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Cooperate cross industrial and take advantage
          of the next business opportunities
‘

February 2009
Executive summary

    Are you ready to take advantage of the business opportunities from a new era?
    Challenges and business opportunities lie in:
    •   Management, serving, training and accommodation of new labor movement.
    •   Enabling the use of top expertise worldwide and hands-on cooperation.
    •   Creation of new working environments mingled with ubiquitous technology and services.

    New migration of work and knowledge offers plenty of opportunities
    The favorite business opportunity of Tekes-Finpro is “New migration of work and knowledge”. This is an opportunity
    that offers a lot of potential for future business and innovative solutions. We especially think of the business
    opportunities opened by moving work to people, moving people to work, dividing brain and manpower, and so on.
    Most businesses neglect the opportunities of migration, such as a global network of unseen consumers.

    Migration is hot an a major driver for change
    Do you also see the business opportunities in below selected topics from the 2009 World Economic Forum:
    •   International migration is large and growing.
    •   Remittances offer an opportunity for new financial players and for models to migrants looking to transfer
        money to their family. This opportunity relates to “financing and funding, new players and models”.
    •   Return migration relates a.o. to “deglobalization”, to “valuing traditions”, to “BRIC to exceed West”.
    •   The brain drain versus brain exchanges relates to “share versus own” and versus brain gain.

    Work, knowledge or talent
    Should talent be brought to company headquarters, university campus, and so on or should the experience related
    to working and learning be brought to the talent, wherever the talent expects it?
    Attractiveness is needed to create, attract, retain talents and talent networks.

    Can you develop and sell an attractive business offering for this?
    The experience of the offering is dominating from user perspective.

    Talent needs diversity
    A talent is “only” a talent but diversity brings a talent network to the next level.
    We believe in the growth of diversity and consequently in a related business offering.

    Diversity is powerful but the challenge is managing diversity
    There is a business opportunity in creating and offering solutions related to how addressing diversity to work
    together, to “co”; to increase diversity tolerance; to solve diversity communication (language and cultures); to deal
    with homesick feelings, etcetera “
    The current way of managing diversity as any other company process is probably not the best solution.
    Can we think of better solutions and turn them into business and are you ready to take advantage of the
    opportunities cross industrial from this new era?

    Migration is a major driver of change and especially in BRIC countries
    Is BRIC on your strategy map? As a buyer, a seller, a partner?




2                                                                                                                   © Finpro
Contents

    Executive summary                                                                                          2

    Contents                                                                                                   3

    Authors                                                                                                    3

    New migration of work and knowledge offers plenty of opportunities                                         4
      HOW                                                                                                      5
      WOW                                                                                                      5
      NOW                                                                                                      6
      LOW                                                                                                      6

    Are you ready to take advantage of the opportunities and jointly develop & sell business solutions?        7
      Migration is hot an a major driver for change                                                            7
      Work, knowledge or talent                                                                                8
      Can you develop and sell an attractive business offering for this?                                       9
      Talent needs diversity                                                                                   9
      Diversity is powerful but the challenge is managing diversity                                           10
      Migration is a major driver of change and especially in BRIC countries                                  11

    Background and aim of the program                                                                         12


    Authors

    Marc Borremans, Head of Finpro’s Construction & Logistics Industries
    Email: firstname.lastname@finpro.fi, Tel. +32 477 234 852

    Leila-Mari Ryynanen, Head of Finpro’s Services Industry
    Email: firstname.lastname@finpro.fi, Tel. +44 20 8600 7278




3                                                                                                         © Finpro
New migration of work and knowledge offers plenty of opportunities

    We visualize the outcome of global spotting on a two-dimensional graph formed by the axes “innovativeness of the
    trends, phenomena, snapshots, drivers for change” and “time estimation of the potential business impact of the
    trends, phenomena, snapshots, drivers for change”.
    The innovativeness scale goes from “Low” to “High”. The time scale goes from “LOW” to “HOW”, where:

    •   LOW: contains already ongoing topics and of lower interest. The focus of this program is on the future.
    •   NOW: relates to trends which are fairly simple to realize into business. These trends are generally accepted
        and business examples are available.
    •   WOW: contains original ideas allowing an innovative touch and a breakthrough in realization.
    •   HOW: is a basis for future original business ideas, challenging and intriguing. The tomorrow’s WOWs.



                          Outcome of Global Spotting
                          & Give Meaning Discipline

                         High
                                                       BRIC to catch up & exceed Western signals
                                                                                              Robot invasion in                   Financing & funding
                                                           Impact of climate                    Daily actions                    New players & models
                                                          Change & pollution                     Place-making                    SPACE to come closer
                                                      Discovering brands
                                                                                                         Flexible entrepreneurship
                                                                                Mega-cities
                      Innova
                     tiveness   eHealth & LOHAS       40 age target group                                  From charity to business
                                                        Female economy
                                                                     JOINT                        A new era of                  NEW migration of work
                                                                                                 Entertainment                     and knowledge
                                                       Success by luxury
                                                      Second, third home                      Share versus own

