Dr. David Schmidt at the Helm of AURAK discusses ten key global trends redefining business and commerce
The business landscape is experiencing transformative times. Technology and innovation, driven by AI-driven capabilities, are redefining the way we do business. Entrepreneurs, innovators, and business leaders are challenged to keep track of the disruptive changes that have stormed the landscape. Getting a grip on the evolving trends in the business ecosystem is, therefore, of paramount importance if one wants to succeed in today’s world.
This applies not just to entrepreneurs but also to young men and women at our universities, where education curricula are being recalibrated as new developments override old ways of doing business. So, anticipating these changes holds the key to success as they have redefined the very fabric of commerce and global interaction.
Business schools globally have started integrating these emerging trends into their curricula. It is a massive challenge for educational institutions to keep track of these evolving changes since the pace of innovation and technological advances is unprecedented.
Here is my selection of ten key global trends redefining business and commerce.
1. Artificial Intelligence (AI)
There is no doubt that AI is the new mantra shaping the world. The AI revolution will affect every aspect of life and business, from personalised recommendations on streaming platforms to self-driving cars, customer tracking, and supply chain management. Increasingly, AI will empower us to have personalised products and services to a level only read in science fiction.
Businesses are employing artificial intelligence (AI) in various ways to improve efficiencies, save time, and decrease costs. AI now powers cybersecurity and fraud management, monitors website traffic, crafts internal communications, and elevates customer relationships. Other notable uses of AI are customer relationship management, digital personal assistants, inventory management, content production product recommendations, accounting, supply chain operations, recruitment and talent sourcing, and audience segmentation.
2. Metaverse
The metaverse is another phenomenon that is taking us into science fiction. It refers to the convergence of physical and virtual space accessed through computers and enabled by immersive technologies such as virtual, augmented, and mixed reality. It leads us to a space where you explore and create new dimensions.
Virtual reality, a key component of the metaverse, immerses users in this digital realm, offering experiences that mimic or surpass reality itself.
The metaverse is poised to revolutionise industries like education, healthcare, real estate, and commerce. It will enable us to attend classes in a virtual lecture hall from anywhere globally, undergo medical training through lifelike simulations, or even preview real estate in immersive 3D before physically visiting a property.
3. Circular Economy
The circular economy is an economic model that aims to eliminate waste and promote sustainability through reuse and resource efficiency. According to Deloitte, the circular economy is projected to help reduce emissions by 40%, generate nearly 2 million jobs, and become a $2 to $3 billion market in the coming years.
Businesses will need to adopt a circular economy increasingly to achieve efficiency, cost-cutting, and sustainability targets. They will need to reimagine their entire approach to production and consumption, shifting away from the linear ‘take-make-dispose’ mindset to a more regenerative cycle. This shift will lower environmental impact and foster innovation, creating new markets for refurbished goods, recycling technologies, and sustainable materials.
4. Virtual Economies
A Virtual economy exists in a virtual world where users can exchange virtual or tangible assets, products, and services in a game or platform environment. The rise of digital assets, virtual currencies, and online marketplaces creates a parallel economic universe. These digital assets include cryptocurrencies, in-game purchases, NFTs (Non-Fungible Tokens), and virtual real estate.
A virtual economy hinges on establishing value and trade in the digital realm, opening up many opportunities for investment, entrepreneurship, and innovation. Powered by the metaverse, virtual economies are set to become hubs for commerce, socialization, and innovation. This will significantly benefit businesses that can tap into these virtual economies to reach new audiences, offer immersive experiences, and explore novel revenue streams.
5. Remote Work
COVID-19 gave a boost to remote work and study. Today, work and learning aren’t restricted by geographical limitations but flourish through digital connections. This trend has morphed into a revolution that redefines productivity, flexibility, and inclusivity.
Companies and employees are navigating this shift, substantially impacting work culture, productivity, and work-life balance. This evolution in the workforce suggests a reimagining of traditional work environments, challenging age-old norms and opening doors to new operational strategies and employee expectations.
