Peter Fisk

88% of consumers believe companies have the power to influence societal change, and should be addressing issues presently facing us. Which is great news, given the declining interest of some world politicians in making the wold better. It also demonstrates that whilst trust in brands has fallen to an all-time, consumers still believe they have useful purpose.

As a result, finding an “authentic purpose” has become the watch word of many brands.

Not just in finding a name, concept and execution that people engage with. Not just to sell the products and services which it embraces, in the most profitable and effective way. Not even to find a side-benefit that delivers a little bit of good whilst making more money.

It means rethinking the brand concept in a way that really does make a difference to people’s lives, makes the world better in some relevant and practical way. It becomes engrained in the DNA of the brand, of why people buy it, invest it, and work for it. It steers every action, keeps them true. And it is supported by a business model which interlocks the pursuit of value to society, and value to shareholders.

Aspiration’s banking products, Innocent’s drinks, Always’ #LikeAGirl, Zady’s ‘The New Standard’ and Method cleaning products all drive a positive cultural idea at the core of their brand. They tap into societal issues as a campaign tool and contribute solutions that drive greater consumer engagement.

Three approaches are emerging:

Leaders leading change

Howard Schultz, who recently stepped down as chief executive of Starbucks, had a vision for the brand that extended beyond the role of mere pick-me-up. In a recent statement he openly questioned “what is the role and responsibility of a public company…and how can we catalyse hope in a time when we need more optimism, empathy, compassion and leadership?”

One such manifestation included ‘Upstanders,’ a Starbucks Original Series looking to help communities share positive stories, perhaps even reclaim part of their American dream. This approach helps reshape a narrative that has increasingly become divided and cynical.

This isn’t the first time Schultz has stepped into the arena of social issues. In 2015 he called for Starbucks to lead a polarising conversation on racial discrimination, a campaign hailed for the controversy it raised. Entering these conversations is inevitably a tightrope walk, with many feeling this cry is a reflection of institutionalised arrogance where chief executives preach on issues, using brand as their soapbox.

But why shouldn’t they? Major companies have great influence, so we should urge them to use their platforms for good. For challenging issues authorities have failed to address. Minefield, I hear you say. But before you take you seat back on the fence, consider first the consumer rallying call.

Thinking like news companies

When confronting social issues, brands are utilising channels – such as advertising – to communicate provocative stances. For example, Patagonia’s praiseworthy advert, ‘Don’t buy this jacket’, a great example of radical truth and a piercing insight into the flaws of its industry. Today it has taken a more challenging role as an outspoken advocate of environmental and corporate responsibility.

Patagonia created DamNation, a powerful Netflix documentary film that takes an explicit position around the support of dam removal to help restore river ecosystems. This is an example of a brand placing itself at the frontline of the conversation and calling upon consumers to help it reshape societal issues. As its founder, Yvon Chouinard, boldly put it: “If you’re not pissing off 50% of the people, you’re not trying hard enough.”

Did I mention Patagonia also released the world’s first neoprene, natural rubber wetsuit and is also working to combat ocean pollution? That’s my conscience a little clearer. Patagonia you’ve won yourself a brand loyalist.

Cultural bridge builders

In a world of increasing volatility, consumer trust in institutions, authority and media is nosediving, and brands that confront relevant issues stand to create new tribes of supporters. Sidestepping cultural debates, while tempting, will make increasingly less ethical and financial sense.

Nike’s recent commercial celebrating prominent female athletes from Arabia is a great example of a brand combatting social stigmas through a role of positivity and unification to show support for the underserved. Moving beyond provocative campaigns, Nike is now due to release the ‘Pro Hijab’, a product already surrounded by evangelists and cynical political naysayers alike.

As purpose becomes commonplace throughout branding, we will start to see a new swell of brands coming down from the fence to gain a greater foothold in consumers’ lives. The result will inspire and empower new collectives to join their cause, accelerating the positive impact on society and their own potential for growth. Where brands have traditionally reflected culture, the new expectation is for brands to shape it.

Innovation parks are scattered across the world. Usually they focus on technological R&D, often adjacent to an academic institute, and in reality an excuse to attract large number of tech businesses to locate together. There are some obvious benefits in having similar kinds of business close by, particularly if they can share knowledge and skills, or form an ecosystem of partners or suppliers (horizontal or vertical).

Clusters of specialist businesses emerge. “A business cluster is a geographic concentration of interconnected businesses, suppliers, and associated institutions in a particular field. Clusters are considered to increase the productivity with which companies can compete, nationally and globally. In urban studies, the term agglomeration is used.”

Silicon Valley is the most obvious example, emerging in the hinterland of Stanford University, but eventually with high tech businesses sprawling across a vast area that used to be famous for little more than orange trees. Digital Media City in Seoul is a more planned example, a dedicated space for media, entertainment and gaming companies to live together. It includes conference and cultural centres, the Korean Film Academy, and companies like LG.

What is important is that these locations bring together more than core technologies. University-type R&D facilities will do great research, but it is the commercial application of technologies – aka “innovation” – that matters most. That is achieved by having a broader mix of companies, and also a place to meet (conferences, coworking),  socialise (restaurants, sports), learn (seminars, workshops), extend (agencies, investors), and promote (showcases, shops). In turn this needs to be supported by infrastructure (roads, parking, wifi), and a good place to live nearby (homes, schools, town).

Examples of innovation parks in Europe include:

Kista Science City, Stockholm

15 mins from Arlanda airport and Stockholm city centre, Kista is Europe’s largest ICT cluster (and second biggest in the world after Silicon Valley). Sweden’s largest company Ericsson has its HQ located here, alongside global names like Microsoft, IBM and Sun. Some of the nation’s major business institutions are based here too. Residential (for 30000 people), shopping (the largest mall in Sweden), and entertainment facilities are located nearby.

https://www.youtube.com/watch?v=VYO0mQ79DWo

WISTA Science and Technology Park, Berlin

Over 800 companies are based in Berlin-Adlershof, the largest science park in Germany. Science City sits at its core, alongside Media City, supported by 6 departments of the Humbolt Berlin University and the BESSY Synchrotron.