                                                               Security
                                           Valuing tradition

                         Low                                                                                                                                    t
                                    LOW                        NOW                                     WOW                                   HOW
                                 Not to focus         Easy to realize, low risk                    Breakthrough                             Future
                                 low interest           available examples                        giving energy                           challenging
                                                         easy acceptance                        realization possible                   tomorrow’s WOW

                                                      Tekes / Are you reday to x-pollinate? / Aalto University / 11 February 2009 / Marc Borremans © Finpro /       4




    The Tekes-Finpro top 5 of the global spotted phenomena, is (in orange):

    •   “New migration of work and knowledge”
    •   “Flexible entrepreneurship”
    •   “Share versus own”
    •   “Place making”
    •   “BRIC1 countries to catch up and exceed Western signals”

    The favorite business opportunity of Tekes-Finpro is “New migration of work and knowledge”. This opportunity still
    offers plenty of future business potential for which innovative solutions can be developed.

    What is your top 5? Share your input with us and send an email to Marc Borremans (fistname.lastname@finpro.fi).
    The above selection and below described phenomena are not restrictive.

    1
     BRIC countries refer to the emerging markets Brazil, Russia, India and China. The term was introduced by
    Goldman Sachs’ Jim O’Neill in 2001.

4                                                                                                                                                                       © Finpro
HOW

    •   New migration of work and knowledge: relates to the business opportunities for migrants and for
        businesses taking advantage of moving work to people, moving people to work, dividing brain and manpower,
        and so on. Migration is an opportunity which is neglected by most businesses, there where migration offers
        e.g. a global network of unseen consumers. Medical tourism is an example of moving work to people rather
        than people (in this case e.g. Thai doctors to the West) to work. The market of medical tourism grows yearly
        with 20% and is expected to value $ 4 billion by 2012. Medical tourism is also an interesting example of a
        converting space (from hospital to 5-star hotel)2. See also further under the separate chapter “new migration of
        work and knowledge”.

    •   Financing and funding: there is room, even need nowadays, for new business models. There are plenty of
        untouched opportunities such as solutions for money remittance for migrant workers, social financing, mobile
        “barter” trade exchange, peer-to-peer loans. This topic has a huge potential for BRIC countries. E.g. The total
        market for money transfers is estimated at $ 320 billion and is expected to grow to $ 1000 billion by 2012. The
        sector organization GSMA3 has recently selected a model to transfer money via mobile phone. Because of the
        low costs, this is especially of interest for people not having a bank account and looking to transfer money to
        their family in another country (e.g. Indian workers in Middle East transmitting money to their family in India).

    •   Space to come closer: maybe we will not all fly to the moon but space is trendy. The Space topic pops up in
        a.o. movies, cartoons, games, advertisements, which is a clear sign. Products are also inspired by space. E.g.
        sitting in the back seat of a 2009 Citroën mono-volume car, is like sitting in an airplane.


    WOW

    •   Flexible entrepreneurship: relates to share (see below), but also to other new kind of businesses and ways
        of working, mainly driven by the individual. Will there in the future only be entrepreneurs which are co-working
        anywhere for anyone and no longer employees? The opportunity for small business to become global is
        already there. See also further under the separate chapter “work, knowledge or talent”.

    •   Share versus own: sharing is a renewed trend, in environments, products, know-how, et all. Sharing does not
        necessarily only relate to tangible goods but also relates to intangibles, such as talent. E.g. as a company, you
        may share talent “a slice of engineer” with a competitor? Is there a gap to fill for new middleman from business
        opportunity perspective?

    •   Place making: environments as platforms to meet but also as platforms for services and technology.
        Examples are available, such as coffee shops to work, living rooms in the office, and so on

    •   From charity to business: there is plenty of business in this segment as well as in fund raising. E.g. Melinda
        Gates from the Gates Foundation shared at the 2009 World Economic Forum the Vodafone program reaching,
        through cell phones, people who never accessed banking services. See also above “financing and funding”.
        The program profits from £ 1 million from UK Department for International Development.

    •   A new era of entertainment: especially noticeable in comic and animation. Entertainment is still growing and
        especially entertainment solutions for on the road.

    •   Robot invasion in daily activities: robots have the potential to further take over human activities. Examples
        are already there, such as e.g. lawn mowing.



    2
      Bumrungrad Hospital in Bangkok is a hotspot (worldwide number 1 on Newsweek hospital hotspot ranking) for
    medical tourism and attracts yearly over 400.000 medical tourists from all over the world. Furthermore, the hospital
    has agreements with e.g. Dubai Police and UAE army to threat their staff and owns in the meantime 70 hospitals.
    3
      GSMA is a cooperation between 750 mobile operators and promotes the gsm as an alternative for money
    transfers

5                                                                                                                  © Finpro
NOW

    •   BRIC to catch up and exceed Western signals: BRIC countries are quickly catching up and a growing
        number of examples is available of BRIC countries overtaking Western development. Has the West become
        less ambitious and/or resting in an “arrived” mindset versus the hungry for success dynamic East?

    •   Mega-cities: city marketing gains importance and turns cities into hot spots. Furthermore, the access to global
        capital and technology has reinforced the cultural magnetism of cities such as Barcelona, Dubai, Dublin,
        London, Milan, Toronto, and others and turned them into magnetic spaces.

