10 trends, 1 constant: keep reinventing your business

10 TRENDS
10 opportunities to gain a bigger share of the future.
DISRUPTION WORKS
Creative business strategy for sustainable growth

10 TRENDS, 1 CONSTANT:
KEEP REINVENTING
YOUR BUSINESS

Change is happening at an ever more rapid pace. It attracts new, innovative players and
game-changers. It brings a host of challenges and opportunities. To stay ahead, you need to
reinvent yourself constantly.
This booklet outlines 10 trends which will influence your business in the next few years.
Every single one of them could have a decisive impact on your business strategy, your product
development, your company processes and your people management.
DISRUPTION WORKS can help you to get a grip on these changes and turn them to your
advantage. We are neither a creative agency nor a business consultancy. We are something in
between: a sparring partner for creative strategies which will sustain your business growth.
To make it happen, we offer you a unique tool : DISRUPTION. And a track record to prove that it
WORKS. For a brief overview of our working method, please take a look at the end of this booklet.
Happy reading.
DISRUPTION WORKS
Creative business strategy for sustainable growth

TREND 1 - COMPETITION ALL THE WAY
TREND 2 - TECHNOLOGY AT THE CENTRE
TREND 3 - BIG DATA AND ARTIFICIAL INTELLIGENCE
TREND 4 - FULL ON-DEMAND MODELS
TREND 5 - NEW PRODUCTION AND MANAGEMENT REALITIES
TREND 6 - WAR FOR TALENT
TREND 7 - ONE BIG COMMUNITY
TREND 8 - IMPORTANCE OF LIFE SCIENCES
TREND 9 - CONTENT IS KING
TREND 10 - A PURPOSE BEYOND PROFIT
The content of this booklet is based on publicly available sources. None of the information presented has
been independently verified. Disruption Works accepts no liability for any damage suffered by any person
as a result of relying on any content in, or alleged omission from, this book.

TREND 1
Competition all the way

Competition all the way - TREND 1
6
COMPETITION ALL THE WAY
• New business or operating models disintermediating existing customer–supplier
relations throughout the value chain (especially in technology and retail).
• Super-empowered start-ups supported by large corporations, funds or creative ideas.
• Constant need to innovate and reinvent existing business models and develop new partnerships.
43% of CEOs
worry that
their company will lose
its competitive edge
45% of CEOs believe
competitors and their innovations
have a significant impact
on their businesses’ results and
existence
Reinventing / evolving
their business model is
the priority of 32%
of CEOs surveyed
in 2013

Origin
• General shrinking of barriers to entry
• More and more people can bring ideas
to the market at a very low cost per idea
• Increasing support communities for start-up
businesses
• Small scale becomes profitable (customisation,
3D printing)
Impact
Impact on companies’ strategies
Impact on companies’ products / services
Impact on companies’ processes
Impact on people management / culture
Opportunities
• Develop new business models to keep
a competitive edge
• Develop innovative partnerships
to accommodate changing relationships
in the value chain
• Proactive data gathering and analysis to keep up
with trends, consumer needs and developments
Challenges
• Constant pressure to keep a competitive advantage
(innovate, experiment)
• Price competition

Example of value chain disintermediation
in the (fresh) retail industry
PRODUCERS SUPERMARKET
CONSUMER
PRODUCTION LOGISTICS WARE- RETAIL
HOUSING

Example of value chain disintermediation in the content industry
CONTENT
PRODUCTION
CONTENT
PACKAGING
CONTENT
DISTRIBUTION
CONSUMER
INTERFACE
CONSUMER
PRODUCTION
HOUSE
TELEVISION
MANUFACTURER
BROADCAST TELECOM

TREND 2
Technology at the centre

Technology at the centre - TREND 2
TECHNOLOGY AT THE CENTRE OF EVERY REALITY
• Robotics are increasingly carrying out tasks usually done by humans – from a supportive role (>2015)
to the complete replacement of humans in the workforce (>2030).
Japan aims
to have one robot per
household by 2015,
South Korea
by 2020
Cisco estimates
that 50 billion
devices and objects
will be connected
to the Internet
by 2020
According to The Futurist,
the robot population will
surpass the human population
in the developed world by 2025.
Space hotels will accommodate
350 guests by 2025
The Google smart contact
lens will allow the future of
planning and booking
a holiday to involve a virtual
reality visit to potential
destinations
• Information and communication technologies will remain critically important
with innovations such as cloud computing and virtual reality.
• The Internet of Things will pervade all aspects of private life with small chips incorporated into
all kinds of objects to interconnect with each other and with the Internet.

