The Go Green Dilemma

In Malaysia, there’s so much talk about going green and use of renewable energy (RE) more to meet our electricity and power needs – be it for households, business offices and factories. The most common RE is solar. Other popular RE are wind, biogas, biomass and thermal, hydro – mostly used in large scale operations like plantation and factories.

Source: http://www.seda.gov.my/about-seda/re-programmes/

Here I’d like to discuss some about solar as it covers residential – the people. Further search on Google, there are actually a lot of solar companies available in Malaysia – more than 20! I listed some down here:

  • ERS
  • Pekat Teknologi
  • Plus Solar
  • Solar Vest
  • Ditrolic Solar
  • Sols Energy
  • Ray Go Solar
  • Solar System Malaysia
  • MAQO Group
  • Simpli Solar

Some of these companies listed above provide only for business buildings and factories, some cover residential as well. There has been slow take up rate from the residential customers, although many claims that the solar photovoltaic (PV) panel is getting cheaper.

“Solar technology has matured and costs have become more competitive. Solar PV panel prices has fell 80% since 2009,” she said, adding that this is also one reason quota for solar is no longer offered under the fit-in-tariff (FiT) mechanism.

– YB Yeo Bee Yin, Minister MESTECC, Malaysia

Upon checking, on average the price of outright purchase of the PV panel is around RM 25,000 (USD 1 = RM 4.3) for residential houses. For factories it is more because the Kw (kilowatt) will be higher.

There’s also some incentives under the RE incentives provided by the government. However the incentives will be claimed by the solar providers because they will help the customers with FREE roof suitability and installation if suitable (roof angle and access issues).

There are companies offer solar leasing package, therefore customers do not need ot pay any single cent throughout period (depend on the providers). This package is a standard leased agreement called SARE (Supply Agreement for Renewable Energy). Typically the lease will be for 10-20 years. The best part in this period, customers do not need to pay any money, downpayment or installment to enjoy the benefits. This include maintenance and warranty of the system altogether.

Source: http://clipart-library.com/download-solar-panel-gif.html

Will this reduce your electricity bill? According to most solar providers, your electricity will go lower by 5-25% on your consumption before solar. In other words, this lower bill isn’t on monthly basis once you used solar. You get to save the planet along the way! Some providers claim you can save RM 200/month for 21 years (that will add up to RM 48,000). Again, I think this kind of sales-pitch needs clear evidence or stated in the contract; because once you signed, ehem it will be very difficult to get out; perhaps? 😉

Additionally, let say, you have great roof for sun radiation and you generated more solar than you need or use, you can trade (sell) this extra power back to the provider and earn some income. This package is called Net Energy Metering (NEM) scheme. In NEM scheme as explained by the Minister of MESTECC, YB Yeo, there’ll be no price difference in buy and purchase of solar tariffs.

Source: https://www.simplisolar.com/site/resources/what-is-net-energy-metering-nem/

However, as a customer I still have concerns with the design of the contract. Especially it is about getting into contract for 10-20 years, it is actually very long. As it is, car hire purchase is long enough (7-9 years). My challenge is I couldn’t find the exact figure of the fine details to these questions:

  1. What if the solar installed didn’t bring much value in savings for me? Can I change back to normal power supply?
  2. How much supply coming from solar do I need as residential customer? Is it 100% or 80%? How much do I need to pay for the additional cost difference for normal power supply?
  3. What if the solar provider close down? What is my risk?
  4. What if I wanted to sell the house? Will my solar agreement stuck there to new tenant? Or I can take it with me to my new house?
  5. Since the leasing is with Third Part Operator (TPO), what is the cost of change of tenancy (COT)?
  6. How much do I need to pay to get out of the contract?
  7. Does this package have insurance covering the system?
  8. Is there any fee to become NEM provider? Because supply and sell back the power is two different component, am I right to think this way?
  9. What if the person who sign the contract passed away? And I have to sell the property and get out of the solar contract, how do I do this?
  10. Over 10-20 years in the contract, the PV panel price is going down lower and becoming more efficient, would the customer get upgrade included in the package or stuck with the old technology?

