Digital v Human

I’ve decided that for the next few months this blog is going to be about the development of my next book, Digital v Human (with some exceptions). First I’ll start by adding a few things I’ve deleted. The appendix below seemed like a good idea when the book was a straightforward sequel to Future Files, but now less so. Hopefully, it will find a use in scenario planning and such like.

Appendix 1: Assessment of probabilities*

If you want to capture peoples’ attention about the future it’s useful to use words like “will” and “won’t.” People like people that project confidence and say things with absolute certainty. Avoiding detail, especially specific dates, works extremely well too. However, if there is one thing that we can say about the future with absolute certainty, it is surely that it’s uncertain. Therefore, logically, there must always be more than one possibility, outcome or future.

To this end I have tried to be careful with my language. Certain words used throughout this book are associated with broad levels of probability. This isn’t intended to be scientific, but it has been thought through and is meant to alert both readers and myself to any definitive statements. Probabilities are based upon widespread occurrence, acceptance or rejection by the year 2050, which hopefully creates a small degree of accountability.

Description Range of probability
Will/won’t Greater than 90%
Likely/probable/should 60-90%
May/might/could/possible 20-60%
Unlikely/improbable Less than 20%
Impossible/never Less than 5%

* With due acknowledgment to the Ministry of Defence, DCDC.

The Future of Gaming

Screen shot 2014-11-18 at 09.09.23

Late last year I was involved in the creation of a series of scenarios for Atlantic Lottery Corporation in Canada looking at the future of gaming out to 2030. The scenarios were:

Circumvention:
This is a world with cultures in collision where there is a tug of war between governments who want to restrict and enforce rules around Lottery and Gaming and a tech-savvy, networked and socially connected citizenry who can easily circumvent those rules. Inconsistency in enforcement defines how people see things work in this world.
Immersion:
This is a world of science fiction – a world of intuitive machines, augmented reality, synthetic biology, wearables, sensory implants, genetic augmentation, self-tracking, predictive analytics and fully immersive virtual realities, where real time big data drives a quantum computing based gaming ecosystem, filled with disruptive alliances.
Intrusion:
In this world, fear of intrusion and data privacy lead to increasing encryption, slower device performance and ultimately digital simplification where users fail to adopt technology innovations. Social activism is strong and at the extremes, morphs into radicalized opposition that undermines the security and integrity of technology platforms and ultimately, the industry itself.
Collaboration:
In this world, fiscal realities force governments to examine how they work and look at alternatives to becoming more efficient, more competitive and affordable. In this world we see product, association and service collaborations in order to increase operating efficiencies.
Download the Scenario Book here

 

The Future of Europe

I see that the French President, Francois Hollande, has stated that the crisis within Europe is “now over.” Non. These were written on the back on an envelope recently and I’ve made no attempt at driving forces or a matrix, but I quite like them.

Scenario 1. Disorderly collapse
Growing inequality brought on by unemployment and income polarization create civil unrest and extreme nationalism aimed primarily at anyone that is not seen as being part of the group (i.e. local). Taxation and fines widely seen as unfair make matters worse. Outward migration rises (especially of younger people) while the impacts of rapid ageing start to be felt. The result is that EU competitiveness declines, which together with a flight from the Euro leads to a break-up of the European Union. The German economy goes into a nosedive as exports within former EU region become prohibitively expensive.

Scenario 2. Muddling through
Without tackling any of the fundamental issues such as competitiveness, the EU project carries on with token concessions to the growth agenda reducing the impact of austerity measures. The ECB muddles through, soothing the impact of various country debt dramas. Economic performance and competitiveness is variable, but generally sluggish and the US, China, India and Russia and others start to bottom feed on various EU assets fuelling an inevitable local backlash.

Scenario 3. Greater unification exposes differences
The EU attempts to stabilize itself by expanding geographically and by attempting to increase economic and social integration. However, expansion and unification merely expose fundamental differences between the European north, south, west and east. Migration into key member states increases exposing hidden tribal and xenophobic tendencies. Things carry on for years, but eventually the project collapses under its own bureaucratic weight.

Scenario 4. Smaller but stronger
Following the national bankruptcy and EU exist of (select one or more from the following: Portugal, Italy, Greece or Spain) and the virtual exit by the UK, a new union is created by France and Germany with Benelux annexed. This results is a more dynamic union with greater fiscal and social unification, although disagreements persist.

Scenario 5. Accidental winner
Serious US and Asian economic problems, most notably in China, result in the Euro replacing the US dollar and aspirant Yen as the international currency. This results in inward investment, economic growth and a fall in unemployment across the region. Long-standing disagreements and structural difficulties are forgotten.