    •   Impact of climate change and pollution: a trend to stay, especially the impact on behaviour and
        responsibility.

    •   Discovering brands: this is about creating and offering buyer and user experiences around the brand.

    •   Female economy: focus on women. In the meantime, two out of three businesses are started by women.
        Women outnumber men in universities. Women determine 80% of consumption, purchase 60% of cars, are
        traveling alone or with female companions in record numbers and so on. There are plenty of business cases,
        such as female TV stations, female experience shops, cars designed for this segment, …

    •   Safety and security: hot topics and especially in BRIC countries.

    •   Second and third home: still rising. Despite the downturn, e.g. Russians are very keen on 2nd home.

    •   40 age target group: a successful segment. Consequently, this forms a high potential for many industries.

    •   Success by luxury: a lifestyle which is noticeable again especially in BRIC countries. The growing segment of
        the new rich like to differentiate by what they have and do rather than what they are.


    LOW

    •   Valuing tradition: the desire to connect with family, friends, those with common interests. Business examples
        are seen in social media and online communities, bringing like-minded people together and/or connecting
        members.

    •   LOHAS: very strong in Japan for some years. LOHAS stands for “Lifestyle of Health and Sustainability”.

    •   eHealth: already there. eHealth can form a business opportunity when divorcing brainpower further from
        manpower.




6                                                                                                                © Finpro
Are you ready to take advantage of the opportunities and jointly
    develop & sell business solutions?

    Challenges and business opportunities lie in:

    •   Management, serving, training and accommodation of new labor movement.
    •   Enabling the use of top expertise worldwide and hands-on cooperation.
    •   Creation of new working environments mingled with ubiquitous technology and services.

    Migration is hot an a major driver for change

    Migration was on the agenda of this year’s (2009) World Economic Forum in Davos. The Forum got more attention
    than ever and plenty of world and company leaders invested their time in it.


                         Migration on the WEForum 2009 Global Agenda




                              Migration

                              International migration is large and growing. About
                              200 million persons live outside their country of birth,
                              representing about 3% of the world’s population. …

                              The second issue is the nexus between migration and
                                                                  JOINT
                              development. Various links are at play: demography
                              (ageing populations in the North); liberalization of trade in
                              goods, services and FDI; remittances, return migration
                                                                                                                                                 Financing & funding
                              and diasporas; political trust and good government;                                                               New players & models
                              the brain drain vs brain exchange.
                                                                                                                                       Valuing tradition

                                                                                                                                                      Share versus own

                                                                                                     BRIC to catch up & exceed Western signals
                        Source: http://www.weforum.org/pdf/globalagenda.pdf



                                                                        Tekes / Are you reday to x-pollinate? / Aalto University / 11 February 2009 / Marc Borremans © Finpro /   7




    Do you also see the business opportunities in below selected topics from the Forum:


    •   International migration is large and growing.
    •   Remittances offer an opportunity for new financial players and for models to migrants looking to transfer
        money to their family. The opportunity relates to “financing and funding, new players and models”
    •   Return migration relates to “deglobalization”, to a.o. “valuing traditions” and to “BRIC to exceed West”
    •   The brain drain versus brain exchanges relates to “share versus own” and versus brain gain.




7                                                                                                                                                                                     © Finpro
Work, knowledge or talent

    Let’s make abstraction of BRIC for a moment and deepen the topic “migration of work and knowledge” by looking
    back at some of the phenomena.

    •      Will sharing replace owning in this new migration of work and knowledge? Does it matter whether people
           contributing to success are employed, whether these people contribute to several projects or work for several
           companies simultaneously?
           Is sharing (e.g. distant) knowledge a better solution to the war for talent? Is sharing more satisfactory and
           inspirational for all parties knowing that the market value of a worker depends among others on factors such
           as his/her flexibility, creativity and fitness. If an employment contract does no longer offer the needed flexibility,
           if the working environment is not stimulating creativity, it has a negative impact on the worker’s market value
           and consequently on the company’s market value.

    •      Hereunder an interpretation of flexible entrepreneurship from employer’s perspective4:

           “Employees do not come to work to earn a salary. They contribute to something which they get in return.
           This is the mindset change companies have to make.
           There are no longer employees, as employees are the company. Microsoft physically moved because the
           physical presence of a company is no longer important. People are no longer tight to a physical working
           location or working hours as they can work where and when they want and still their output is excellent”.

    •      Companies attract, share, buy, sell/rent, retain talent
           Are you prepared, can you develop business solutions on this opportunity?

    Above is also valid for universities, cities, communities, countries.
    Universities brand themselves to attract talented guest professors and talented students (the “best”). Therefore,
    international rankings of universities are considered very important.
    Cities attract talents in the sense of talented companies, workers, students.
    Countries and regions attract talents in the sense of investors, support talented research institutes and companies
    in order to create employment, to increase exports, to improve trade balances.

    Should talent be brought to company headquarters, university campus, and so on or should the experience related
    to working and learning be brought to the talent, wherever the talent expects it?

    Attractiveness is needed to create, attract and retain talents and talent networks.