Finnish Innovation Center, Otaniemi

Science and engineering location, supported by Aalto University (a combination of three of Helsinki’s universities for tech, art and design, and economics. Business at the centre specialise in fields such as pulp and paper, nanotechnologies and measurement science. Technopolis is a business incubator which offers business development and incubation services, financing services, in addition to premises and related services. The business development services consist of Innolinko Pre-Incubator, giving advice and guidance in company establishing, Spinno programmes, consultancy, mentor network, and more.

Andalusia Technology Park, Malaga

The Parque Tecnológico de Andalucía was conceived as a technological nucleus to stimulate industry in the region. 600 companies come together in IT and telecoms, including Oracle, Ericsson, BM, Accenture and Huawei. It has become one of the most significant tech parks in Southern Europe, and also global HW of the International Association of Science Parks. It also includes MIT School,  an innovative plurilingual school, supported by the latest technology, for students from Reception to High School.

Sophia Antipolis, Antibes

Created in 1970-1984, the French park is the location of companies mainly in IT and pharma. Several institutions of higher learning are also located here, along with the European headquarters of tech institutes W3C and ETSI.  The “human factor” is what the Science and Technology Park seeks to achieve better, leading to better innovation, through creating an international specialist community. This means focusing on tenant interaction, networking and cross fertilization of ideas. The concept was that bringing together people from different intellectual horizons and “making” them meet, would bring added value and generate innovation. Professional clubs were one of the ways to achieve this, including Sophia Business Angels Club, Nordic Link, Art Sophia, and Telecom Valley.

Reggio Emilia Park of Innovation, Italy

The local authority and Iren Rinnovabili have together developed this abandoned industrial area, that represents the evidence of an important chapter of the Italian industrial history. It is located very close to the historical city centre, between the railway line and the airport, directly connected to A1 motorway and the new high speed railways Mediopadana station. These are the reasons why this area is the ideal place to host the great project of developing the distinctive local proficiencies, based on the knowledge economy.

Where can I find more detailed research and insights?

• EU: Setting up, managing and evaluating science and technology parks
• NESTA: When small is beautiful. Lessons from Estonia, Finland, Singapore
• Le Parc d’Innovation, Strasbourg: Brochure and details

What can we learn from these examples?

1. Have a distinctive proposition … why are we doing this, where is the focus, what are the benefits?
2. Give it a central point … create an axis, a hub, a centre  – architecturally, communally, actively
3. Beyond an academic centre … link to nearby university R&D, but go beyond to focus on innovation
4. Get anchor brands … crucial is to attract a few lead brands early, like the anchors of a shopping mall
5. Attract national institutions … creates permanence, credibility and non-profit stability
6. Good infrastructure … obviously good transport links, but also eating, meeting and socialising
7. Education matters  … from schools, to university, to ongoing skills and knowledge for business
8. Create regular activities … it needs to be a living place – seminars, conferences, meetings, workshops
9. Provide business support … be it a business incubator for start ups, specialist agencies and consulting
10. Have a bigger vision … look beyond the location, make it a thought leader for the region, continent

What might it look like?

Conceptually (maybe even architecturally?), an innovation park might be designing like a pyramid. It addresses the need of the local area, in terms of supporting local businesses to grow and providing support, whilst also attracting inward investment, i.e. outside companies choosing to locate there. This delivers outputs in terms of jobs and economic growth, but also local facilities and building the city’s reputation.

The design of the park is ultimately to find ways to make it work together. It is not just a field, which offers subsidised locations for business. It is an environment that is supported and connected. This requires presence, facilities and collaboration. And it requires the ongoing active management of the park to spark these collaborations, to bring the environment to life, and add meaning to the buildings.

Imagine creating an innovation park in your city …

Marketing can be an incredibly exciting, disciplined, profitable and respected pursuit … until it’s left to advertising agencies and all their hangers on. Some creative agencies are intelligent, visionary and make a real difference to their client’s success. Others are just luvvies, who are obsessed with glorifying their own egos, drinking too much champagne, talking absolutely bollocks and delivering superficial ideas.

You tend to find the latter types in June in Cannes.

This year, in between their drinking sessions, there was lots of overhyped playing with VR goggles (how many of their consumers actually have these?), lots of talk about AI and chatbots (when what they really need is a few smart algorithms, and smart people), lots of  swooning over celebrities to endorse their brands (when actually consumers want authenticity, and to trust each other), and lots of snogging on the Snapchat ferris wheel (which served no purpose other than to say “we all love to be millennial, don’t we”).

Whilst business needs more creativity than ever before – to make sense of fast-changing worlds, harness the potential of new technologies, and engage consumers in way that is useful, meaningful and profitable – its a pity that so much of the creative capacity in the business world (most of the senior people in agencies, and to be honest, some of the senior people in companies) fritter away their time and ideas, on adstract indulgence.

It’s time for business leaders to take a lead – to say that creativity is too important to be left to marketers obsessed with smooching with their over-friendly agencies – and for the marketers who do “get it” to step up. Time to make sense of how the world has changed, what Chinese or Indonesian consumers really want, how to leverage big data and blockchain to engage individuals, to build useful local communities that give brands meaning but also loyalty, and to drive practical and purposeful innovation, that sustains profitable growth.

