots for Companionship

Robots as Pets

Robots for Household Chores

Robots to Wait on Hand and Foot

Robots as Waiters

Robots as NanniesSlide26

Virtual World 2020: 3D Simulated Environment for Interaction and Experience Impacting Personal Mobility

Virtual Shopping Allowing Customers to Try Products without leaving their homes

Virtual Classes and Laboratories and Daily 3D Field Trips

to Different Countries and Planets

Virtual Surgeries

and Medical Training

Virtual Business Conferences

Social Networking: 3D Avatars

Enabling People to Lead Multiple LivesSlide27

Intuitive

Haptic

Gaming Experiences

Holodecks

”: F-16 Flight Simulator

Wearable Computing: Gestural Interfaces Are Being Developed that Allows Humans to Interact and Augment Physical World with Digital Data

Fluid Interfaces: Haptic Technology Enabling Seamless, Gestural, Intuitive and Ambient Interaction Between Physical and Virtual Realms

Source: MIT Media Group, 2010

Haptic

Entertainment Experiences

Surface Computers: Browsing of Internet on Any Surface Through Gestures

Applications of Wearable Computing: Using Hand as a Keypad or Dial PadSlide28

The Future of SMART Mobility is for ‘Green’, ‘Integrated’ and ‘Interoperable’ Transport Infrastructure

Car Sharing

: technology to locate, reserve and unlock nearest car on mobile, provide info via apps/GPS

Source: ETSI

Congestion Charging:

technology migration from ANPR – Tag& Beacon – GPS, and advanced payment and info on mobile

Connectivity

: opportunity for built, bought & beamed in, providing a hybrid open architecture service and network

comms

Commercial Vehicle

Telematics

: Vehicle/driver management, and on board tracking, computer, navigation

V2V

: ANPR, DSRC, vehicle positioning

EVs IT

: grid/energy management, billing systems,

comms

& cloud

RTI

: Ticketing, scheduling, CCTV and incident management, UTMC integration

Smart Ticketing/AFC

: Innovative payment, integration with RTI

LMS

: Signalling, infotainment, diagnostics, energy management &GPS

Source: ETSISlide29

Innovating to ZeroSlide30

“Innovating To ZERO”: Snapshot of a “Zero Concept” World in 2020

Emerging Technologies Innovating to Zero Breaches of Security, Zero Accidents, Zero Fatalities and Zero Emissions in 2020

Zero Emissions from Cars

Zero Accidents

Zero Breaches of Security

Zero Crime Rates

Zero Waste/

Emissions

Complete Recyclability from Households (Cradle to Cradle Concept)

Zero Defects

Carbon Neutral Factories and Retail Stores

Carbon Neutral Cities

Zero

Obese PatientsSlide31

Case Study: Copenhagen to be World’s First Carbon Neutral City by 2025

THE GOAL

20% Reduction in CO

2 (2005-2015) (reduction of 500,000 tonnes)

THE VISION (2025)

No Net CO2 emissions by 2025First Carbon Neutral City Integrating Climate into Energy Supply

Greener Transport

Energy Efficient Buildings

Copenhageners

and Climate

Urban Development

375,000 tonnes

50,000 tonnes

50,000 tonnes

20,000 tonnes

5,000 tonnes

7 Energy Initiatives

These include:

Use of Biomass In Power Stations

Building Wind Turbines

Upgrading District Heating Network

Increasing Dependence on Geo Thermal Energy

15 Transport Initiatives

These include:

Developing bicycling and walking options

Increasing Public transport

Incentives for Electric and Hydrogen Powered Cars

Car Sharing, Car Pooling

TARGET

ACTION AREAS

10 Building Initiatives

These include:

Upgrade of Buildings to Improve Ventilation, Temperature Controls, Lighting and Noise Levels

Improve Energy Conservation in Buildings

9 Copenhageners Initiatives

These include:

Reduction of Electricity Consumption

Minimise Waste Reduction

Waste Recycling

4 Urban Development Initiatives

These include:

Integrating Green Concepts into Urban

Energy Smart Choices in Transport, BuildingsSlide32

E-MobilitySlide33

E-Mobility : Over 40 Million Electric 2 Wheelers and 4 Wheelers will be Sold Annually Around the Globe in 2020