    4
        Quote from Phillip Vandervoort, Microsoft

8                                                                                                                         © Finpro
Can you develop and sell an attractive business offering for this?

    Some ideas, examples:

    •     From user centric environment solution perspective, attractive, inspiring spaces, city and community planning,
          office buildings and floor plans, university campus, designed living spaces, airports, stations, and other public
          spaces have a role in attracting, developing, retaining talent.
          Spaces as a service platform, where there is interaction between the room, the persons, the activities, the
          technology and services. Spaces correlating with other technologies”.

    •     From enabling technology perspective, performant and widely spread networks and hotspots can attract and
          retain talent.

    •     From innovative services perspective, agreements with external workplace solution providers, such as Regus,
          investing in a gym, and so on can attract, develop talent and can also promote “working as a lifestyle”.

    It doesn’t matter whether the environment, the service or the ubiquitous technology is dominant in above examples.
    The experience is dominating from user perspective.

    Attracting intelligent workers, entrepreneurs, companies, investors or artists to a city, region, society as well as
    attracting workers, clients, consumers to a company, to a business, requires “attractiveness”.

    Talent needs diversity

    A talent is “only” a talent but diversity brings a talent network to the next level.

    On this year’s (2009) World Economic Forum, besides talent, also diversity was discussed. Some selected topics
    from the agenda:

    •     The demand for greater diversity is growing
    •     Organizations that build diverse workforces are believed to be better equipped to address globalization’s
          challenges
    •     They tend to perform better, grow faster, innovate more

     “Diversity of backgrounds” is also a strong value for companies. McKinsey&Company5, a global consulting
    company, can be used as an example for diversity. Diversity in education background, nationality (over 100
    nationalities), languages (over 120 languages), network groups led by partners for women, people of color,
    Hispanic, gays, lesbians, bisexual, transgender.

    We believe in the growth of diversity and consequently in a related business offering.




    5
        Source: http://www.mckinsey.com/careers/is_mckinsey_right_for_me/diversity_of_backgrounds.aspx

9                                                                                                                     © Finpro
Diversity is powerful but the challenge is managing diversity

     There is a business opportunity in creating and offering solutions related to how addressing diversity to work
     together, to “co”; to increase diversity tolerance; to solve diversity communication (language and cultures); to deal
     with homesick feelings, and so on“


                          Solutions to manage diversity?


                                                                    “CO”




                            Tolerance          Innovative
                                                   JOINT                              Technology                          Homesick
                                                services             JOINT
                                                                                       enabling




                        Communication                                                                                               …
                                                                User centric
                                                           environment solutions




                                               Working norms and standards
                                                                                                                                      16

                                               Tekes / Are you reday to x-pollinate? / Aalto University / 11 February 2009 / Marc Borremans © Finpro /   16




     The current way of managing diversity as any other company process is probably not the best solution.
     Can we think of better solutions and turn them into business and are you ready to take advantage of the
     opportunities cross industrial from this new era?




10                                                                                                                                                            © Finpro
Migration is a major driver of change and especially in BRIC countries

     Is BRIC on your strategy map? As a buyer, a seller (e.g. India as a seller for services), a partner?

     Bangalore, Sao Paulo, Shanghai, St. Petersburg have evolved recently to become world hotspots and world
     hotspots attract talent.

     BRIC is young, ambitious, full of energy, eager and hungry to grow.

     Latin America, China and India are migration hotspots. Should people move to work (e.g. internal migration in
     China) or/and should work move to people, i.e. further delocalization of production activities to Latin America,
     Russia, India, China, other areas and further sourcing.
     Should brain- and manpower be in the same location?

     By 2010, that’s already next year, BRIC-countries will account for approximately 20% of the world’s GDP and EU-
     27 invested 58% more in 2007 compared to 2006 in BRIC countries.

     In more and more domains, examples can be found of BRIC countries setting the trends or developing a
     dominating logic and their role is expected to further increase. We refer to the separate input from Asia and Latin
     America. For further information contact respectively Hanna Marttinen-Deakins and Matti Landin
     (fistname.lastname@finpro.fi).




11                                                                                                                  © Finpro
Background and aim of the program

     The program aims at creating cross industrial cooperation groups of companies around related business
     opportunities.

     In this document, we elaborate on what Tekes and Finpro retained from a global spotting discipline. Finpro’s global
     spotting network6 (“human” sensors) contributed to this program from September 2008 to January 2009. The
     outcome has been worked further in Tekes-Finpro workshops and with companies and researchers.

     We hope that the content inspires you to form competitive edge7.
     We looked at the future and at global (including BRIC countries) relevant phenomena, trends, snapshots
     and drivers for change related to the below defined technology platform in functions like living, working, shopping,
     traveling, entertaining, learning (education) etc.
     We tried to give meaning to the phenomena, by looking for possible disruptions and by finding business evidence,
     (when already present), from innovative services, technology enabling and user centric environment solutions
     perspective.

     This document supports a range of workshops providing opportunities for innovative and cross industrial thinking.
     The first workshop was jointly organized by Tekes and Finpro at Aalto University on February 11, 2009 and actively
     participated by companies and researchers. The workshop relates to the Tekes programs Tila, Serve and Ubicom8,
     which are used as a platform for cross industrial thinking as many ideas and business can no longer be put in one
     box and are the result of cross-pollination or blurring industry boundaries.


