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Thinking about the Future THINKING ABOUT THE FUTURE. The way that we think about the future must mirror how the future actually unfolds. As we have all learned from recent experience, the future is not a simple extrapolation of linear, single-domain trends. We now have to consider ways in which the possibility of random, chaotic and radically disruptive events may be factored into enterprise strategy development, threat assessment and risk management frameworks and incorporated into enterprise decisionmaking structures and processes. Abiliti – contact details • Abiliti is a consortium of SAP I/S Utilities, I/S Oil & Gas and Energy Strategy Consulting, Strategic Foresight & Future Management consultants • Graham Harris – Email: – Telephone: • Nigel Tebbutt SAP Agile Academy Director @ Abiliti [email protected] (Office) +44 (0) 1527 591020 (Office) 奈杰尔 泰巴德 – Future Business Models & Emerging Technologies @ Abiliti – Telephone: +44 (0) 7832 182595 (Mobile) – +44 (0) 121 342 3998 (Office) – Email: [email protected] (Private) Abiliti:: Strategic Enterprise Management (SEM) Framework © Thinking about the Future THINKING ABOUT THE FUTURE • It has long been recognized that one of the most important competitive factors for any organization to master is the management of uncertainty. Uncertainty is the major intangible factor contributing towards the risk of failure in every process, at every level, in every type of business. • The way that we think about the future must mirror how the future actually unfolds. As we have all learned from recent experience, the future is not a simple extrapolation of linear, single-domain trends. We now have to consider ways in which the possibility of random, chaotic and radically disruptive events may be factored into enterprise strategy development, threat assessment and risk management frameworks and incorporated into enterprise decision-making structures and processes. Thinking about the Future THINKING ABOUT THE FUTURE • Managers and organisations often aim to “stay focused” and maintain a narrow perspective in dealing with key business issues, challenges and targets. A concentration of focus may risk overlooking those Weak Signals indicating potential issues and events, agents and catalysts of change. These Weak Signals – along with their resultant Wild Cards, Black Swan Events and global transformations - are even now taking shape at the very periphery of corporate awareness, perception and vision – or even just beyond. • These agents of change may precipitate global impact-level events which either threaten the very survival of the organisation - or present novel and unexpected opportunities for expansion and growth. The ability to include weak signals and peripheral vision into the strategy and planning process may therefore be critical in contributing towards the organisation's continued growth, success, well being and survival. Future Taxonomy There are some 10-20 Primary Futures Disciplines, 20-30 Futures Paradigms and over 250 Secondary Futures Specialities documented in various sources – covering Futures Studies, Strategic Foresight, Military and Business Strategy, Economic Modelling and Long-range Forecasting, Business Planning and Financial Analysis – Future Taxonomy • The main objective of any Futures Taxonomy is to identify, capture, analyse and classify the mainstream Futures Studies, Strategic Foresight and Strategy Analysis Primary Future Disciplines (20-30) Futures Studies Subjects (20-30) – Regimes, Frameworks and Paradigms, and then to document the Secondary Future Specialties (over 250) – Models, Methods, Tools and Techniques – and to order, group, define and describe both the Primary and Secondary subjects in a comprehensive, consistent, coherent, complete and logical manner. • This is the first step towards creating a Futures Body of Knowledge (BOK) • There are some 10-20 Primary Futures Disciplines, 20-30 Futures Paradigms and over 250 Secondary Specialities documented in various sources – covering Futures Studies, Strategic Foresight, Military and Business Strategy, Economic Modelling and Long-range Forecasting, Business Planning and Financial Analysis • • • Primary Future Disciplines – 10-20 Futures Studies Regimes, Frameworks and Paradigms – 20-30 Secondary Future Specialties – up to 250 Primary Futures Disciplines Primary Futures Disciplines Strategic Foresight 3. Political & Economic