goodbte nation state - hello super city? #icca12 wednesday 24/10/2012

Jan Sturesson, Partner Global Leader Government and Public Services

ICCA Conference 2012

San Juan, Puerto Rico ____________

www.pwc.com/se

Goodbye Nation State – Hello Super City?

PwC

Issues to reflect upon for the future...

Are we uploading or down loading the meeting industry?

Do we lead in the new interfaces and in-between spaces - x industry and setting the future agenda?

Are we creating or consuming a legacy?

Are we measuring input/output or outcome/impact for the meetings industry?

What is the opportunity cost of not having good meetings?

Do we think “out-sourc” or “in-sourc” in our industry?

What does high tech silver potentials (65+) means for the meeting industry in the future?

2

PwC

Meeting Industry Focus – reed or blue ocean…

3

Hosting Cities Economic Growth

Meeting Participants Cities Economic

Growth

Focus on Meeting Industry

Focus on Meeting Participants

Industrys

PwC

New maps – New perspectives…

Figure 1: Global Distribution of Population

Source: The Rise of the Mega-Region Richard

Florida, Tim Gulden & Charlotta Mellander

Figure 2: Global distribution of Economic Activity (LRP)



Figure 3: Global distribution of patent activity



Figure 4: Global distribution of star scientists (highly cited science authors)



It is all about cities….or….

“There is no question that cities are the engines of economic growth and centres of dynamic social and cultural activities and development, although there

exist some contrary messages like the future lies in a living country side….”

John Naisbitt

Author and Futurist, USA

PwC

• Urbanization or Rurbanization - urban meets rural • From mega to meta - bigger and bigger… sprawl and

density... • Greener – “a city in a garden”... (Singapore) • Without cars... • Integration - working, playing, shopping, living.. • Smarter – applying new technologies • Building a “collaboratory” for growth and innovation

PwC - Thought Leadership – Cities and Regions

PwC 18

How do they rank overall

24-San Francisco

15-Los Angeles

20-Chicago 25-Toronto

26-New York

16-Houston

7-Mexico City

3-São Paulo

6-Santiago

2-Johannesburg

22-Sydney

18-Singapore

17-Hong Kong

13-Tokyo

11-Seoul 10-Beijing

8-Shanghai

1-Mumbai

9-Abu Dhabi

5-Moscow

23-Stockholm

14-Berlin

4-Istanbul

19-Paris

12-Madrid

21-London

High

Medium

Low

Cities of Opportunity - What makes the difference?

PwC

Indicator Rankings

19

Indicator Best performing

Intellectual capital and innovation

Stockholm

Technology readiness New York

Transportation and infrastructure

Paris

Demographics and livability Stockholm

Economic Clout London

Cost Houston

Lifestyle Assets New York

Health, safety and security Stockholm

Ease of doing business Hong Kong

Sustainability Berlin

PwC

BIG is beautiful… MEGA EVENTS!!!

Mega events providing an impetus for accelerated development & transformation

“We will make close to 40 years’ worth of investments during a 5-year period”

Eduardo Paes, Mayor of Rio de Janeiro

Bus rapid transit

Port zone revitalisation

Urban regeneration of Brazil’s shanty towns (‘favelas’)

“The Universiade will compress an entire decade of development into a few years for the

city of Kazan and the wider region” Vladimir Leonov, Executive Directorate Chief for Kazan 2013

New road, rail & telecommunications infrastructure

High-speed rail link from Kazan to Moscow, which is 450 miles away

“It’s clear that hosting the Games is already leading to major economic, environmental, and social transformation...”

