Deloitte research paints a daunting picture of the future, in which market volatility, consumer power, public sector challenges, regulation, and rapid technological development, will shape businesses’ ability to compete on the global stage.

The year is 2020 and the world has become irrevocably interconnected as it continues to change at an increadible pace. Volatility is inherent to the new global economy, and the struggle between nations for scarce natural resources is escalating.

1. Global power shift
The United States have been the dominant player in the world as we know it for decades, but not for much longer. As Asian countries pool their strengths they are encroaching on the West’s power, and claiming an ever larger role on the world stage. Globalisation continues.

2. Different workforce mix
As the population of a number of countries will shrink over the next decades, so will their workforce. Depending on government intervention, this problem is most likely to reach its peak in the Netherlands between 2020 and 2040. The workforce mix is also likely to change with more senior citizens, migrant workers and women participating in the labour market. As people will work longer, increasing the value of investing in older staff.

3. Stronger government involvement
The time has come for governments to start repaying their debts. At the same time, the inexorable rise in the number of elderly people will make it harder and harder to keep funding our social system, which will have consequences for the tax system. The government’s role is growing, and the business community faces stricter rules and more scrutiny from supervisory bodies.

4. Increased environmental responsibility
With water sources running out across the world, shortages could become the world’s biggest problem in 2020. China, for instance, may be hit hard. Societies are increasingly attaching greater value to environmental protection and have become more critical towards corporations, which is increasing pressure on them to report on their carbon footprint. One way to do this is to publish sustainability reports.

5. Economic uncertainty
Financial markets have become far less predictable and as such, public and investor confidence is plagued by uncertainty. The Netherlands cannot escape this, where confidence is further hampered by high mortgage debts. The shaky situation in the United States, Europe and Asia coupled with the worldwide profound interconnectivity can cause relatively small events to have a major impact. Only one thing is certain: changes will come and it will take place quickly and on an unprecedented scale.

6. New technological paradigms
The technological developments come thick and fast and there is no telling what will happen in ten years’ time. The rising tide of data presents us with the challenge to turn this into useful information, making data analytics increasingly important. Cloud computing and open innovation offer considerable possibilities but they have a downside: online security risks. Cyber security will become an increasingly important topic, both at organisational and at government level.

Building for the future
At Deloitte, we are helping clients build a ‘business of tomorrow’ by enabling them to understand, design and shape their own futures. Our service offerings are designed to help them create the necessary conditions for sustainable growth through innovation. As such, they are solutions that are most relevant to the needs of businesses today.