“Mega trends and how they influence company drivers and how they create a new market reality”

Lecture given by

Henrik von Scheel

Prof Mark von Rosing

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Agenda

1. Trends seen from a Company perspective (CEOs)

2. There are countles models and FRAMEWORKs to help companies adapt and develop a strategy

3. Mega trends which are influencing companies

4. Mega trends are influencing the company landscape

5. How mega trends influence the companies market reality

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Global Economic Shifts Erratic Energy Prices

Information Explosion

Emerging EconomiesNew Customer Demands

New Business Models

5 X1

Increase in gap between expected market responsiveness and ability to act/react

98%1

Of CEOs know they need to change the business model they have

1 – Source: IBM, Global CEO Business Research 2009

A new business landscape is emerging which requires more frequent and fundamental business model change

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

There are countles models and FRAMEWORKs

Global Economic Shifts

Erratic Energy Prices

Information Explosion

Emerging EconomiesNew Customer Demands

New Business Models

What will happen to us

and what should we do

Market responsiveness

Ability to act/react

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Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

PESTEL FRAMEWORK

Political

Economical

Socio Cultural

Technological

Environmental

Legal

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

National Advantages

Firm strategy,Structure and

rivalry

FactorConditions

Related andSupportingIndustries

DemandConditions

Automation due to labor lawsLinguistic Capabilities

Homemarket

excellence in design, engineering

Leather industry, leather machineryMichael Porter: The Competitive Advantage of Nations

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Porter’s Five Forces in an INDUSTRY

PotentialEntrants

Substitutes

Suppliers BuyersRivalry

Industry: is a group of firms producing the same principal product or products that are close substitutes for each other. Michael Porter: Five Forces

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Globalisering

GlobalStrategies

MarketGlobalisation

CostGlobalisation

Globalisation ofGovernment

Policies

Globalisation ofCompetition

G. Yip: Total Global Strategy

•Similar customer needs•Global customers•Transferable marketing

•Scale economies•Country-specific differences•Favourable logistics

•Interdependence between countries•Competitors’global strategies

•Trade policies•Technical standards•Host governement policies

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Lifecycle of a Business

Development

Growth

Shakeout

Maturity

Decline

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Lifecycle of a Business - Carriage

Development Growth Shakeout Maturity Decline

Ægyptisk storhedstid 1601Forbud mod atmænd brugte hestevogn

1830Veje med belægningblev almindelige

1895Collins i USA havdeordre på 30.000hestekøreyøjer

1907Collins lukket,udkonkurreret afbiler og tog

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Mega Trends

Mega trends which are influencing companies

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Today there are almost seven billion people alive on Earth. By 2030 there will be over eight billion and by the middle of the century there will be at least nine billion. This is the official ‘median’ estimate of the United Nations Population. Division but many other agencies and organisations believe that this estimate is far too conservative. The United Nations itself acknowledges in its alternative ‘high variant’ projection that it is possible that world population could even double between now and 2050 – a projection that suggests that by as early as 2030 (rather then 2050) there will be nine billion people4 on the planet., ,

Demographics

Mega Trends

Mega trends which are influencing companies

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

The workforce is becoming more multicultural, more female.

Workforce

Mega Trends

Demographics

Mega trends which are influencing companies

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

There will be more technological change in the next twentyfive years than occurred throughout the whole of the last century. And that was the century that produced aeroplanes, cars, plastics, nuclear power, television, the computer, the internet and mobile phones. The reason is the speed of technology development is itself accelerating. The key to understanding why this is occurring lies in realising that;

a) technology development is itself an extension of human evolution and, b) the speed of technological development is the direct product of the rapidly

increasing speed and richness of information flows around the world.

Workforce

Technology DevelopmentMega Trends

Demographics

Mega trends which are influencing companies

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

How the environment is changing and how we need to prepare for increased global warming, pollution, and threats to biodiversity, has an influens to our energy crisis, the post-oil future, and the future of energy alternatives like hydrogen. The critical role that energy will play in every aspect of our lives in the 21st century.

DemographicsWorkforce

Technology Development

Environment

Mega Trends

Mega trends which are influencing companies

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

The new realities of global trade and competition; the rise of other markets like China and India; the clash of cultures and ideologies; and the cultural-economic battle for the future.

DemographicsWorkforce

Technology Development Globalisation

Environment

Mega Trends

Mega trends which are influencing companies

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Mega trends which are influencing companies

Economics

DemographicsWorkforce

Technology Development Globalisation

Environment

Mega Trends

The transformation of the global economy based on the convergence of free trade, technology and democracy, driving new jobs, new markets, globalization, competition, peace and security.

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Mega trends are influencing the company landscape

CompetitiveIntensity

Economic Pressures

UnpredictableThreats

ContinuousChange

Due to increasingly complex markets, competitive intensity is growing in severity as existing players and new entrants scramble to provide value to customers

The change in customer demands, technological innovations, workforce demands and government regulation is increasingly sudden and dramatic

The growth and pre-dictability of revenues and margins becomes even more challenging due to economic uncertainties and demanding investors

Dangers become real and prevalent as global firms see increased exposure to natural disasters, unstable geopolitics and other market shocks

Economics

DemographicsWorkforce

Technology Development Globalisation

Environment

Mega Trends

Companylandscape

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

How mega trends influence the companies market reality

Eroding competitive advantage

Sub-optimal resource allocation

Undifferentiated customer value proposition

Lack of clear organizational focus

Empowered customers Aggressive competition

challenging business models

Reacting to changes in market demand & product innovation

Complexity & competitive shifts in supplier & partner networks

Inflexible value chains & processes

Unpredictable costs leading to increased operational risk

Close scrutiny from stakeholders & the broader market

Need to reduce fixed costs & capital requirements

Business recovery from natural disasters, terrorism, etc.

Risk management across product and portfolios

Support for complex globalization & business expansion

Maintaining privacy & security for customers & employees

Economics

DemographicsWorkforce

Technology Development Globalisation

Environment

Mega Trends

CompanyImpact

CompetitiveIntensity

Economic Pressures

UnpredictableThreats

ContinuousChange

Due to increasingly complex markets, competitive intensity is growing in severity as existing players and new entrants scramble to provide value to customers

The change in customer demands, technological innovations, workforce demands and government regulation is increasingly sudden and dramatic

The growth and pre-dictability of revenues and margins becomes even more challenging due to economic uncertainties and demanding investors

Dangers become real and prevalent as global firms see increased exposure to natural disasters, unstable geopolitics and other market shocks

Companylandscape

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Value planning, value identification, value creation, and value realization - Competing on differentiation

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Competences and Value Creation?

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Value Planning, Creation and Realization - competencies

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Alignment of Business and IT

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

The Value Tree is a practical tool to help understand values

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

The Value Tree is a practical tool to help understand values

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Business Value Tree

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

The different Business Value areas – Increase Shareholder Value

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

The different Business Value areas – Improve Competitiveness

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

The different Business Value areas – Lower Risk

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

The different Business Value areas – Efficient Operations

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Business Value Tree

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

How to understand and use the Value Tree

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Business Value Tree

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Business Value Tree – support Business Model imperatives

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

How the Business Model Imperatives are mapped to the different Values

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Business Model Imperatives – Focused

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

How the Business Model Levels are mapped to the different Values

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

How the Business Model Competencies are mapped to the different Values

Lecture given by Henrik von Scheel and Prof. Mark von Rosing on ”Mega trends and how they influence company drivers and how they create a new market reality given” at Copenhagen Business School

Questions

Contact:

Henrik von Scheel (H_scheel@yahoo.com)

Prof. Mark von Rosing (mvr@rosenteam.com)