For those of you, here are three of the best ideas from Cannes 2017:

The economics of creativity, by McKinsey

Great creative generates tremendous buzz and awards. But does it drive business performance? In an extensive study using data from Cannes Lions awards going back 16 years, McKinsey & Company analysis provides a definitive answer – yes! Not surprisingly, performance varies across different sectors while some standouts dominate the competition. This research also explores some of the key management practises that foster innovation and creativity.

https://www.youtube.com/watch?v=PkTL1SahS4U

Machine learning for everyone, by Google

Machine Learning is making the world we live in smarter, providing answers to complex problems from tackling climate change to improving public health. It’s also changing our creative world at a dizzying rate. Hear how Machine Learning is providing insights into human behaviour, and how passionate engineers and policy experts are using this knowledge to reimagine products, and foster creativity.

https://www.youtube.com/watch?v=yU091q6Apok

Creating the next agency model, by R/GA

Consulting firms, in-house agencies, owned media platforms – the list of powerful disruptions deconstructing the advertising industry is growing. To shift from being the disrupted to the disruptor, agencies must completely reimagine their model around delivering innovation. Join R/GA founder, chairman, and CEO Bob Greenberg, global chief creative officer Nick Law, chief strategy officer Barry Wacksman and senior vice president of consulting Saneel Radia as they unpack how R/GA disrupted itself and created a new model that combines the strategic insights of innovation consulting, the technology chops to implement the solutions you recommend and the creative skill to meaningfully engage people.

https://www.youtube.com/watch?v=gRiVs-PmGYY

The official reason for the event is to celebrate the best marketing campaigns of the year. (Of course, campaign is an outdated word – marketing tends to be much more interactive and realtime, responding to context and individuals rather than a relentless push). Cannes Lions does showcase some of the most interesting marketing activities from around the world. The biggest winner was a room layout by the Art Institute of Chicago (but also promoting Airbnb) which was refreshing.

More generally, advertising still dominates the formats (although no longer in companies budgets), there are now awards in many more categories. Of course, the criteria for winning is still highly subjective – more about its creativity and execution in the eyes of advertising types, rather than how effectively they engaged their audiences, or delivered profitable growth.

The 2017 Grand Prix winners, in alphabetical order by award:

Art Institute of Chicago‘s Van Gogh BnB wins the Creative Effectiveness Grand Prix:

Last year, the Van Gogh BnB, where the Art Institute of Chicago joined forces with Airbnb to recreate Van Gogh’s Bedroom painting as a real room visitors could stay in overnight, won 14 Cannes Lions awards. This year it picked up the Grand Prix for Creative Effectiveness. Agency: Leo Burnett Chicago

TAC Victoria‘s Meet Graham wins the Cyber Grand Prix

Meet Graham, the weird and wonderful campaign for TAC Victoria, which saw artist Patricia Piccinini sculpt a model of the type of body you need to survive on our roads (based on scientific evidence), won two Grand Prix awards at Cannes Lions this year, including this one in Cyber. Agency: Clemenger BBDO Melbourne. 

Mailchimp‘s Do You Mean Mailchimp

Also picking up a Cyber Grand Prix was this witty campaign for Mailchimp, which plays on people being unable to remember the brand’s name (most notably in an ad that was part of the 2014 podcast Serial) and takes this to the nth degree. Agency: Droga5

Bank of Aland‘s Aland Index/Baltic Sea Project

The third and final Grand Prix in Cyber goes to the Aland Index/Baltic Sea Project, which sees the Band of Aland provide its customers with an index showing how their spending effects the environment and how they might offset this. Agency: RBK

AP Thai‘s The Unusual Football Field wins the Design Grand Prix

Picking up the only Design Grand Prix was this non-rectangular football field, created by property developers AP Thai for teenagers to play on in an over-populated area of Bangkok. Agency: CJ Worx

Björk‘s Not Get video won the Digital Craft Grand Prix:

Björk’s ambitious real-time VR video for the song NotGet, directed by Warren du Preez and Nick Thornton Jones, which changes with each viewing, won the Digital Craft Grand Prix. Teaser shown above. Agency: Analog London

Burger King‘s Google Home of the Whopper won the Direct Grand Prix:

In an example of the old adage that all publicity is good publicity, Burger King’s intrusive ad campaign, which was specifically designed to activate Google Home devices to read from the BK Wikipedia page, won the Direct Grand Prix. It received a ton of negative press at its release but was praised to the skies by the Cannes jury. Go figure. Agency: DAVID, Miami

Channel 4‘s We’re The Superhumans won the Film Grand Prix:

No huge surprises here as Channel 4’s brilliant trailer for its Rio Paralympics 2016 coverage picks up the Film Grand Prix. Agency: 4Creative. 

The Blaze‘s Territory video won the Film Craft Grand Prix:

The top honour in Film Craft went to this striking music video for Territory by The Blaze, directed by The Blaze. Production company: Iconoclast

State Street‘s Fearless Girl won the Glass Grand Prix:

The Fearless Girl statue, created to honour International Women’s Day (and asset management company State Street), won three Grand Prix awards this year, including the Glass Lion. Read our report on it here. Agency: McCann New York 

Boost Mobile‘s Boost Your Voice won the Integrated Grand Prix:

This is the first of three Grand Prix awards for Boost Your Voice, a project that saw Boost Mobile stores in the US turned into voting booths for the Presidential Elections last November. As Boost stores are located in communities with fewer polling stations, Boost Your Voice allowed more equal voting access. Agency: 180LA, Santa Monica

Santander‘s Beyond Money won the Lions Entertainment/Entertainment Lions Grand Prix:

In a surprising moment where a branded film is actually incredibly good, this film from Santander is a Black Mirror-esque exploration into our relationship with money. It’s totally gripping. Agency: MRM/McCann Spain

Adidas‘ Original is Never Finished won the Entertainment Lions For Music Grand Prix:

This spot for Adidas Originals features a remix of Frank Sinatra’s iconic song My Way. Agency: Johannes Leonardo, New York

TAC Victoria‘s Meet Graham also won the Lions Health/Health & Wellness Grand Prix:

Agency: Clemenger BBDO Melbourne

 

Whirlpool‘s Care Counts won the Lions Innovation/Creative Data Grand Prix:

In the project Care Counts, Whirlpool installed washers and dryers in schools to see how having clean clothes effects attendance rates. Agency: DigitasLBI Chicago

Humanium Metal Initiative won the Lions Innovation/Innovation Grand Prix:

