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Global Megatrends: Convergence of Globalization,
Internet and InnovationDr. Nitish Singh, Assist. Prof. Boeing Institute
of International Business, St. Louis University
www.globalizationexecutive.com E-mail: [email protected]
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Convergence of Globalization, Internet & Innovation
Megatrends have the power to influence consumer’s lives across countries, industries, social classes and age groups.
Buddhism Fastest growingreligion in US
Indian CurryMost popular mealin the UK
ThreenagerPeople in their 30’s who actlike teenagers
99% Of South Koreansshop online
Gender More men than womenvalue personal appearance
Chinese GDP Will exceed US in 3-4 decades
What are Global Megatrends?
• They are overarching global forces that are being shaped as we speak and will transform our probable future.
• These forces impact our geo-political, social, cultural, economic and technological future
• They give us powerful insights into the future.
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Globalization
Constantly evolving toward an idea of global integration or synthesis of economies, cultures, technologies, and governance.
Impacts what consumers consume and what corporations produce.
Includes: Economic integrationPolitical engagementTechnological
connectivityPersonal contactQuality of life
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Globalization Almost 1 billion new
consumers are predicted in emerging markets by 2015
• By mid-century China may overtake US as no.1 in GDP.
• Today China and India graduate half a million engineers and scientists compared to 70,000 in the US.
The continuing convergence of regulatory frameworks and standards is likely to be an important aspect of the regulatory overhaul.
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Globalization According to Professor
Bhagwati: country can be made worse off if trade lowers the price of products in which it has a comparative advantage. This is termed as immiseration.
This might be happening as we offshore software/chips etc. and lower the cost of these products that US has a comparative advantage in. Thus the gains from exports (software/chips) contributes to the overall economic decline.
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Cultural Multipolarity Emergence of cultural centers of
excellence arising all over the worldBollywood, Fashion centers in
China, India etc. Harajuku Cultural Flows
The interconnectedness of global media, technologies and the rise of the world wide Web
Flows East to West: Sushi, Yoga, Feng Shui, Tai Chi
The Global Workforce: Economic integration
BRIC vs. G6
Globalization
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Rise of the Networks Internet technologies are transforming the whole value chain Wal-Mart integrating global supply chain Seamless procurement and logistics Online sales to more than 1 billion consumers Born Global
Technologists such as Raymond Kurzweil are predicting a singularity, in which human intelligence is merged with artificial intelligence and that by 2050, nanotechnology will be able to extend human life indefinitely.
Convergence - amalgamation of previously separate technologies such as audio, video, Internet and data that now share resources and interact with each other, synergistically creating new efficiencies.
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Open Innovation
Relates to the convergence of like minded individuals, corporations, competitors, corporate suppliers, customers, and human networks working toward co-creating and innovating products and services.
Companies are increasingly investing in Web 2.0 that can harness collective intelligence
Netflix PrizeThreadless.com - t-shirt storeWikipediaLocalization Industry
Open Innovation
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Consumer Trends
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Acceleration of the pace of globalization Resurgence of nationalistic and religious values
Counteract the trend of global consumerism Individualism
Barbie alternatives Fulla Doll - doll with head scarf & Islamic valuesSara Doll - for children in IranRazanne - for children in Muslim countries
Premiumization The growing trend toward creating high end luxurious products in every
product / service category possible. Bling H2O
Gender Complexity Cosmetics for male skin care
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Consumer Trends cont.
Eco-iconic: trend aims to create eco-friendly products with bold and iconic designs that customers can visibly show off.
Threenagers: 30 has become the new 20
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Web Globalization trends
• The boost in Web globalization spending
• Rise of internationalized domains
• Geo location
• Multilingual corporate blogs
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Copyright © 2009:The Complete Document is copyrighted including the pictures. Copyright © 2009 St Louis University. Unauthorized Reproduction and Distribution is Prohibited. The program module was developed by Professor Nitish Singh, John Cook School of Business, Saint Louis University. Published By: Executive Education Program of the John Cook School of Business at Saint Louis University. All material presented in these online modules is only for internal educational use and cannot be reproduced, stored or transmitted in any form or by any means, without the written permission of the program leader. Permission request can be sent to Professor Nitish Singh: [email protected] The information contained in these online modules has been obtained from various academic and professional sources, which we believe to be reliable. However, neither its completeness nor accuracy can be guaranteed. Recommendations and opinions are based on our interpretation of available information.