Futures 4. Science and Technology Futures 5. Environment, Climate & Ecology Futures 6. Entrepreneurship & Innovation Futures 7 . Future of Information & Knowledge Management 8. Personal Futures – Trans-humanism 9. Future of Philosophy, Knowledge & Values 10. Future Beliefs – Moral, Ethical & Religious Futures 11. Massive Change – Human Impact and Global Transformation 12. Human Futures – Sociology, Anthropology and Cultural Studies 1. Futures Studies 2. Primary Futures Disciplines • Futures Studies – – – – • History and Analysis of Prediction Future Studies – Classification and Taxonomy Future Management Primary Disciplines Future Management Secondary Specialisations Strategic Foresight – – Foresight Regimes, Frameworks and Paradigms Foresight Models, Methods, Tools and Techniques • • • • • • • • • • • • Quantitative Techniques Qualitative Techniques Chaos Theory – Random Events, Uncertainty and Disruption Political and Economic Futures Science and Technology Futures Entrepreneurship and Innovation Futures Personal Futures – Trans-humanism, NLP / EHT The Future of Philosophy, Knowledge and Values Future Beliefs – Moral, Ethical and Religious Futures Massive Change – Human Impact and Global Transformation Human Futures – Sociology, Anthropology and Cultural Studies The Future of Information, Knowledge Management and Decision Support Futures Studies Regimes, Frameworks and Paradigms • Pragmatic (Deductive) Paradigm – Rational Futurism • Extrapolative Paradigm – Pattern and Trend Analysis • Dogmatic (Dietetic) Paradigm – Reactionary Futurism • Polemic (Reasoned) Paradigm – Enlightened Futurism • Dystopian (Fatalistic) Paradigm – Strategic Negativism • Rejectionist (Humanistic ) Paradigm – Sceptic Futurism • Mystic (Esoteric) Paradigm – Contemplative Meditation • Egalitarian (Consequential) Paradigm – Utilitarian Futurism • Steady State (La meme chose) Paradigm – Constant Futurism • Qualitative Paradigm – Scenario Forecasting and Impact Analysis • Utopian (Deterministic, Idealistic) Paradigm – Strategic Positivism Futures Studies Regimes, Frameworks and Paradigms • Entropic (Ordered, Systemic, Mechanistic) Paradigm – Structural Futurism • Simplexity (Reductionist) Paradigm – Linear Systems and Chaotic Interaction • Complexity (Constructionist) Paradigm – Complex Systems and Chaos Theory • Metaphysical (Naturalistic, Evolutionary, Adaptive) Paradigm – Gaia Hypothesis • Theoretical (Scientific, Forensic, Evidence-based) Paradigm – Empirical Futurism • Uncertainty (Random, Chaotic, Disorderly, Enthalpy) Paradigm – Disruptive Futurism • Existentialist Paradigm (Personal Futures) – Trans-humanism, The Singularity, NLP / EHT • Predisposition (Pre- deterministic) Paradigm – Cognitive Analysis and Intuitive Assimilation • Quantitative (Logical, Probabilistic) Paradigm – Mathematical Modelling & Statistical Analysis • Elitist (New World Order) Paradigm – Goal Seeking, Leadership Studies & Stakeholder Analysis Complexity Paradigms System Complexity is typically characterised by the number of elements in a system, the number of interactions and the nature (type) of those interactions. One of the problems in addressing complexity issues has always been distinguishing between the large number of elements and relationships, or interactions evident in chaotic (unconstrained) systems - and the still large, but significantly smaller number of elements and interactions found in ordered (constrained) systems. Orderly Frameworks act to both reduce the total number of elements and interactions – with fewer and smaller classes of more-uniform elements – and with less regimes of reduced size featuring more highly-ordered, internally correlated and constrained interactions – as compared with Disorderly Frameworks. Complexity Paradigms System Complexity is typically characterised by the number of elements in a system, the number of interactions and the nature (type) of those interactions. One of the problems in addressing complexity issues has always been distinguishing between the large number of elements and relationships, or interactions evident in chaotic (unconstrained) systems - and the still large, but significantly smaller number of elements and interactions found in ordered (constrained) systems. Orderly Frameworks tend to act to both reduce the total number of elements and interactions – with fewer and smaller classes of moreuniform elements – and with less regimes of reduced size featuring more highlyordered, internally