Shell Scenarios for 2050

 

 

 

 

 

 

 

 

 

Shell’s latest set of scenarios for the world 2050 are now out and, interestingly, include a view out to 2100. Here are two overviews and here’s the link to the scenario book.

Mountains
The first scenario, labelled “mountains”, sees a strong role for government and the introduction of firm and far-reaching policy measures. These help to develop more compact cities and transform the global transport network. New policies unlock plentiful natural gas resources – making it the largest global energy source by the 2030s – and accelerate carbon capture and storage technology, supporting a cleaner energy system.

Oceans
The second scenario, which we call “oceans”, describes a more prosperous and volatile world. Energy demand surges, due to strong economic growth. Power is more widely distributed and governments take longer to agree major decisions. Market forces rather than policies shape the energy system: oil and coal remain part of the energy mix but renewable energy also grows. By the 2060s solar becomes the world’s largest energy source.

BTW, as an aside, the idea of ‘peak oil’ is increasingly redundant as an idea as it fails to take into account the impact of other energy sources. At the very least one should now add gas to oil in the context of ‘peak’.

Scenarios for the future of education

 

 

 

 

 

 

I’m speaking at something called BETT in London next week. This is how the organisers describe the event:

“Bett is a global community where individuals discover technology for education and lifelong learning. Bett embraces innovative solutions that inspire, in order to shape and improve the way people learn from classroom to boardroom. In times where modern learning environments are becoming more mobile and ‘learning anywhere’ is more of a possibility, Bett gives visitors the opportunity to explore how technology can power learning, raise attainment and increase efficiency.” Ummm. OK.

Anyway, here’s a very quick scenario matrix for the future of education. If they don’t throw me out I’ll show it One driver is the level to which computers, other mobile devices, cloud storage, content creation, copyright and formats generally are well managed, ordered and predictable. The other driver is based on whether or not value is given to physical spaces and objects (schools especially) and to the physical presence of teachers and students.

FutureVision

 

Judging by the recent jump in subscribers to the blog some of you seem to like free bits of my new book so here’s a tiny bit more – an overview of the 4 scenarios upon which the book is based. The visual, by the way, is a new map to go with the book (A timeline history of the world 1970-2040). More on the map very soon.

Scenario 1 – Imagine
This is a world where people are fully aware of the threats to the future such as climate concerns, but have an unshakeable belief in the power of science, technology and free markets to make life better from one generation to the next. It is a mind-blowing new world of technical challenges and radical inventiveness and re-engineering where everything is connected to everything else.

A fast sci-fi world of genetic manipulation, avatar assistants, virtual buildings, robotic soldiers, artificial intelligence, quantum computing, moon hotels, nanotechnology and geo-engineering, all ultimately driven by and reliant on free market capitalism. Clean technology is booming, especially nano-solar, fusion power is coming online and food and water shortages have both been addressed by the smart use of technology. Automation means that everyday life is accelerating while digitalisation, virtualisation, miniaturisation and ubiquitous connectivity mean that whole industries are being turned upside down and people are starting to question what reality really is. Fundamentally it is a world driven by human imagination and inventiveness.

Overall, the speed and depth of change is quite breathtaking. The Internet, for example, looks nothing like it did in 2012. This exponential change makes some individuals, especially older people – of which there are now so many – rather anxious, particularly when systemic risks and cascading failures emerge. But overall life is good, although in most instances it’s no longer life as we would know it today.

Scenario 2 – Please, Please Me
This in many ways is the familiar world that we had become so used to during the Long Boom (1991 – 2007) prior to the global events of 2008. It is a world of economic growth, free markets, individualism, consumerism, selfishness and self-indulgence where people work harder and longer and where greed and status remain key – and unapologetic – drivers of much human activity. It is a world of money where successful people, especially celebrities, are envied and copied by followers worldwide. It is a world of luxury, displacement and detachment too – for those that can afford it. The past is increasingly irrelevant in this world. Which celebrates newness and novelty and delights in planned obsolescence, over supply and over consumption.

One significant development is the dominance of the BRIC (Brazil, Russia, India & China) and N11 (Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, Turkey, South Korea, and Vietnam) economies, especially the emergence of an endless stream of cutting edge technology companies from these markets.

In short this is a world that’s all about me, myself and I. A narrowly focused narcissistic world where it’s everyone for themselves and to hell with the consequences for everyone else. It is a world fundamentally driven by greed that, some might argue, has lost its way by confusing rapid movement with meaningful progress.