                              Why?




                                                                                                                              Brazil
                                 Global Phenomena


                                                           Serve                             Ubicom
                                                        Innovative                             Embedded
                                                                             JOINT             ICT                                           Russia
                            Drivers for change          services
                                                              X-pollination

                                                                             Spaces                                                        India
                                                                  User centric new ways of
                                                                  working, living, learning,
                                                                   shopping, entertainm.
                                    Trends                             environments
                                                                                                                         China


                                                    Tekes / Are you reday to x-pollinate? / Aalto University / 11 February 2009 / Marc Borremans © Finpro /   2




     6
       Finpro’s global spotting network is located in 60 locations (Finland Trade Centre) around the world.
     7
       Competitive edge is needed for excellence and is the quadrant where high competitor differentiation meets high
     buyers’ relevance. Over time, competitive edge dilutes to competitiveness, the quadrant where the relevance for
     buyers is still high but the differentiation from competitors is low.
     8
       Tila is a Tekes program focusing on user centric environment solutions, Serve on innovative services and Ubicom
     on embedded ICT. More information on www.tekes.fi under “programmes and projects”

12                                                                                                                                                                © Finpro

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Cooperate cross industrial and take advantage of next business opportunities

  • 1. Cooperate cross industrial and take advantage of the next business opportunities ‘ February 2009
  • 2. Executive summary Are you ready to take advantage of the business opportunities from a new era? Challenges and business opportunities lie in: • Management, serving, training and accommodation of new labor movement. • Enabling the use of top expertise worldwide and hands-on cooperation. • Creation of new working environments mingled with ubiquitous technology and services. New migration of work and knowledge offers plenty of opportunities The favorite business opportunity of Tekes-Finpro is “New migration of work and knowledge”. This is an opportunity that offers a lot of potential for future business and innovative solutions. We especially think of the business opportunities opened by moving work to people, moving people to work, dividing brain and manpower, and so on. Most businesses neglect the opportunities of migration, such as a global network of unseen consumers. Migration is hot an a major driver for change Do you also see the business opportunities in below selected topics from the 2009 World Economic Forum: • International migration is large and growing. • Remittances offer an opportunity for new financial players and for models to migrants looking to transfer money to their family. This opportunity relates to “financing and funding, new players and models”. • Return migration relates a.o. to “deglobalization”, to “valuing traditions”, to “BRIC to exceed West”. • The brain drain versus brain exchanges relates to “share versus own” and versus brain gain. Work, knowledge or talent Should talent be brought to company headquarters, university campus, and so on or should the experience related to working and learning be brought to the talent, wherever the talent expects it? Attractiveness is needed to create, attract, retain talents and talent networks. Can you develop and sell an attractive business offering for this? The experience of the offering is dominating from user perspective. Talent needs diversity A talent is “only” a talent but diversity brings a talent network to the next level. We believe in the growth of diversity and consequently in a related business offering. Diversity is powerful but the challenge is managing diversity There is a business opportunity in creating and offering solutions related to how addressing diversity to work together, to “co”; to increase diversity tolerance; to solve diversity communication (language and cultures); to deal with homesick feelings, etcetera “ The current way of managing diversity as any other company process is probably not the best solution. Can we think of better solutions and turn them into business and are you ready to take advantage of the opportunities cross industrial from this new era? Migration is a major driver of change and especially in BRIC countries Is BRIC on your strategy map? As a buyer, a seller, a partner? 2 © Finpro
  • 3. Contents Executive summary 2 Contents 3 Authors 3 New migration of work and knowledge offers plenty of opportunities 4 HOW 5 WOW 5 NOW 6 LOW 6 Are you ready to take advantage of the opportunities and jointly develop & sell business solutions? 7 Migration is hot an a major driver for change 7 Work, knowledge or talent 8 Can you develop and sell an attractive business offering for this? 9 Talent needs diversity 9 Diversity is powerful but the challenge is managing diversity 10 Migration is a major driver of change and especially in BRIC countries 11 Background and aim of the program 12 Authors Marc Borremans, Head of Finpro’s Construction & Logistics Industries Email: firstname.lastname@finpro.fi, Tel. +32 477 234 852 Leila-Mari Ryynanen, Head of Finpro’s Services Industry Email: firstname.lastname@finpro.fi, Tel. +44 20 8600 7278 3 © Finpro