Origin
• Increasing technological power
• Increasing intellectual capacities of robotics
• Increasing number of “connected devices”
Impact
Opportunities
• Robots as a solution to a shortage of skills
(e.g. care)
• Increasing quality of life for humans
(e.g. security, home care, smart tracking, etc.)
• Improving consumer experience at affordable
prices (e.g. virtual holiday)
Challenges
• Loss of (middle class) jobs due to replacement
by robots
• Ethical, legal and societal concerns
• High dependence on the consistency and
interdependence of technology
• Education and training of new capabilities

Penetration of connected devices
World population 6.3 bn 6.8 bn 7.2 bn 7.6 bn
Connected devices 500 m 12.5 bn 25 bn 50 bn
Connected devices / pers. 0.08 1.84 3.47 6.58
More
connected
devices
than people
2
2003 2010 2015 2020

Selected past and future innovations
• World Wide Web
• Digital answering machine
• Pentium processor
• Web TV
• Self-cleaning windows
• Toyota hybrid car
• YouTube
• Intelligent cosmetics
• 3D-ready TV sets
• Suborbital space tours
• Road reservation system
• Self-repairing roads
• Video wallpaper
• Virtual holidays
• Robotic surgery
• Childcare robots
• Space factories
1990 2010 2030

Big Data and Artificial Intelligence
TREND 3
01011101001110001
11001110101001
1101100110
011001110101
1011000101001110101
01011101001110001
11001110101001
1101100110
011001110101
1011000101001110101

Big Data and Artificial Intelligence - TREND 3
Maps 3D visitor journeys
to generate data-driven
insights into visitor and
customer behaviour
Business discovery platform,
allowing associative data
exploration
Making online interactions
with e-commerce customers
more intelligent and precise
An engine which generates,
evaluates and gives voice
to ideas as it discovers
them in the data
BIG DATA & ARTIFICIAL INTELLIGENCE
• Big Data refers to datasets whose size is beyond the ability of typical database
software tools to capture, store, manage and analyse this data.
• Artificial Intelligence allows patterns in enormous quantities of data to be found.
• The combination of both allows the creation of extreme transparency, extrapolation of
future scenarios, extreme customisation based on customer profiles, replacing human decisions,
new products and services (e.g. location based).

Origin
• Increasing availability of data from proprietary
Big Data to new public sources of open data
• Increasing power of technology to process large
amounts of data
• Democratisation of Big Data tools and science
for the wider public
Impact
Opportunities
• Improved management decisions based
on scenario and risk
• Insights into factors influencing customer
decision-making
• More personal customer interactions
resulting in more loyalty
• Increased productivity from algorithms analysing
information streams between employees
Challenges
• Access and understanding of data flows
within organisations
• Organisational change and talent managment
(new capabilities)
• Data technology is still highly complex and requires
investment and time before becoming mainstream

Companies are spending big on Big Data
$6.4bn
$2.8bn
$2.8bn
$1.2 bn
$2.8bn
Why? The companies
which use data analytics efficiently are ... 2.2
million
terabytes
of new data
is created
every day
2 X
More likely to have
top- quartile financialperformance
5 X
More likely to make
decisions much faster
than competitors
3 X
More likely to
execute decisions
as intended
2 X
More likely to use
data very
frequently when
making decisions
In 2015
Annual
growth
to 2020 22% 26% 22% 40% 54%

Big Data is only getting bigger Growth in the Big
Data market
International Data Corporation
Forecast
90% of the data in the world
today was created within the
last two years.
It is likely to reach 40,000
exabytes or 40 trillion
gigabytes by 2020
2005 2006 2007 2008 2009 2010 2011 2012 > 2020
$3.2
billion
$16.9
billion
2010
2015

TREND 4
Full on-demand models

FULL ON-DEMAND MODELS
• Personalised offers, individualised products, services and content,
based on the collection and treatment of rich customer data profiles.
• Dematerialisation where people are increasingly interested in
consuming and paying for temporary or limited access to goods and services
rather than owning them.
• Mass customisation or large-scale personalisation at acceptable
cost with flexible computer-aided manufacturing systems (e.g. 3D printing).
DYO
DYO IS A KIND OF MARKETPLACE
FOR A WHOLE NEW KIND OF PRODUCT.
EVERYTHING ON OUR SITE IS
CUSTOMISABLE, AND 3D-PRINTED AND
DESIGNED BY AN AMAZING
COMMUNITY OF INDEPENDENT
DESIGNERS AND ARTISTS.
Targeted advertising based
on specific customer profiles
Nike – Personalised large-scale
customisation of trainers
DYO (design your own):
customisable, 3D-printed
products
Full on-demand models - TREND 4
On-demand content models