Dmitry Chernyshenko, CEO & President of Sochi Organizing Committee

http://en.wikipedia.org/wiki/File:Rio_2011Military_Games.png

http://www.sochi2014.com/en/

Formula 1’s First Night Race in Singapore

Injected S$600 million into the economy

Over 150,000 international visitors

Since the inaugural night race in 2008…

Enhances Singapore’s image as a place to both work and play in

195 million ‘live’ television viewers worldwide tuned in during the races

Tourism receipts amounted to more than S$260 million in the first two races alone

Puts Singapore in the world’s spotlight for several years

International recognition as a city of excellence

World Cup 2010 in South Africa

Over 300,000 tourists during the World Cup…with 90% wanting to visit South Africa again

Generated R3.64 billion worth of tourist spending

Led to the development of South Africa’s first high speed rail link, the Gautrain

Awareness of South Africa as a leisure destination increased by 9%

Improved perceptions regarding safety and security and as a value-for-money destination

Growing interest in FDI in South Africa since winning the bid

Consumer confidence at its highest in two years

Renewed sense of national pride

London Olympics 2012

Net increase in tourist visits of 10.8 million between 2005 and 2017

Generate a £2 billion contribution to GDP & support over 61,000 additional years of employment

London will receive majority of these benefits… but all of the UK’s nations and regions gain 41,000 years of employment supported outside the capital

Increase host country’s residents’ happiness – temporary feel good factor, national pride, etc -> increases in consumer confidence and spending

Provision of 3,850 new affordable homes as a physical legacy

Better health, fewer lost working days, lower NHS costs, reduced costs of crime = £50 to £130 million per annum

82%

12%

6%

£16.5 billion contribution to UK GDP spread over 12 years

Construction Tourism Games-related expenditure

Construction

84%

Tourism 16%

354,000 years of employment

Source of information: Oxford Economics (2012) “The Economic Impact of the London 2012 Olympic & Paralympic Games”

Manchester investing £100m to boost sporting credentials

Now MCFC (Manchester City Football Club) is investing in a

£100m state-of-the-art training complex

Named as the world’s “Best Sports City” by sports industry experts

Singled out as the destination that generated the “Best

Legacy” from its sports events

• World-leading institute of sports science & medicine

• 17 football pitches • 7,000 capacity stadium • Youth academy with classrooms &

accommodation • Sixth-form college & leisure centre

PwC

Global trends impacting the meeting industry

Mega – mega, terra or giga trends…

• Uncertainty – the new normal Disruptive futures…

• Globalization and localization Glocalisation

• Competition & Collaboration Co-opetition

• Urbanization 2.0 Mega cities Rurbanization…?

• Sustainability and Climate change need for holistic approach

• Hi-tech (www) & Hi-touch (experience)

• Mobility & Connectivity

• Individualization

• Transparency

• Migration

• Demographic changes - ageing

PwC

Collaboration

Competition

Local

Approach

Global

approach

•Glocalization

• Co-opetition

Local competition or global collaboration…

28

PwC

Competition… of: People – citizens, visitors, talented entrepreneurs

Money – consumers, investment and venture capital

Companies – creating jobs for people, adding value to city brand

Meetings events and exhibitions – in the areas of sport, politics and business and...

Attention – who recognize us...

Engagement – participation

Creating a corporate identity and city brand that burns adding to future dreams and exiting stories, feelings

emotions and great atmosphere...

PwC

Come to us…

30

-

20

40

60

80

100

120

140

160

180

200

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Top 10 cities where meetings take place

Vienna

Barcelona

Paris

Berlin

Singapore

Madrid

Istanbul

Lisbon

Amsterdam

Sydney

Source: ICCA Statistics Report 2001-2010

Will we olso see more of this in the future?

31

Are we going to be seeing this built?

32

PwC

Slide 36

Seminarium Region Skåne

2009 01 22 Jan Sturesson

Visionsförverkligande – storstäder och dess omgivningar

5. Mer Beröring genom spännande intryck & upplevelser (Eskapism)

PwC

Generation I

38

• Individualistic • Informal • Interactive • Informed • Innovative Intellectual capital (IC)

Different ways of reaching the creative meeting participants

Mass customisation

Personalisation

Standardisation Segmentation

Highly differentiated

Mass market approach

Customer-centric

approach

Less differentiated

Where should the future of meetings industry be?

Meetings Technology Trends to Watch out for...

3D Technology,´Hologram and real virtuality!! There is no such thing as a “virtual beer..”