“Consumers want to go green, but above all we want to save money.”

– Consumers

“It is common for all of us to seek our own path to success as we defined it. Time waits for no one.”

“While allowing room for failures is encouraged, employees should also be trained to be courageous to admit mistakes and pick up slacks.”

“Eventually, the core business will mature and stops growing. The owner should invest in parallel several years earlier in the next growth business so they are ready when the core stalled and profit would already be taking over as the next engine of growth.”

When Costs Kiss Goodbye!

Image credit: Kraft Heinz loses a lot of cheese as earnings send stock plunging to …

Interesting article about an investment company (private equity firm) that acquire food businesses (Heinz & Kraft Foods) back in 2013 and 2015 respectively. The firm believed these two companies could unlock more values by using ruthless focus on efficiency. They quickly employed radical cost cutting programs.

They fired thousands of workers, shutdown factories, used zero-based budgeting model (justify cost without regard of previous year spending), remove refrigerators (pantry) in the HQ known for stocking cheese sticks, set default settings of office printers (double sided with black toner) and limit meals spending during travel to $50 a day. Guess what happened next?

These initiatives and cost program led to industry-leading profit margins in less than 2 years! The stock price went up to more than $90 in 2017! See below.

Screenshot 2019-05-18 at 12.55.51 AM

Screenshot 2019-05-18 at 12.55.21 AM

But, unfortunately, it went to nose dive after all the radical cost programs deployed. From my research, Kraft Heinz overlooked the marketing bit, product innovations for their changing customers segments and valuable employees feedback that know how to run your operations especially in different market segments and countries.

Sometimes, big brands and companies make tactical mistakes like this. No doubt long history companies tend to have opportunities to go leaner that it was; things usually get complacent after awhile.

One of the videos, check it out.

Source: https://www.cnbc.com/2019/02/22/kraft-heinz-backers-face-reality-brutal-cost-cutting-isnt-enough.html

Lessons that we could take from here are:

  1. Look at at products and services innovations as growth strategy: There are probably a host of products that could be making money or probably there’d discover that most of the products are obsolete to modern customers. For the record, Kraft Heinz launched new products such as organic version of Capri Sun and expanded its condiment businesses. They tried, probably not enough time to see it through, perhaps these new lineups will grow later.
  1. People are not measured by their salary or price tag, rather by their value brings to the business: I tried looking for some human capital development strategies when the equity firm bought Kraft & Heinz, but I couldn’t find any. Although I may not a fan of “total spoon-feed your talent because you care”, I do believe the management should consider taking longer time to lay offs to ensure the tacit knowledge is transferred to the business. You should pay high for someone that could do more and pay less for someone who can only do routine work.
  1. There’s only so much you can do with cost efficiencies: Key for growth is innovation. I’d expect big brands and companies, should invest in ruthless innovation focus in three areas. First, new products and services that reflect current and future customers needs and wants. Second, leaner processes and automation to bringdown redundancies in capital & assets deployed and reduce wastages. Third, to find market creations opportunities that will need to be invested and R&D. You can read more about this from Clayton Christensen book titled, “The Prosperity Paradox”.

Innovations are for growth. Companies need to spend and invest together with their workforce to improve capability and capacity to innovate. I do hope to see Kraft Heinz able to come out from this plunge and see this only temporarily.

Brickbats please send to donkhairul@gmail.com 

Why Corporates Need Corporate Innovation?

I will go straight to the point this time, no BS here. 😉

Here are the FIVE Observations that make corporates need Corporate Innovation, within this year:

  1. The corporation no longer effective in capital allocation. It only spend on what it has been doing over the years since its founding days. The growth is stagnant? Right? There have been talks about why the auto market is stagnant, utilities market is stagnant, banking market is stagnant and education market is stagnant? Is it really? Think again. The corporate hiring is all time low, even if they do it is only incremental. How big can you hire anyway? How much capex do you want every year?