Origin
• General and wide availability of data
about customers
• Development of technology that allows
flexible customisation (e.g. 3D printing)
• Customers’ desires to have products which meet
their exact needs (and those of their peers)
Impact
Opportunities
• Improvement of services and products
thanks to data
• Increased conversions and improved
retention thanks to personalisation
• New commercial models thanks to
mass customisation by 3D printing
Challenges
• Personalisation-privacy paradox: rising privacy
concerns
• Larger asset responsibility for companies
due to dematerialisation

56%
of online shoppers
are more likely to
return to a site that
actively recommends
a product
17%
of companies questioned offer
customisation in addition to
their standard business
59%
of online shoppers
believe that it’s
easier to find more
interesting products
on personalised online
retail stores
83%
of companies questioned
were founded with
the sole purpose of
mass customisation

Categories of mass customisation (from 500 projects)
Personalised Media 96 - 19.2%
Personalised Fashion & Textiles 78 - 15.6%
Food & Nutrition 57 - 11.4%
Personalised Look 49 - 9.8%
Made to Measure Apparel 48 - 9.6%
Jewellery, Bags & Accessories 41 - 8.2%
Miscellaneous 38 - 7.6%
Household & Furniture 31 - 6.2%
Sports 30 - 6.0%
Footwear 23-4.6%
Computer & Electronics 9 - 1.8%

TREND 5
New production and management realities

New production and management realities - TREND 5
NEW PRODUCTION & MANAGEMENT REALITIES
• Traditional Shared Service Centres (SSCs) are evolving in quality and autonomy of service,
to the extent that (1) control is obtained to outsource completely, (2) value-added services are within their scope,
(3) the SSC operates as an internal consultant or (4) it provides service to external parties.
• In parallel, reversing offshoring decisions are based on the regained competitiveness of developed regions
(e.g. shale gas revolution in the USA) to increase flexibility and reactivity close to markets.
We will open a new world-class
Shared Service IT Centre by 2016
to increase excellence levels.
We might consider externalising
our service to other companies -
Daimler
27% of CEOs
in the technology
industry cite
nearshoring as a way
of improving
customer service
We decided to build our new plant in Texas
instead of India because we believe the cost
advantage of Asia is decreasing, especially with
the arrival of cheap shale gas in the USA.
It also offers us more control over our
production process and higher market
responsiveness – Dow Chemicals

Origin
• Standardisation and bundling of competencies
allowing higher service quality at lower cost
• Decreasing cost advantage of offshore regions –
being questioned by regained
competitiveness in developed regions
• Highly innovative markets benefiting from
production being close to market and consumer
Impact
Opportunities
• Introduce higher value-added services in SSC
(e.g. cloud computing, social media,
customer service)
• Share costs with industry peers
• Sell services to industry peers (white-labelling)
Challenges
• Change management and training
• Retaining control over core processes
(e.g. customer service)
• Over-standardisation leading to a lack of flexibility

Shared Service Centre today and within 5 years
(% of total function)
75%
50%
25%
0
Percent of function in Shared Operation
IT
Finance
Procurement
HR
RBO
Real Estate
Legal
Customer
Services
Engineering
Sales &
Marketing
Today
Within three years

Challenge of the growth of Shared Service Centres
(% respondents)
CULTURE
CUSTOMER RESISTANCE
TECHNOLOGY SYSTEMS
CHANGE
INVESTMENT
LOSS OF CONTROL
LACK OF MGT SUPPORT
0 10 20 30 40 50 60
90%
of Fortune
500 companies
have Shared
Service Centre(s)

War for talent - TREND 6
WAR FOR TALENT
• Key regions in the world, not least Western Europe, will suffer a serious shortage of qualified employees.
• The talent mismatch will be largest in the healthcare and engineering markets.
• The globalisation of the labour market will trigger a migration of human capital (brain gain vs. brain drain).
• Companies will have to invest in attracting and retaining talent.
• The talent of tomorrow will have to work even more internationally.
43% of employers who are facing
talent shortages say this has
a substantial impact
on their organisation’s ability
to meet client needs –
ManPower Survey 2013
35% reported
difficulty in filling
positions as a result
of a lack of suitable
candidates –
ManPower Survey 2013
We managed to increase our revenues in very
challenging times. A large part of this success
is due to the fact that our CEO spends
50% of his time on talent management –
Large medical supply company 2013

