Brief descriptions of a selection of topics we are currently discussing with clients.
Update: Most Impactful from 2018
In early 2018, we proposed that five areas of change were very important and underappreciated. And because of that, these dynamics deserved heightened attention. Two years hence, the importance of these has become more recognized if not predominant. In short, The “Investment Business Restructures” has gained momentum, even in a robust investment environment, with several moves by various players designed to adjust to the restructuring. The “Actual New Economy” has intervened into the attempts by central banks worldwide to stimulate inflation and growth. The “Military Buildup,” while perhaps less apparent, has stimulated numerous moves by China, Russia, Iran, NATO and several other participants. “China Building Out” continues apace despite the focus on trade conflicts with the U.S. and “Skip-A-Step” has grown in emerging markets, providing the launching pad for greater growth going forward. Updates on all of these important dynamics will be explored.
Capital Markets Distortions - Another Version of "The Roof is on Fire"
The economic and markets effects of the aftermath of “the great recession” has led to some asset price inflation and persistently low interest rates. The distortions in markets in early-stage private companies, real estate, leveraged loans and negative bond yields, has resulted in floods of capital, from non-traditional investment groups, seeking required investment return. A number of those investment assets have rolled over and are starting to reveal risks.
(Update) The New Economy
The economy has many leaders, experts and economists confused, and it is confounding individuals and politicians as well. What most government and corporate leaders are missing is how to look at the economy. As we have written and discussed over the past two years, the American economy is heading toward a New Economy, and the many miscalculations and the extensive confusion are caused by the period of transition from the historical model to something new. Governments dedicated to lowering taxes are having to raise them; corporations focused on growth are having to dig deeper into efficiencies to realize profits; and individuals are turning to financial devices of their own to make ends meet. At present, the country’s models, processes and concepts are essentially out of line with the emerging set of conditions.
The Anxious American Life
Secular forces have helped create a New Economy in the United States - an economy with less job and income security and more wage and cost pressures than citizens had experienced in the past. Meanwhile, the pervasiveness of digital technology and digital media have created additional sources of distraction and pressure. These combined stressors have produced diffuse, long-term anxiety throughout American society. This anxiety is driving some individuals to practice unhealthy and dangerous coping mechanisms; yet others have sought more healthy and sustainable ways to adjust their lives and soothe their anxiety. Finally, some are going a step further, saying “enough is enough” and looking to change society in ways that would help reduce this pervasive anxiety.
Social and Consumer
Experience this, experience that, experiences are everywhere. Retailers, service providers, manufacturers, marketers and seemingly everyone else have been trumpeting that they offer an experience. Why? Over the last ten years, numerous consumer dynamics have aligned to make “experience” one of the most used (or overused) words of the decade. This topic is a conversation about its appeal, its hype, and what will be desired moving forward.
This Is (Almost) 40: Update On A Different Adulthood
For years, many expected that Millennials would act and spend similarly to previous generations once the economy improved. Yet many years into an economic recovery and bull market, Millennials and other young adults have their own perspectives on how to live. As we have written, long-term structural changes have blurred the lines between childhood and adulthood, resulting in a way of living that is not simply “delayed adulthood” due to the aftermath of the Great Recession; rather, it is an adulthood that has become downright “different.”
IF Dynamics and the Consumer Landscape
The Digitally Trained Consumer, The New Economy and the rethinking of Identity have led to numerous dynamics currently impacting and changing the consumer, retail, the financial industry and more.
So Much is Becoming Too Much
The New Industrial Revolution and the Battle for Consumer Time have led to an overwhelming amount of products and media from which to choose. There are now so many reviews to help with product and media decision making that they are actually contributing to the overload and indecision. The overload has now become so significant that it is starting to change consumer behavior as it relates to deciding what products to buy and what media to consume.
Work and Happiness
Attitudes about work and how to relate to it are shifting, and they are shifting rather rapidly. Just a few short years ago, for the wider society, work was seen as rewarding and meaningful; today, work is increasingly seen as boring, time-consuming and disruptive to more meaningful activities. The causes of such a wide-ranging change in perspectives are many, but they include automation, what we have called the New Economy and Rampaging Efficiencies as well as other factors, such as cultural changes in where value is placed. Being employed is increasingly seen as merely a means to an end, a way to earn income that will facilitate doing what workers really want to do outside their jobs. This will cause problems for businesses seeking to engage their employees, mostly because many corporations have often been less effective at activating employee interest in their work. Misalignment between management and employees at nearly all pay levels will result in costly conflicts.