correlated and constrained interactions – as compared with Disorderly Frameworks. Linear Systems Simplicity Simplexity Complex Adaptive Systems (CAS) Ordered Complexity (element and interaction density) Disordered Complexity Complexity Complexity Paradigms • Simplexity (Reductionist) Paradigm – Linear Systems & Chaotic Interaction – Linear Systems and Game Theory – War-gaming and Lanchester Theory • Entropic (Ordered, Systemic, Mechanistic) Paradigm – Structural Futurism – Complex Adaptive Systems (CAS) • Complexity (Constructionist) Paradigm – Complex Systems & Chaos Theory – Complex Ordered Systems – Complex Disordered Systems • Uncertainty (Random, Chaotic, Disorderly, Enthalpy) Paradigm – Disruptive Futurism – Cosmology – Climatology – Black Swan Events - Weak Signals, Wild Cards, Chaos, Uncertainty & Disruption Complexity (Constructionist) Paradigm – Complex Systems and Chaos Theory • Complexity tends to be used to characterize systems with many elements or parts arranged in a complex or intricate relationship. The study of these complex linkages, relationships, or interactions between elements is the main goal of network theory and network science. In science there are a number of approaches to characterizing complexity, many of which are reflected in this Paradigm. In a business context, complexity management is the methodology to minimize value-destroying complexity and efficiently control value-adding complexity in a cross-functional system approach. • Definitions are often tied to the concept of a "system"—a set of parts or elements which have relationships among them differentiated from relationships with other elements outside the relational framework or regime. Many definitions tend to assume that complexity expresses a condition with numerous elements in a system and numerous instances and types of relationships between the elements. Simplexity, the sister paradigm to Complexity, helps us to differentiate between the analysis of complex systems and reduction of complex systems into multiple simple systems. • Warren Weaver has postulated that the complexity of any particular system is the degree of difficulty in predicting system outcomes when the properties of the system's parts and relationships are known and understood. Other definitions relate Complexity to the probability of encountering any given condition in a system once the behaviours or characteristics of the system have been specified. In Weaver's view, complexity comes in two forms: Disorganized Complexity and Organized Complexity. • From Wikipedia, the free encyclopedia Complexity Map Complexity (Constructionist) Paradigm – Complex Systems and Chaos Theory • One of the problems in addressing complexity issues has always been distinguishing conceptually between the large number of elements and relationships, or interactions evident in chaotic (unconstrained) systems - and the still large, but significantly smaller number of elements and interactions found in ordered (constrained) systems. Order acts to both reduce the number of elements and interactions - and at the same time creates smaller regimes of more-uniform, ordered or correlated, interactions. • Weaver perceived and addressed this problem, in at least a preliminary way, by drawing a distinction between "disorganized complexity" and "organized complexity". • Weaver's paper has influenced contemporary thinking about complexity. In Weaver's view, Disorganized Complexity results from a system having a very large number of parts - say millions. billions or many more. Though the interactions of these parts in a "disorganized complexity" paradigm can be seen as random – thus properties of the system as a whole can be understood by using probability and statistical analysis. System size, therefore, brings with it a new type of Complexity - all of its own….. • Organized Complexity, in Weaver's view, resides in the property of a non-random, ordered, or correlated, interaction between the parts. These correlated relationships create a differentiated structure which can act as a system and interact freely with other systems. The coordinated system exhibits properties that are not carried by, or dictated by, its individual parts. The organisational aspect of this form of complexity compared with other types of system is that the subject system “develops”, “emerges! or “evolves” without any external intervention from any form of "guiding hand". Complexity (Constructionist) Paradigm – Complex Systems and Chaos Theory Complexity theory has been used extensively in the field of Futures Studies, Strategic Management, Organisational Theory and Operational Analysis. It is applied in these domains to understand how organisations or enterprises adapt to their environment. The theory treats organizations and firms as collections of strategies and structures. When organisations or enterprises demonstrate properties of Complex Adaptive Systems (CAS) - which is often defined as consisting of a small number of relatively simple and loosely connected systems - then they are much more likely to adapt to their environment and, thus, survive the impact of change and random events. Complexity theory thinking has been present in strategic and organisational studies since the first inception of Complex Adaptive Systems (CAS) as an academic discipline. Complex Adaptive Systems are contrasted with ordered and chaotic systems by the relationship that exists between the system and the agents and catalysts of change which act upon it. In an ordered system the level of constraint means that all agent behaviour is limited to the rules of the system. In a chaotic system these agents are unconstrained and are capable of random events, uncertainty and disruption. In a CAS, both the system and the agents co-evolve together; the system acting to lightly constrain the agents behaviour - the agents of change, however, modify the system by their interaction. CAS approaches to strategy seek to understand both the nature of system constraints and change agent interactions and generally takes an evolutionary or naturalistic approach to scenario planning and strategy development Simplexity (Reductionist) Paradigm – Linear Systems and Chaotic Interaction • Simplexity • has it’s origins in the field of Science - Jack Cohen (the scientist) and his collaborator Ian Stewart are authors of the book “The Collapse of Chaos” (1995), a non-fiction work that attempts to explain chaos theory and complex systems to a general audience.. The complexity of algorithms and of mathematical problems is one of the core subjects of theoretical computer science – which prompted computer scientists Broder and Stolfi to whimsically describe • Simplexity • as a concept worthy of just as much attention as its twin paradigm, complexity, attracts. • Simplexity • has been popularised in the book “Simplexity: Why Simple Things Become Complex (and How Complex Things Can Be Made Simple)” by Jeffrey Kluger – which describes some of the ways in which simplexity theory can be applied to many scenarios across multiple disciplines. Kluger offers a look at simplexity in economics, sports, linguistics, technology, medicine, and human behaviour. Simplexity also provides insight into how futurists and strategists can improve their frameworks, paradigms and models - by understanding how the interplay of simplicity (Linear Systems) and chaos (the possibility of random events introducing uncertainty and disruption) can form both complexity (Complex Adaptive Systems) and also simplexity (reduction of Complex Systems into an integrated set of linear or simplistic systems interacting with random events). • Simplexity • is an intriguing future paradigm that will drive new thinking in many novel, exciting and surprising directions over the coming years. • Simplexity • is an elegant and pleasing paradigm which will feature prominently for a good while into the future. Simplexity (Reductionist) Paradigm – Linear Systems and Chaotic Interaction Michelangelo was once asked how he created his sculptures. “I take a stone – and remove anything which is not required”. – thus demonstrating that a beautiful artefact may be created by the removal of everything which detracts from the intrinsic simplicity of that beauty. • Simplexity • shows itself in subtle design that at first glance appears to be something plain and simple; easy to use as well as beautiful to behold – but on closer inspection it becomes apparent that the artefact is constructed from many harmonious layered components. The complex functionality of the design is muted and disguised as sophisticated components integrated within the • Simplexity • paradigm of a compelling idea, elegant functional concept or simple design vision. In the future, a consumer-oriented Western world, faced with diminishing availability of natural resource and increased costs - may become less materialistic and