Origin
• Ageing of society and a decline in working-age
population (25% of Belgian population
> 65 by 2050)
• Increasing need for technical skills
• Mismatch between required skills and education
• Inadequacy of education and brain drain
in developing countries
Impact
Opportunities
• International career opportunities
• Re-education opportunities, including for
an aged workforce
• Develop attractive work conditions
(e.g. teleworking, technology) to attract /
retain skilled workforce
Challenges
• Bridging talent gap
• Training people
• Complex HR strategies (constant search for talent,
remuneration packages)

Number of employees needed by 2030
US
26 m
WESTERN
EUROPE
46 m
CHINA
20 m

Number of international assignments between 1998 and 2020
90%
of companies estimate
they will lack technical
skills by 2020
46%
of companies invest
in the development of
technical skills today
+25%
ONLY
+50%
1998 2010 2020

ONE BIG COMMUNITY
• Consumers are increasingly connecting with businesses to exchange
information, ideas and innovation, co-create, secure alternative sources
of (crowd-)funding or perform micro jobs for and with each other.
• At the same time, large and small companies are increasingly
realising the value of working collaboratively with one another
and with entrepreneurs in partnerships and innovation cells
to exchange trends, advice and connections.
Marketplace for work …
Gives businesses access
to an on-demand workforce
whenever convenient
Smartphone app connecting
businesses with people
looking for top-up income
(e.g. store checks)
Crowd-funding platform
for creative projects
One big community - TREND 7
Crowd-funding platform
owned by ABN Amro
to support socially
relevant projects

Origin
• Growth of Internet increasingly
connected people and businesses
with each other
• Crisis of 2008 resulting in job scarcity,
difficult financing conditions and low trust
in companies
• Increasing importance of community values,
sustainability, transparency and “fairness”
Impact
Opportunities
• Enhance innovation, efficiency and creativity
by encouraging information sharing, group
funding and microtasking
• Increase chances of success for small start-ups
• Allow large companies to keep up with
trends in innovation
Challenges
• Regulation of alternative funding sources
• Quality of crowd-sourced work
• Ethical considerations (amount of money paid
for a micro job)
• Sustainability (one-time funded project vs.
continuous business)

Global crowd-funding volumes in 2012
NORTH
AMERICA
$1.6 bn
WESTERN
EUROPE
$945 bn
ASIA
$33 m
OCEANIA
$76 m

Top 10 companies using crowd-sourcing
Funds raised by
crowd-sourcing ($bn)
€300 m
Amount invested by Dell
in start-up businesses
1.5 2.7
5.1
10
2011 2012 2013 2014
in 2013
PepsiCo, Inc.
The Coca-Cola Company
Groupe Danone
Samsung Group
Nokia Corporation
General Electric
Google
Hewlett Packard Company
Microsoft Corporation
Toyota Motor Corporation
01 05 10 15 20 25 30 35 Number of projects

TREND 8
Importance of life sciences

IMPORTANCE OF LIFE SCIENCES
• Life sciences include different fields of science, of which the most
important are pharmaceuticals, biotechnology and medicines.
• Life sciences are expected to be the focus of research for the next
two decades, producing many important innovations.
• Tendency for developing individual diagnostics and treatments.
Needle-free diabetes care using
sensors which analyse the patient’s
blood and alerts them when levels
go out of optimum range
Oil-eating bacteria to clean up
oil spills
Importance of life sciences - TREND 8
Cheap, effective genome sequencing
technology

Origin
• Ongoing population growth, ageing of society,
the increasing awareness of healthcare and
increased healthcare care access
• New research and development techniques,
and the deployment of business models
to deliver innovation, value and improved
patient outcomes cost effectively
Impact
Opportunities
• Technological advances and
product innovation
• Advances in health technologies and data
management help facilitate new diagnostic
and treatment options
• Improved quality of life
Challenges
• Increased regulation and pricing pressure
• Growing bacterial resistance to certain medicines
• Danger of misuse of knowledge: criminal acts,
biological weapons and bioterrorism

PHARMACEUTICAL
$959 billion
2.4% growth rate
Leading area - Oncology
BIOTECHNOLOGY
$232.5 billion
9.6% growth rate
Leading area - Oncology,
autoimmunity, infectious diseases
HEALTHCARE SITUATION
5.3%
annual spending increase
on health expected globally
over the next five years

MEDICAL TECHNOLOGY
$349 billion
2.6% growth rate
Leading area In Vitro diagnostics
DEMOGRAPHICS 60+
x 3
The global population aged 60
or above is expected to more
than triple by 2050