  2. The employees in that corporations have been out of touch from the customers worldview and realities – things they go through in every day life. The employees think that if you are an executive or business people, you will need a bank account so you will go to the bank freely without the bank having to promote to you any service. So they hesitantly “provide service” with the hope you will get out the branch quickly. The employees only know their job (think they know?) and only worry (pay attention) to their yearly increment. The employee has never thought how important you are because he is not in the marketing department!
  3. The people in the corporations no longer recognize each others strengths and passion anymore. They know each other by searching the names in the company database by their work title and department. They only care about numbers, bottomlines, KPIs, processes, SOPs and their own bosses. They forget the empathy in their colleagues and the motivation they come to work for.
  4. The corporations are a lot less helping the nation progress and becoming productive. Profiting RM100 million a year isn’t the same as elevating 1,000 people out of electrical poverty or lack internet access. The corporations care-less about the environment they operate and the shared prosperity – they only care about batches of production they need to make, the stuffs they have to deliver. They polluted the areas and take away the prosperous-ness in the areas.
  5. The suppliers and vendors of the corporations are non other than the same big boys instead of local business and startups with creative and innovative products and services with energetic and entreprneurial founders. The corporations with all their busy-ness tending to the bottom line didn’t get out of the building to look for what’s new, what’s better and what’s ahead. They are confined confidently in the comfort of large, air conditioned and well equipped office.

In the Corporate Innovation program, corporations will unbox, rediscover the untapped opportunities within the layers they have and assets they kept are abound; right on their backyard, under their nose and in their neighbourhood.

Brickbats please send to donkhairul@gmail.com 

#corporateinnovation #innovation

Corporate Innovation Not A Department

Corporate innovation is an important feature in large organizations. I wouldn’t suggest it to be a corporate function or division or department as it will create another layer or compartment; bureaucratic and adds extra cost to the company.

I think corporate innovation should be an embedded strategic program cut across divisions. Who should lead? I’ve seen HR doing it, IT doing it and CEO office doing it. Easy way out is CEO office, but I’ve seen CEO has 25 direct reports, how could he adds another? My best bet, corporate innovation mandate should come from the Board as strategic program (with start end period) max 3 years and review every 3-6 months.

Each year is a different “focus” leading towards the objectives and outcomes. Why Board? Because Board changes is a lot less than top management. Besides, Board has greater cohesion between them that can drive management team zand its workforce.

Now, the problem with Board? They lack customers voice and seemingly out of touch of the business realities on the ground. The Board can use corporate innovation to get this mended instantly. Greater customers voices should be heard directly at the Board with wider attention. Let’s get on board. corporateinnovation business relationships #innovation

Brickbats? Please write to donkhairul@gmail.com

Corporate Innovation Champion Is….

In the most innovative and valuable companies in the world, the CIO is the CEO. For innovation to happen, top down & mandated approach has better chance of success. In the meantime, the executive management also marshall the bottom up innovation approach by getting people excited about giving ideas, tweak some process and embrace feedback culture.

When these two strategies in alignment (top down mandate + bottom up excitement), it will eventually creates its own equilibirium and a meeting point. Once a meeting point reached, good to have another round of “workout – GE way” and ask “Where should we go now?”. I can almost guarantee this question when asked sincerely and with gratitude will bring you and your team to next level performance.

Amidst all the BAUs priorities, if at all you want to do it, let’s do it well. innovation #business relationships improvement corporateinnovation success corporatemodel

Top 10 Great Ideas in 2018 from the Field-Walk

Hey, I am back after long hiatus (exactly 1 year!). Been super busy, I will make more commitment this year. One article at least per month. Let’s work it out. 🙂

This post is about Ideas that I have personally observed that were generated by participant of our Design Thinking Innovation workshops in 2018. I started compiling these ideas and take note how popular these ideas among the participants. I also have super great news that some ideas in 2017 became reality and being implemented (some at national level!), it was thrilling feeling to see this happening.