Increasing number of free or low-cost apps for events & trade shows

Significant adoption of mobile technology for events...Allowing for real-time distribution of conference information, better attendee analytics, lower-cost survey/polling options, enhanced attendee experiences etc

Proliferation of DIY mobile event apps

HTML5 becoming the standard for many event mobile applications

Cheaper, faster & more capable conference recording & distribution

Rise of hybrid meetings – extending the reach & broadening the impact of face-to-face events...Combines both face-to-face & virtual experience for local & remote attendees

Near Field Communication (NFC) providing streamlined connectivity & services for events...enabling communication between devices when they touch

Use of social publishing tools (e.g. YouTube) to promote & manage meetings & to engage attendees

Use of social gaming tools to engage face-to-face & virtual event attendees

iPads & tablets providing a new medium for accessing data at events

Free, easy to access Wi-Fi increasingly expected by meeting planners

Use of IPS “Indoor Positioning Systems” to assist way-finding & navigation in events & trade shows (Spot Me as app)

Meetings provide a vastly richer, more targeted, and more focused learning experience than any virtual meeting.

Source: Corbin Ball Associates, ”12+ Meetings Technology Trends to Watch for ”, ICCA Intelligence, Vol 36

We are virtually here…

41

juni 2012

PwC

APPSolutely…

42

CO2 calcylator Event & destinations

apps

IPS

Indoor

Positioning

System

44

juni 2012

Society Development linked to Business Development - step by step and parallell…

Type of Society Most Important Assets

Hunter Wild animals

Agriculture Animals, fishes, land…

Industrial Steel and iron … oil….

Information Data

Knowledge Creativity & innovation

Experience Visions & dreams

Participating Engagement & time

Inspiration from Dream Society, Rolf Jensen

The ”emerging markets” in the Experience Society

Market Driving force

Adventure Experience society

Fellowship Tiredness of individualism…

Care The aging population

Who am I Identity / youth culture

Peace of mind Meaning, context, wellbeing and happiness

Convictions Stories & transparency

Inspiration from Dream Society, Rolf Jensen

Lower service, higher cost, but greater value…

Lower service, higher cost, but greater value…

Hand mill

You

PwC 49

IC is a powerful economic driver globally and are

being developed in the meeting industry…

IC is more than a good idea or metaphor… it is a new reality linked to

innovation…

PwC 50

PwC

Intellectual Capital factors Relational Capital Customer Relationships Supplier Relationships Public Relationships Investor Relationships Relationships to Co-

operation Partners

Human Capital Professional Competence Social Competence Employee Motivation Leadership Ability

Structural Capital Internal Co-operation and Knowledge

Transfer Management Instruments IT and Explicit Knowledge Product Innovation Process Optimisation and Innovation Corporate Culture

Intelligence Capital Creative Social Renewal Social Intelligence Culture of Openness Visionary Leadership Cohesive Society Self-Governance Connectivity & Digitalisation Experimentation & Learning

Individuals

Organisations

Society

Adapted from Fraunhofer IPK, Berlin 2011

PwC 52

PwC

Emerging Wave of 6th Generation

A

B

Technology as the Asset

Customer as the Asset

Knowledge as the Asset

Project as the Asset

Enterprise as the Asset

I

II

III

IV

V

Future as the Asset

VI

Adapted from Charles Handy’s Sigmoid Curve with Leif Edvinsson

PwC

A new landscape - Emerging Industries

Emerging Industries

…and Service Innovation…

From traditional industries to...

Slide 56

Cluster

Banking & capital market

Asset Management

Financial services

Insurance

Government/ public services

Pharmaceuticals & life sciences

Healthcare

Chemicals

Aerospace & defence

Engineering &

Construction Industrial

manufacturing

Metals

Automotive

Energy, utilities &

mining

Forest, paper &

packaging

Hospitality & leisure

Retail & consumer

Technology

Entertainment & media

Communications

Transportation & logistics

Industry Clusters ...