XM 3000 Electric Moped

Sanyo Enacle

The GEM Peapod

The Smith Newton

Total 30 million –

2 Wheelers

(2020)

Total 10 Million –

4 Wheelers

(2020) Slide34

Electric Vehicle Market Provides Opportunity to Enter New Fields

Could work to improve charging time and safety

Infrastructure supplier

Key Responsibility:

Development of Charging Infrastructure

Key Responsibility:

Promotion of EV use

Utilities

Integrators

OEMs

System/Battery Manufacturers

Government

Charging Station Manufacturers

Integrators to create partnerships with Utilities, OEMs and Government

Supplies infrastructure to distribute their energy

Cooperation to simultaneously promote EV use and electricity as a fuel

Development of performing batteriesSlide35

Source: Frost & Sullivan

Charge Payment Program / Subscription based services

Manufacturing & Sales

Increase efficiency of Underutilized Off-Peak Power – providing more stability to the grid

Extended E-mobility solution e.g. vehicle sharing

Selling E-Mobility solutions based on energy Subscription Packages

Possible Revenue Streams worth evaluating

Charging Stations

Batteries

E-Mobility Vehicles

Electricity

Telematics

& other value added services

Services

Example of Products/Services Portfolio That Can be Offered By An Integrator in the E-Mobility Market

Installation & Maintenance

Revenues from Diagnostic, Music Downloads and Garage Referrals via charging stations

Premium revenues via Renewable Energy Vs Non Renewable Energy

Premium revenues via Peak Power Vs Off Peak Charging

Level 1 Vs Level 2 Vs Level 3 Charging

Smart Metering

Battery Leasing Model

Refurbishing

Recycling

Battery 2

nd

life applications – sales and maintenance

Battery Swapping

Battery based business models extended to 2-Wheelers and other E-mobility solutions

Battery Integration – from cell to stack combined with complete thermal engineering and safety reqt.

Offering After-Sales services – linking with OEMs and setting up suitable repair or diagnostic clinics

Market green solutions such as Solar panels, wind turbines and CNHG to E-Mobility client base

Substantiate and move forward with investment in renewable energy such as wind farms and gain carbon credits

Recycling and Refurbishing of E-Mobility vehicles and related mechanical and electronic components

Premium revenues via Peak Power Vs Off Peak Charging

Premium revenues via Renewable Energy Vs Non Renewable Energy

Subscription based Energy service Scheme

Data Aggregator ( working with other partners)

Battery management services

Advanced booking of charging stations

Vehicle to Vehicle and Vehicle to Grid Communication

Added value service (POIs, Diagnostics, etc) Slide36

Infrastructure DevelopmentSlide37

Moscow

Nizhny Novgorod

St. Petersburg

Yekaterinburg

Novosibirsk

Krasnoyarsk

Irkutsk

Khabarovsk

Vladivostok

Integration of the Trans Siberian Rail into Eurasian Rail Network

Will Result in Industrial and Business Hubs Along the Railroad

Yekaterinburg

Severka

Development of Trans-Siberian railroad will have significant socio economic and business impact to Russia

● Astrakhan

Kiev

Kaliningrad

Minsk

● Helsinki

Berezoviy

Verhnya

Pyshma

Koltsovo

Shyrokaya

Rechka

ITC North South

Trans-Siberian Railway

Pan European N 2

Pan European N 9

Baikal-Amur Mainline

(Warsaw, Berlin)

(Bucharest, Aleksandrupolis)

SredneuralskSlide38

High Speed Rail Market Overview Globally : Spain, China and USA are Top 3 Investors in New Rail Infrastructure with Combined $263 B in the Next 10 Years

High-Speed Rail Market: Country-wise

cumulative

investments on rail infrastructure

(Global), 2011 to 2020$70 Billion$824 Billion2011

Only USA

ME

SA

NA

APAC

EU

2011 to 2020

EU

APAC

Turkey

Switzerland

Sweden

Spain

Russia

Portugal

Poland

Italy

Germany

France

China

India

Japan

South Korea

Iran

Saudi Arabia

Morocco

GCC

Brazil

Argentina

ME

SA

NA

APAC

EU

Europe, $338 Billion

Asia Pacific, $166 Billion

Middle East & Africa, $107 Billion

South America, $87 Billion

North America, $137 Billion

*Note: Figures are cumulative

Note: All figures are rounded, the base year is 2010 Source: Frost & SullivanSlide39

