Technology is now engrained in all aspects of our everyday lives and it keeps getting better. More importantly, those who benefit from modern technology are not limited to the riches or large corporations any longer. More than 40 percent of the world’s population now have access to smartphones, and this number is projected to keep growing. The trend of devices that can store data, process it, and communicate with each other will not be only limited to devices such as personal computer and smartphones. Made possible by technologies such as 5G, devices ranging from electrical appliances in our home, traffic lights, cars, robots, and sensors in farms and factories will all be smart and connected. According to Gartner, the number of IoT-connected devices is projected to triple within the next five years. This will change how we live, how we consume, and will completely change how businesses operate. The IoT movement also highlights the important role of data. With billions of devices connecting with each other, huge amount of data will be created and utilized to improve business operations. Data will be one of the most valuable resources. Technologies will not only improve efficiency and help mitigate the effects of shrinking labor force, but, through AI and data analytics, they will also help us make smart business decisions. In addition to the important role technology will play in factories and supply chains, technology will also change consumers’ behaviors. In the past few years, “platform economy” has revolutionized the way businesses and consumers interact.

The last observation is that goods-producing value chains are becoming more regionally concentrated. Robotization and automation made cheap labor less relevant when companies decide where to place production. This pattern is obvious in certain sectors with closely integrated supply chain for just-in-time production such as automotive, electronics, and electrical appliances. Locating production line close to the end-market also helps businesses better customize the products based on each market’s preference. Trade protectionism is undeniably one other key factor that help accelerate value chain regionalization. All these changes in value chains could be a threat to today’s businesses. Consumers are ready to switch to a competitor’s product if they find it suits their changing preferences better and quicker. A standalone service business might be disrupted by new service value chains that offers a more complete solution to the customer’s need. Rising wages in Thailand will draw production to emerging market countries with lower wages, while automation will help advanced economies draw production closer to home. But then again, for those who are prepared, this could be an opportunity. Businesses will have to think about how they could incorporate service components into their 6  products. An example of this transition is Daimler and BMW, who joined hands earlier this year to explore service-focused business models such as taxi-hailing, car sharing, parking, and EV charging. This, of course, also means that we will need to continuously reskill and upskill our workforce. 4. Digital transformation The fourth trend is digital transformation.