As 2020 approaches, many business leaders may feel apprehensive or incognisant about next year’s targets. The geopolitical tensions are the primary source of their unease. So how should clients and their supply chain position themselves amid the unpredictability of future events?
Government is looking to industry to innovate, increase productivity across the UK and open up significant global markets. By introducing Digital Build Britain methodologies. The strategy provides a bridge between construction and operations enabling delivery of Whole Life Value principles that can only be achieved from cross sector collaboration.
Industrial strategy 2025 has significant impacts on the owner occupier build environment, end users, Facilities and Operational Management. Broader changes occurring as a result of Digital Build Britain methodologies aim to trigger a transformation of business models utilised to manage existing building stock.
In this article we aim to give you structure when thinking about megatrends as drivers of the next decade (Deloitte 2017). We are introducing a novel way of thinking which will systematically explore future possibilities and develop a compelling vision for businesses.
We have identified six global megatrends reshaping the world we live in. These powerful, transformative forces can rapidly change the global economy, impact national policy and strategy as well as organisations, businesses and societies. They have been changing the way we live for centuries leading to technological innovations such as electricity and the Internet. In our recent research we have identified following megatrends and their impact:
Political – On-going long-term uncertainty will continue. Nationalist trends appear to constitute a push back against uncontrolled globalisation. As there is currently no global jurisdiction, the emergence of shadow governments will continue, raising questions of global governance and accountability.
Economical – A shift towards experience driven customer lifestyle will continue to drive the requirement for bespoke solutions and customer service standards; the “here and now” will become dominant in driving customer expectations. Whole Live Value approaches will steer construction and operation towards more collaborative ways of working. Optimising Total Cost of Ownership throughout the Life Cycle stages will make the design, construction, maintenance, and disposal of assets more efficient, cost effective, and enable introduction of sustainable solutions to the environmental challenges.
Sociological – By 2030 the world’s population is projected to rise by more than 1 billion. More than half of the world’s population will live in urban areas. Almost all of the new rapid urbanisation will take place in lesser known medium-sized cities of developing countries. The NextGen workforce will be 1/3 of working population by 2025. This megatrend will have significant impact on the already limited resources.
Technological – The digital revolution has no boundaries or borders. By 2025 Digital Transformation Markets are expected to reach $798 billion (Grand View Research 2017). According to a new study by Grand View Research, Inc. Digital disruption will force, owner occupier landlords, to re-think their business operating models and highly likely result in business transformation. The impact of adapting new technologies will re-shape the business core components, processes, and tools used to deliver services and customer experiences. At the same time, technology will influence automation of repetitive activities, re-define behaviours and human interaction.
Environmental -As the world becomes more populous, urbanised, and prosperous, demand for energy, food and water will rise. Human populations will be faced with finite quantities of natural resources to satisfy this growing demand. Managing population impacts on the planet will further strengthen Whole Life Value approaches and drive a move from linear to circular economy (Ellen Macarthur Foundation 2019). To meet the Net Zero target by 2050 the organisational business models will need to adopt circular processes to minimise waste disposal to the environment and learn how to calculate their environmental impact. This megatrend will influence innovation in the way the businesses fundamentally operate and reshape delivery models.
Legal – The legal system of the 21st century will face the challenge of accommodating in its structures our ethical standards, environmental standards, human rights, labour and anti-corruption laws. This megatrend is a key enabler of Whole Life Value and circular economies. It will further ensure we procure the right products and services that reduce human impacts on the planet.
Worldwide governments and organisations are facing the pivotal questions of how to respond to megatrends and what strategies to adopt that will drive innovation and business transformation in number of areas. Within the Industrial Strategy 2025 (HM Government 2013), the British Government sets the Whole Life Value challenge to transform the infrastructure and construction industries. The objective is to bring forward more research and development to the wider community and to remove barriers to innovation by improving collaboration among fragmented sub-sectors.
In response to megatrends Government is introducing “Digital Build Britain” transformative methodologies such and BIM, Soft Landings, Circular Economy or Digital Twin, the UK research and innovation council aims to transform the construction sector – enabling production of safe, healthy, efficient buildings using the latest digital manufacturing techniques. This will enable the UK Government to meet the national infrastructure programme target of £650 billion worth of projects by 2025.
As existing property owners are obliged to adopt BIM or Soft Landings in preparation for the competitive challenges of tomorrow, they must also confront the inevitable disruption of their day to day service delivery, whilst they reinvent themselves and create an organisational vision for the future. (Transforming Construction Network Plus 2019).
Year Ahead 2020 – What Asset Management Systems (AMS) thinks
We think the coming year and decade will be a challenging one for businesses to achieve their overall goals without re-thinking the way they operate and how they integrate technology throughout the organisational structures to achieve Whole Life Value.
The decade of transformation will bring opportunities with it too. How effectively a business model can be ready to take advantage of the rapidly emerging opportunities will dictate financial success. Changing an operating model is no small task but it is essential if companies aspire to sustainable future in an ever-changing world.
With various and complex challenges to navigate, an innovation driven mindset should be adopted. It is important to embrace the notion that the world is constantly changing.
Welcome creativity in the workplace, think big, constantly re-think how things are done.
Think and act fast.
Asset Management Systems Ltd. offers guidance on navigating the challenges in the built environment, highlighting key trends and opportunities.
Gosha is MD & Owner of AMS, she is strategic asset management and whole life value delivery expert assisting businesses affected by challenges in management of properties where both quality of service and profitability are compromised. She further supports digital transformation programmes to promote companies competitive positioning and enabling step change in organisational maturity.
With background in concept development, product design and architecture over the last 15 years Gosha established expertise in the delivery of Whole Life Value in the construction and transport (TfL) industries bridging the gaps of the design, construction and operational silos. Effectively gaining business insights, enables her to introduce and implement alterations to operating model for greater sustainable benefits. Aiming at improvement in communication and decision-making at all levels reduces expensive mistakes in service delivery therefore decreasing cost of risk, improving compliance and health and safety. With ability to process extensive detail whilst retaining a strategic perspective, she has a keen mind and enjoys complex and challenging roles.
Collaborating with the stakeholders Gosha develops compelling and customer centric vision to enable businesses to strive and engage with opportunities and benefits realisation. Her solutions focus on problem solving, management of environmental impact, knowledge transfer and adopting new ways of working.
Gosha is now looking to take on additional contract roles working with multiple property, owner occupier clients in public and private sector, investment funds and pension funds. Contact Gosha firstname.lastname@example.org or call her directly on 07521 755 088.