Scenario 3 – Helter Skelter
This is a world where a series of unexpected events create a general feeling of fear and fragility. The impact of climate change, the implosion of global financial systems and institutions, cyber crime, soaring food costs, high taxation and the ever-growing disparity between rich and poor mean that most people turn their backs on the notion of a single global economy. A few people with money remain relatively engaged in the global information economy, yet live in gated communities or areas with private security. Those with much less, especially those with no job, no money and no prospects are angry. They feel betrayed by the promise of globalisation and withdraw both physically and emotionally. The promise of free markets and democracy fade and people all over the world rediscover an angry appetite for parochialism, protectionism and regulation; concepts they themselves describe as a healthy self sufficiency.

It is a world running on empty where global politics drifts rightwards, nationalism and tribalism re-emerge and globalisation and localism are uneasy bedfellows. Ultimately it is a world driven by fear.

Scenario 4 – Dear Prudence
In this future people are alarmed about the health of the planet and especially the pervasive influence of materialism and individualism upon their lives and have therefore decided to take personal responsibility and do something about it. This is a world of sustainability and switching things off, of buying less stuff and seeking to reconnect locally with the simpler pleasures of life. It is a world where many things go backwards in a sense and one where ethics, values and reputation really count. Overall, most people are surprisingly happy – a “dark euphoria” Bruce Sterling once called it. This is partly because peoples’ lives have become more balanced and partly because there is a strong sense of common purpose. “Altogether now”, “less is more” and “You can help everyone, everyone can help you” are popular slogans. It is a pessimistic world, yet one that retains a degree of hope.

BTW, the book is out in Australia as an e-book and paper version but the p-version is almost impossible to get in other countries at the moment. It is coming out in China and the UK soon. If you really want to buy a paper version get in touch with myself, Oliver Freeman in Sydney (via Futures House.com)  or Scribe Publications in Melbourne.

Link to the e-book on Amazon.

Link to Penguin Australia (hard copies).

Future Vision

 

 

 

 

 

 

 

 

 

 

 

 

 

Future Vision was officially launched today in Australia. I blogged the preface a while ago, so here’s a tiny bit more (part of the forward from an early version) as promised. If you want to buy the book here’s the Amazon/Kindle link.

Forward: into the unknown

Several years ago, an office worker in Tokyo dropped dead at his desk and wasn’t discovered until five days later. This was despite the fact that his co-workers regularly walked past and said “hello.” In a similar incident, a fifty-one-year-old had a heart attack in an open plan office in New York on a Monday morning, but nobody noticed the fact that he was dead until the Saturday, when a cleaner attempted to wake him up to ask whether he was working over the weekend. Apparently it wasn’t unusual for the man to be there because, according his boss, without any hint of irony, “he was always the first to arrive and the last to leave.”

Is this the future? Is this how things will eventually work out for many of the so-called free agents inhabiting anonymous desks inside vast corporations or for the emerging class of digital nomads electronically tethered to virtual offices via a compote of Blackberries and Apples?

The answer is no. It is one possibility. It is one future, but there are many others.
One future might be a cross between Terry Gilliam’s film Brazil and Fritz Lang’s Metropolis. This would be a dystopian future where people are forced to work longer hours for larger bureaucracies in a futile attempt to earn more money to offset rising food prices, higher energy bills, declining real wages, increasing debt and disappearing retirement. Conversely, people might willingly choose to spend more time inside lifeless cubicles at work because, while the work is mind numbing, they feel increasingly isolated and uncomfortable at home.

This could be because the family, as a building block of society, has atomised and more people are living alone, or because a relationship hasn’t turned out as planned and work offers more satisfaction and companionship. Add a pinch of ubiquitous media, autocratic data-driven governments, brain-to-machine interfaces, GPS, RFID, facial recognition, genetic prophesy, predictive modelling and CCTV and, while this future isn’t quite like Orwell’s 1984, the date could be seen by some to be getting closer not further away.

Alternatively, we might see a move in a totally different and much more utopian direction. Maybe we’ll start to see that there’s more to life than dropping dead at your desk and people will start to fight for the right to re-balance their lives in their favour. Perhaps automation – especially robotics and artificial intelligence – will finally deliver on its promise of a leisure society and people will spend more of their time re-connecting with their families and doing more of the things that really interest them. This could also be a world where the state limits freedom of choice in areas such as healthcare and pensions and provides a higher degree of security in return for higher direct or indirect taxation. A sustainable world driven as much by the heart as the head, where local forces start to push back against globalisation and where new technologies are carefully scrutinized for long-term social impact and value. An ethically driven world where physical community is rediscovered and corporations are restrained due to, amongst other things, skills shortages, the high cost of energy and limited raw materials.
A world not dissimilar, in many ways, to the one described many decades ago in Ernst Schumacher’s book Small is Beautiful: Economics As If People Mattered.

