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+genius Are you ready to change the world in 2014? Peter Fisk, in a preview of his forthcoming book “Gamechangers” looks at the world ahead in 2014, the trends and themes that will shape markets, the new opportunities for business to drive more disruptive innovation and profitable growth. We live in the most incredible time. These are days of exponential change. We are now in the middle of a decade when the global population is growing faster than it ever has or will, when technology fuels unimaginable possibilities from 3D printed organs to driverless cars. We see power shifting from west to east, north to south, business to customer, and few to many. We see youthful passion outwit venerable experience, and small companies topple the big ones. The question is, are you riding these waves of change … or hanging onto the past? Between 2010 and 2020, the world’s population will grow from 6.9 to 7.7 billion people, mostly in megacities of the fast-developing world. Most significant for marketers will be the rise of a huge “new middle” consumer class, neither rich nor poor, driving global GDP from $53 to $90 trillion. But this growth is not a linear extrapolation of the old world. It is a fantastic “kaleidoscope” of changing markets, new customers and priorities, new capabilities and aspirations. A tectonic mash up. The turmoil of financial markets, collapsing banks and defaulting nations, was the dying pains of an old world order. Amidst the shake-up there are new winners and losers. In 2014 China’s real GDP growth will be 7.1% compared to 0.9% in Europe. However some markets, including Ghana and Nigeria, Brazil and Colombia, Indonesia and Vietnam will grow even faster. As Samsung launches its smart watch and Beijing is recognised as the

Are you ready to change the world in 2014?

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Page 1: Are you ready to change the world in 2014?

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Are you ready to change the world in 2014? Peter Fisk, in a preview of his forthcoming book “Gamechangers” looks at the world

ahead in 2014, the trends and themes that will shape markets, the new opportunities for

business to drive more disruptive innovation and profitable growth.

We live in the most incredible time.

These are days of exponential change. We are now in the middle of a decade when the

global population is growing faster than it ever has or will, when technology fuels

unimaginable possibilities from 3D printed organs to driverless cars. We see power

shifting from west to east, north to south, business to customer, and few to many. We see

youthful passion outwit venerable experience, and small companies topple the big ones.

The question is, are you riding these waves of change … or hanging onto the past?

Between 2010 and 2020, the world’s population will grow from 6.9 to 7.7 billion people,

mostly in megacities of the fast-developing world. Most significant for marketers will be

the rise of a huge “new middle” consumer class, neither rich nor poor, driving global

GDP from $53 to $90 trillion. But this growth is not a linear extrapolation of the old world.

It is a fantastic “kaleidoscope” of changing markets, new customers and priorities, new

capabilities and aspirations. A tectonic mash up.

The turmoil of financial markets, collapsing banks and defaulting nations, was the dying

pains of an old world order. Amidst the shake-up there are new winners and losers. In

2014 China’s real GDP growth will be 7.1% compared to 0.9% in Europe. However some

markets, including Ghana and Nigeria, Brazil and Colombia, Indonesia and Vietnam will

grow even faster. As Samsung launches its smart watch and Beijing is recognised as the

Page 2: Are you ready to change the world in 2014?

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world’s leading city for renewable energies, we realise that the best ideas in business

are shifting rapidly. The big investors are in Schenzen, the most sustainable innovators in

Nairobi, the best fashion designers are in Buenos Aires, the best digital engineers in

Hyderabad. No longer are these emerging (wrong word, I know!) markets the source of

low-cost supplies, and low-budget consumers. They have youth, education, disposable

income, fast growth and ambition on their side too.

More than half the world live inside a circle based 106.6° E, 26.6° N, and within 4100km

of Guiyang, Guizhou Province, in southwest China. 55% of all products are now made in

more than one country, and around 20% of services too. 24% of the world’s adults have a

smartphone, typically checking it 150 times per day, spending 141 minutes on it. 70% of

people think small companies understand them better than large, 55% trust businesses

to do the right thing, but only 15% trust business leaders to tell the truth. The majority of

the world’s business value is now privately owned. Over 40% of companies in the

Fortune 500 in 2000 were not there in 2010, and by 2020 over 50% will be from emerging

markets. And on.

It is a period of awesomeness, of opportunities limited only by our imagination. A world

where impossible dreams can now come true.

