Future of business in 10years with rapidly evolving technologies, climate change and depleting naturalresources I. Background1. Globally, technologies ofIndustrial Revolution and climate changeare changing the way human live and work. It is impacting all disciplines,economies and industries, including how, what, why and where individualsproduce and deliver products and services. These technologies are obligingcompanies to rethink and retool everything they do internally, and governmentsto reassess their regulatory advantages and development strategies. 2. Within the broader technologylandscape, various technologies are transforming businesses and unleashing anew wave of competition amongst businesses and countries. Innovative advancesin the internet of things are artificial intelligence, robotics, and 3D printing.
Technology is expected to disrupt most traditional industries in the next 5-10years. Some recent examples which shows how technology has impacted businessesare:Ø Uber brand is merely a software service. They don’t own any carsand are now one of the biggest taxi company in the worldØ Airbnb is now the biggest hotel company in the world, althoughthey don’t own any properties. II. ExpectedImpact on business with evolving Technology in next 10 years 3. The future impact on certain business sectorsmay be seen below: i.
ArtificialIntelligence: Currently in USA, young lawyers are losingjobs. Because of IBM Watson Company, one can get a legal advice within seconds,with a higher accuracy than humans. There will be lesser human lawyers in thefuture, only domain experts will remain. Watson already helps nurses diagnosing cancer, four times more accuratethan human nurses.
The social media company Facebook has introduced patternrecognition software that can recognize faces better than humans. Therefore, computersare likely to become more intelligent than humans in future. ii. AutomobileIndustry: In 2018, the first self-driving cars will appear for thepublic. Within few years, one may not want to purchase a car anymore.Individuals shall call a car with phone which will show up at the pick-uplocation and drive to the ultimate destination. There will be no need ofparking spots and money shall only be paid for the driven distance. This way,individuals can be productive while driving.
Therefore, the concept of driving licenseand owing a car is going to be eradicated within the next few years. This islikely to change the way cities function in terms of mobility. The formerparking spaces can be converted into parks. Nearly 1.3 million people die inroad crashes each year, on average 3,287 deaths a day1.
Autonomousdriving shall reduce the road accidents and has the potential to save a millionlives each year. Most car companies will probably become bankrupt. Traditionalcar companies try the evolutionary approach and just build a better car, whiletech companies (Tesla, Apple, Google) will do the revolutionary approach andbuild a computer on wheels. iii. Insurance: Insurancecompanies will have massive trouble because without accidents, the insurancewill become 100x cheaper.
Their car insurance business model may disappear. iv. RealEstate: Real estate will change. The reason is simple enough.If an individual can work while commuting, the demand for location specific accommodationcan vary as people may prefer to live in outskirts.
v. Health: These days, the smart phones can monitor yourwalking steps, the sleep levels. The day is not far where the internal medicaltests like blood pressure, blood test will be done by a smart phone to recognizea potential disease.
This will lead to world class medical services at no cost.The business of medical establishment is going to crash. 4. There is a clear signal to the world that climate change risk will leadto a scary future. In some parts of the world, the climate change has alreadybegun in daily life for e.g. the recent snow storm in North America in January2018 has caused widespread unrest and destroyed infrastructure of variouscities.
While in other parts, there is a future warning for tougher times, forinstance, the severe melting of Antarctic ice under future global warmingis likely to adversely impact the world in terms of population, business andweather. Certain developed economies have already started amending theirbusiness models in terms of climate change. 5.
70-80% of jobs are likely to disappear in thenext 10 years. There will be a lot of new jobs, but it is not clear if therewill be enough new jobs in such a small time. Fromfarmers to fisherman, supply chain management to builders, all sectors arelikely to result in layoffs or redundancy in the next ten years with the climate change. The indigenous peoples living in ruralareas are going to bear the brunt of climate change 6. In terms ofagricultural demand, the income growth in emerging market economies hasimpacted the food consumption habits i.e., there is a transition towards higherconsumption of processed meat and fruits in comparison to cereals, therebyadding further burden on natural resources.
Though technological advances have resultedin efficient resource use and improved food safety. But the fears of globalfood security cannot be ignored. There are mounting pressures on naturalresources which can jeopardize the sustainability of food systems. The competitionand dependence on natural resources shall increase with the increased demandfor agriculture which shall lead to increased greenhouse gas emissions, andfurther deforestation and land degradation.
In next 10-15 years there isa possibility of an agricultural robot. Farmers can then become managers oftheir field instead of working all day on their fields. There is a dire need for innovative solutions for energizinga sustainable tomorrow. 7. The climaticvariation can also includedecrease in rainfall, disasters, crop failures, natural hazards and forestfires. Each sector of the economy shall be severely impacted as the food andwater supplies get destructed.
Business such as builders, engineers are going to become redundant in the next few years with the climatechange. The number of jobs which shall be created will of those individuals whocan get involved in disaster related building. Smart technology needs to be introduced for smart cities and smartfarming in rural areas which will cut our dependence on fossil fuels.
8. Lately, the global focus is diverted to solarenergy worldwide in comparison to fossil. If the emerging market economies areable to set and achieve solar installation target, cheaper electricity shall beavailable. The world has abundant water but there is scarcity of drinkingwater. Desalination of salt water requires cost effective electricity, which inturn, is achievable with solar energy.
If the cheaper electricity is available,individuals may have as clean water as he wants, for nearly no cost. There is a challenging task aheadfor Chief Executives and Chief Operating Officers who embrace thesetechnologies and address climate change to rapidly transform their enterpriseswhich will set their companies on course for success. Capacity building andskill development initiatives are needed for both public sector and privatesector employees to deal with the changing technologies, climate change with aninnovative approach to save natural resources.1Source: Road Crash Statistics, 2017