High Speed Rail to Come to US

Overview of 13 High-Speed Rail Corridors Across 31 States

Evolution of Megacities: High Speed Rain in U.S. (2009-2025)

California to connect Bay Area with LA through an ambitious $42bn program with construction starting in 2 years

Impact to Personal Mobility and Auto Industry

Transit oriented developmentAir travel will diminish rapidly between the high speed rail link citiesTrain operators could start offering integrated transport e.g. Car sharingWill take congestion off highways, people will drive less long distanceAttractive cities for car sharing Small city car sales will grow in these citiesSlide40

Infrastructure Spending in Africa to Total $1.1 Trillion from 2005 to 2030: Power To Account for 45% of the Investment

The expenditure needed for infrastructure development in Sub-Saharan Africa amounts to 15% of the region’s GDP.

Power

Required investment

$0.5 Trillion

% of Total spend

45%

Water

Required Investment

$0.2 Trillion

% of Total spend

18%

Total Infrastructure Spend

Total investment required

$ 1.1 Trillion

More than 60% of this expenditure is funded by African sources including private companies and taxpayers

Total Infrastructure Spending (Africa), 2005 -2030

Source: Frost & Sullivan

Road / Retail

Required investment

$0.3 Trillion

% of Total spend

27%

Air /Seaports

Required Investment

$0.1 Trillion

% of Total spend

9%Slide41

Africa

Will Not Be the

Blackout Continent: From 70% of

Sub-Saharan Population Without Electricity In 2010 To 70% With Electricity in 2020

Sources:Earth at Night, NASA.gov

With equal population levels, Africa & India show a very different face at nightBusiness opportunity: Bring light into communities -350 million people in Africa aloneSlide42

New Business ModelsSlide43

New Business Models of the Future

Sharing Model:

Eg

. Car Sharing

Collaborative Buying and Crowd Sourcing:

Eg

.

Groupon

Value for Many:

Eg

.

Aravind

Eye Care Hospital

Personalization and Individualization

Eg

. My M&M’sSlide44

New Business Models of the Future: “Value for Many”

“Value for Many” Will Replace “Value for Money”

Tata

Nano

: The People’s Car At Low Price (Rs 1

Lakh or €1,600)

Aravind

Eye Hospital: Conducts 286,000 Assembly-Line type Cataract Operations per year

EChoupal

Initiative by ITC: Leveraging Internet to Empower 4 Million Farmers

Grameen

Bank: Microfinance Bank for the 8.34 Million Borrowers in Bangladesh (97% Women)

Ford Business Model Slide45

Value Proposition:

Don’t know what’s wrong?

– We can address any problem you bring

Value Proposition:Need care for a specific condition?

– Specialists, experience, world-class facilities

General Hospital

Focused Specialized Hospital

Innovation in Hospital Business Models

Trends towards specialized care delivery around specific therapeutic areas (targeted service lines, etc.)

Emergence of "medical cities", in the Middle East, India, APAC

Specialized facilities tied to development of medical tourism in some countriesSlide46

EconomySlide47

Beyond BRIC: The Next Game Changers in 2020

India: $4,216 Billion

China: $15,264 Billion

Russia: $4,243 Billion

Brazil: $4,004 Billion

Egypt: $448 Billion

Mexico: $1,887 Billion

Indonesia: $1,751 Billion

The Philippines: $386 Billion

BRIC Countries

Next Game Changers includes: Mexico, Argentina, Poland, Egypt, South Africa, Turkey, Indonesia, Philippines, Vietnam

Turkey: $1,577 Billion

Vietnam: $254 Billion

Note: The figure denotes GDP at market prices

Poland: $836 Billion

South Africa: $620 Billion

Argentina: $964 BillionSlide48

Africa’s Largest Economies and Engines of Growth in 2020

South Africa

GDP: $620 billion ($357.2 billion in 2010)

