Download as a response to megatrends

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Creating Connections
<IR> as a response to
megatrends
Andrew Jurczynski
Global Leader - Megatrends, PwC
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Overview

What are megatrends?

Integrating megatrends into business decisions

Why investors want your views on megatrends?

Panel and Q&A – send your questions using the activity feed in the app

Starting your roadmap to <IR>
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Megatrends – 5 global trends which:
•
•
•
have a major influence on economic and commercial landscape over next decade
permeate across all sectors of economy and society
fundamentally disrupt industries and way we all do business
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Shift in global economic power
Megatrends poll
Currently, four of the world's 12 biggest
economies are in emerging markets. In
2030, we think this figure will be how many?
Vote in the app now!
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Shift in global economic power
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Rapid urbanisation
Megatrends poll
How many people are added to the global
urban population every week?
Vote in the app now!
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Rapid urbanisation
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Climate change and resource scarcity
Megatrends poll
Global food demand is expected to increase
by how much by 2030?
Vote in the app now!
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Climate change and resource scarcity
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The impact of megatrends – 9 strategic issues
Megatrends
2. Future of virtual
currencies
1. Regulation
• Scope
• Enforcement
• Compliance
8. Risk
• Analytic tools
• Cyber-security
3. Customer expectations
and the power to punish
4. Digital competitors and the age
of innovation
9. Impact on value creation
and capital stocks
7. The organization of
the future
5. New definitions of service
and metrics
6. The revolution in
distribution
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Integrating megatrends into business decisions
Juan Gonzalez
Strategic Development Director, Indra
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Strategic response to megatrends
Source: Legal & General investor presentation March 2014
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Strategic response to megatrends
Source: Aegon 2013 Integrated Review
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Why investors want your views on megatrends
Rui Mota-Guedes
Head of European Equity Strategy, MainFirst Bank AG
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Why investors want your views on megatrends
Superior returns
Successful strategy
EFFECTIVE IMPLEMENTATION
Simple, consistent, longterm goals
Understanding of the
competitive environment
Objective appraisal of
resources
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Why investors want your views on megatrends
World Consumption ($ trillion)
World Population (billion people)
Source: McKinsey Global Institute
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Why investors want your views on megatrends
Percentage employers having difficulty filing jobs
Source: ManpowerGroup
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Panel discussion and Q&A
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Megatrends - threat or opportunity?
CEOs recognise there are megatrends with the ability to
transform their business in the future…
81%
60%
59%
46%
40%
…opening up opportunities along the way
Business model change
Technological advances
Demographic shifts
Shift in global economic power
Resource scarcity and climate change
Urbanisation
22%
Changes to
consumer
demand
New market
opportunities
15%
13%
13%
11% New product/service
11%
10%
Changes to costs/pricing
offering
10%
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Your roadmap to <IR>
Ian Ball
Chairman, Chartered Institute of Public Finance and Accountancy, Chair of IIRC
Working Group
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Your roadmap to <IR>

Self-assessment of your organization’s <IR> status

Reflect

Record learning points

Plan actions

Take back to drive momentum with your colleagues
All materials are in your workbook:
guidance, worksheets, space for notes
Judgement –
not an exact
science!
Snapshot of
complex
businesses!
Not a test!
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What will your roadmap to <IR> cover?
Step 1: identify relevant inputs, outputs, outcomes
Day 1: as part of “<IR> as a response to
megatrends”
Material capitals to value creation and focus areas for each
material capital for roadmap exercise
Step 2: assess your integrated thinking
Day 1: as part of “The integrated business”
Day 2: at start and end of day
Red, orange, green rating for each focus area
Step 3: assess your external communications
Day 3: after “Emerging Trends”
Red, orange, green rating for each focus area
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Getting started
10 minutes to:
 Write down a snapshot of inputs, outputs, outcomes
relevant to your organization’s value creation

Decide which capitals are material

Choose an area to focus on for each material
capital
5 minutes to discuss on your table
Workbook includes tips to help you
Look for this icon for ideas for bringing
in learning from conference sessions
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