The Humanium Metal Initiative is a weapons destruction programme that sees illegal firearms recycled into units that are then made available for commercial production. Agencies: Åkestam Holst, Stockholm and Great Works, Stockholm

Jet.com’s Innovating Saving won the Media Grand Prix:

Ecommerce company Jet.com picked up the Media Grand Prix for its witty and clever ways of spreading its money-saving message to customers. Agency: R/GA New York

Seem’s The Family Way won the Mobile Grand Prix:

The Mobile top prize went to Seem, a device that allows men trying for children to check their sperm count with their smart phone, in the privacy of their own home. A bit icky maybe, but kind of brilliant. Agency: Dentsu Y&R Tokyo

Tigo-Une‘s The Payphone Bank won the Product Design Grand Prix:

The Tigo-Une Payphone Bank aims to offer micro-banking options to Colombians currently unserved by the major banks. All transactions are carried out using the humble payphone. Agency: Grey Colombia, Bogotá

Boost Mobile‘s Boost Your Voice also won the Promo & Activation Grand Prix:

Boost Your Voice picked up a second Grand Prix in Promo & Activation. Agency: 180LA, Santa Monica

KFC‘s The Sad Man Meal won the Radio Grand Prix:

The Radio Grand Prix went to KFC for its witty campaign The Sad Man Meal, where a voiceover laments various minor acts of daily sadness, such as when the toilet paper tears up instead of across or when you’re angry and you don’t know why, or when a KFC meal deal ends. Agency: Ogilvy & Mather Johannesburg

Boost Mobile‘s Boost Your Voice also won the Titanium Grand Prix:

And finally a third Grand Prix for Boost Your Voice. Agency: 180LA, Santa Monica

 

Plastic bottles, bags and trays, cups and straws, fishing nets and buoys … plastic waste has become the scourge of our oceans, polluting the water and killing animals, only to eventually make its way back to us through the food we eat (and the micro plastic in them).

In order to address the problem and build a more sustainable (and mutually beneficial) business plan, Adidas paired up with Parley for the Oceans to repurpose the millions of pounds of plastic currently polluting the world’s oceans. Instead of remaining waste, Adidas has found a smart way to use recycling to their (and the planet’s) benefit.

Adidas recently launched their Parley collection. Parley is Adidas’ partner in the Parley A.I.R Strategy, which transforms ocean plastic waste into running shoes. Each shoe uses an average of 11 plastic bottles per pair, incorporating recycled plastic into the shoe’s laces, heel webbing, heel lining, and sock liner covers.

Whilst we can individually do our small bit for the world, consider the impact a global brand like Adidas could have. We’ve all heard of the horrifying “Great Pacific garbage patch” which is essentially an enormous swath of ocean coated in pelagic plastics, chemical sludge, and and other debris caught there by the North Pacific Gyre’s currents. And most people will find it surprising that a 2015 study estimated that around eight million metric tons of our plastic waste enters the oceans from land every year.

Adidas found a use for that waste that not only takes it out of our oceans (meaning less ending up in sea turtles stomachs and our own), but also provides its usual Adidas-sized revenue boost that helps provide us with a healthy market, too.

The result is the Adidas x Parley shoe

Having launched with a limited release to prove the concept, Adidas has now moved into serious production with the Ultraboost, Ultraboost X, and Ultraboost Uncaged. The new Boost range is a bold, strategic step forward as Adidas seeks to build a business based-around using more sustainable materials across their product range.

Mathias Amm, Product Category Director at Adidas provides an insight into the company’s commitment saying “The new additions to the adidas x Parley collection are another step in our journey to creating one million pairs of Ultraboost from up-cycled marine plastic”.

In it’s recently released Sustainability report, Adidas stated the company is on track to use 100% sustainable cotton by next year. It also said that it saved 70 million plastic shopping bags by switching to paper bags in its stores, and detailed a commitment to make the new Adidas MLS uniforms with Parley recycled plastic.

https://www.youtube.com/watch?v=fUbgsgYkuuA

 

It is often said that lawyers will be one of the first professions to be disrupted, maybe even displaced, by the growing presence of artificial intelligence.

Robot lawyers seem like a bizarre idea.

But when you think about it most of a lawyers activity today is based around information analysis and defined process. Machines can do that.

Lawyers in business have a much more important role.

Whilst they spend most of their time telling you what you cannot do, rather than what you can – and getting you out of trouble when you do the wrong thing – their most important role is as the guardians of intellectual property.

IP is the asset of the future.

It comes in many forms – ideas and strategies, brands and innovations, patents and licenses, customers and contracts. These are the assets by which business can shape its future markets, drive innovation and progress, and creating value short and long-term. Of course, all assets have future value, but IP is the one which can be applied and adapted, its value multiplied many times, limited only by imagination.

Lawyers are the guardians of the future.

But this requires them to step out of the background. To become strategic advisors and drivers of the future business, working with leaders, strategists and innovators, to shape the future together. To use imagination and foresight, to unlock these assets in new and valuable ways.

Much more than an intelligent robot.

So what does the future of business look like?

How can you help your business shape the future to their advantage?

Growth is shifting, innovation is relentless, disruption is accelerating, expectations are high, and social tensions are rising. Making sense, and making use, of these dramatic forces of change will help you to make better strategic choices, shape markets to your advantage, and create a brighter future.

Everyone talks about “megatrends” … so what are the most significant forces of change?

I spent some time comparing the many different approaches to tracking and articulating these patterns of change, to find out which trends are the most common, and the most significant.

Isn’t it obvious? Technology is shaping everything? Yes, but its the implications of that, which matter.

As McKinsey says “the trend is your friend” … It’s the oldest adage in investing, and it applies to projecting future business performance too. Their analysis shows that capturing the waves of change, created by industry and geographic trends, is the most important contributor to business results … a company benefiting from such waves of change is 4-8 times more likely to rise to the top of future performers.

