- February 18, 2019
- Posted by: CSR-in-Action
- Category: Insights
Megatrends are global, sustained and macro-economic forces of development that impacts businesses, economies, societies, cultures and personal lives, which defines our future world and its increasing pace of change. Megatrends have different meanings and impacts for different industries, companies and individuals.
Many of us are familiar with the effects of these megatrends and may have already experienced their impact. For example, mobile technology has revolutionised the way in which we communicate and work – with many of us relying on mobile phones to check emails, listen to music and keep up with the day’s events.
At present, there are five key global, interconnected megatrends: changing economic power (rise in power of less developed countries vs. currently more developed ones), climate change and resource scarcity, technological breakthrough, demographics and social change, and rapid urbanisation.
These trends are likely to be driving change in the world for the next few decades. And because of that, they also influence our investment decisions – from the businesses, industries and countries we invest in, to the way we go about finding opportunities.
Identifying the potential for change is a key driver of investment decision-making, often requiring patience and a long-term perspective while waiting for situations to develop. For example, while we are already seeing the impact of climate change upon the world around us, we know the consequences of this will be far-reaching in the future.
Technological breakthrough is possibly the most significant of all the megatrends, acting as both a trend in itself and in providing the answers to some of the emerging challenges and opportunities posed by other trends. Discussions about the use of artificial intelligence, data, and robotics no longer reside in Silicon Valley and tech hubs, but instead are paving the way for change in all kinds of sectors – from healthcare, to infrastructure and retail. According to Klaus Schwab, Founder of the World Economic Forum, we are amid a fourth industrial revolution – the digital revolution – with the pace at which this is advancing set to accelerate.
Successfully identifying, analysing and acting on megatrends is essential for success in today’s world. In a rapidly changing global environment, megatrend analysis is critical for companies seeking to drive sustainable growth and remain relevant as competition increases and new ideas disrupt entire industries.
Also, employees who want to be part of the big thing need to learn and develop new skills like analytical thinking and innovation; creativity, originality and initiative; active learning and learning objectives; critical thinking and analysis; technology design and programming; complex problem solving; emotional intelligence and systems analysis and evaluation.
The world is moving forward, what are you and/or your organisation doing to catch up?