When considering the challenges for business in 2014 - it would be easy to state the

obvious. Everyone talks about the power of big data, the next evolution of social media,

collaborative consumption and how “millennials” are different. This is all true, and part

of the kaleidoscope. But the biggest changes are the shake-up of markets - banking to

healthcare, entertainment and travel – and who is doing it.

From Alibaba to ZaoZao, Ashmei to Zidisha, Azuri and Zipars, a new generation of

businesses are rising out of the maelstrom of economic and technological change across

our world. These are just a few of the companies who are shaking up our world. Over the

last 12 months I have completed a huge research project to find the 100 brands who are

changing our world, and how they do it.

“Gamechangers” are the next generation of business, disruptive and innovative, start-

ups and corporates, in every sector and region, reshaping our world. This is the title of

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my new book to be published in early 2014, and you can already explore the list of

brands at Gamechangers.pro

This new breed of business are more ambitious, with stretching vision and enlightened

purpose. They see markets as kaleidoscopes of infinite possibilities, assembling and

defining them to their advantage. Most of all they have great ideas. They outthink their

competition, thinking bigger and different. They don’t believe in being slightly cheaper

or slightly better. That is a short-term game of diminishing returns.

Gamechangers capture their big ideas in more inspiring brands that resonate with their

target audiences at the right time and place, enabled by data and technology, but most

of all by rich human experiences. Social networks drive reach and richness, whilst new

business models make the possible profitable. They collaborate with customers, and

partner with other business, fusing ideas and utilising their capabilities. They look

beyond the sale to enable customers to achieve more, they care about their impact on

people and the world. Ultimately they want to create a better world.

So rather than list a set of trends for the year ahead, I’d encourage you to explore what

these incredible companies are doing. How are they changing their markets, finding

their own space, and playing a different game? And what could you learn from them, to

seize your opportunity in the midst of this “decade of awesomeness” too?

23andMe

The DNA profiling business founded by Anne

Wojcicki in San Jose went mainstream in 2013,

reducing its prices from $999 to $99 and

launching TV advertising.

Simple “spit tests by mail” enable 23andMe to

analyse your genetic profile, identifying

everything from ancestry to future health

conditions. Initial ads featured Mohammed Ali,

and his fight against Parkinson’s, more recent

versions have focused on the US obsession of

family history.

Angelina Jolie’s mastectomy gave the business huge publicity, whilst the business model

behind the price cuts is all about building a huge DNA database that can change the way

pharma companies develop drugs, and insurance companies evaluate life risks. For

business the interesting lesson is how to engage consumers in new technologies, as well

as rethinking business models and their potential through partners.

In 2014 … business needs to work harder at applying the potential of new technologies

in more human ways, building brands that ultimately make life better.

Google X

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Whilst media attention has been on Google

Glass, the augmented reality headsets, the

real story is about how the search business is

transforming many industries at its secret

“Google X” labs.

“Moonshot thinking” as chief scientist Astro

Teller calls it, is about making impossible

dreams happen. X’s largest project is actually

for driverless cars, the innovation that Sergey

Brin says is most exciting of all. This is a great

example of companies “thinking bigger”,

searching for more significant and disruptive ideas that create new markets rather than

just evolving existing products, and tweaking price and positioning within existing

markets.

For business the lesson is about stretching imagination, becoming the futurists of their

business, which ultimately will change perceptions of a business for investors, whilst

inspiring customers and employees alike.

In 2014 … business leaders need to think bigger about their next opportunities. As

Google says “why seek to improve by 10% when you could do things 10 x better”. Far

more inspiring.

Li and Fung

The 107 year old Hong Kong-based company

entered its 40th country this year, creating

“sourcing hubs” around the world supported

by its 300 offices.

For the first century, the business was a low

cost manufacturer of clothing, but then rising

standards of living made a low cost base

impossible. So Li and Fung become a

“network sourcing” business that connects

companies (entrepreneurs and corporations)

with everything they need to make their

creative ideas happen. Li and Fung will find

you the best investor, designer, manufacturer, distributor, merchandiser, accountant –

whatever you need to be successful. 40% of the world’s clothing is now enabled by Li

and Fung’s networks.

For business this is a great example of the big global trend towards “ideas and

networks” companies being the most successful – working in new types of partnerships

that are creative, global and agile.

In 2014 … “ideas and networks” businesses will give marketers the infrastructure to

extend their brands into new geographies and categories at less risk and more speed.

Limited only by your imagination.

Organova

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The world’s leading artificial organ business

this year created a 3D-printed heart.