The companies who harness these mega trends, do so in a way that shapes the future to their advantage. They apply their ideas and assets to the challenge in new and imaginative ways – to disrupt markets, to create new business models, and to drive innovation and new growth.

“Gamechangers” range from the new start-ups who have speed and agility to move quickly, who have no fear of breaking rules, and who can challenge huge incumbent companies with only a handful of employees by thinking differently. Digital disruption is everywhere. Think about Netflix in entertainment, Haier in white goods, Tesla in cars, Spotify in music, Paypal in money. Look at WhatsApp creating $19bn of value in 3 years, or Uber $60bn in 6 years, or Alibaba $130bn in 11 years. Their growth is exponential, as is their impact.

Incumbent companies, large and slower to change, have to rise to these challengers, quickly and smartly, and to utilise their emotional intelligence to think more imaginatively and intuitively, to match humanity with technology. GE transforming itself from an industrial to digital company, Amazon over 25 years constantly adapting and growing like a start-up despite its size, Lego embracing digital technologies to stay current in a playful world. Even Apple faces huge challenges from small companies, but also big new ones, like China’s Xiaomi which could exceed its market cap within the next 12 months.

Gamechangers, big and small, harness these mega trends, the new drivers and discontinuities in markets, to think differently. They change the game not just in how they work internally, but also how their markets work. They change what companies do, how value is perceived, and what customers want.

An analysis of the trends in megatrends, shows a number of themes that are repeatedly explored by futurists in seeking to make sense of the big change drivers of the future. They are grouped into 4 themes:

Technology:

• Disruptive technologies … smart, connected, ubiquitous … digital and data, 3D printing and machine learning, AI and robotics, genetics and nanotech, and much more

Energy and environment:

• Changing energy mix … more renewable, more secure, more expensive
• Shortage of resources … water and food, rare earths and key commodities
• Climate change … preventation and adaptation, even in the face of Trump’s blinkeredness

Economics and politics:

• Knowledge and information … personal education, automation, highly skilled workforce
• Economic shifts … emerging markets, new middle classes, and growing wealth
• Globalisation … connected economies – markets, competitors, customers and owners
• New normal … low interest rates, higher debt, more government intervention
• Multi-polar … diffusion of power, rising nationalism, rise of networks and coalitions

Social and health:

• Demographic shifts … population growth, ageing population, needing more support
• Urbanisation and mobility … mega-cities, smart cities, fast and responsible transport
• Health and wellness … growing expectations, fear of pandemics, burden of ageing

The question for corporate lawyers is simple but profound: How will you step up, to add more value than an intelligent business, to work with colleagues across the business, to be a strategic driver of the future.

How will you change yourself … to be the change … to be the future gamechangers?

More reading:

• The Future Lawyer, Forbes, June 2017
• Future of Law and Lawyers, Global Change, 2014
• The In-house Lawyer in 2020, Thomson Reuters, 2016
• Technology will replace lawyers, Harvard Business Review, 2016

How will you look in 2018?  Throw away your mass-market skin creams, make-up and hair colour … it’s time to go beyond average, to be personal, to be experimental, to be natural, to be you … From intelligent mirrors to 3d-printed colours to suit you, tattooed brows and fragrance for clothes, its time to rethink the beauty world.

Beauty markets are evolving rapidly – high growth in countries such as Brazil, Russia, Indonesia, and China (not forgetting the large but stagnant markets like USA, Japan, and UK). Increasingly global, Brazil is now the world’s largest fragrance market, whilst skincare inspiration continues to come from South Korea.

Here are some of the big trends and innovations:

Natural, organic, real

Think waterless solutions, re-fillable make-up products and plant colouring. With the conclusion of Greenpeace’s Detox campaign in 2020, brands are encouraged to eliminate all toxic chemicals from their products and production processes. In the beauty industry, brands are looking to planet friendly ingredients and manufacturing methods, as well as raising awareness around environmental challenges with engaging and transparent campaigns.

In fragrances, aromatherapy is embraced as a more natural, sensory route to wellness. These are particularly popular in South Korea and Japan. The Scandi trends of Danish “hygge” cosiness, and Swedish “hagon” distressing, also shape these ideas of mental balance.

In haircare, “natural” means both natural styling (curls are good) and natural ingredients (healthy, organic, and non-damaging). There is also a cross-over to food trends, with coconut water being a popular ingredient in shampoos.

All of this challenges the old beauty concept of celebrity endorsement which seems less personal, and less authentic.

Nature and science come together as products seek more functional benefits too –  protection against age, chemicals and heat, whilst also a new generation of hair products include anti-pollution and anti-UV features. These are particularly popular in China where scalp care is seen as the route to hair health.

• Example: Aromatic by Neal’s Yard and Sony
• Example: Hanbang shampoo from Korea with traditional herbal medicines
• Example: Dyson Supersonic intelligent hairdryer avoids heat damage
• Example: Rituals, and The Ritual of … Collections

https://www.youtube.com/watch?v=t8UShPTAgcA

 

Diverse, ethnic, choice

Brands are already developing product ranges that service a more diverse set of needs and skin tones. From the L’Oreal campaign for the visually impaired to leading cosmetic brands expanding their foundation colour range to cater all skin tones, in the next 5 years we will see a lot of movement to celebrate diversity.

In fragrances, age segmentation is a big theme, in particular for babies and tweens (10-15). In make-up Benefit has targeted this tween space with great success. Aspirational make-up brands like Mac are sought after by this group, whilst they are happy to play with low-price brands on other categories. Gender neutral, long-time led by CK One, is also a growing theme.

In hair colouring, the consumer used to buy out of necessity, as age produces greyness, requiring lasting colour applied in a salon. Today, the growth trends are in youth markets where experimentation, multi colours and regular change are demanded.

In the growing muslim audience, consumers seek halal ingredients, and equally prefer to apply fragrance to their clothes or jewellery rather than their skin. Given the damage to skin, this could be a trend more generally. Other brands targeting ethnic audiences include MuslimGirl with their niche boxes.