Egypt

GDP: $448.9 billion ($218.84billion in 2010)

Nigeria

GDP: $510.5 billion ($206.6 billion in 2010)

Algeria

GDP: $310 billion ($158.9 billion in 2010)

Morocco

GDP $175 billion ($91.7 billion in 2010)

Angola

GDP: $201 billion (86 billion in 2010)

Sudan

GDP: $162.3 in billion ($65.9 billion in 2010)

Kenya

GDP: $81.0 billion (32.4 billion in 2010)

Ghana

GDP: $47.5 billion ($18.0 billion in 2010)

Source

: Frost & Sullivan and International Monetary Fund Database, 2010

Note: The figure denotes GDP at market prices in 2020

The figure in brackets denotes GDP at market prices in 2010Slide49

From Fat to Fit: Health, Wellness and WellbeingSlide50

The 3 Cornerstones - The Body, Mind and Soul - Contribute To Humans Definition of Health, Wellness and Well Being

Mind

Body

Soul

Mood

Stress levels

Mental health

Sense of optimism

Attitude

Security

Safety

Personal values

Personal fulfilment

Self image / self actualisation

Sight / vision

Touch & feel

Smell / breathing

Sound

Temperature

WellnessSlide51

Due to rising costs of healthcare, future spending will move away from treatment

Health and Wellness

Shift in Healthcare Trends: From Treatment to Prevention

Healthcare Spending by Type of Activity

Healthcare Spending Per Capita (2007, 2050)

In most countries worldwide, per capita healthcare spending is rising faster than per capita income which is unsustainable

If current trends hold - by 2050, healthcare spending will double, claiming 20-30% of GDP for some economies

Prevention trends result in greater demand for areas such as weight management and functional foods and beverages Slide52

Health & Wellness

Towards Better Health and Disease Prevention (Functional Foods)

Over the next 10 years, weight management, heart health, and digestive health will continue to be the high growth sectors

The need for prevention and better general health has driven the demand for functional F&B products and consequently the market for specific functional ingredients

Source: Frost & Sullivan

Revenues in $ Mn

Global Weight Management Ingredients

CAGR 2008-2015: 9.2%

Revenues in $ Mn

CAGR 2008-2015: 21.3%

Revenues in $ Mn

CAGR 2007-2015: 25.6%

US Digestive Health Ingredients Market

US Heart Health Ingredients Market

Slide53

Key Strategic ConclusionsSlide54

Key Strategic Conclusions

Mega Trends are connected and intertwined which suggests “synergetic” opportunities between them

It is important to understand the eco-system of the Mega Trend and the elements of the value chain which have most profitability

All these trends are global and have global ramifications thereby offering scalable opportunities

These forces are changing rapidly and bringing new competencies into play at half the life-cycle speed of the past decadeOrganisations’ need “Mega Trend” champions and teams within their organisation structure to best exploit the opportunitiesIt is important to build a healthy eco-system around your opportunity related to a mega trend as it can be a source of competitive advantage and raise barriers to entry (e.g. App store advantage vs Google)Slide55

From Macro to Micro: How To Take Mega Trends from Information to Strategy Implementation

Sub Trend

A Sub Layer of Trends that Has Wide Ranging Impact

Mega Trend

Selected Trends That Impact Your Business And Markets

Analysis of Opportunities and Unmet Needs

Impact on Future Product/ Technology

Impact to Your Industry

Visualising The Roadmap Of These Critical Forces Through Scenario Building and Macro Economic Forecasts

Example: Urbanisation, Satellites

Example: Three concepts of urbanisation will emerge: megacities, mega regions and mega corridors. Smart Cities. Civilian satellites means high speed broadband, wireless and 4G and free wi-fi in public places/cities

Example: New Product Opportunity - New Mega City Cars, Car sharing,

New Technology Opportunities – Connected car , e.g. Internet Radio

Example: Mega City electric cars with small turning radius, autonomous parking in busy cities, Facebook on wheels, seamless switching from home to car

Example: People in future will need “personal mobility” not necessarily cars to commute to work. This will lead to need for integrated mobility combining all forms of transport including cars

Macro

Micro