Less of This and More of That
Consumers are becoming comfortable with buying and having less, even as they seem to be finding things that entertain them more. In the decades following the Second World War, during which time the Dispersed Wealth Grand Narrative held sway, Americans pursued growth at any cost - more clothes, larger houses, bigger profits, more energy, more comfortable cars and on and on. “More” was a mantra, and costs in terms of personal lives and the environment became substantial. As that Grand Narrative fades into history, new ways of thinking and operating are surfacing, and as a result, a new dynamic has emerged between less and more. An increasing number of individuals and companies are shifting the kinds of things they want less of and the kinds of things they want more of, and that shift is becoming a critical in consumer markets.
Companies Doing Good 2.0
From Google employees marching about sexual harassment, Kroger planning the elimination of plastic bags, Dick’s restricting gun sales, State Street pressuring companies for female board participation and Spotify downplaying hateful music, companies are looking for ways to “do good.” An examination of how and why workers and management, as well as some of the investment institutions that own company shares, are nudging various enterprises to take up certain altruistic actions, particularly in light of perceived government inaction in these arenas.
Changing Places (and Spaces)
The retail industry is still in the midst of its Great Restructuring, but elements of the next paradigm are starting to emerge. Retailers, restauranteurs, and airports are experimenting with ways to align with the Digitally Trained Consumer — specifically the desire for novelty — and the Consumer Value Hierarchy, specifically the desire for connectivity and experience. Retailers and restaurants are experimenting with design, changing the size, configuration and utilization of spaces and offering new kinds of experiences that consumers can have in those spaces.
Brands, Branding and Changing Market Dynamics
The terms “brand” and “branding” are getting more widely applied, creating confusion among consumers, who seem less and less interested in purchasing “overpriced” branded products. Thus, the rising appeal of private-label or store brands – which can be lower priced and are “good enough” for a busy consumer. With the advent of consumers armed with product information and reviews from pros and friends (and “friends”), online buying possibilities, store brand availability and the related decline in number and shrinking in size of retailers, brands face many challenges. Several old beliefs about brand names – Brand Names Sell Products, Brand Names Attract Consumers, Brand Names Enable Product Extensions and Brand Names Provide Stability – are proving harder to realize. In all, the function of a brand name is changing; its claim of superior quality is weakening; its higher prices are being challenged; new competitors are coming from everywhere; and its once stable place in the market is becoming less tenable.
Society, Reason & Emotion: Decision-Making & The Brain In Today's Context
“Our point is not that people are ignorant. It’s that people are more ignorant than they think they are.” That is how psychologist Steven Sloman and cognitive scientist Philip Fernbach explain the results of their research. Meanwhile, back in the 1950s, famed psychologist Leon Festinger described how individuals with convictions think: “A man with a conviction is a hard man to change. Tell him you disagree and he turns away. Show him facts or figures and he questions your sources. Appeal to logic and he fails to see your point.” Together these pieces of research provide insight into how humans deal with contemporary society with its widespread uncertainty and resulting anxiety. The human brain does not like uncertainty, and so it seeks out information that confirms what it already believes (and issues a shot of dopamine when confirming information is found to make that belief feel good). When the mind has reached a decision, it does not want to change because such challenges are seen as threats to one’s personal identity. These kinds of realities make decision-making more difficult to do objectively. We have some lessons learned that could guide the decision-maker interested in overcoming society’s and most people’s current biases…and ignorance.
On the Frontiers of Digital Skip-A-Step
Many emerging and “frontier” markets, including India’s, as well as several in Africa, are leaping into the twenty-first century in a process we’ve called Skip-a-Step. They are quickly following in China’s footsteps by adopting a new array of processes and consumer habits, particularly using digital and mobile capabilities, oftentimes beyond what is common in developed economies. The rapid pace and scale of this digital adoption will have profound effects on growth and the societies in which they are now taking place.
Four Tales of the Global Realignment
For over a decade, a Global Realignment has been underway in geo-politics and geo-economics, which is seeing the rise of new power centers and international institutions, the falling clout of former powers and intuitions, and the scrambling of traditional alliances. Much of this dynamic is driven by the ongoing rise of the New Autocrat style of leadership, exemplified particularly by Xi and Putin, China and Russia. In an increasingly multi-polar world, so-called “middle powers” and emerging markets are jockeying to take advantage of multiple sources of economic and geo-political support. An examination of this topic raises key questions. Who is providing leadership in the world? Who has power? Those who do are remaking the world to their benefit. An examination of four particular cases will serve to show the power of this dynamic: Iran, Huawei, Saudi Arabia, and Italy.
Characteristics of Effectiveness in a New Leadership Model is a product of shifting priorities among consumers, citizens and employees (the same person in different roles). In general, the new reality that leaders face has been outlined by another topic, “Less of This and More of That.” That outline of shifting priorities among individuals requires a different leader, one, in business, who does not have shareholder value as the top (and only) objective of what their corporations should and should not do, and one, in public institutions, who places importance across the spectrum of interests and needs of society rather than focusing on campaign contributors and ideological goals. They operate this way following three new characteristics: Problem Solver; Thought Leader; and Long-Term Strategic Thinker. Being a Problem Solver in the new model requires leaders to look outside their institutions to see what resources they can muster to solve issues that might (or even, might not) affect their institutions eventually. Being a Thought Leader means that those at the top need to think about things beyond profits and elections to offer answers to problems once thought beyond their “responsibility.” And finally, being a Long-Term Strategic Thinker brings to bear perspectives that go beyond near-term results and that offer a vision for actions today that will have long-term positive effects.
The Digital Silk Road
The Belt and Road Initiative (a.k.a. the Silk Road Project) has created a whirl of activity along the land and sea routes that are combining under Chinese leadership to create an international marketplace. Yet moving ahead of these massive infrastructure projects is another piece of the project, the Digital Silk Road. This aspect of the larger initiative seeks to expand communications and networking across the Eurasian and African continents, all pointing toward one large, global online marketplace. E-commerce drives the digital infrastructure buildout, which can move ahead via the Skip-a-Step routine much faster than the larger projects that require physical buildouts. The Digital Silk Road has generated business and deal-making in three components: Systems and Networks; E-commerce; and Payments.
Ecosystems represent an evolving model for doing business. This is especially true in emerging markets where customers are Skipping a Step to new technologies and accessing new services such as mobile banking and payments. The corporate ecosystems are attempting to offer convenience and simplicity to consumers by allowing them to access everything in one place, while also attempting to lock those consumers into a walled garden of services. Most importantly, in the process, these ecosystems are able to collect and analyze large amounts of accumulated data, allowing them to understand what consumers desire and move into new business areas where the data suggests there are opportunities.
Russia Goes After the World's Vulnerabilities
Russia has a strategy to enhance its image in the world and to expand its influence in a location it identifies as vulnerable. That strategy involves identifying a vulnerability anywhere and then exploiting it to the Kremlin’s advantage. This practically assures victory. Russia has applied the strategy to its own domestic troubles, charging and imprisoning more dissenters recently to keep the citizenry feeling uneasy. It entered the Middle East when the region seemed vulnerable to falling into a new era of chaos, asserted its military weight. Russia utilized social media to confuse, anger and divide American voters, by using its own cyber-trolls to further the cause of a candidate the Kremlin preferred. The odd thing about the strategy is it mirrors that of terrorists, who have always identified a vulnerability and then exploited it. Terrorists are fighting an asymmetrical battle, they being less powerful than the entities they attack. Is Russia admitting to a similar relationship of power? Or are its actions clever judo moves?
Global Realignment Underway: The Appeal Of The New Autocrats
A new form of autocratic leadership is ascendant globally. These leaders use strongman tactics to make quick bold decisions, which appeal to neighboring countries, while the global West remains mired in internal political struggles. This autocratic leadership is realigning the world and undermining established institutions and international networks, while creating news patterns of friendship and cooperation.
China Building Out
One aspect of China’s long-term strategy is to “go out” and invest in both emerging markets and developed countries and purchase global strategic assets. Beijing continues to consolidate state-owned-enterprises to reduce oversupply while simultaneously pursuing the long-term Silk Road Strategy by deploying their sizable foreign reserves. These strategies will impact raw materials markets, basic industries and the growth of other emerging markets. At the same time, China is investing domestically in innovation in order to develop new products and services to sell into the global marketplace.
(Update) Tracking 2.0: Monitoring and Surveillance
At least 133.5 million American adults in 31 states are now represented in a facial recognition database accessible by U.S. law enforcement, not including U.S. passport and visa photos, which are also searchable by the FBI. Countless other individuals are in facial recognition databases of tech giants like Facebook, Amazon, Microsoft and Google or smaller technology companies, such as Clear. Despite instances of pushback from employees at some of these companies, errors in the technology’s conclusions and conversations around passing regulation, experimentation with and use of facial recognition and biometric technologies continue to gain momentum, especially as they relate to venue security and making things easier and faster for the Digitally Trained Consumer.
The Streaming Deluge
The first two industries that have been impacted significantly by streaming – music and video – are both now seeing how a change in the way content is distributed is actually also changing the content itself. New areas, including retail, are just now experimenting with streaming and the impacts will likely be significant.
Mobile Payments: The Ultimate Trojan Horse
If Jack Ma is correct in saying that “data drives the internet economy,” mobile payments, where massive information sets are captured, can be the mechanism to gather that “fuel.” Mobile payments continue to expand globally, especially in underdeveloped countries, as part of the “skip-a-step” phenomena. And this information is now being utilized in loan, insurance, and “social measurement” operations.
Similar to the changes that came with the development and spread of digital broadband, 5G capabilities will usher in new applications. With faster digital speeds and reduced latency, some of those applications will include: Smart Factories; Distant Medical Treatment; Autonomous Vehicles; Advanced Facial Recognition; Advanced Virtual Reality; Video Gaming; Distant Controlled Robots; Ultra High Definition TV; Smart Agriculture and Internet of Things. All of these applications will create multiple ripple effects, especially in Manufacturing; Entertainment; Medicine and Agriculture.
Too Big To Succeed? Looking at the Future of Big Tech Platforms
For more than a decade, scale has been a key word and major driver for the big platform technology companies. Now, their size is creating problems, causing increased scrutiny and inviting competition. Have they gotten too big to succeed and can they still grow as they have in the past?
Reality Sets In
Virtual Reality, autonomous cars, artificial intelligence, voice shopping and blockchain are technologies and applications which have received tremendous amounts of investment, corporate resources and media attention. However, it is important to separate hype from reality, and in this discussion we will look at some facts and events surrounding the use and adoption of these technologies to try to understand if these are areas worth your time and attention.
(Update) From Mobile-First To AI-First
In our original look at Artificial Intelligence (AI), we explored the scramble by companies such as Google, IBM, Facebook, and Baidu to develop an “AI First” strategy as AI capabilities quickly developed and redefined how people and machines interact. Those capabilities can be categorized to include voice recognition, language processing, image recognition and pattern recognition. In this first update to our AI topic, we explore how those capabilities are now being applied in various industries, including healthcare, finance, retail, defense, automotive, and media.
(Update) Digital on Defense
In our first look on the rising scrutiny of digital media in late 2017, we looked at how industry insiders, academic researchers, and regulators were raising critical questions about the role of digital media: on the teenage brain, on general human well being, on democracy, on productivity, and the like. Now in this update, we observe a crescendo of concern coming from additional quarters: leaders of related technology companies, major advertisers, and institutional investors are all pressing for reforms of digital media, which in turn is leading some of the digital media platform companies to themselves propose and try adjustments to their algorithms and business models. Meanwhile, the public themselves appear to be questioning their use of some of these technologies, and for the first time, making adjustments to their use. This fast moving dynamic suggests potential risks for the previously can-do-no-wrong digital platforms.
Update: Battle For Consumer Time
For more than five years, new technology and changing consumer preferences have pushed media and entertainment industries into some version of the Great Restructuring. Consumers’ time has continually been divided, subdivided and spread over several screens, sometimes at once. Consumers are multitasking and spending even more time with media, which has created many winners including content providers, especially those that have shown a history of attracting audiences. Video games and esports, social media, streaming content, podcasts and social media have all taken consumer time away from other pursuits, but in this next stage, they will have to compete among themselves.
The Digitally Trained Consumer and Finance
Like automobiles before it, digital technology is creating its own reality - that is, digital tech is essentially training humans how to think, act, read, behave and experience life. From this point in time, we can see numerous things that digital tech has taught consumers, and they are causing challenges and forcing changes for any company wishing to attract those trained consumers. First, Distractions are appealing. Second, Impatience has become ingrained. Third, Expectations are rising. And finally, consumers get better at Resourcefulness. These teachings are impacting what financial products and services individuals are attracted to, and offer a roadmap for how financial companies need to interact with their customers.
Fortunes Made and Fortunes Lost: The Great Restructuring
Numerous industries – including Retail, Video, Hollywood, Grocery and Advertising – are in the midst of the restructuring process. A conversation about what we can learn from what has already transpired with investments in restructuring industries and a discussion of what opportunities and risks to look for moving forward.
