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Megatrends
Are you ready?

Megatrends are reshaping the world

Global forces of change

Driving impacts on all aspects of doing business
Driving increasing pace of change
Demanding quick responses
Understanding the megatrends is fundamental to
long term business decisions

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Megatrends
Shift in global
economic power

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Demographic
shifts

Accelerating
urbanization

Climate change
and resource
scarcity

Technological
breakthroughs

Shift in global economic power

Shift in global
economic power

GDP of G7 and E7 countries at US$ PPP

2009

2050

$29.0
$20.9
trillion GDP trillion GDP
$69.3
trillion GDP

G7
(US, Japan,
Germany, UK,
France, Italy
Canada)

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E7
(China, India,
Brazil, Russia,
Indonesia, Mexico,
Turkey)

G7
(US, Japan,
Germany, UK,
France, Italy
Canada)

$138.2
trillion GDP

E7
(China, India, Brazil, Russia,
Indonesia, Mexico, Turkey)

Implications
and opportunities
Shift in global
economic power

For Business
Focus on global market share, new customers, new markets as the global
economic power shifts

Things to Think About

Supply chain and labor pool impact
Due diligence on acquisitions in developing countries
Transfer pricing

Strategy and structuring support for global footprint

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Demographic shifts
Demographic
shifts

Spending of the Global Middle Class, in 2005 US$ PPP

2009
$21.3 trillion

2030
$55.7 trillion

Asia
Pac
Asia
Pac

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Implications
and opportunities
Demographic
shifts

For Business
Shifts in longevity will affect business models, pension costs, talent
goals/ambitions
Health systems need to be re-engineered (and paid for)
The workforce will need to be retooled
Customer preferences and who drives them

Things to Think About

Transaction services, regulatory and infrastructure for entering new markets
Talent strategies as workforce demographics shift
Preparing for aging populations (assessing healthcare delivery, changing
investment products)

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Accelerating urbanization
Accelerating
urbanization

The world urban population is

expected to increase by 72% by 2050

72%
increase

Source: World Urbanization Prospects: 2011 Revision, Produced by the

UN Department of Economic and Social Affairs

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Implications
and opportunities
Accelerating
urbanization

For Business
Infrastructure demands and development
Organizing strategies to address social changes and challenges

Things to Think About

Meeting the infrastructure demands and working within the
infrastructure constraints of growing populations from buildings,
roads, bridges, healthcare, education, and the like.

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Climate change and

resource scarcity
Climate change
and resource
scarcity

With a population of 8.3 billion people by 2030, well need...

50%
more energy

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40%

35%

more water

more food

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Implications
and opportunities
Climate change
and resource
scarcity

For Business
Rising prices for commodities
Focus on sustainability
Innovation around alternative energy, water management, agribusiness, and
food production are areas for potential

Things to Think About

Continuity and cost of supply chain and manufacturing processes
Sustainability
Financial and non-financial reporting
Tax planning
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11

Technological breakthroughs
Technological
breakthroughs

World
Population

6.3 billion

6.8 billion

7.2 billion

7.6 billion

Connected
Devices

500 million

12.5 billion

25 billion

50 billion

Connected
Devices
Per Person

0.08

More
connected
devices than
people

2003

1.84

2010

3.47

2015

6.58

2020

2008
Source: Cisco IBSG

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Implications
and opportunities
Technological
breakthroughs

For Business
New opportunities
New ways to do business
Shifting business landscape

Things to Think About

Entirely new definitions of technology systems
Technology-enabled tax processes
Changes in how we manufacture everything

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Thank you

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