Now let me share 10 Great Ideas in 2018:

  1. Thrash for Wifi access. This idea came from Sabahan because internet cost for mobile is quite expensive to Sabahan graduates and average household. Therefore they rely (especially youth) on public wifi. The youth willing to collect thrash around the cities and in return they get wifi access (via coupons or digital link)
  2. Smoking ban in public place. This idea came from several groups during early 2018. It was laughed at and ridiculed by mostly smokers because of the wide scope of the implementation. Interestingly, now at the time of writing, smoking is now completely banned in public eateries nationwide and progressing to wider coverage by 2019 end.
  3. Open banking, share all banking data in one app or one source. This interesing fintech ideas came from several banks and customers. It used to be each bank collect their own customer data and they shouldn’t (and couldn’t) share it with other bank. For example if you are a user of credit card from Bank A, if you are applying another credit card for Bank B, they wouldn’t know. This became a problem especially if the customer is a bad paymaster of credit card Bank A. The problem later might spill to Bank B. On the other hand, if you are a great paymaster, your credit ratings improved, your data is shared with other banks, you become a highly sought customers from various banks. That’s the advantage.
  4. Trap rubbish at the river or drainage using mesh. This idea came from people in flood-prone areas. The flash flood usually happened in rainy season and caused major traffic problem. One of the problems are clogged drainages and rising water from the rivers because of thrash! While it is understandable we shouldn’t throw rubbish, I personally found the thrash sometimes from factories because of the quantities are massive. So to effectively and efficiently clean up the river, using wire or nylon mesh to trap the river would be quick.
  5. Auditors and HR staffs are from business departments and branch operations. This fabulous ideas came from multiple banks. The audit and HR departments found out 2 major problems. First, these two departments are not well liked by the staffs because of poor misperception. Second, most staffs joined these two departments are juniors hence little operations and business experiences. Consequently, most of their work deemed lack substance and lack empathy. An insight surfaced, those with experiences that joined audit and HR department tend to be more matured and heightened empathy. They also managed to convince their former colleagues to be more receptive and cooperative in bringing the business to the next level!
  6. Video conference for long distance meeting. This idea came from government officials that live far from the headquarters. Some had to travel 8-10 hours for an hour meeting. To cut time, cost of travel and health bills, the use of video conferencing could effectively and efficiently for both parties. Let’s use meeting for key decision making. Hopefully the next phase of national broadband plan in 2019 will be spearheaded faster than expected. Faster connection will definitely help!
  7. Tax break for donations by the public to schools and universities. It is true and evident the government funds to schools are getting lesser by the year due to various reasons. It is also true and evident, most parents would want to donate (and willing) to donate for schools where their kids studies. Tax is a very good tool for the government to use to invite this “money on the table” by giving tax breaks (double if possible).
  8. HR to drive innovation capabilities development. This idea came repetitively from banks and MNCs pointing that many HR “waits” for business departments request for innovation program. HR in their views still see “innovation” as technical know-how, technology-based and only for selected people. HR as the people builder needs to step up quickly grasp the big gap of innovation capabilities by launching innovation training programs and workshops because innovation today and beyond is everybody’s business.
  9. Artificial Intelligence (AI) powered & gravity dumb-bell. It turns out a lot of people want to get fit by using dumb bell (including me). The insight we found that a lot of people don’t know what kind and how much weight they should do that will effectively help them meet their goals. Using AI & gravity, user only need to buy one dumb bell of this kind and start getting fit progressively, without having to own a whole rack of those bells!
  10. Launch fintech fast to collect data. Fintech is pervasive these days, many local banks turn confused what they should do actually. They found many banks took very long time to think “analytically and holistically” so much so go to market become painstakingly long. The idea is about fast launch of basic fintech products & services for example CASA account, children account or loan application with primary purpose to collect data and learn from it before even considering the full blown product. This could make sense because by the day there are many more technology players in this area, therefore investing in sophisticated technology may not pay off in the long run. Think about it.

 

Hope you enjoy this piece. Any brickbats please email to donkhairul@gmail.com 

Happy New Year 2019!

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The One Word That Make People Hate Innovation

I stumbled on my current research by accident. By observing people’s reaction. Let me explain.

Every time in my design thinking workshop I asked my audience, whether they love innovation in products and services they used, of course they loved it to bits!

They spoke about how the food delivery service such as #FoodPanda, #Ubereats and #GoFresh (among others) helped them deal with life when they need food.

Some Muslim ladies also spoke about their hijab, tudung and scarf that make them look gorgeous , beautiful and of course more confident when they work and socialize professionally and personally.

Many men also expressed their love for e-commerce sites such as Lazada where a number electrical hobbyists and car enthusiast including aspiring botanist found their haven for things they love doing.

Most of the people I met during my workshop claimed their live getting much easier these days because of all these innovative products and services integrated into their lifestyle. Of course, smartphones and apps are the most popularly quoted as innovative products and services.

When we discuss deeper, what constitutes successful innovation, there is one word that put the world a stop for a moment. This word makes everyone reconsider what they said earlier about innovation and their love of great products and services.

The word is CHANGE. Everybody hates change – especially when the change go against your will. This include my 4 months old baby when I wanted to change his diaper, come on! I am helping you getting clean lols

When we run design thinking innovation workshop for senior management (or any innovation workshop for that matter), the discussion on change is very crucial. How tolerant is the management towards CHANGE? How committed they are? What are they willing to give up? Why do they want change? Who needs change first? When do we should give up those baggages?

I found discussion on change in very key in successfully getting the buy in prior any innovation or transformation work. The senior leadership themselves must be in unison when it comes to commitment to change. Be the change you want to see, as Gandhi famously said.

In some scenario, the current situation is already bad (or it could be too comfortable perhaps?) therefore change is “easier” to instill. Oh booy, change is difficult and change is hard. Change takes effort, effort and effort. We usually got stuck in either one of these change levers, our capacity to change, our capability to change or our ability to change. Which one do you stuck the most? Which does your organization stuck the most?

Source: Who-Wants-Change-Crowd-Change-Management-Blue | Free to use … | Flickr

For those who are leading innovation in their organization, let me share good points from this book from Noel Tichy, “The Cycle of Leadership”. I love this book so much, get a copy if you will.

He said this interesting view of leadership, they are autocrats (who forcefully lead change without taking any feedbacks) and they are abdicrats (who take all the feedback without taking any decision or stand to move out). These two extremes create leadership vacuum and ultimately power failures. This need change.

Better your best!

Wait for my follow up article on this topic soon!

Brickbats please send to donkhairul@gmail.com

Think Different

If you remember it well, this was Apple’s tagline back in 1980s. Back then when I saw Apple’s product – such as earlier version of Macintosh, I don’t quite understand what Think Different. I also don’t really see a need to think differently. I thought we should always think the way it is. Yeah, the way as your parents, teachers and preachers taught you. There shouldn’t be any other way right?

I still remember the day when Steve Jobs of Apple was fired and ousted from his company. It was either shown on TV or in the newspaper because it is still ringing in my ears that my father told me about him. My father said, “You see this guy is crazy. He started a company then it grows so big and he got fired from his own company. How that could be possible? He started the company of course he should stayed on.

” My father was furious – he was a technician with a government-owned company. He added this line that stuck with me for umpteen years, “So don’t bother about starting a company or do business because it will be a disaster if you become like this guy. He is out of job now!”

While Steve Jobs ousted from Apple walking away with millions (that time I didn’t know he had stocks) and as for me that line stayed on imprinted in my subconscious for many years to come. I was 10 years in 1990. That was how powerful parents words because it can shape thoughts. The undoing it took long, painful losses yet adventurous (when looked back!). So my goal when I grow up was to score well in studies and work for an organisation, preferably a government-owned if not a government agency.

However life has its own way of nudging me to different directions. I was given many opportunities in my late teens to open up the different side of me that I had surpassed for long time. The journey begins and now here I am.

This post came about when I bumped into a young engineer in a company that I conducted training. This technician was paying a lot of attention the class and getting involved as well. So during lunch time I complimented him and he said he is very interested the subject, Design Thinking. He said he learned some of it during his university days.