CONTENT IS KING
• Need for companies to take control of the multichannel content
and tell their story proactively to the world.
• Need for companies to have an active “360°” strategy that allows
for consistency, storytelling and involvement at every possible interaction
point with the (potential) customer.
• Need for companies to manage content internally and optimise
internal content creation and sharing.
Coca-Cola Happiness Factory
Use of transmedia techniques,
originating in the film industry which
build a world in which your story
can grow
Axe campaigns
Consistent storytelling across
multimedia platforms
Content is king - TREND 9
Vanish Tip Exchange (UGC)
Customers giving each other
tips for removing stains

Origin
• Increasing availability of content in
different formats, on multiple channels,
screens and locations
• Value chain disintermediation and
content being (co-)created by different
players (user-generated)
• Increasing competition due to
a global economy, meaning “spray and pray”
marketing no longer works
Impact
Opportunities
• Improved relations and emotional connections
with customers thanks to multichannel and
personal involvement
• Increased (brand) value thanks to 360° strategy
• Increased internal efficiency and relevance
of content by database systems including
tagging and re-use of content
Challenges
• Destruction of (brand) value through inconsistency
in content creation and distribution

Emotional campaigns have stronger profit effects over time
50%
40%
30%
20%
10%
% reporting very large profit growth
1 year 2 years 3 years
Rational campaign
Emotional campaign
Campaign duration

90% of consumers find custom content useful
and 78% believe that organisations providing
customised content are interested in building good
relationships with them (TMG Custom Media)
Interesting content is a top 3 reason
for people to follow brands on social media
(Content +)
93%
93% of B2B marketers in
North America used content
marketing in 2013 (CMI)
55%
Blogs on company sites
result in 55% more
visitors (InboundWriter)

TREND 10
A purpose beyond profit

A purpose beyond profit - TREND 10
A PURPOSE BEYOND PROFIT
• Companies are actively stating that they have a purpose beyond making a profit
and maximising shareholder value.
• Moving from a pure PR instrument to a true promise of investing in
the communities they operate in, treating employees as their
most precious asset and living their values.
100% natural drinks, certified
ingredients, environmentally
friendly packaging, sharing
profits with charity
Europe’s initiative to address
European and global challenges
for achieving smart, sustainable
and inclusive growth
Rainforest Alliance:
sustainability label

Origin
• In a world of social media and superficial
interactions, people are seeking more
depth and meaning
• Increasing awareness of the ethical
impact of people’s everyday lives, including
that on future generations
• Increasing concerns about the sustainability
of the current economic model
(energy, climate change)
Impact
Opportunities
• Increase brand equity and visibility
• Put sustainability at the heart of
a company’s DNA
• Improvement in financial profitability as
customers purchase using value-based criteria
• Companies with a high CSR attract and retain
more talented employees
Challenges
• CSR may appear to be a marketing
or PR instrument

800
2002
5,500
2012
ORGANISATIONS WHICH INVESTED
MOST IN THE SUSTAINABILITY
OF THEIR EMPLOYEES
GENERATED NEARLY
3X
THE OPERATING MARGINS OF
THOSE WHO INVESTED THE
LEAST
COMPANIES
ISSUING A
SUSTAINABILITY
REPORT

62%
of employees say they prefer to work for companies
with programmes which give something back to society
66%
of consumers around the world prefer to buy products
and services from companies with programmes which
give something back to society

DISRUPTION WORKS
CREATIVE BUSINESS STRATEGY FOR SUSTAINABLE GROWTH
Disruption Works mixes the creative thinking of an agency with the strategic thoroughness
of a business consultancy.
We act as your sparring partner to counter constant change, and gain a bigger share of
the future. We help you to optimise products and services, create new ones and develop
alternative business models.
Disruption Works assists you all the way: from pinpointing the problems and opportunities
to implementing the disruptive solution.
To meet your specific challenge, we form a multidisciplinary team with
the right profiles and expertise: strategy, consumer insights, experience
in your industry, design, technical skills, etc.

DISRUPTION WORKS IS ACTIVE IN FOUR CORE
COMPLEMENTARY COMPETENCIES TO HELP YOU BUILD
A SUSTAINABLE FUTURE FOR YOUR BUSINESS
1. Brand purpose
Create and shape your brand to bring value.
2. Creative business strategy
Create the right opportunities to make your business sustainable.
3. Products and services innovation
Create products and services for future needs.
4. Business digitisation
Create digital solutions for growth.

CONTACT
For more information, case studies,
a free discovery session, etc.,
please contact:
Bert Denis
Partner
Bert.denis@disruptionworks.be
+32 475 600498
Xavier Laoureux
Partner
Xavier.laoureux@disruptionworks.be
+32 477 426532
Disruption Works is a division of TBWA Group Belgium
www.disruptionworks.be
© 2014 Disruption Works
All rights reserved

10 trends, 1 constant: keep reinventing your business

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