2018 Globalization Trends

240_F_6103632_ib328fMRJVHjrJSvj2VORJI21LaeKU1sIn this blog we will take a look at some top trends in globalization that are facing national and corporate strategies.  Globalization had massive momentum before the 2008 economic recession.  While many economies have recovered and are growing there are new forces today that are creating challenges to continued global integration.

Strategic Considerations:

  • The rise of nationalistic goals and causes has created more international tension and is slowing collaboration for united efforts towards shared opportunities and global challenges.
  • Many existing agreements like UK Union (Brexit), Trans-Pacific Partnership (TPP), and North America Free Trade Agreement (NAFDA) are falling apart without a new solution to advance the relationships.
  • Companies are increasing learning of the difficulties to understand localization of new markets, partnerships and navigating foreign policies.  Size alone may not be enough to successful globalize vs. regional relationship and relevance.
  • Population growth in BRIC to ICASA is creating new billion+ people markets and equal number of ecological challenges.  These areas of opportunity will be disrupted by their own sustainability crisis.  Compounding this trends is that the shift to urbanization is no where near complete in these countries and yet their cities and infrastructures are already beyond capacity.
  • Development of the middle class is a global concern for both developed and developing nations.  Economic growth without opportunity for an aspiring middle class has proven to be unsustainable long term.
  • Growing populations have a near term crisis of improving education to make the emerging workforce relevant, as well as, the need to develop new services for their aging populations.
  • Corporate involvement in Social causes and infrastructure will increase in terms of time, investment and focus in all regions.  Stability, prosperity and livability are key to corporate survivability.
  • The competition for natural resources will become ever more at the forefront of all strategies.  Both in securing and security the resources a nation has, but to also secure the relationships and collaborations needed to exchange resources with others.  This also drive innovation in shifting to new forms of sustainability to reduce critical dependencies on current resources.  This will continue to create new opportunities or disruptions for companies that either can or cannot respond to the demand.
  • Last century was dominated by the growth of global vertical players.   Today the rise of horizontal players and integrators will generate new forms of partnerships and disruptions for the classic business models that will reform business ecosystems.
  • The disruptive power of new digital currencies could unseat may traditional financial business models.   It does offer potentially a long term promise of a more integrated and audible world of finance, there is still the shorter term maturation and security issues that economies will have endure if they begin down that path.
  • While trade and migration are under strain,  the rise of data exchange continues to expand exponentially.   This is creating new opportunities to understand the worlds big data insights to make better decisions and investments.
  • The dark side or dark web continues to rise along with the growth of data exchange.  Global investment in securing digital transactions and traceability will be required to maintain stability of markets and economies.

Sources:  Harvard, McKinsey, Inc

 

 

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Great Lakes Water Controversy

United-States-Map-2Wisconsin Gov. Scott Walker  is proposing that the City of Racine be allowed to divert 7 million gallons of Lake Michigan water everyday as part of the Foxconn deal in southeast Wisconsin. However, conservation groups oppose the plan, and argue that it not only undercuts the Great Lakes Compact of 2008, but also such a diversion for private industry use is unprecedented.  Source: SSTi

This is another example of the growing struggle to jointly manage shared natural resources.   Many cities, both in the USA and Canada rest on the shores of the Great Lakes.  Who dictates that cities uses of their shoreline and access to the water.   In the past law suits have come around pollution claims of an up stream user contaminating the water for those down stream and many of those suits have held up in court with large reparations to the offending party.   While most cities try to regulate water usage for the greater good it becomes more concerning when private industry wants large scale access to those shared resources for their personal profit.   Complicating the matter even more is that multiple nations share natural resources like access to fresh water sources and the seas.

This rising crisis of global sustainability is bringing many of the Grand Challenges to the forefront of national agendas.   The world will need to create a new dialogue and ability to regulate and manage a court of appeals on a global level.   Ownership of shared natural resources will also be contested, as will, the issues of unsymmetrical distribution of many resources.   Today we have some internal bodies like the United Nations,   ICJ/HAG, and  G20 to name a few.   These can serve as models to learn from while exploring a more globally inclusive model to represent all nations.

I encourage everyone to follow and share stories about Natural Resource controversies,  appeals, and deals that will begin to set the precedents for the decades to come.   We all need to be alert to the lobbying forces of private interest over the greater good.