• Example: Body Shop Black Musk Perfume Oil targets ethnic markets
• Example: Vixen Hair Graffiti targets the youthful experimental market
• Example: Romy Paris Figure “beauty assistant” has just launched
• Example: Innisfree instore VR headsets take you to Jeju Island, famed for its purity

https://www.youtube.com/watch?v=gn_h7FQsTqw

 

Intelligent, online, playful

With genetics testing creating bespoke offerings, which will largely be delivered online, the physical retail space will take on a different kind of role, focusing on education, events and entertainment to drive footfall into stores. Last year, Charlotte Tilbury launched the virtual “Magic Mirror” in London’s Westfield store, serving as an assistant tool to try make-up looks. For the skincare sector, partnership with wellness experts and mindfulness sessions are trending.

In physical terms, we like to have more choice, building up a fragrance wardrobe, choosing different colouring each day to match moods and fashion. Like craft beer, it is more interesting to explore different brands and flavours, rather than being loyal to one.

Influencers, beauty vloggers and tutorials, have a strong voice, particularly in youthful markets. Some influencers, like Michelle Phan, the world’s most followed Youtuber, launched their own curated subscription brand Ipsy, which then commoditises its branded contents.

Digitalisation has largely taken off in make-up with a host of apps, websites, devices and more. Like at the beauty counter, choosing colour needs to be fun, which is exactly what digital mirrors and apps like Loreal’s Make-up Genius have achieved. Play and then press buy.

As people like to mix and match, packaging size declines. Fragrances in roll-on sticks rather than bottles, to make it easy to carry. And shrinking to more travel size, from 50ml to 10ml.

Sampling is reinvented, for example by Birchbox, requiring subscribers to pay $9.99 a month for a small box of samples curated for them, and sharing in their follow-on purchases.

• Example: HiMirror detects skin blemishes to advise a daily routine
• Example: Nail Revolution has embraced “scan and match” in nail colour
• Example: Sephora instore Instapcent booths to explore scents
• Example: L’Oreal’s Make-up Genius and partnering with Snapchat

 

Personal, healthy, scientific

The new personalisation is based on genetics – products personalised to fit into every aspect of the consumer lifestyle and DNA become ever more important. Inspired by the health and wellbeing trend, consumers will receive a list of scientifically selected skin care ingredients for them, recommended based on their DNA analysis that can be done with a cheek swab (creepy or cool? you decide).

Being individual and projecting it matters more – anyone can project themselves to the world. Think about the hunt for unusual fashion, music or food. Individuality drives a desire for experimentation. However whilst millennials are the “selfie” generation, they are driven by sharing and togetherness. Talking of selfies, face definition is a fast growing sub category in make-up, creating natural sculpting though use of highlights and tutored application.

South Korea continues to be a major inspiration for more scientific minded approach to beauty. K-Beauty is regarded as high performance, but also with fun packaging, scientific backing and affordable prices. Building on the past success of concepts like BB Cream in skincare, it continues to drive inspiration across the world.

• Example: Byredo comes unnamed with stickers to personalise
• Example: Tony Moly, a Korean brand, is distributed by Sephora
• Example: YouCam Makeup with John Paul Mitchell
• Example: eSalon in personalised hair colour

Sources: GSK, Mintel, Trendwatching, WGSN, and others.

2. Measure out your ingredients (the paper has real size circles for amounts):

3. Cook in the paper (and eat of it too, if you really can’t wait!):

Hot on the heels of Balenciaga which recently launched a sell-out plastic carrier bag for a crazy price of $1150, Prada is the latest brand to join the craze for selling extravagant everyday things we never knew we needed

The Italian design house has launched a fancy version of a paperclip that will set you back $185. Made from polished sterling silver, the common office supply is actually designed to clip your money together. It is available exclusively at Barneys.com

Marketed as a Paperclip-shaped Money Clip, it measures at just 6cm in length with the only design feature being a small ‘Prada’ logo embossed on the side. Unsurprisingly, shoppers are finding it hard to justify the extreme price point.

“$185 for a paperclip? This thing better be able to hold my life together,” one user wrote. Another added, “By the time I buy the paperclip, there won’t be enough for it to hold.”

Others commented on the fact that they would like to be in the financial position where they could afford to spend such an extravagant amount of money on a paperclip.

“Prada made a $185 paperclip, that is the level of extra I strive to be,” someone wrote.

However, if you’re falling short after forking out on that Balenciaga bag, never fear because Barneys is also selling a cheaper version for a bargain $140.

And if you still think all that is crazy, skateboard brand Supreme last year launched a branded brick, a standard red brick with its logo on it, for $50. It sold out in minutes.

At the recent European Business Forum – held in the fast transforming Danish city of Odense – I hosted a series of “big talks” with around 400 of Europe’s CEOs, supported by some of the world’s top business academics.

Together we explored the challenges and opportunities in a world in the midst of incredible change, fear and division, but also incredible opportunities in the form of new markets, technologies and aspirations. In particular, we focused on Europe – what is the future of business in Europe, where should it focus, to be different, to progress, and to profit?

What emerged was a new “agenda” … a new direction for business, that was wholeheartedly endorsed by the CEOs attending (including Lars Rebien Sorensen, the world’s #1 business leader according to Harvard Business Review), and the academics (including Michael Porter, the world’s #1 business thinker, who unveiled his new passion for social value creation).

The agenda was built on new insights from leading thinkers about future trends, economics, refugees, environment, strategy, exponential technologies, innovation, culture change, psychology, leadership, and more holistic value creation. The business leaders brought these factors, and their own passions and priorities together, to shape a new vision, a new path forwards.

Here is the new agenda:

The situation: Fast change has left business out of touch with people.

Globalisation feels undemocratic, AI and robotics have created fear. Short-termism creates a blinkered obsession with financial gain rather than value creation that supports financial and social progress, that makes the world a better place. As new markets surge forwards, with lower costs, bolder ambitions, and fast action, Europe is squeezed and left behind.