Whilst the synthetic production of muscle

tissues is becoming well established, moving

to core organs which would otherwise require

transplants has a fundamental impact on

ethics and healthcare. 3D printing still seems

like a gimmick, a step up from Play-doh, but it

is revolutionising many industries. Another

example this year is the Urbee 3D-printed

car, which can be manufactured on location, saving huge amounts of time and expense in

logistics and stock.

For business leaders this is about thinking different, applying new tech to different

aspects of your business, to reduce costs and time, and thereby enable better solutions,

and more local propositions.

In 2014 … business will embrace 3d printing as a platform for offering hyper-

personalised, fast and local products in every category.

Pebble

The Pebble smartwatch was launched this

year, with more fanfare, and more demand,

than the Samsung Gear which arrived a few

months later. Pebble started as a Kickstarter

project with a goal to crowd-fund $100k …

but exceeded that target, raising over $10

million.

Co-funders are now receiving their watches,

which can also be bought through retailers

for $149. The watch connects with both iOS

and Android phones, notifying its wearer of

calls, texts, emails, calendar events and social media activity. Whilst it has been praised

for its stylish design, easy connections, and long battery life, users have been frustrated

by the limited apps so far available. In many ways it is part of a new alert-device

category, alongside the likes of FitBit, Jawbone and Nike Fuel.

The big lesson for business lies in the potential of crowds in pre-launching new products,

whilst also in defining new categories which sit in the gap, or on the bridge, between

others.

In 2014 … business will move to the next level in customer collaboration, co-funding, co-

designing, co-building, co-marketing, co-supporting, co-rewarding

Apple

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Whilst 2013 has been a year of questions for

some Apple fans, whether Tim Cook can

sustain the incredible growth of the Cupertino

circus, and uncertainty over the refreshed

iOS7 design from Jony Ive, in other ways

Apple has made more impact than ever.

Most significantly, the iPad has become the

platform for a multitude of adapted business

activities, enabling everyone from airline

crew to hospital doctors to change the way

the work, faster and cheaper, smarter and more human. The iPad Mini for example has

been a revelation to doctors who can now slip it into their white coats and have all the

information they ever need about patients, conditions and medication, instantly at the

patient’s bedside.

For business, an example of the benefit in working through the niche applications of

products to transform different customer experiences.

In 2014 … business leaders will need to recapture their thirst for disruptive innovations,

realising that derivative price-point thinking is a danger to their brands, like it is to

Apple. Think bigger and bolder.

ARM

Cambridge-based designer of

microprocessor has long been the arch rival

of Intel.

ARM’s business model is about designing the

patterns and then outsourcing the

manufacturing, rather than actually making

the chips like Intel. This means ARM can

work more globally and flexibly with many

more partners, faster to respond to new

trends. ARM’s low-energy products are more

suited to small devices like smartphones and

tablets, whereas Intel has focused on larger

computers. The small and smarter trend in smartphones, watches, tablets, favours ARM,

and this year saw the British company exceed the sales of its big rival for the first time.

In 2014 … business will need to become more IP savvy, understanding what it really is

that they do uniquely, and how they can monetise this in more effective ways.

Partnerships become ever more important in connecting the right ideas with global

markets.

P&G

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AG Lafley returned as CEO, the consumer

goods giant having lost its way trying to

embrace the digital world with soap and

cosmetics.

Lafley’s first action was a letter to all staff

reminding them of what matters most – the

consumer. The simplicity of his obsession

saw a tripling of P&G’s market value in his

previous decade as CEO, and whilst it

doesn’t mean the consumer is always right, it

does mean that taking a consumer rather

than product perspective is the foundation of

more relevant marketing, and successful innovation. His letter to employees (read it on

my blog!) is a fabulous reminder of what matters most to marketers, inside P&G and

everywhere else too.

In 2014 … business people everywhere should remember that despite the dazzling

technologies and accelerating innovations, customers (or consumers) are still “the

boss”.

Nike

CEO Mark Parker is a marketer, and an

example of the trend towards more

business leaders coming from a

background that is creative and consumer

orientated.

Whilst Nike celebrated 25 years of its “Just

do it” slogan this year, Parker reiterated his

belief that the business is not about shoes

and clothing, but about what it enables its

consumers to do. Just like Phil Knight said

from Nike’s founding, on every tag inside

the shoe, Nike is dedicated to delivering

your best performance, be that running a faster marathon, a more enjoyable gym

workout, monitoring your fitness level with Nike Fuel, or sharing experiences with Nike+

devices and software. For business, it is about brands defining the consumer’s

aspirations, extending for beyond a product-centred core.