He then continued telling me that he was selected as the only student in a student project sponsored by Dyson – yes the vacuum, bladeless fan and some other awesome appliances. He said during his Dyson stint, he had been pushed to think very differently, yes very different so much so his engineering him had to give away. He was so scared and shocked that why this successful company like Dyson wanted think to be so different? He couldn’t get it, yet he persisted. He worked on hand-dryer project at that time.

He then told me that he was offered a job interview after that, yeah just the interview first. During the session he was asked to think very differently for example how could a ball be different? How could a battery be different? Instead of thinking different, he tried to give the facts that he knew. He didn’t survived the first interview. Poor this technician. Interestingly, according to him, those that survived the interviews and finally landed jobs there were those who think very different. He knew these people were very different because he worked with them during the project. This story was relayed to me 2 months ago. I got this guy to tell the rest of his colleagues, and they were all surprised hearing it first time because this technician has been working there for the last 5 years. 🙂

Think different is highly prized these days. If you are students, teens, young executives and junior managers, senior managers and CEOs, it pays to invest in yourself how to think different. It pays to think different because the “mismatched” world is considered as creative and innovative these days.

Get a book or two about how different can you be. Hangout in conferences or people that are different from you. Take risk a little bit, throw yourself plunge a little bit and embrace uncomfortable feelings a little bit. The rewards? Think different.

My parting words, “If you think you are different, stay different, someday someone somewhere might find you valuable.”

Think different.

Any brickbat please send to donkhairul@gmail.com

Change Attitude to Fortitude

It’s clear to me now, that attitude is over rated. Attitude is a mental state or posture or perspective about something. I drag myself waking up every morning when I hear my 2 weeks baby cries, I had to wake up anyway because he needs feeding. He is hungry and I know very well that after I feed him I feel I have achieved something awesome for that moment. I will not regret.

Now picture this. My son has grown up and I still have to wake up every morning and drag myself to do 50 push-ups, 2 minutes plank and 2 minutes lower abs exercise. After that I will cycle for 30 minutes. I have to do this 4-5 times a week. Every time after I do these routines, I will feel great and awesome! I took on the day like a champ. However if I casually skip because my attitude towards it, I will find myself in a rut after 1 month. I wouldn’t be able to do even 10 reps push up, not 10 secs plank and I quickly drown spirally into that lethargic feeling. I become the person I don’t want to be.

The two stories to illustrate that attitude is not enough. We need fortitude. We need bravery to do things that are difficult and not fun. We need courage to do things that we don’t necessarily like. We need to take that bold action that we know if we do it we will gain. That’s changing attitude to fortitude.

To change the world and ourselves, we need more fortitude.

Attitude alone is not enough. In hard times, when you hit rock bottom, attitude matters less. You need fortitude. You need to get out and hit the road to run or walk or jog. All of us need fortitude. If you find yourself still struggling, that’s because you may have positive attitude yet your fortitude isn’t forthcoming enough yet.

Fortitude is the answer. #innovation #excellence

What Are Personas?

“Personas” is a creative tool you can use to distinctively segment your ideal customers. They are usually fictional that resembles groups and clusters of actual people. Here some definition to help you understand:

“A persona is a representation of a user, typically based off user research and incorporating user goals, needs, and interests.” – www.uxbooth.com

“The purpose of personas is to create reliable and realistic representations of your key audience segments for reference. These representations should be based on qualitative and some quantitative data.” – www.usability.gov

“Personas represent people that are related to a concept, but are generic so they cover a large number of real people. They also have all of their details specified (e.g., where they’re from, their values and motivations, their job) to help designers empathize with their needs.” – www.openIDEO.com

Here are some samples of “Personas” to get you familiarize with it:

  1. Personas of Users for An Online Video Tool

personas

  1. Personas of Digital Shoppers

Online Personas Infographics 4g

  1. Personas of Facebook Users

Facebook-users-Final2

We can create “Personas” for every business and across industries.

So what are your “Personas”? Try it yourself.

From Khairul’s experiences running Design Thinking workshops and coaching, he found his clients become more imaginative as soon as the “Personas” have been identified.

