The structure and dynamics of the global economy are changing rapidly.
Despite the ups and downs in individual economies, emerging markets as a group continue to grow at three times the pace of developed markets. By 2025, they will account for over half of the world’s GDP.
The diffusion of mobile broadband to every corner of the earth continues to make cross-border collaboration easier, cheaper, and more ubiquitous. And, the technology revolution continues unabated - electric and/or autonomous cars, wearable computing, genetic engineering, shale oil and gas, human-scale robots, etc.
These developments will lead to the disruption of industries at an even faster pace than what we’ve seen over the last decade.
Given these developments, what must today’s corporations do to emerge or remain as the global leaders in their industries ten years from now? The answer lies in:
- rethinking global strategy i.e., commitment to emerging markets, atomization of the value chain, and leveraging global platforms to create highly customized local solutions;
- rethinking global innovation i.e., 360-degree innovation, distributed innovation, open innovation, and frugal innovation;
- rethinking global organization i.e., connect-and-coordinate rather than command-and-control plus a strong one-company culture;
- and globalizing the corporate mindset i.e., cultivating leaders who combine in-depth knowledge of key markets and cultures with an ability to connect the dots globally.