consumption-focused as we are driven to think more carefully about how we use and recycle valuable possessions. Smart Devices (Laptops, Tablets and Smart Phones) with intuitive user interfaces are lifestyle accessories and high-status fashion items which may be continuously and easily personalised, customised and configured to uniquely respond to their owners changing needs – thus complying with the simple beauty of the • Simplexity • paradigm. Simplexity (Reductionist) Paradigm – Linear Systems and Chaotic Interaction Already, trade mechanisms are emerging to recycle these expensive • Simplexity • items for refurbishment and re-sale – as an integral part of a new and emerging strategy for sustainably acquiring and replacing our artefacts and goods. We already have has systems and processes in place for re-using and re-cycling vehicles for many years. This trend will tend to drive manufacturers to make fewer, but better quality artefacts – and in turn multi-owner consumer behaviour will have to be reflected in the future Recycling processes - Recovery. Refurbishment and Resale - embedded in the corporate planning and strategy of manufacturing economies – such as China. • Simplexity • artefacts will have a longer useful lifespan under multiple owners in order to continue to offer a Lifetime Cost of Ownership which remains inexpensive in real terms. This will bring many challenges to manufacturing enterprises – with their responsibility to recover and recycle expensive items for re-manufacturing, refurbishment and re-sale - and at the same time have to contend with a transformation of domestic and export markets in which demand for new goods is cyclical – fragile when new ideas are scarce - strong when multiple trends are emerging and interacting. In order to succeed, businesses will become increasingly transparent, collaborative and interactive with consumers – or face becoming unable to compete effectively. • Simplexity • artefacts will cost more, but still remain relatively inexpensive in real terms in order to pander to the perfidious wishes and desires of western consumers. Secondary Future Specialties • • • • • • • • • • • • • • • • • • Monte Carlo Simulation Forecasting and Foresight Back-casting and Back-sight Causal Layered Analysis (CLA) Complex Adaptive Systems (CAS) Political Science and Policy Studies Linear Systems and Game Theory War-gaming and Lanchester Theory Complex Systems and Chaos Theory Integral Studies and Future Thinking Critical and Evidence-Based Thinking Predictive Surveys and Delphi Oracle Visioning, Spontaneity and Creativity Foresight, Intuition and Pre-cognition Developmental & Accelerative Studies Systems & Technology Trends Analysis Scenario Planning and Impact Analysis Collaboration, Facilitation & Mentoring • • • • • • • • • • • • • • Black Swan Events - Weak Signals, Wild Cards, Chaos, Uncertainty & Disruption Economic Modelling & Planning Financial Planning and Analysis Ethics of Emerging Technology Studies Horizon Scanning, Tracking & Monitoring Intellectual Property and Knowledge Critical Futures and Creative Thinking Emerging Issues and Technology Trends Patterns, Trends & Extrapolation Analysis Simple Systems & Random Interactions Cross Impact Analysis and Factors of Global Transformation and Change Preferential Surveys / Polls and Market Research, Analysis and Prediction The Future of Religious Beliefs - Theology, Divinity, Ritual, Ethics and Value Studies Divination – Hermetic, Mystic, Esoteric and Enlightened Spiritual Practices Secondary Future Specialties • • Science and Technology Futures The Cosmology Revolution – Dark Energy, Dark Mass – String Theory and the Nature of Matter • • • • • • • • SETI – The Search for Extra-Terrestrial Planetary Systems, Life and Intelligence Nano-Technology, Nuclear Physics and Quantum Mechanics The Energy Revolution - Nuclear Fusion Hydrolysis and Clean Energy Science and Society Futures – the Social Impact of Technology Smart Cities of the Future The Information Revolution – Internet Connectivity and the Future of the Always-on Digitally Connected Society Digital Connectivity, Smart Devices, the Smart Grid & Cloud Computing Futures Content Analysis (“Big Data”) – Data Set “mashing”, Data Mining & Analytics • • • • • • • • • Earth and Life Sciences – the Future of Biology, Geology & Geographic Science Environmental Sustainability Studies – Climatology, Ecology and Geography Human Activity – Climate Change and Future Environmental