Ten trends to watch in 2006
Our interpretation of 10 Trends pointed out by McKinsey and Co.
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1. Centers of excellence emerge … with entire regions of the globe will become known for their expertise in particular sectors of the economy.
2. Demographic deficit … the aging of population will reduce global wealth and drive increased spending in the public sector.
3. Suddenly consumerism and the US will not be synonymous. In 2006, a billion new consumers will enter the market … but the majority of these will come from emerging countries like China, and not from the US. Goods and services will be created for these new consumers, who will have income over $5K per year giving them discretionary income (and buying power) for the first time ever.
4. Web 2.0 becomes a reality … thanks to advances in how we interact and communicate will continue.
5. The battle for talent … will continue but the battlefield will shift to emerging countries such as China.
6. Big business will continue to get bigger and more powerful. In response, governments across the globe will intervene and step up its oversight role.
7. The environment will be a big issue in 2006 as the earth starts to run out of energy and clean water. This – in turn – will drive an increased level of investment and commitment to green energy and sustainable design.
8. Structural changes in industry become more evident. Private equity firms (versus public markets) grow in power. Most global industries consist of a few giants on top, a narrow middle, and then a flourish of smaller, fast-moving players on the bottom. Corporate borders are becoming blurrier as interlinked “ecosystems” of suppliers, producers, and customers emerge.
9. Scientific management rules. Forget about gut feel. Decision-making is based on decision science and businesses invest in technology, people, and tools that enable them to make better decisions more consistently for competitive advantage.
10. New models of innovation take hold. Companies no longer invent breakthroughs on their own but through open-sourch approach where entire communities become responsible for innovations.