6. Sustainability
Sustainability is becoming an integral part of business today. Saving the planet is not the job of only governments; every citizen and every business needs to contribute to this gargantuan task.
Sustainability has become a guiding principle shaping businesses and consumer choices. Enterprises are increasingly aware of their environmental impact and societal responsibilities, leading to a shift towards eco-friendly practices and sustainable models. From renewable energy initiatives and circular economy practices to reducing carbon footprints and ethical sourcing, this trend represents a commitment to preserving our planet for future generations. Increasingly, legislation will make it mandatory for businesses to comply with sustainability issues.
7. E-commerce Boom
Over the last few years, e-commerce has become indispensable to global retail. Like many other industries, buying and selling goods has undergone a substantial transformation following the advent of the Internet. Thanks to the ongoing digitalisation of modern life, consumers all over the world now profit from the perks of online transactions.
E-commerce will continue to be the key driver of business. Those looking to boost sales and take the business to new heights need to understand the complex world of e-commerce more deeply. By pairing a strong web presence with the latest e-commerce platforms, businesses can broaden their offerings, increase their reach, and remain open 24/7.
8. Healthtech
Healthcare technology, or “health tech,” refers to the use of technologies developed to improve any and all aspects of the healthcare system. The healthcare sector is set for a leap, powered by technology, making telehealth and robotic-assisted surgery possible, among many other innovations. Healthtech is taking us to wearables, telemedicine, AI-driven diagnostics, and personalized treatment plans.
Healthtech is not just about diagnosing and treating; it’s about proactive wellness and personalized care. Through the convergence of data, AI, and human empathy, the healthcare sector is scripting a new narrative that opens new possibilities for analyzing and treating diseases and surgical procedures.
9. 3 D
3D printing, or additive manufacturing, creates a three-dimensional object layer-by-layer using a computer-created design. 3D printing is an additive process whereby layers of material are built up to create a 3D part.
This technology isn’t just about creating products; it’s about reinventing the very process of manufacturing. 3D Printing of goods is a transformative trend that enables the creation of physical objects layer by layer, bypassing traditional manufacturing limitations. From intricate designs to personalized products, it unlocks a universe of possibilities. The implications of 3D printing extend across various industries, from healthcare and construction to fashion and aerospace.
10. Robots
In the new world of automation, robots will increasingly play a crucial role. These mechanical marvels are set to revolutionise industries, freeing humans from repetitive tasks and significantly amplifying productivity.
The adoption of robots and automation continues to spread across all sectors, with global robot installations expected to grow by 7% annually in the coming years. As robot and automation technology becomes more accessible and advanced, many organisations are automating repetitive aspects of their work, leading to significant transformations in their businesses.
Dr. Schmidt is a seasoned administrator with over 33 years of broad-based experience as an executive academic leader and faculty member, spanning a wide range of public, private, and international institutions.
Transforming institutions across public, private, and international landscapes, Dr. Schmidt has redefined higher education leadership
Before joining AURAK, he served as President of the American University in Dubai (AUD), and Vice Provost for International Affairs and Professor of Global Studies and Human Geography at Middle Tennessee State University. He has held various leadership positions and played a vital role in transforming a range of public, private, and state institutions, representing the landscape of higher education, including the University of the Pacific, the University of Wisconsin System, and Yale University.
A distinguished scholar and administrator, Dr. Schmidt’s global contributions span from Yale University to Middle Tennessee State University
Dr. Schmidt holds a Ph.D. from Saint Louis University, an MA from The Ohio State University, and a BA from the University of Wisconsin. He has written extensively on post-WWII women’s rights and education issues in Japan and South Korea.
He is a recipient of the AIEA (Association of International Administrators) Presidential Fellowship, the Korea Foundation Research Fellowship, and the Mombushō Fellowship. He also participated as a fellow in Harvard University’s IEM (Institute for Educational Management).