Degradation – Desertification and De-forestation Human Populations - Profiling, Analysis, Streaming and Segmentation Human Futures - Population Drift and Urbanisation - Human Population Curves and Growth Limit Analysis The Future of Agriculture, Forestry, Fisheries, Agronomy & Food Production Terrain Mapping and Land Use – Future of Topology, Topography & Cartography Future Natural Landscape Planning, Environmental Modelling and Mapping Future Geographic Information Systems, Spatial Analysis & Sub-surface Modelling Secondary Future Specialties • • • • • • • • • • Macro-Economic and Financial Futures Micro-Economic and Business Futures Strategic Visioning – Possible, Probable & Alternative Futures Strategy Design – Vision, Mission and Strategy Themes Strategy Development – Outcomes, Goals and Objectives Performance Management – Target Setting and Action Planning Critical Success Factors (CSF’s) and Key Performance indicators (KPI’s) Business Process Management (BPM) Balanced Scorecard Method Planning and Strategy – (foundation, intermediate & advanced) • Modelling and Forecasting – (foundation, intermediate & advanced) • Threat Assessment & Risk Management – (foundation, intermediate & advanced) • • • • • • • • • • Layers of Power, Trust and Reputation Leadership Studies, Goal-seeking and Stakeholder Analysis Military Science, Peace and Conflict Studies – War, Terrorism and Insecurity Corporate Finance and Strategic Investment Planning Futures Management Science and Business Administration Futures Future Management and Analysis of Global Exploitation of Natural Resources Social Networks and Connectivity Consumerism and the rise of the new Middle Classes The BRICs and emerging powers – • Brazil • Russia • India • China • The Seven Waves of Globalisation – • Goods • People • Capital • Services – • Ideology • Economic Control • – • Geo-Political Domination • Secondary Future Specialties • • • • • • • • • • • • Human Values, Ethics and Beliefs History, Culture and Human Identity Human Geography & Industrial Futures Human Factors and Behavioural Theory Anthropology, Sociology and Factors of Cultural Change Human Rites, Rituals and Customs - the Future of Cults, Sects and Tribalism Ethnographic and Demographic Futures Epidemiology, Morbidity and Actuarial Science Futures Infrastructure Strategy, Regional Master Planning and Urban Renewal Future Townscape Envisioning. Planning Modelling and Virtual Terrain Mapping The Future of Urban and Infrastructure Master Planning, Zoning and Control Architecture and Design Futures - living in the Built Environment of the Future • • • • • • • • • • Trans-humanism – The Future Human State – Qualities, Capabilities, Capacities The Future of Medical Science, BioTechnology and Genetic Engineering The Future of the Human Condition Health, Wealth and Wellbeing The Future of Biomechanics, Elite Sports and Professional Athletics Personal Futures – Motivational Studies, Life Coaching and Personal Training Positive Thinking – Self-Awareness, SelfImprovement & Personal Development Positive Behavioural Psychology and Cognitive Therapy - NLP and EHT Intuitive Assimilation and Cognitive Analysis Predictive Envisioning and Foresight Development Contemplative Mediation and Psychic Methods Secondary Future Specialties • • • • • • • • • • Business Strategy, Transformation and Programme Management Futures Next Generation Enterprises (NGE) – Envisioning, Planning and Modelling Multi-tier Collaborative Future Business Target Operating Models (eTOM) Corporate Responsibility / Triple Bottom Line Management Regulatory Compliance - Enterprise Governance, Reporting and Controls Future Economic Modelling, Long-range Forecasting and Financial Analysis The Future of Organisational Theory and Operational Analysis Business Innovation and Product Planning Futures Technology Innovation and Product Design Futures Product Engineering and Production Planning Futures • • • • • • • • • • • Enterprise Resource Planning and Production Management Futures Marketing Needs Analysis, Propositions and Product Life-cycle Management The Future of Marketing Services, Communications and Advertising The Future of Media, Entertainment and Multi-channel Communications The Future of Leisure, Travel & Tourism – Culture, Restaurants and Entertainment The Future of Spectator Events - Elite Team Sports and Professional Athletics The Future of Art, Literature and Music The Future of Performance Arts, Theatre and the