Slide 57

October 2011

Cluster


Asset Management

Financial services

Insurance



Healthcare

Chemicals

Aerospace & defence

Engineering &


manufacturing

Metals

Automotive

Energy, utilities &

mining

Forest, paper &

packaging


Retail & consumer

Technology


Communications


Tourism

Cluster

Aerospace & Defence Cluster

Biocluster

Financial Services Cluster

ICT

Cluster

To “Issue Based Industries”

Slide 58

October 2011

Cluster


Asset Management

Financial services

Insurance



Healthcare

Chemicals

Aerospace & defence

Engineering &


manufacturing

Metals

Automotive

Energy, utilities &

mining

Forest, paper &

packaging


Retail & consumer

Technology


Communications


Creative Industries

Wellbeing and

welfare

Mobility Industry

Eco

Industries

Agri, food &

Water

Tourism

Cluster


Biocluster


ICT

Cluster

To “Issue Based Industries”

Slide 59

October 2011

Cluster


Asset Management

Financial services

Insurance



Healthcare

Chemicals

Aerospace & defence

Engineering &


manufacturing

Metals

Automotive

Energy, utilities &

mining

Forest, paper &

packaging


Retail & consumer

Technology


Communications


Creative Industries

Wellbeing and

welfare

Mobility Industry

Eco

Industries

Agri, food &

Water

Tourism

Cluster


Biocluster


ICT

Cluster

Meeting Industry

PwC

New industry configurations Identified based on financial transactions between firms

Eco

industries

Publishing

Media

Maritime

Creative

industries

R&D in

Biotechnology

Transport

Recovery &

Recycling

Energy

New

Materials

Business

Services

ICT & Mobile

Services

Construction

Manufacturing

Civil

Engineering

PwC

Key emerging industries (KEI) Employment, turnover and value added

What are today’s mega-trends in industrial transformation and how to spot them

61

19 April 2012

Construction

Creative industries

Eco industries

Experience Industries*

Finance*

Food

Personalised Medicine*

ICT & Mobile Services

Management & Business services

Maritime

Mobility

New Materials

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

5 10 15 20 25 30 35

Tu

rno

ve

r (E

UR

mil

lio

n)

Employment (millions)

Value added (EUR million)

500 1,000 1,500

Source: Eurostat (2009)

* The figures significantly underestimate the

sizes of these industries due to partial data availability

PwC

New emerging industries - list of industries identified - including enabling industries...

Business and Management Services

Construction

Creative industries

Eco industries

Experience industries

Finance

62

Agri, Food & Water


Maritime

Mobility New Materials

Personalised Medicine

PwC

New emerging industries - list of industries identified - including enabling industries...

Business and Management Services

Construction

Creative industries

Eco industries

Experience industries

Finance

63

Agri, Food & Water


Maritime

Mobility New Materials

Personalised Medicine

The meeting industry has significant contribution to national economies

USA: Canada:

• Other ongoing impact studies: UK, Denmark, Brazil

• A National Business Events Strategy for Australia 2020 is also being prepared to address concerns about challenges and changes impacting Australia’s performance as a business events destination

$907 billion

total industry output

205 million

participants

1.79 million meetings

1.7 million

jobs

$263 billion direct

spending

$71.7 billion

total industry output

70.2 million

participants

671,000 meetings

583,500 jobs

$32.2 billion direct

spending

PwC (2011) ”The Economic Significance of Meetings to the US Economy”

Maritz Research Canada (2008) ”The Economic Contribution of Meetingss Activity in Canada”

PwC

Time for next level of innovation…

Meetings are becoming smaller, shorter, more

frequent, greener and more high tech…

PwC 67

Shaping the future of Travel and Meeting Industry by tradition…

How many seeds are there in an apple?

PwC 68

Shaping the future of travel and meeting Industry by innovation...

How many apples are there in an seed…

PwC

Meeting Industry Focus – reed or blue ocean…

69

Hosting Cities Economic Growth

Meeting Participants Cities Economic

Growth

Focus on Meeting Industry

Meeting Participants

Industry

PwC

Industry development in the knowledge economy…

”The knowledge economy stipulates an increasing and growing, not decreasing, return on investment – the

multiplication factor…”

Meeting

Traditional economy Decreasing value and revenues …

Knowledge economy Exponential increase of value and growth!

Time

Value

What will make the difference?