The problem: Leaders are complacent, and innovation is wasted.

Companies have grown lazy and arrogant through stability and success. They live on the success models of the past, rather than creating new. They avoid risk, big ideas are mocked (except Elon Musk’s), leaders avoid real change. Innovation is trivialised, incremental not exponential, not focused on the big challenges and opportunities that move the world forwards.

The question: How can Europe rediscover its place in the world?

How can fast change be the catalyst for accelerating growth? How can our assets, from geography to capability, cultural diversity and social beliefs, be creatively applied to industry 4.0? How can we harness creativity, intangible assets, for more value? What do business leaders themselves need to do better? How can Europe lead and win the future?

The answer: Business should be the leader of social progress.

It should drive social innovation, harnessing the potential of new technologies, from digital to robotics, to make life better. Tech should not threaten us, but enhance our lives. It must be profitable too, a premium to invest and share. Social innovation – welfare, healthcare, green and diverse, communal and cultural – are embedded in Europe’s make-up, and can be its advantage, its export and its future.

The full paper is available on request.

https://www.youtube.com/watch?v=gt4lw8feBbQ

Denmark’s fairytale city of Odense was a perfect place to write the future story of business. Birthplace of Hans Christian Andersen, and now one of Europe’s leading robotics hubs, and rapidly becoming “the Davos of business thinking”.

It is a city in the midst of rapid change – socially and technologically. €5.5 billion investment will create a smart city, local businesses like Universal Robotics are growing rapidly, drones dominate the local airport, it has the world’s most innovative sports track, one of Northern Europe’s top music festivals, and Facebook has just announced a huge local investment.

On 9-10 May, Odense hosted this year’s Thinkers50 European Business Forum, bringing together the world’s top business thinkers with Europe’s business leaders. I had the privilege of hosting this incredible event, probably the highest quality business forum in the world this year.

Watch the best moments at the European Business Forum 2017

Download all the best ideas from the European Business Forum 2017

The blockchain is a “distributed ledger” technology that underlies cryptocurrencies like bitcoin and platforms like Ethereum.

It provides a way to record and transfer data that is transparent, safe, auditable, and resistant to outages. It has the ability to make the organizations that use it transparent, democratic, decentralized, efficient, and secure.

Whilst most blockchain activity has focused on financial services, it  will likely disrupt many industries in the coming 5 to 10 years – any industry to involves data, transactions and network (which is basically, every sector!).

The applications range from a completely new approach to banking and insurance, to cloud storage and digital security. But also the reinvention of things like collaboration (e.g. crowdfunding), shared services (e.g. car sharing), and customer relationships (e.g. loyalty programs). It can also bring equality and access across the communities of the world – addressing challenges such as poverty, education and connecting people.

Some say it’s impact will be as significant as the aircraft, or the Internet – connecting the world in new and innovative ways – opening new possibilities and opportunities for business and society.

The blockchain is a distributed ledger technology that provides a way to record and transfer data that is transparent, safe, auditable, and resistant to outages. The blockchain has the ability to make the organizations that use it transparent, democratic, decentralized, efficient, and secure. It’s a technology that holds a lot of promise for the future, and it is already disrupting many industries.

These are some of the industries it’s already disrupting, as explored by Future Thinkers:

1. Banking and Payments

Some say that the blockchain will do to banking what the internet did to media. It can be used to give access to financial services to billions of people around the world, including those in third world countries who don’t have access to traditional banking. Technologies like Bitcoin allow anyone to send money across borders almost instantly and with very low fees. Abra is a startup that is working on a bitcoin-based remittance service. Many banks like Barclays are also working on adopting blockchain technology to make their business operations faster, more efficient and secure. Banks are also increasingly investing in blockchain startups and projects. IBM predicts that 15% of banks will be using the blockchain by the end of 2017.

2. Cyber Security

Although the blockchain ledger is public, the data is verified and encrypted using advanced cryptography. This way the data is less prone to being hacked or changed without authorization. It eliminates the need for middlemen, making it more efficient than many legacy systems in cyber security.

3. Supply Chain Management

With blockchain technology, transactions can be documented in a permanent decentralized record, and monitored securely and transparently. This can greatly reduce time delays and human mistakes. It can also be used to monitor costs, labour, and even waste and emissions at every point of the supply chain. This has serious implications for understanding and controlling the real environmental impact of products. The distributed ledger can also be used to verify the authenticity or fair trade status of products by tracking them from their origin. Some blockchain startups working in this sector are Provenance, Fluent, SKUChain, and Blockverify.

4. Forecasting

The blockchain is set to change the entire approach to research, consulting, analysis and forecasting. Online platforms like Augur are looking to create global decentralized prediction markets. These technologies can be used to place and monitor bets on anything from sports to stocks to elections in a decentralized way.

5. Networking and the Internet of Things

Samsung and IBM are using blockchain technology for a new concept called ADEPT, which will create a decentralized network of IoT devices. Operating like a public ledger for a large number of devices, it would eliminate the need for a central location to handle communications between them. The devices would be able to communicate to each other directly to update software, manage bugs, and monitor energy usage.

6. Insurance

The global insurance market is based on trust management. The blockchain is a new way of managing trust and can be used to verify many types of data in insurance contracts, such as the insured person’s identity. So-called oracles can be used to integrate real-world data with blockchain smart contracts. This technology is very useful for any type of insurance that relies on real-world data, for example crop insurance. Aeternity is one blockchain project that is building tools that are useful in the insurance industry.

7. Private Transport and Ride Sharing

The blockchain can be used to create decentralized versions of peer-to-peer ridesharing apps, allowing both car owners and users to arrange terms and conditions in a secure way without third party providers. Startups working in this area include Arcade City and La’Zooz.

The use of built-in e-wallets can allow car owners to automatically pay for parking, highway tolls, and electricity top-ups for their vehicle. UBS, ZF and Innogy are some of the startups developing blockchain based e-wallets.