  • 4. New migration of work and knowledge offers plenty of opportunities We visualize the outcome of global spotting on a two-dimensional graph formed by the axes “innovativeness of the trends, phenomena, snapshots, drivers for change” and “time estimation of the potential business impact of the trends, phenomena, snapshots, drivers for change”. The innovativeness scale goes from “Low” to “High”. The time scale goes from “LOW” to “HOW”, where: • LOW: contains already ongoing topics and of lower interest. The focus of this program is on the future. • NOW: relates to trends which are fairly simple to realize into business. These trends are generally accepted and business examples are available. • WOW: contains original ideas allowing an innovative touch and a breakthrough in realization. • HOW: is a basis for future original business ideas, challenging and intriguing. The tomorrow’s WOWs. Outcome of Global Spotting & Give Meaning Discipline High BRIC to catch up & exceed Western signals Robot invasion in Financing & funding Impact of climate Daily actions New players & models Change & pollution Place-making SPACE to come closer Discovering brands Flexible entrepreneurship Mega-cities Innova tiveness eHealth & LOHAS 40 age target group From charity to business Female economy JOINT A new era of NEW migration of work Entertainment and knowledge Success by luxury Second, third home Share versus own Security Valuing tradition Low t LOW NOW WOW HOW Not to focus Easy to realize, low risk Breakthrough Future low interest available examples giving energy challenging easy acceptance realization possible tomorrow’s WOW Tekes / Are you reday to x-pollinate? / Aalto University / 11 February 2009 / Marc Borremans © Finpro / 4 The Tekes-Finpro top 5 of the global spotted phenomena, is (in orange): • “New migration of work and knowledge” • “Flexible entrepreneurship” • “Share versus own” • “Place making” • “BRIC1 countries to catch up and exceed Western signals” The favorite business opportunity of Tekes-Finpro is “New migration of work and knowledge”. This opportunity still offers plenty of future business potential for which innovative solutions can be developed. What is your top 5? Share your input with us and send an email to Marc Borremans (fistname.lastname@finpro.fi). The above selection and below described phenomena are not restrictive. 1 BRIC countries refer to the emerging markets Brazil, Russia, India and China. The term was introduced by Goldman Sachs’ Jim O’Neill in 2001. 4 © Finpro
  • 5. HOW • New migration of work and knowledge: relates to the business opportunities for migrants and for businesses taking advantage of moving work to people, moving people to work, dividing brain and manpower, and so on. Migration is an opportunity which is neglected by most businesses, there where migration offers e.g. a global network of unseen consumers. Medical tourism is an example of moving work to people rather than people (in this case e.g. Thai doctors to the West) to work. The market of medical tourism grows yearly with 20% and is expected to value $ 4 billion by 2012. Medical tourism is also an interesting example of a converting space (from hospital to 5-star hotel)2. See also further under the separate chapter “new migration of work and knowledge”. • Financing and funding: there is room, even need nowadays, for new business models. There are plenty of untouched opportunities such as solutions for money remittance for migrant workers, social financing, mobile “barter” trade exchange, peer-to-peer loans. This topic has a huge potential for BRIC countries. E.g. The total market for money transfers is estimated at $ 320 billion and is expected to grow to $ 1000 billion by 2012. The sector organization GSMA3 has recently selected a model to transfer money via mobile phone. Because of the low costs, this is especially of interest for people not having a bank account and looking to transfer money to their family in another country (e.g. Indian workers in Middle East transmitting money to their family in India). • Space to come closer: maybe we will not all fly to the moon but space is trendy. The Space topic pops up in a.o. movies, cartoons, games, advertisements, which is a clear sign. Products are also inspired by space. E.g. sitting in the back seat of a 2009 Citroën mono-volume car, is like sitting in an airplane. WOW • Flexible entrepreneurship: relates to share (see below), but also to other new kind of businesses and ways of working, mainly driven by the individual. Will there in the future only be entrepreneurs which are co-working anywhere for anyone and no longer employees? The opportunity for small business to become global is already there. See also further under the separate chapter “work, knowledge or talent”. • Share versus own: sharing is a renewed trend, in environments, products, know-how, et all. Sharing does not necessarily only relate to tangible goods but also relates to intangibles, such as talent. E.g. as a company, you may share talent “a slice of engineer” with a competitor? Is there a gap to fill for new middleman from business opportunity perspective? • Place making: environments as platforms to meet but also as platforms for services and technology. Examples are available, such as coffee shops to work, living rooms in the office, and so on • From charity to business: there is plenty of business in this segment as well as in fund raising. E.g. Melinda Gates from the Gates Foundation shared at the 2009 World Economic Forum the Vodafone program reaching, through cell phones, people who never accessed banking services. See also above “financing and funding”. The program profits from £ 1 million from UK Department for International Development. • A new era of entertainment: especially noticeable in comic and animation. Entertainment is still growing and especially entertainment solutions for on the road. • Robot invasion in daily activities: robots have the potential to further take over human activities. Examples are already there, such as e.g. lawn mowing. 2 Bumrungrad Hospital in Bangkok is a hotspot (worldwide number 1 on Newsweek hospital hotspot ranking) for medical tourism and attracts yearly over 400.000 medical tourists from all over the world. Furthermore, the hospital has agreements with e.g. Dubai Police and UAE army to threat their staff and owns in the meantime 70 hospitals. 3 GSMA is a cooperation between 750 mobile operators and promotes the gsm as an alternative for money transfers 5 © Finpro