Brian Arthur (Santa Fe Institute), Paul Romer (Stanford) & Leif Edvinsson (Lunds Universitet & Hong Kong Polytechnic)

PwC

Industry scenarios

71

Short-term – Focus on Logistics and

COST

Long-term Focus on Future Innovation

VALUE

Meeting- Industry

Focus

Cross Industry Collaboration

Focus • Input, cost estimates,

investments • Internal industry

cooperation • Outsourcing

• Impact on hosting city

• Focus on meeting industry

• In-sourcing

• Collaboration with external stakeholders – facilitating a good meeting

• C B – strategic coordination for all activities

• Focus on impact of local

and global growth

• Focus on meeting and past meeting outcome/impact for other industries as well

• Meeting as a part of the innovation system

PwC

Return on investment – From out Internal Output to Society Impact...

Input

Return /

Output

Outcome

Impact

Impact - Business, industry

and societal growth in financial and non-

financial terms

Outcome – New ideas and

solutions, formation of relationships &

networks

Output – Meeting engaging

participants, organisers & second-

tier stakeholders

Input – Time, money, energy, effort

PwC

What is a meeting - Value proposition?

73

A conversation and exchange of

ideas? A political activity?

Time for up and down loading?

Relationships building

A generator of visions and

dream?

A knowledge- and wisdom accelerator

A human interface and

space for innovations

Functions

PwC

What is Business travel is – Value proposition

Incentives? Trust & relationship

building?

Revenues and profit creation process?

A cost or an investment creating

value?

Just working & preparing?

New

Experiences? Relaxing and

resting - eating and drinking?

Effective use of time or? Functions

PwC

A Business Conference is – Value proposition and business model?

75

Relationship place

Meeting place

Business place

Social intelligence

place

Innovations

Place

Knowledge place

Functions

PwC

From Triple to Penta helix – X sector collaboration

PwC

From Triple to Penta helix – X sector collaboration

PCO

DMC AMC

CC

CVB

PwC

Opportunity space for Mobility next step…

Future of Meeting Industry

Private sector

Cities

Entrepre-nors

Not-for-profit

Academia

Tourism

Food

Universities

Research institutions

Targeting issues

Mobilising change

Engagement & support

Transport

ICT…

A strategic approach for connecting stakeholders for smart and better meetings for sustainable growth

Leaders

for the in-between spaces

Aviation Automotive

PwC

Opportunity space for Mobility next step…

Future of

Meeting Industry

Private sector

Cities

Entrepre-nors

Not-for-profit

Academia

Tourism

Food

Universities

Research institutions

Targeting issues

Mobilising change

Engagement & support

Transport

ICT…

A strategic approach for connecting stakeholders for smart and better meetings for sustainable growth

Leaders

for the in-between spaces

Aviation Automotive

PCO

DMC

AMC

CC

CVB

PwC

The “New Capitalism…” - a holistic approach on strategic resources …

80

PwC

Positional analysis

Trend analysis

Scenario analysis

Holistic approach needed for long-term sustainable meeting

Sustainable Intelligent Meetings Intellectual Capital

Social Capital

Environmental Capital

Cultural Capital

Participation & Political Capital

Infrastructure Capital ICT Capital

Now

”Where are we now?”

”Where is the industry heading?”

”Envisioning & anticipating the future”

Analysis via the ”new capitalism” …

Reactive,

short-term Costs

VISION

Proactive,

long-term

Value

Interactive,

holistic

PwC

Price

model

What will meeting industry get paid for in the future…

Functional

Expert

Value based

Cost based

Energizing

Business leaders

Skills

PwC

Issues to reflect upon for the future...

Are we uploading or down loading the meeting industry?

Do we lead in the new interfaces and in-between spaces - x industry and setting the future agenda?

Are we creating or consuming a legacy?

Are we measuring input/output or outcome/impact for the meetings industry?

What is the opportunity cost of not having good meetings?

Do we think “out-sourc” or “in-sourc” in our industry?

What does high tech silver potentials (65+) means for the meeting industry in the future?

83

Finally...

Higher density of experience, knowledge, innovation and solid relationships – for higher value!

Lower friction between industries for better collaboration between people, sectors and cultures

Higher frequency and speed in participants and stakeholder dialog in order to create the new!

3

PwC

The Beginning...

goodbte nation state - hello super city? #icca12 wednesday 24/10/2012

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