8. Cloud Storage

Data on a centralized server is inherently vulnerable to hacking, data loss, or human error. Using blockchain technology allows cloud storage to be more secure and robust against attacks. Storj is one example of a cloud storage network using the technology.

9. Charity

Common complaints in the charity space include inefficiency and corruption, which prevent money from reaching those that are meant to have it. Using blockchain technology to track donations can let you be sure your money is going to end up in the right hands. Bitcoin-based charities like the BitGive Foundation use blockchain’s secure and transparent distributed ledger to let donors see that the intended party has received the funds.

10. Voting

Probably one of the most important areas of society that the blockchain will disrupt is voting. The 2016 US election is not the first time certain parties were accused of rigging election results. Blockchain technology can be used for voter registration and identity verification, and electronic vote counting to ensure that only legitimate votes are counted, and no votes are changed or removed. Creating an immutable, publicly-viewable ledger of recorded votes would be a massive step toward making elections more fair and democratic. Democracy Earth and Follow My Vote are two startups aiming to disrupt democracy itself through creating blockchain-based online voting systems for governments.

11. Government

Government systems are often slow, opaque, and prone to corruption. Implementing blockchain-based systems can significantly reduce bureaucracy and increase security, efficiency, and transparency of government operations. Dubai, for example, is aiming to put all its government documents on the blockchain by 2020.

12. Public Benefits

The public benefits system is another sector that suffers from slowness and bureaucracy. Blockchain technology can help assess, verify, and distribute welfare or unemployment benefits in a much more streamlined and secure way. GovCoin is a UK-based company that is helping the government to distribute public benefits using blockchain technology. The blockchain is also a good contender for implementing a basic income. Circles is a project working on developing a blockchain-based technology for implementing a universal basic income.

13. Healthcare

Another industry that relies on many legacy systems and is ripe for disruption is healthcare. One of the challenges hospitals face is the lack of a secure platform to store and share data, and they are often victims of hacking because of outdated infrastructure. Blockchain technology can allow hospitals to safely store data like medical records and share it with authorized professionals or patients. This can improve data security and can even help with accuracy and speed of diagnosis. Gem and Tierion are two startups that are working on disrupting the current healthcare data space.

14. Energy Management

Energy management has been a highly centralized industry for a long time. Energy producers and users cannot buy it directly from each other and have to go through the public grid or a trusted private intermediary. TransactiveGrid is a startup using  Ethereum that allows customers to buy and sell energy from each other in a peer-to-peer way.

15. Online Music

Several startups are coming up with ways for musicians to get paid directly from their fans, without giving up large percentages of sales to platforms or record companies. Smart contracts can also be used to automatically solve licensing issues, and better catalog songs with their respective creators. Mycelia and Ujo Music are two startups creating blockchain-based solutions in the music industry.

16. Retail

When you shop, your trust of the retail system is tied to the trust of the store or marketplace. Decentralized blockchain-based retail utilities work differently: they connect buyers and sellers without a middleman and associated fees. In these cases, trust comes from smart contract systems, the security of exchanges, and built-in reputation management systems. Two startups disrupting the retail space are OpenBazaar and OB1.

17. Real Estate

Some of the issues in buying and selling real estate are bureaucracy, lack of transparency, fraud, and mistakes in public records. Using blockchain technology can speed up transactions by reducing the need for paper-based record keeping. It can also help with tracking, verifying ownership, ensuring accuracy of documents, and transferring property deeds. Ubitquity, is a blockchain-secured platform for real estate record-keeping that is an alternative for legacy paper based systems.

18. Crowdfunding

Crowdfunding has become a popular method of fundraising for new startups and projects in recent years. Crowdfunding platforms exist to create trust between project creators and supporters, but they also charge high fees. In blockchain-based crowdfunding, trust is instead created through smart contracts and online reputation systems, which removes the need for a middle-man. New projects can raise funds by releasing their own tokens that represent value and can later be exchanged for products, services, or cash. Many blockchain startups have now raised millions of dollars through such token sales. Although it’s still early days and the regulatory future or blockchain-based crowdfunding is uncertain, it’s an area that holds a lot of promise.

19. Your Industry

If your industry deals with data or transactions of any kind, it is a field than can likely be disrupted by blockchain technology. The space is wide open and the opportunities are many.

Blockchain startups and projects featured in this video:

Bitcoin – https://bitcoin.org/
Abra – https://www.goabra.com/
Provenance – https://www.provenance.org/
Fluent (Rebranded to Hijro) – https://hijro.com/
SKUChain – https://skuchain.com/
Blockverify – http://www.blockverify.io/
Augur – https://augur.net/
Networking and IoT
Adept – http://www.coindesk.com/ibm-reveals-p…
Aeternity – https://www.aeternity.com/
Arcade City – https://arcade.city/
La’Zooz – http://www.shareable.net/blog/lazooz-…
Innogy – https://bitcoinmagazine.com/articles/…
UBS – https://www.ubs.com/microsites/blockc…
ZF – http://www.econotimes.com/UBS-bank-in…
Online Data Storage
Storj – https://storj.io/
IPFS – https://ipfs.io/
BitGive Foundation – https://bitgivefoundation.org/
Democracy Earth – http://democracy.earth/
Follow My Vote – https://followmyvote.com/
GovCoin – http://www.businesswire.com/news/home…
Dubai Blockchain Strategy – http://www.smartdubai.ae/dubai_blockc…
Circles – https://www.circle.com/
Gem – https://gem.co/
Tierion – https://tierion.com/
TransactiveGrid – http://transactivegrid.net/
Mycelia – http://myceliaformusic.org/
Ujo Music – https://ujomusic.com/
OpenBazaar – https://www.openbazaar.org/
OB1 – https://ob1.io/
Ubitquity – https://www.ubitquity.io/
Consensys – https://consensys.net/about/
Ethereum – https://www.ethereum.org/

Here are three great videos to explain and inspire more: