Part 5 of the six-part blog series “Facts on the Future of Business”
Innovation in the business world is accelerating exponentially, with new disruptive technologies and trends emerging that are fundamentally changing how businesses and the global economy operate. To adapt, thrive, and innovate, we all need to be aware of these evolutionary technologies and trends and understand the opportunities or threats they might present to our organizations, our careers, and society on a whole.
With this in mind, I recently had the opportunity to compile 99 Facts on the Future of Business in the Digital Economy. This presentation includes facts, predictions, and research findings on some of the most impactful technologies and trends that are driving the future of business in the digital economy.
To help simplify your ability to find facts for specific topics, I have grouped the facts into six subsets, and below is the fifth of these:
With the coming and going of ice ages over the last 400,000+ years, CO2 in the earth’s atmosphere fluctuated between 180 ppm and 300 ppm. However, CO2 levels have skyrocketed and now exceed 400 ppm for the first time in recorded history.
Source: “The Relentless Rise of Carbon Dioxide,” NASA Global Climate Change: Vital Signs of the Planet.
New digital technologies can enable a 20% reduction in global carbon emissions by 2030. This is equivalent to eliminating 100% of China’s CO2 emissions, plus another 1.5 billion tons.
Source: “SMARTer2030: Australian Opportunity for ICT Enabled Emission Reductions,” Telstra Corporation.
In the last two decades, 9.6% of the earth’s total wilderness areas has been lost, an estimated 3.3 million square kilometers.
Source: “Catastrophic Declines in Wilderness Areas Undermine Global Environment Targets,” Current Biology.
Many Latin American governments are turning to artificial intelligence to aid in their forest conservation efforts.
Source: “10 Innovations That Are Changing Conservation,” Cool Green Science.
Air pollution continues to rise at an alarming rate, and now 92% of the world population is exposed to air pollution above WHO air quality guidelines.
Source: “Ambient Air Pollution: A Global Assessment of Exposure and Burden of Disease,” World Health Organization.
Every year, nearly 600,000 children under the age of five die from diseases caused or exacerbated by the effects of air pollution.
Source: “Clear the Air for Children,” United Nations Children’s Fund (UNICEF).
GDP per capita has increased roughly 1,000% since the 1970s.
Source: “GDP Per Capita,” The World Bank.
CEO pay has risen 1,000% over the past 40-plus years.
Source: “World Economic Forum Annual Meeting 2017: Responsive and Responsible Leadership,” World Economic Forum.
But average worker pay has increased just 11% since the 1970s, essentially stagnating over the past 40-plus years.
Source: “The Productivity–Pay Gap,” Economic Policy Institute.
If ordinary citizens don’t have incomes to buy products made by corporations, how can those corporations prosper? The IMF found countries with less inequality perform better.
Source: “Nobel Economist: One-Percenters, Pay Your Taxes,” CNN.
Although GDP growth is an indicator of progress, it has concealed growing inequality. Economies need a balanced scorecard that also assesses and prioritizes quality of life across the population.
Source: “An Economy for the 99%,” Oxfam International.
By broadly addressing gender equity at work and in society, the world could add $12 trillion to annual gross domestic product in 2025.
Source: “Realizing Gender Equality’s $12 Trillion Economic Opportunity,” McKinsey Global Institute.
The 43 public companies in the DiversityInc Top 50 were 24% more profitable than the S&P 500 average.
Source: “Cultural Diversity in the Workplace: How Diversity at Work Makes More Money for You,” The Balance.
Migrants make up just 3.4% of the world’s population, but they contribute nearly 10% of global GDP. Today, immigrants earn 20% to 30% less than native workers, but if countries narrow this wage gap by just five to 10%, they could generate an additional $1 trillion in global economic output.
Source: “Global Migration’s Impact and Opportunity,” McKinsey Global Institute.
In initial tests, a machine-learning algorithm created at Carnegie Mellon was able to predict heart attacks four hours in advance, with 80% accuracy.
Source: “Of Prediction and Policy,” The Economist.
Artificial intelligence can predict where epidemics will happen. AIME developed a platform with 87% accuracy in predicting dengue fever outbreaks three months in advance. Now they hope to similarly target other diseases, such as Ebola and Zika.
Source: “Artificial Intelligence Innovation Report,” Deloitte.
An estimated 45.8 million people are trapped in some form of slavery in 167 countries.
Source: “Global Findings,” Walk Free Foundation: The Global Slavery Index.
Advanced analytics and Big Data are enabling coordinated efforts to combat human trafficking networks and rapid responses when victims are located.
Source: “Tracing a Web of Destruction: Can Big Data Fight Human Trafficking?” HBS Digital Initiative.
Two billion individuals and 200 million small businesses in emerging economies lack access to basic financial services and credit. Broad adoption of mobile banking in developing nations could create 95 million new jobs and increase GDP by $3.7 trillion by 2025.
Source: “How Digital Finance Could Boost Growth in Emerging Economies,” McKinsey Global Institute.
Patients dying while waiting for an organ donor could soon be a thing of the past. By 2030, organs will be biologically 3D-printed on demand.
Source: “Healthcare in 2030: Goodbye Hospital, Hello Home-Spital,” World Economic Forum.
On the edge of the Sahara, Morocco is building what will be the world’s largest solar power plant, capable of providing energy even after the sun sets.
Source: “Morocco Unveils A Massive Solar Power Plant in the Sahara,” NPR.
Morocco plans to generate 14% of its energy from solar by 2020, and hopes to eventually export solar energy to Europe.
Source: “The Colossal African Solar Farm That Could Power Europe,” BBC.
An extremely large city can lose as much as 500 billion liters of drinking water each year through leakage.
Source: “Water and Cities – Facts and Figures,” United Nations.
More than 300,000 billion liters of water could be saved globally by using new information and communications technologies to increase resource management efficiencies.
Source: “Quantifying the Opportunity,” Global e-Sustainability Initiative (GeSI).
Barcelona uses the IoT to optimize urban systems and enhance citizen services. To date, it has saved $95 million annually from reduced water and electricity consumption, increased parking revenues by $50 million a year, and generated 47,000 new jobs.
Source: “How Smart City Barcelona Brought the Internet of Things to Life,” Data-Smart City Solutions, Ash Center for Democratic Governance and Innovation at Harvard Kennedy School.
By 2019, 40% of local and regional governments will use the IoT to turn infrastructure such as roads, streetlights, and traffic signals into assets instead of liabilities.
Source: “IDC FutureScape: Worldwide Internet of Things (IoT) 2017 Predictions,” IDC Research Inc.
Global urban populations will add 2.5 billion people by 2050. This massive urban expansion will require as much as $70 trillion in infrastructure spending.
Source: “In a Fast-Changing World, Can Cities Be Built with Long-Term Perspective?” EY.
Global debt has more than doubled since the turn of the century to $152 trillion and now represents a record high 225% of global GDP. This creates a vicious feedback loop in which the debt overhang exacerbates the economic slowdown and lower economic growth hampers deleveraging.
Source: “The IMF Is Worried About the World’s $152 Trillion Debt Pile,” Bloomberg.
Trust and corruption
93% of CEOs believe it’s important to engender trust that their company “will do the right thing.”
Source: “Connecting the Dots: How Purpose Can Join Up Your Business,” PwC.
72% of people feel that companies have become more dishonest.
Source: “The State of the Debate on Purpose in Business,” EY Beacon Institute.
There is a growing level of distrust: only 15% of people believe that society’s institutional pillars (government, businesses, media) are working for the common person.
Source: “2017 Edelman Trust Barometer,” Edelman.
Leading up to the U.S. election, the top fake news stories on Facebook generated 20% more engagement than factual stories.
Source: “This Analysis Shows How Fake Election News Stories Outperformed Real News on Facebook,” BuzzFeed News.
Bribery reduces global GDP by $1.5 trillion to $2 trillion each year, as it drives suboptimal business decision making, corrupting economic performance.
Source: “Corruption: Costs and Mitigating Strategies,” International Monetary Fund.
To combat corruption and tax evasion in its cash economy (only 2.6% of its citizens pay taxes), the Indian government devalued 80% of its currency in three hours.
Source: “Demonetization | This Is a New Indian Sunrise,” DNA India.
India could eliminate the need for credit cards, debit cards, and ATMs in three years by switching to biometric payments, as nearly 1.1 billion citizens have already registered their biometric data.
Source: “First Cash, Now India Could Ditch Card Payments by 2020,” CNN.
In a study of 100 variables, seeing purpose and value in work was the single most important factor that motivated employees. Yes, more than compensation.
Source: “Purpose Trumps Cash + Other New Research Findings,” LinkedIn.
75% of millennials would take a pay cut to work for a socially and environmentally responsible company.
Source: “2016 Cone Communications Millennial Employee Engagement Study,” Cone Communications.
Only 13% of employees worldwide are engaged, meaning that the other 87% are not involved in, enthusiastic about, and committed to their work and company.
Source: “The Worldwide Employee Engagement Crisis,” Gallup.
Companies with engaged employees outperform their peers by up to 202%.
Source: “The Importance of Employee Engagement,” Dale Carnegie Training.
How millennials want to work and live is a problem leaders need to take seriously. Just 40% of millennials feel strongly connected to their company’s mission.
Source: “Millennials Not Connecting With Their Company’s Mission,” Gallup.
During the next year, one in four millennials plans to leave his or her current employer, and by 2020, two in three millennials expect to have found a new employer.
Source: “The 2016 Deloitte Millennial Survey – Winning over the next generation of leaders,” Deloitte.
Organizations in which employees perceive meaning at work are 21% more profitable.
Source: “Meaning@Work, Leadership in times of digitization,” Future of Leadership Initiative.
87% of millennials say that they base their purchasing decisions on whether or not a company makes positive social efforts.
Source: “Why Millennials Care About Purpose-Driven Business,” D!gitalist Magazine.
To view all of the 99 Facts on the Future of Business in the Digital Economy, check out the Slideshare or other subsets below.
To see the rest of the series, check out our page “Facts on the Future of Business,” every Thursday, and we will cover the six topics:
- The value imperative to embrace the digital economy
- Technologies driving the digital economy
- Customer experience and marketing in digital economy
- The future of work in the digital economy
- Purpose and sustainability in the digital economy
- Supply networks in the digital economy