 

Canada’s Focuses on Superclusters

waving canada flagCanada is demonstrating a commitment to growing its economy and creating middle-class jobs for its citizens by moving forward with an Innovation Superclusters Initiative. The initiative will leverage a federal investment of up to $759 million (CAN$950 million) to generate public-private partnerships in innovative industries across the country.

The first phase attracted more than 50 letters of intent, which represented more than 1,000 businesses and 350 other participants from all regions of Canada. The applicants put forward strategies to increase growth and create jobs across a wide range of innovative industries. Nine applicants have been prioritized and up to five will eventually be selected as Canada’s new superclusters:
  1. Artificial Intelligence-powered Supply Chains Supercluster; Quebec
  2. Building an Advanced Manufacturing Supercluster for Canada; Ontario
  3. Canada’s Digital Technology Supercluster; British Columbia
  4. Clean, Low-energy, Effective, Engaged and Remediated (CLEER) Supercluster: Powering Clean Growth Through Mining Innovation; Ontario, with Quebec and British Columbia
  5. Mobility Systems and Technologies for the 21st Century (MOST21) Supercluster; Quebec, with Ontario, British Columbia and Atlantic Canada
  6. Ocean Supercluster; Atlantic Canada
  7. Protein Innovations Canada (PIC) Supercluster: Unleashing the Potential of Canadian Crops; Saskatchewan
  8. Smart Agri-food Supercluster; Alberta
  9. Smart, Sustainable and Resilient Infrastructure (SSRI) Supercluster; Alberta
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Navdeep Bains, Minister of Innovation, Science and Economic Development, announced the nine successful supercluster applications during a cross-country tour.  “Our government’s Innovation Superclusters Initiative has started conversations and created solid partnerships between government, the private sector, academia and communities,” said Bains. “In today’s knowledge-based economy, this collaboration is essential. Together, we are building the economy of the future, creating the jobs of today and tomorrow, and gearing up for global success that will benefit all Canadians.”
Source: SSTi
While many cities are looking at localized or regional cluster efforts,  Canada leads the way with a national vision to develop competitive advantage.  With a national plan they can focus resources on cluster objectives and integrate industry supercluster across the nation and potential globe.  With national representation, at the highest levels, leading the way it sets a precedent in terms of both approach and potential of advancement for the nation.  It also great a clear vision as a global brand to the industries they are looking to partner and lead in.

Wisconsin Water Cluster Growing

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Wisconsin’s water cluster initiative continues to attract companies from across the nation and world to participate in their innovation and education centers,  the growing network of ecosystem development and their growing brand of industry leadership.

A recent example of attraction comes from Austrialia and south east Asia.  With its head office located in Sydney, Australia, a sales and operations office based in Singapore and a contract assembly hub in Shanghai, China, the BioGill team knew it was time for a U.S. office to be established.

In January of 2017 the company established BioGill North America Inc., and in July opened its Milwaukee office within the Global Water Center, employing Annie Weidert as Regional Manager for the Americas. In October BioGill exhibited at WEFTEC, along with The Water Council, in Chicago. After the company delivered a technical paper at the event there was a tsunami of interest in the technology, which has led to the expansion of its U.S. team by adding a second full-time employee in January 2018.

“One of my beliefs in business is that one plus one should equal three. To successfully scale up in business, you need to look for ways to value add, leverage and network. And that’s what the water hub in Milwaukee has delivered to us. We’re plugging into an influential and well- established industry network, helping us to make better informed decisions as we grow our client base in the U.S.” – Paul Hatten / CEO BioGill

“We looked at many locations and states for our U.S. operation, but Milwaukee and Wisconsin best suited our needs,” said Paul Hatten.  “While we have many sites and proven projects around the world, the U.S. is a relatively new market for us. The Water Council has proven to be a powerhouse of knowledge, contacts and advice. In the end, it was an easy decision and made perfect business sense to locate in Milwaukee.”

Source:  The Water Council

Wisconsin continues to lead in the US in terms of cluster development and building a global brand for industry leadership.   They have already launched over 6 cluster initiative in varying cities across the state but have the infrastructure and operational models to continue to move into more emerging industries faster than states that have no vision for cluster development and the regional advantage and attraction it creates.