Moving Image Science Fiction & Images of the Future Interpreting Folklore, Legends & Myths – Theology, Numerology & Lexicography Utopian and Dystopian Literature, Film and Arts Thinking about the Future Framework Professors Peter Bishop and Andy Hines at the University of Texas Futures Studies School at the Houston Clear Lake site have developed a definitive Strategic Management Framework – Thinking About the Future Thinking about the Future Professors Peter Bishop and Andy Hines at the University of Texas Futures Studies School at the Houston Clear Lake site have developed a definitive Strategic Foresight Framework - Thinking About the Future 1. FRAMING AND SCOPING • This important first step enables organizations to define the purpose. focus, scope and boundaries of the Political, Legal, Economic, Cultural, Business and Technology problem / opportunity domains requiring resolution. Taking time at the outset of a project, the Strategic Foresight Team defines the Futures Study domain, outlines the required outcomes, goals and objectives and determines how best to achieve them. • • Strategy Study Definition – Problem / Opportunity Domains: – – – Definition - Focus, Scope, Purpose and Boundaries Approach - What – How – Why – Who – When – Where? Justification - Cost, Duration and Resources v. Future Benefits and Cash Flows Thinking about the Future 2. ENGAGING • This second phase is about stakeholder management developing action agendas for mobilising stakeholders and opening communications channels, soliciting collaborative participation and input. This may involve staging a wide range of Stakeholder Events , organising Strategy Communications, Target-setting and Action Planning, establishing mechanisms for reporting actual achievement against targets – in order that the Strategic Foresight Team engage a wide range of stakeholders, presents a future-oriented, customerfocussed approach and enables the efficient delivery of Strategy Study artefacts & benefits in planned / managed work streams. • • Strategy Study Mobilisation – Stakeholder Engagement: – – – – Communication Strategy Benefits Realisation Strategy Strategy Study Programme Plan Stakeholder, SME and TDA Strategy Study Launch Events Thinking about the Future 3. RESEARCH – HORIZON SCANNING, MONITORING AND TRACKING: • Once the Strategic Foresight Team is clear about the engagement boundaries, purpose, problem / opportunity domains and scope of a Strategy Study - they can begin to scan both internal and external environments for all relevant input content – information and data describing extrapolations, patterns and trends – or indicating global transformations, emerging and developing factors and catalysts of change – and to search for, seek out and identify any Weak Signals indicating the potential for disruptive Wild Card or Black Swan events. • • Strategy Investigation – Content Capture: – – – – Factors and Catalysts of Change Extrapolations, Patterns and Trends Internal and External Content, Information and Data Horizon Scanning, Monitoring and Tracking Systems amd Infrastructure Thinking about the Future 4. STRATEGY DISCOVERY – STAKEHOLDER EVENTS & STRATEGY THEMES • Here we begin to identify and extract useful information from the mass of Research Content that we have collected. Critical Success Factors, Strategy Themes and Value Propositions begin to emerge from Data Set “mashing”, Data Mining and Analytics against the massed Research Data – and all supplemented via the very human process of Cognitive Filtering and Intuitive Assimilation of selected information - through Discovery Workshops, Strategy Theme Forums, Value Chain Seminars, Special Interest Group Events and one-to-one Key Stakeholder Interviews. • • Strategy Discovery – Content Analysis: – – – Data Set “mashing”, Data Mining and Analytics Stakeholder, SME and TDA Strategy Discovery Events Discovered Assumptions, Critical Success Factors, Strategy Themes and Value Propositions Thinking about the Future 5. STRATEGIC RISK MANAGEMENT • The underlying premise of Strategic Risk Management is that every enterprise exists to provide value for its stakeholders. All entities face uncertainty and the possibility of chaos and disruption. Risk Management is the evaluation of uncertainty. The challenge is to determine how much risk we are able to accept as we strive to grow stakeholder value. Uncertainty presents both opportunity and risk with the possibility of either erosion or enhancement