Esports: Finding the Truth Between the Hype and the Reality
Among the hype and high expectations, esports are facing growing pains as companies continue to experiment with different revenue models. However, our observations also suggest an industry that is still in its early stages with increasing appeal for consumers, companies and marketers. A discussion about the present and future of the esports industry.
From Farm to Table: Food Restructuring
Technology, climate change, healthcare and ethical perspectives are converging on the food production systems that have been in place for decades. The convergence of such widespread forces is triggering an extensive restructuring of the food system, from agriculture to retail to distribution to consumption. This makes for a complex era, in which new consumer interests trigger the development of new kinds of foods, which affects farming; and conversely, new kinds of food production methods lead to new kinds of restaurant offerings, which affect what consumers eat. As a result, this restructuring is prompting a period of price and product volatility, and that could cause some surprise successes and failures.
(Update) A New Video Paradigm
In October 2018, DAZN (pronounced da-ZONE), an over-the-top (OTT) sports provider run by former ESPN president John Skipper, signed boxer Canelo Alvarez to a $365 million contract, the richest individual deal in sports history. In a first, the average U.S. adult is likely to spend more time using mobile devices than watching conventional TV, including broadcast, cable, or other over-the-air channels live or on DVR, according to an early June report from eMarketer. Already, viewers in the 18-to-34 demographic spend a greater share of their media-consumption time using a smartphone than a TV. All of these suggest a continuation of the New Video Paradigm context which we wrote about last summer. At the time, we suggested that this new paradigm consisted of providing video to consumers “when they want it, where they want it and how they want it” and would be centered on expanded OTT video offerings, including sports and news. The continuing consumer adoption of OTT services and video streaming is only one part of the story, however. Over the past year, content providers and video distributors have accepted this new paradigm and there is now an acceleration of business-model experimentation and advertising for streaming video.
Retail 2020 and Beyond
Over the past decade, digital technology has become ubiquitous and in the process it has “trained” consumers in how to behave and has reset their expectations. Consumers demand convenience and speed while they also seek novelty and expect personalization. Individuals also have changed their values and perspectives as it relates to sustainability, which has led individuals to become satisfied with access to goods that previously had to be owned. Meanwhile, the retail industry has spent almost a decade scrambling to restructure in the face of lower barriers to entry, changing consumer preferences and the rise of online shopping. This topic explores the current state of the retail industry and where it will go from here.
The Great Restructuring: Where We Stand
The financial, print and auto industries are among the many areas that are participating in what we have called The Great Restructuring. These industries have been following a three-stage process for change identified by physicist Thomas S. Kuhn over 50 years ago; normalcy, an era of accepted wisdom; crisis and experimentation, an era in which too many anomalies make accepted wisdom no longer effective and in which new ideas and methods start circulating; and then, a new effective structure emerges. This will be an examination of where numerous industries currently stand in the process of the Great Restructuring, and why, for management, things really are different this time.
Lasers, Drones and Cyber Attacks: Advance of the New Warfare
The world has recently witnessed the rapid spread of a New Autocratic style of leadership, rising brinkmanship and proactive military actions, yet there is still no country that can match the military power of the U.S. in terms of conventional weaponry. Therefore, countries and insurgent groups, ranging from those as large as China to those as small as ISIS, are attempting to adopt capabilities of the “new warfare” including high-energy weapons such as lasers, unmanned vehicles such as aerial drones, and cyber attacks. Other countries, including the U.S., are responding by investing in ways to counter these threats.
Update: Healthcare and the Digitally Trained Consumer
Digital technology has trained individuals to be impatient; to desire convenience and ease; to expect access to information; to have elevated expectations about the speed, accessibility and personalization of services; and to be resourceful in pursuit of what is in their best interests. The retail drug sales business has been playing catch-up with other forms of retail in its attempt to offer fast and convenient omnichannel services, while hospital networks and other providers are attempting to offer patients more convenient options through telemedicine platforms. The law and insurance coverage are still expanding in the U.S. to cover more telehealth services, as payers recognize that telemedicine can lower costs and provide more convenient care.
Telemedicine Hits Its Stride: Healthcare and the Digitally Trained Consumer
As a whole, the healthcare industry is looking for ways to align with the Digitally Trained Consumer to deliver digitally enabled healthcare products and services. Operating in a highly regulated, high-cost, information-restricted, and deeply personal environment, this digital way of operating that transformed retail and other industries has been slower to restructure healthcare. However, in recent months, a variety of providers, ranging from hospital networks to insurers to drug stores have ramped up ways that their operations can align with the traits of the Digitally Trained Consumer, in part to offer faster, more efficient, and more convenient access to healthcare products and services, through a variety of smartphone apps, omnichannel retail systems, online portals, and telemedicine/telehealth systems.
The New Business Model: The Customer Ecosystem
Alibaba, one of China’s largest enterprises, is currently involved in at least twelve different areas of business. From education to e-commerce, from finance to the cloud, from entertainment to logistics and from sports to tourism – Alibaba is spreading out horizontally. While Alibaba and Amazon own companies that make things, they also both have marketplaces that enable other people and companies that make things to take advantage of their (Alibaba’s and Amazon’s) logistics and delivery mechanisms to market goods. These companies and others like them are not just focused on a specific set of market relations; rather they are creating a new business model around ecosystems – that is networks of companies focused around consumers’ wants and needs. These companies’ horizontal growth, as they jump into new industries and across traditional categories of enterprises, outmaneuvers traditional monopoly laws; yet their influence is enormous.
(Update) The Great Distribution Experiment
It has been four years since our inFocus, “Retail Restructuring: The Great Distribution Experiment,” and companies are still trying to figure out the best and fastest ways to get packages into the hands of customers. This update contains new examples of how retailers are trying to respond to current consumer demand to receive their items how, when and where they want it, with implications for retailers, distributors, warehouses and technology providers.
The fast-developing Digital Silk Road has an important distribution/logistics component. The developments of capabilities and new technologies and approaches are explored.
The Rise of EVs
The auto industry, already dealing with numerous secular changes, now has another significant shift to deal with., electric vehicles. Nations across the globe are adopting requirements for hybrids and full-electric vehicles and with sales likely to increase substantially over the next few years, there are many implications for auto companies, auto suppliers, and the makers of batteries and components, among others.
(Update) The Cyclical and Secular of Autos
The auto industry is facing two different realities, one cyclical and one secular. The industry posted record sales numbers in 2015, but a closer inspection of leasing terms and delinquency rates in 2016 forewarned a turning point in the U.S. auto market that has now come to pass. Those realities are continuing in 2017 and suggest ongoing cyclical weakness. At the same time, car companies have decided that “the writing is on the wall,” changes in driving habits are secular, and they will need to adjust business models and product lines accordingly. In an attempt to not be disrupted like many entrenched companies in other industries, the big global auto-makers are heavily investing in both transportation services (offering access over assets) and in-car technology, including autonomous and semi-autonomous driving features.
Energy and Resources
Bring On The Greens
Extreme weather has been triggering extreme reactions, as more and more individuals realize that climate change is real and that humans have a need and a responsibility to take action. Schoolchildren walked out of classes twice this past spring to protest the lack of action by adults to preserve their future on Earth. Other groups have started to take action as well. The result is that at the individual, corporate and governmental levels, doing something to address climate change has moved to the front burner. What is intriguing about this spreading attitude among such a large swath of society is that it could represent another step toward a new grand narrative, a context of unified purpose that over the decades can guide society forward. For the moment, both public and private institutions are feeling the pressure from individuals (as customers, as employees and as citizens) to take action.
Scrambling, Restructuring and Realigning: Energy and Military
For over a decade, a Global Realignment has been underway in geo-politics and geo-economics. This realignment has seen the rise of new power centers and international institutions, the falling clout of former powers and intuitions, and the scrambling of traditional alliances - all of which impact the energy and military industries. At the same time, the two industries have been undergoing Great Restructurings, due to the effects of permeable borders, globalization and digitization.
Evergreens and One-Offs
Intelligence, Diagnosis and Effective Decision Making
New digital media communications get shorter and shorter, moving from Web pages and blogs to text messaging and Twitter posts. Those shorter communications technologies along with all digital technology are reprogramming the human brain. New-media adopters have found it easy to place three barriers between themselves and those who would like to communicate with them: Receptivity, Selectivity and Connectivity. To overcome these barriers, anyone wishing to communicate with the digitally adept must focus on these users’ minds first and then think about the technology, which may be uncomfortable for advertisers and agencies.
Unaddressed Consequences: The Risks of Not Following Cause & Effect to the End of Linked Systems
This context raises the issue of elevated risks derived from interlinking complex systems with other complex systems. The human mind wants to make things easy and simple, and so, those in control of these systems often launch projects with an eye only on short-term benefits, choosing not to focus on the more difficult yet possibly more costly long-term consequences. “Who could have known that…” or “I was not aware that…” are usually later public comments. They are, so to speak, living with technological and financial changes without fully embracing the range of consequences.