And there are many other possibilities, many other paths and many other futures too. How, for example, might oil costing upwards of $200 per barrel change the world? Perhaps people and products would move around less or the high price of food would lead to an unexpected decrease in obesity. What if we invented a new technology based upon photosynthesis that made energy almost free? What if a new ideology capable of challenging free-market capitalism were to appear? Or if the next Russian Empire decided to broaden its borders beyond their current limits. Or what could happen if the heavy use of mobile phones (of which there are already more than 5 billion worldwide) started to cause the death of tens of millions of young people through brain cancer after a long and largely invisible gestation period?

There are many ways in which we can think about the future and looking at the past (i.e. how we got to where we are today) is a good place to start, partly because what happens right now can influence what happens next and also because both are often related to what happened a very long time ago. And there is a third reason. By understanding the complexities of how we got where we are today we will be better served in how we think about the future. Complexity is the name of the game. Of course, history is not always the most reliable guide to the future because nobody owns the facts. The way we interpret the past can cast a long shadow that hides other important facts. Similarly the future can be buried in the fringes of the present, which essentially means that knowing precisely where to look, or who to talk to, can pay dividends and give you a head start compared to less creative and less curious thinkers. Whichever way you look at it, it’s worth remembering that the future is always present.

This is not to say that the process of thinking ahead is not fraught with difficulties, but a bigger problem is time. Thinking seriously about worlds to come takes time, which is in very short supply nowadays. As a result, many organizations focus almost exclusively on short-term issues, which means that reactions are often too immediate and management often consists of racing from one crisis to the next. More often than not, especially in commercial organizations, the focus is on the next 12 weeks (the next financial quarter) or the next 12-months (“results”), which are then compared to the last 12-months. Thinking beyond this, especially 36-months or more ahead, is almost unheard of. As a result, deep questions, along with longer-term opportunities and risks, tend to go unanswered until its too late. And this anomaly is not just a ‘business’ issue. How many of us defer thinking about pensions and superannuation until way past the ideal start date? The economic rise of China went unnoticed by many for many years. In the ‘nineties, world economic forums would get excited by China but then revert to the old concerns about NATO, Japan and the tensions in Europe. But now, while the opportunity is slowly being seen, the risk of a potential reversal, with associated bubbles and concentration risks, is not. The same could be said for fertility or the impact of social media on democracy.

History, as the author and security and intelligence expert George Friedman has pointed out, “can change with stunning rapidity.” If the Chinese economic miracle were to come to an abrupt end, this would create a very different future, parts of which we can instantly imagine if we only put aside the time to do so.

Put in a slightly different way, while there are many trends and traits that at first glance look set to continue for the immediate future, nothing is ever certain – a thought, crisply echoed by the writer JG Ballard, who once said that: “If enough people predict something it won’t happen.” On the other hand we are well aware how expectations are realised in the performance of stock markets so it’s never all one thing rather than another. In fact our favourite word is ‘and’ rather than ‘or’.

The history of prediction is interesting in this context and is littered with false prophets, much as it’s strewn with false profits, and it is important to distinguish between what is probable with what is possible. The best way of doing this is, as the detective Sherlock Holmes once pointed out, is to start by removing whatever is totally impossible and then, whatever is left, no matter how improbable, must be considered as being possible. There is also a technique developed by the Strategic Trends Unit at the UK Ministry of Defence in which probabilities are assigned to specific words. “Will” is assigned a probability of “Greater than 90%” “Likely/probably” is “Between 60% and 90%”, “May/possibly” is “Between 10% and 60% “and “Unlikely/Improbable” is “Less than 10%” However, this is never easy to do. Probability is of little value when engaging with the future, even if we had the time and effort to undertake quantitative analysis. The future is not at the end of a trend line. No wonder then that so many individuals cling resolutely to the past. It’s much easier that way. Similarly, it’s hardly a surprise that so many institutions structure themselves to deal with the immediate present.  It’s much cheaper that way.

But by the time the relevant strategies are in place, the horse has bolted and we are already somewhere new. Most organizations create strategies to deal with yesterday’s problems . But thinking about the distant future is essential if we, as individuals or organizations, are to take full advantage of the myriad of opportunities that lie ahead.