  • 6. NOW • BRIC to catch up and exceed Western signals: BRIC countries are quickly catching up and a growing number of examples is available of BRIC countries overtaking Western development. Has the West become less ambitious and/or resting in an “arrived” mindset versus the hungry for success dynamic East? • Mega-cities: city marketing gains importance and turns cities into hot spots. Furthermore, the access to global capital and technology has reinforced the cultural magnetism of cities such as Barcelona, Dubai, Dublin, London, Milan, Toronto, and others and turned them into magnetic spaces. • Impact of climate change and pollution: a trend to stay, especially the impact on behaviour and responsibility. • Discovering brands: this is about creating and offering buyer and user experiences around the brand. • Female economy: focus on women. In the meantime, two out of three businesses are started by women. Women outnumber men in universities. Women determine 80% of consumption, purchase 60% of cars, are traveling alone or with female companions in record numbers and so on. There are plenty of business cases, such as female TV stations, female experience shops, cars designed for this segment, … • Safety and security: hot topics and especially in BRIC countries. • Second and third home: still rising. Despite the downturn, e.g. Russians are very keen on 2nd home. • 40 age target group: a successful segment. Consequently, this forms a high potential for many industries. • Success by luxury: a lifestyle which is noticeable again especially in BRIC countries. The growing segment of the new rich like to differentiate by what they have and do rather than what they are. LOW • Valuing tradition: the desire to connect with family, friends, those with common interests. Business examples are seen in social media and online communities, bringing like-minded people together and/or connecting members. • LOHAS: very strong in Japan for some years. LOHAS stands for “Lifestyle of Health and Sustainability”. • eHealth: already there. eHealth can form a business opportunity when divorcing brainpower further from manpower. 6 © Finpro
  • 7. Are you ready to take advantage of the opportunities and jointly develop & sell business solutions? Challenges and business opportunities lie in: • Management, serving, training and accommodation of new labor movement. • Enabling the use of top expertise worldwide and hands-on cooperation. • Creation of new working environments mingled with ubiquitous technology and services. Migration is hot an a major driver for change Migration was on the agenda of this year’s (2009) World Economic Forum in Davos. The Forum got more attention than ever and plenty of world and company leaders invested their time in it. Migration on the WEForum 2009 Global Agenda Migration International migration is large and growing. About 200 million persons live outside their country of birth, representing about 3% of the world’s population. … The second issue is the nexus between migration and JOINT development. Various links are at play: demography (ageing populations in the North); liberalization of trade in goods, services and FDI; remittances, return migration Financing & funding and diasporas; political trust and good government; New players & models the brain drain vs brain exchange. Valuing tradition Share versus own BRIC to catch up & exceed Western signals Source: http://www.weforum.org/pdf/globalagenda.pdf Tekes / Are you reday to x-pollinate? / Aalto University / 11 February 2009 / Marc Borremans © Finpro / 7 Do you also see the business opportunities in below selected topics from the Forum: • International migration is large and growing. • Remittances offer an opportunity for new financial players and for models to migrants looking to transfer money to their family. The opportunity relates to “financing and funding, new players and models” • Return migration relates to “deglobalization”, to a.o. “valuing traditions” and to “BRIC to exceed West” • The brain drain versus brain exchanges relates to “share versus own” and versus brain gain. 7 © Finpro
  • 8. Work, knowledge or talent Let’s make abstraction of BRIC for a moment and deepen the topic “migration of work and knowledge” by looking back at some of the phenomena. • Will sharing replace owning in this new migration of work and knowledge? Does it matter whether people contributing to success are employed, whether these people contribute to several projects or work for several companies simultaneously? Is sharing (e.g. distant) knowledge a better solution to the war for talent? Is sharing more satisfactory and inspirational for all parties knowing that the market value of a worker depends among others on factors such as his/her flexibility, creativity and fitness. If an employment contract does no longer offer the needed flexibility, if the working environment is not stimulating creativity, it has a negative impact on the worker’s market value and consequently on the company’s market value. • Hereunder an interpretation of flexible entrepreneurship from employer’s perspective4: “Employees do not come to work to earn a salary. They contribute to something which they get in return. This is the mindset change companies have to make. There are no longer employees, as employees are the company. Microsoft physically moved because the physical presence of a company is no longer important. People are no longer tight to a physical working location or working hours as they can work where and when they want and still their output is excellent”. • Companies attract, share, buy, sell/rent, retain talent Are you prepared, can you develop business solutions on this opportunity? Above is also valid for universities, cities, communities, countries. Universities brand themselves to attract talented guest professors and talented students (the “best”). Therefore, international rankings of universities are considered very important. Cities attract talents in the sense of talented companies, workers, students. Countries and regions attract talents in the sense of investors, support talented research institutes and companies in order to create employment, to increase exports, to improve trade balances. Should talent be brought to company headquarters, university campus, and so on or should the experience related to working and learning be brought to the talent, wherever the talent expects it? Attractiveness is needed to create, attract and retain talents and talent networks. 4 Quote from Phillip Vandervoort, Microsoft 8 © Finpro
