Future of business in 10
years with rapidly evolving technologies, climate change and depleting natural
Globally, technologies of
Industrial Revolution and climate change
are changing the way human live and work. It is impacting all disciplines,
economies and industries, including how, what, why and where individuals
produce and deliver products and services. These technologies are obliging
companies to rethink and retool everything they do internally, and governments
to reassess their regulatory advantages and development strategies.
Within the broader technology
landscape, various technologies are transforming businesses and unleashing a
new wave of competition amongst businesses and countries. Exciting advances in
the internet of things are artificial intelligence, robotics, and 3D printing. Technology
is expected to disrupt most traditional industries in the next 5-10 years. Some
recent examples which shows how technology has impacted businesses are:
Ø Uber brand is just a software tool. They don’t own any cars and
are now one of the biggest taxi company in the world
Ø Airbnb is now the biggest hotel company in the world, although
they don’t own any properties.
Impact on business with evolving Technology in next 10 years
The future impact on certain business sectors
may be seen below:
Intelligence: Currently in USA, young lawyers are losing
jobs. Because of IBM Watson Company, one can get a legal advice within seconds,
with 90% accuracy compared with 70% accuracy when done by humans. There will be
lesser human lawyers in the future, only domain experts will remain. Watson already helps nurses diagnosing
cancer, four times more accurate than human nurses. The social media company Facebook
has introduced pattern recognition software that can recognize faces better
than humans. Therefore, computers are likely to become more intelligent than
humans in future.
Industry: In 2018, the first self-driving cars will appear for the
public. Around 2020, the complete industry will start to be disrupted. By next
10 years, one may not want to purchase a car anymore. Individuals shall call a
car with phone which will show up at the pick-up location and drive to the ultimate
destination. There will be no need of parking spots and money shall only be
paid for the driven distance. This way, individuals can be productive while
driving. Therefore, the concept of driving license and owing a car is going to
be eradicated within the next few years. This is likely to change the way
cities function in terms of mobility. The former parking spaces can be
converted into parks. Nearly 1.3 million people die in
road crashes each year, on average 3,287 deaths a day1. Autonomous
driving shall reduce the road accidents and has the potential to save a million
lives each year. Most car companies will probably become bankrupt. Traditional
car companies try the evolutionary approach and just build a better car, while
tech companies (Tesla, Apple, Google) will do the revolutionary approach and
build a computer on wheels.
companies will have massive trouble because without accidents, the insurance
will become 100x cheaper. Their car insurance business model may disappear.
Estate: Real estate will change. The reason is simple enough.
If an individual can work while commuting, the demand for location specific accommodation
can vary as people may prefer to live in outskirts.
Health: These days, the smart phones can monitor your
walking steps, the sleep levels. The day is not far where the internal medical
tests like blood pressure, blood test will be done by a smart phone to recognize
a potential disease. This will lead to world class medical services at no cost.
The business of medical establishment is going to crash.
There is a clear signal to the world that climate change risk will lead
to a scary future. In some parts of the world, the climate change has already
begun in daily life for e.g. the recent snow storm in North America in January
2018 has caused widespread unrest and destroyed infrastructure of various
cities. While in other parts, there is a future warning for tougher times, for
instance, the severe melting of Antarctic ice under future global warming
is likely to adversely impact the world in terms of population, business and
weather. Certain developed economies have already started amending their
business models in terms of climate change.
70-80% of jobs are likely to disappear in the
next 10 years. There will be a lot of new jobs, but it is not clear if there
will be enough new jobs in such a small time. From
farmers to fisherman, supply chain management to builders, all sectors are
likely to result in layoffs or redundancy in the next ten years with the climate change. The indigenous peoples living in rural
areas are going to bear the brunt of climate change
In terms of
agricultural demand, the income growth in emerging market economies has
impacted the food consumption habits i.e., there is a transition towards higher
consumption of processed meat and fruits in comparison to cereals, thereby
adding further burden on natural resources. Though technological advances have resulted
in efficient resource use and improved food safety. But the fears of global
food security cannot be ignored. There are mounting pressures on natural
resources which can jeopardize the sustainability of food systems. The competition
and dependence on natural resources shall increase with the increased demand
for agriculture which shall lead to increased greenhouse gas emissions, and
further deforestation and land degradation. In next 10-15 years there is
a possibility of an agricultural robot. Farmers can then become managers of
their field instead of working all day on their fields. There is a dire need for innovative solutions for energizing
a sustainable tomorrow.
variation can also include
decrease in rainfall, disasters, crop failures, natural hazards and forest
fires. Each sector of the economy shall be severely impacted as the food and
water supplies get destructed. Business such as builders, engineers are going to become redundant in the next few years with the climate
change. The number of jobs which shall be created will of those individuals who
can get involved in disaster related building. Smart technology needs to be introduced for smart cities and smart
farming in rural areas which will cut our dependence on fossil fuels.
Lately, the global focus is diverted to solar
energy worldwide in comparison to fossil. If the emerging market economies are
able to set and achieve solar installation target, cheaper electricity shall be
available. The world has abundant water but there is scarcity of drinking
water. Desalination of salt water requires cost effective electricity, which in
turn, 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 ahead
for Chief Executives and Chief Operating Officers who embrace these
technologies and address climate change to rapidly transform their enterprises
which will set their companies on course for success. Capacity building and
skill development initiatives are needed for both public sector and private
sector employees to deal with the changing technologies, climate change with an
innovative approach to save natural resources.
Source: Road Crash Statistics, 2017