Brickbats please send to donkhairul@gmail.com

Design Thinking Workshop & Coaching

 

 

Megatrends 2020 and Beyond, Quick Summary

I have been wanting to write this Megatrends post for some time, its just I couldn’t. I was going through multiple reports on Megatrends from the net and they are very exciting. I also read some books to dig deeper into the subject and trying to find out what is it all about.

Here are the Quick Summary from various sources, which I will provide you the links at the bottom of this post.

  1. DEMOGRAPHIC CHANGE – In all megatrends report, demographic change becomes the central theme that’s driving all the other elements. I still remember Drucker’s word in one of his chapters titled “Sources of Innovation”. He said, “when there’s huge demographic change we should expect huge change in other variables.” Demographic change includes ageing population, drop in birth rates, people live longer, greater access to basic needs, access to education and urbanization.
  2. ENVIRONMENT SUCCESSION – Many called it crisis, I prefer the word “Succession”. Dr Thomas Friedman in his book “Thank You For Being Late”, called it “Mother Nature”. We need to make sure we are able to successfully cater to few more billions people in the next 2-3 decades. This include access to food, water, energy and air. When we have more people, we need more space. When we need more space, we clear the environment to make way to housing etc. All of us need to be creative in consuming. As it is our consumption habits may not be sustainable in the long run. Hence I prefer the sharing economy.
  3. MACHINES & TECHNOLOGY – The “rapid feeling of change” that we feel today started around 2006 & 2007 (Tom Friedman). It is the time in between when Facebook & Apple technology hit the market. Fast forward 10 years later, all the technology converged and “gave birth” to Industry 4.0. Now, you can feel the word “disruption” and it is not going to stop. There’s a lot of development in internet, telecommunication, smart factories, artificial intelligence, robotics, data analytics, automation, virtual reality, IoT and digital solutions. You will probably gain more insights by reading Moore’s Law on how technology double itself in almost every year these days.
  4. MONEY MODELS – Whilst not many Megatrends cover this specifically, I intend to add on and highlight this as an important trend. The freenomics is an interesting money model. The rise of social enterprise also a trend that corporations need to consider integrating in their overall business strategy. The sharing economy is creatively emerged as the way forward for us to adapt to new pattern of consumption. As the number of connected population increases, innovative money models certainly more sustainable for any organizations.
  5. PERSONAL EXPRESSION – This trend is covered in one of the reports which I found important to point out. Most people have more choices now. Thanks to wealth created from various economic entry points. Consequently, corporations are struggling to meet everyone’s need (although it is impossible, similarly impossible vice versa!). This includes the way people want to work, what they want to wear & use (brands & functional), how they think, when they want to be with their families, who they want to be their boss and so on. This will demand more flexible, adaptable and much less command & control organization. I remember reading PwC report back in early 2000, about the future of work, it says something like this, “in the future there’ll be a few large organizations and these organizations are served by SME, micro enterprises and independent experts.”
  6. GEOPOLITICS – Several of the reports covered this topic. I could agree that geopolitics is also important. Our economies are more integrated than ever before. When some nations in crisis, some other nations are in growth mode. Some countries have more money and on shopping spree around the world. This posed a new dynamics in terms of culture and national income. The big trading nations such as China, USA, Russia, Brazil, UK (?), Euro (?), Middle East (?), Asean countries (?) and thriving ground for new market. Then there’s war going on in some parts of the world, war-mongering attitudes around neighbouring countries and strained international relations.

 

Khairul in the opinion that in the coming years and beyond 2020, human values becoming very central and core to nation, organization and personal development. Be nice to others, because we can!

Brickbats please send to donkhairul@gmail.com

www.designthinking.com.my

Sources:

  1. http://www.ey.com/gl/en/issues/business-environment/ey-megatrends
  2. https://www.pwc.co.uk/issues/megatrends.html
  3. http://www.haygroup.com/leadership2030/about-the-megatrends.aspx
  4. https://www.nytimes.com/2016/11/22/books/review/thomas-friedman-thank-you-for-being-late.html?_r=0
  5. Top 20 Global Mega Trends and Their Impact on … – Frost & Sullivan