In 2014 … every business needs to add value beyond their core – additional products

and services that enable customers to achieve more. They will also become ever more

influential in business, driving creative and customer thinking, but also becoming the

most likely CEOs.

RedBull

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Last year it was about space jumps, with

the Stratos Project, this year Red Bull

Media House moved to the heart of the

business, with CEO Dietmar Mateshitz

pronouncing that Red Bull is firstly “a

media brand that currently makes drinks”.

A little like Nike, this reflects brands

refocusing around consumers, their

aspirations and experiences, rather than

being a label of a company or product. It

also reflects a growing trend for marketers

to take their core creative process in-house. In an ideas world, no longer can they afford

to outsource their creativity to agencies who need to work harder and together, in

connecting with consumers. Whilst a collaborative process, Red Bull recognised that

ideas are their core asset which they need to nurture and grow.

In 2014 … business leaders cannot outsource their creativity, to agencies or consultants,

they need to be bigger and better thinkers themselves. They need to encourage, seek

and connect creative thinking in everyone, and more holistic innovation and execution.

Nokia

The death of a technology giant, perhaps

not surprising to those of us smartphone

users who let go of our Nokia’s some years

ago.

But what was interesting is that this is the

company who had transformed itself so

many times before – from being Finland’s

largest forestry company, to being the

leading shipbuilder, it grasped the

opportunity of mobile tech. But then it let

in a generation of people who were blinkered by scale and success, and lost the ability

to keep changing.

In 2014 … business needs to be ever more agile, questioning everything from what

market they are really in, to who their competition actually is. The answers may be

unconventional, but also stimulating.

Xiaomi

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The Chinese Apple-imitator is growing

like wildfire in Asia, fuelled by the Steve

Jobs-like on-stage antics of its CEO Lei

Jen.

Wowing the crowd, jeans and turtle neck,

rock music and magical words. Whilst it

benefits from the protectionism of its

government, Xiaomi can ride a huge

wave of growth as Chinese open their

eyes to consumerism with new aspiration

and wealth. By securing preferential

deals with Chinese parts manufacturers it also has the potential to eventually outplay

Apple.

In 2014 … every business needs to look east not west, for new customers and

competitors, but also inspiration. Gone are the hero-worshipping days of Made in USA,

China and India, and beyond, now have the creativity as well as efficiency to look up to.

Whilst emerging markets have emerged, and grow fastest, we should also focus on

doing more for the key markets of young and old, women and urban, ethnic and poor.

Are you ready?

These are just a few of the brands who are moving from the margins into a new

mainstream, shaking up markets in their own vision, with reverberations felt across the

world.

Business is changing too, enabling and responding to all this change. But you need to be

a speedboat not a supertanker in today’s world, fast and agile, able to change direction

and decisions, to out-think not out-scale the competition. It’s about outside in thinking,

understanding the outside then aligning within, identifying the best opportunities and

then finding the capabilities to deliver. Being bold, expeditionary and audacious.

It’s time for business leaders to harness the power of ideas, brands and networks, to

make the world a better place. They need to apply insight and imagination to create

better ideas, embracing networks to reach new audiences with new partners, aligning

the organisation internally, and become the driving force of disruptive innovation and

accelerating growth.

We live in a time of awesomeness. An incredible time to be lead a business.

© Peter Fisk 2013

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Peter Fisk’s new book “Gamechangers: Are you ready to change the world?” will be

published by Wiley in early 2014. Peter will be providing further extracts of the book,

and exploring more of the innovative companies who are rethinking marketing and

shaking up the world. To get latest updates and explore the full list of 100 next

generation brands go to Gamechangers.pro

© Peter Fisk 2013

Peter Fisk is a global branding, marketing and innovation expert. He is founder and CEO

of the Genius Works, the accelerated innovation firm. In 2013 he entered the Thinkers 50

Guru Radar, recognising the world’s best new business thinkers. He is a strategic

consultant, inspiring keynote speaker, and best-selling author of six books including

Creative Genius, People Planet Profit, and Gamechangers to be published in 2014.

Email: [email protected]

New book: www.Gamechangers.pro

More information: www.theGeniusWorks.com