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on where their skills are needed at any one time.
Diversity is also becoming more important as the global job market accelerates, and as more Gen Z-ers (who are more racially and ethnically diverse than previous generations)38 enter the workplace. In a survey by Deloitte, two-thirds of business leaders said diversity was important or very important to their business.39 This includes diversity of thinking, as well as demographic diversity; in fact, diversity of thinking may increase innovation by 20 percent and reduce business risks by 30 percent.40 The high-performing teams of the future, then, will be both demographically and cognitively diverse. Furthermore, organizations with inclusive cultures – where people feel valued, respected, and that they belong – are eight times more likely to achieve better business outcomes and twice as likely to meet or exceed financial targets.41
There's also an increasing emphasis and less stigma around mental health and well-being – another trend that has been accelerated by the pandemic. Going forward, there will be increasing pressure on employers to make sure their people have the right work–life balance and that employees have access to mental health support through third-party providers.
PRACTICAL LESSONS
All of these global shifts indicate where the biggest opportunities and risks lie for future success. So how should businesses be embracing or planning for these shifts? Here are a few key takeaways:
The climate crisis. According to Ipsos, globally 73 percent of people agree we're on course for a climate disaster.42 With a global majority agreeing that the world is facing a huge crisis, customers will increasingly gravitate toward more sustainable options. Businesses will have to do everything they can to maximize their green credentials and communicate that to customers.
Economic shifts. As the E7 and next 11 economies grow, it will no doubt become more expensive for businesses to outsource their production and services to these countries. On the flip side, these economies will become much more attractive markets for products and services.
Growing divergence. If the trend toward divergence and delinking continues, companies may potentially find themselves restricted from certain markets. A reliance on any one market is a risky strategy.
Demographic shifts. For businesses, the growing consuming classes and greater urbanization around the world present huge possibilities, but participating in these new markets will mean adapting to different cultural and political environments.
Social, cultural, and workplace shifts. Businesses must assess whether they are offering Gen Z, women, and global workers an attractive work environment, one in which people have flexibility and work–life balance, where they can be individuals and connect meaningfully with the brand.
Now that we've got a broader view of what's happening in the world, let's dig into some specific technology trends that are also impacting our world and how we live in it.
Notes
1 1. Impacts of 1.5°C global warming on natural and human systems; IPCC; https://www.ipcc.ch/sr15/chapter/chapter-3/
2 2. Effects of global warming; National Geographic; https://www.nationalgeographic.com/environment/article/global-warming-effects
3 3. Climate change and resource scarcity; PwC; https://www.pwc.co.uk/issues/megatrends/climate-change-and-resource-scarcity.html
4 4. Emissions by sector; Our World in Data; https://ourworldindata.org/emissions-by-sector
5 5. Beyond the Noise: The Megatrends of Tomorrow's World; Deloitte; https://www2.deloitte.com/content/dam/Deloitte/nl/Documents/public-sector/deloitte-nl-ps-megatrends-2ndedition.pdf
6 6. Why Rare Earths May Leave Europe and U.S. Vulnerable; Bloomberg; https://www.bloomberg.com/news/articles/2021-02-16/why-rare-earths-are-achilles-heal-for-europe-u-s-quicktake
7 7. Double food production by 2050? Not so fast; Futurity; https://www.futurity.org/food-production-2050-1368582-2/
8 8. The world's plastic pollution crisis explained; National Geographic; https://www.nationalgeographic.com/environment/article/plastic-pollution?cmpid=int_org=ngp::int_mc=website::int_src=ngp::int_cmp=amp::int_add=amp_readtherest
9 9. Chinese economy to overtake US “by 2028” due to Covid; BBC News; https://www.bbc.com/news/world-asia-china-55454146
10 10. The world in 2050; PwC; https://www.pwc.com/gx/en/research-insights/economy/the-world-in-2050.html
11 11. Economic power shifts; European Commission; https://knowledge4policy.ec.europa.eu/foresight/topic/expanding-influence-east-south/power-shifts_en#:~:text=The%20%E2%80%9CNext%20Eleven%E2%80%9D%20(Bangladesh,in%20global%20power%20by%202030.
12 12. Why is China Introducing New Export Controls?; China Briefing; https://www.china-briefing.com/news/chinas-new-export-control-law-restrictions-imposed-23-items-technology/
13 13. Partisan Antipathy: More Intense, More personal; Pew Research Center; https://www.pewresearch.org/politics/2019/10/10/partisan-antipathy-more-intense-more-personal/?utm:source=link_newsv9&utm:campaign=item:268982&utm:medium=copy
14 14. Geopolitics in a post-pandemic world: A fragmented world; IHS Markit; https://ihsmarkit.com/research-analysis/geopolitics-in-a-postpandemic-world-a-fragmented-world.html