  • 9. Can you develop and sell an attractive business offering for this? Some ideas, examples: • From user centric environment solution perspective, attractive, inspiring spaces, city and community planning, office buildings and floor plans, university campus, designed living spaces, airports, stations, and other public spaces have a role in attracting, developing, retaining talent. Spaces as a service platform, where there is interaction between the room, the persons, the activities, the technology and services. Spaces correlating with other technologies”. • From enabling technology perspective, performant and widely spread networks and hotspots can attract and retain talent. • From innovative services perspective, agreements with external workplace solution providers, such as Regus, investing in a gym, and so on can attract, develop talent and can also promote “working as a lifestyle”. It doesn’t matter whether the environment, the service or the ubiquitous technology is dominant in above examples. The experience is dominating from user perspective. Attracting intelligent workers, entrepreneurs, companies, investors or artists to a city, region, society as well as attracting workers, clients, consumers to a company, to a business, requires “attractiveness”. Talent needs diversity A talent is “only” a talent but diversity brings a talent network to the next level. On this year’s (2009) World Economic Forum, besides talent, also diversity was discussed. Some selected topics from the agenda: • The demand for greater diversity is growing • Organizations that build diverse workforces are believed to be better equipped to address globalization’s challenges • They tend to perform better, grow faster, innovate more “Diversity of backgrounds” is also a strong value for companies. McKinsey&Company5, a global consulting company, can be used as an example for diversity. Diversity in education background, nationality (over 100 nationalities), languages (over 120 languages), network groups led by partners for women, people of color, Hispanic, gays, lesbians, bisexual, transgender. We believe in the growth of diversity and consequently in a related business offering. 5 Source: http://www.mckinsey.com/careers/is_mckinsey_right_for_me/diversity_of_backgrounds.aspx 9 © Finpro
  • 10. Diversity is powerful but the challenge is managing diversity There is a business opportunity in creating and offering solutions related to how addressing diversity to work together, to “co”; to increase diversity tolerance; to solve diversity communication (language and cultures); to deal with homesick feelings, and so on“ Solutions to manage diversity? “CO” Tolerance Innovative JOINT Technology Homesick services JOINT enabling Communication … User centric environment solutions Working norms and standards 16 Tekes / Are you reday to x-pollinate? / Aalto University / 11 February 2009 / Marc Borremans © Finpro / 16 The current way of managing diversity as any other company process is probably not the best solution. Can we think of better solutions and turn them into business and are you ready to take advantage of the opportunities cross industrial from this new era? 10 © Finpro
  • 11. Migration is a major driver of change and especially in BRIC countries Is BRIC on your strategy map? As a buyer, a seller (e.g. India as a seller for services), a partner? Bangalore, Sao Paulo, Shanghai, St. Petersburg have evolved recently to become world hotspots and world hotspots attract talent. BRIC is young, ambitious, full of energy, eager and hungry to grow. Latin America, China and India are migration hotspots. Should people move to work (e.g. internal migration in China) or/and should work move to people, i.e. further delocalization of production activities to Latin America, Russia, India, China, other areas and further sourcing. Should brain- and manpower be in the same location? By 2010, that’s already next year, BRIC-countries will account for approximately 20% of the world’s GDP and EU- 27 invested 58% more in 2007 compared to 2006 in BRIC countries. In more and more domains, examples can be found of BRIC countries setting the trends or developing a dominating logic and their role is expected to further increase. We refer to the separate input from Asia and Latin America. For further information contact respectively Hanna Marttinen-Deakins and Matti Landin (fistname.lastname@finpro.fi). 11 © Finpro
  • 12. Background and aim of the program The program aims at creating cross industrial cooperation groups of companies around related business opportunities. In this document, we elaborate on what Tekes and Finpro retained from a global spotting discipline. Finpro’s global spotting network6 (“human” sensors) contributed to this program from September 2008 to January 2009. The outcome has been worked further in Tekes-Finpro workshops and with companies and researchers. We hope that the content inspires you to form competitive edge7. We looked at the future and at global (including BRIC countries) relevant phenomena, trends, snapshots and drivers for change related to the below defined technology platform in functions like living, working, shopping, traveling, entertaining, learning (education) etc. We tried to give meaning to the phenomena, by looking for possible disruptions and by finding business evidence, (when already present), from innovative services, technology enabling and user centric environment solutions perspective. This document supports a range of workshops providing opportunities for innovative and cross industrial thinking. The first workshop was jointly organized by Tekes and Finpro at Aalto University on February 11, 2009 and actively participated by companies and researchers. The workshop relates to the Tekes programs Tila, Serve and Ubicom8, which are used as a platform for cross industrial thinking as many ideas and business can no longer be put in one box and are the result of cross-pollination or blurring industry boundaries. Why? Brazil Global Phenomena Serve Ubicom Innovative Embedded JOINT ICT Russia Drivers for change services X-pollination Spaces India User centric new ways of working, living, learning, shopping, entertainm. Trends environments China Tekes / Are you reday to x-pollinate? / Aalto University / 11 February 2009 / Marc Borremans © Finpro / 2 6 Finpro’s global spotting network is located in 60 locations (Finland Trade Centre) around the world. 7 Competitive edge is needed for excellence and is the quadrant where high competitor differentiation meets high buyers’ relevance. Over time, competitive edge dilutes to competitiveness, the quadrant where the relevance for buyers is still high but the differentiation from competitors is low. 8 Tila is a Tekes program focusing on user centric environment solutions, Serve on innovative services and Ubicom on embedded ICT. More information on www.tekes.fi under “programmes and projects” 12 © Finpro