Developing a situational awareness for emergent risks is absolutely essential if we do not want to end up standing on the wrong side of history on an ongoing basis. In our work with organizations world-wide, we have also come to the conclusion that workable short-term strategies have the longer-term embedded within.

All well and good, we can hear you saying, but how can one sell the idea of futures thinking to an organization run by an individual that is focused on that set of numbers that will take shape over the next 12 weeks? The honest answer is that you can’t. However, if you are fortunate to work for an organization with an incoming or outgoing head there is hope because these leaders are either concerned with creating a vision or leaving a legacy and both of these mindsets fit rather well with futures thinking.

Furthermore, dark clouds have silver linings. In our view a critical function of leadership is to embrace the plurality of opinions – of diverging worldviews – in order to have a better chance of making sense of the future. The recent history of reactions to climate change is a case in point. If an organization is facing an extinction event (i.e. new technology, government regulation or customer mindsets mean that current products, services, business models or margins appear doomed) this is precisely the time when closed minds are opened up to new possibilities.

One of the features of good leaders is that they have an understanding of past and present. They understand the historical reasons for failure and success, but also appreciate some of the challenges that lie immediately and more distantly ahead. Outstanding leaders do something else too. They have a vision for the more distant future. More often that not, they see things that others cannot, and while their visions maybe partially obscured they are often able to create and communicate compelling stories about why other people should follow them down a particular road.

This skill can work extremely well, but this too can contain a fatal flaw, which is that individuals and organizations can sometimes end up being held hostage to a particular point of view, or vision, of the future. The more dominant a leader – or organizational culture – the more that people will be drawn into agreeing with a particular point of view and the less that people will seek to challenge either it or the hidden assumptions upon which it’s built. The more credible or powerful a source the less likely we are to think that something they say maybe wrong. The more popular or widely circulated something is the more likely we are to agree with it, especially if we are busy.

Let’s get back to the two dead bodies. Both of the stories about workers dropping dead at their desks were featured in newspapers and TV channels around the world, including The BBC and The Guardian. They were widely circulated on the Internet too. But both were untrue….

(continues)

4 Alternative Scenarios for the World in 2040

 

Future Vision is published…

I’m happy to report that Future Vision: Alternative Scenarios for the World in 2040 (published by Scribe in Melbourne) is now out and increasing about. If you would like a free copy I am giving away 6 e-copies and 4 hard copies to the first people to say that they want one (please say whether you would prefer ‘e’ or ‘p’ format).

You can either post contact details on the comments form below or email me with your name and email or postal address to richardat(deletethisbit)nowandnext.com

UPDATE! All free e-copies now taken, but we have 2 more hard copies to give away.

NEW UPDATE!!! All gone I’m afraid but I’m seeing what we can do for people…

Flight to safe

 

 

 

 

 

 

According to a set of scenarios developed by Oxford Economics, a Greek exist from the Euro is a 15-20% probability with a multiple exist around 30% probable. The same reports puts a Chinese hard (economic) landing at 5-10% and the US falling off a fiscal cliff at around 10%.

How do these figures manifest themselves in everyday life? One thing I’ve observed recently is that it’s getting more difficult to buy a safe. They have mostly been sold, including some rather large ones. Why? I suspect the reason is that people no longer trust the banks. Also low interest rates make the holding of cash a perfectly reasonable idea. I’ve also noticed that in the US the sale of handguns and ammunition has gone through the roof recently – seriously.

Oxford scenarios report (2 page PDF) download here.

Scenarios for Europe & beyond

At last some intelligent musings about 2012 and beyond. This weekend’s FT features a well thought out article by John Authers about what might happen in financial markets in the year ahead.

Scenario one is that markets take off once again and return to something resembling growth. Is a take off in the US plausible? It seems unlikely. As for Europe it seems very unlikely, with the structure of the euro preventing any sustainable solution to the current malaise (my words not his). As for Asia, things could pick up quite fast, but the connectivity of global markets would suggest that flat line growth in the US, or Europe, would impact other regions significantly. Overall the growth scenario is given a probability of just 10%.

Scenario two is disaster. Eurozone austerity packages virtually guarantee a recession and a break up of the Euro could trigger a collapse of the European banking system. This scenario is given a probability of 20%, which I feel is a low. I’d put it between 30-50%, with speculators probably shorting the major European banks or attacking individual countries in the next few weeks.

The third scenario is ‘the crab’, which is a nice way of saying that markets just move sideways for the next twelve months, which is more or less what the markets have done since 2008 (shades of 2012 being much like 2011 again).