of value. Strategic Foresight enables stakeholders to deal effectively with uncertainty and associated risk and opportunity - thus enhancing the capability of the Enterprise to build long-term value. • • Risk Management – Value Chain Building: – – – Risk Research and Identification Uncertainty, Chaos and Disruption Identified Assumptions, Critical Success Factors, Strategy Themes and Value Propositions Strategic Risk Management • Systemic Risk (external threats) – – – – Political Risk – Political Science, Futures Studies and Strategic Foresight Economic Risk – Fiscal Policy, Economic Analysis, Modelling and Forecasting Wild Card Events – Horizon Scanning, Tracking and Monitoring – Weak Signals Black Swan Events – Scenario Planning & Impact Analysis – Future Management • Market Risk (macro-economic threats) – – – – Equity Risk – Traded Instrument Product Analysis and Financial Management Currency Risk – FX Curves and Forecasting Commodity Risk – Price Curves and Forecasting Interest Rate Risk – Interest Rate Curves and Forecasting • Trade Risk (micro-economic threats) – – – – Credit Risk – Debtor Analysis and Management Liquidity Risk – Solvency Analysis and Management Insurance Risk – Underwriting Due Diligence and Compliance Counter-Party Risk – Counter-Party Analysis and Management Strategic Risk Management • Operational Risk (internal threats) – – – – Legal Risk – Contractual Due Diligence and Compliance Statutory Risk – Legislative Due Diligence and Compliance Regulatory Risk – Regulatory Due Diligence and Compliance Competitor Risk – Competitor Analysis, Defection Detection / Churn Management – Reputational Risk – Internet Content Scanning, Intervention / Threat Management – Corporate Responsibility – Enterprise Governance, Reporting and Controls – Digital Communications and Technology Risk • • • • • • Security Risk – Security Principles, Policies and Architecture Process Risk – Business Strategy and Architecture Information Risk – Information Strategy and Architecture Technology Risk – Technology Strategy and Architecture Stakeholder Risk – Benefits Realisation Strategy and Communications Management Vendor / 3rd Party Risk – Strategic Vendor Analysis and Supply Chain Management Thinking about the Future 6. THREAT ANALYSIS • In most organizations, many stakeholders, if unchallenged, tend to believe that threat scenarios - as discovered in various SWOT / PEST Analyses - are going to play out pretty much the same way as they have always done so in the past. When the Strategic Foresight Team probes an organization’s view of the future, they usually discover an array of unexamined, unexplained assumptions tending to either maintain the current status quo – or converging around discrete clusters of small, linear, incremental future changes • • Threat Analysis – Value Chain Analysis: – – – Threat Analysis, Assessment and Prioritisation Global Transformations, Factors and Catalysts of Change Analysed Assumptions, Critical Success Factors, Strategy Themes and Value Propositions Thinking about the Future 7. STRATEGIC FORESIGHT • The prime activity in the Strategic Foresight Process is, therefore, to challenge the status quo viewpoint and provoke the organisation into thinking seriously about the possibility that things may not continue as they always have done - and in fact, rarely do so. Strategic Foresight processes should therefore include searching for and identifying any potential Weak Signals predicating future Wild Card and Black Swan events – in doing so, revealing previously hidden factors and catalysts of change – thus exposing a much wider range of challenges, issues, problems, threats, opportunities and risks than may previously have been considered. • • Strategic Foresight – Value Chain Management: – – – Risk Planning, Mitigation and Management Weak Signals, Wild Cards and Black Swan Events Managed Assumptions, Critical Success Factors, Strategy Themes and Value Propositions Thinking about the Future 8. SCENARIO FORECASTING • Scenarios are stories about how the future may unfold – and how that future will impact on the way that we work and do business with our business partners, customers and suppliers. The Strategy Study considers a broad spectrum of possible scenarios as the only sure-fire way to develop robust strategic responses that will securely position the Strategic Foresight Programme to deal with every opportunity and threat domain that may transpire. The discovery of multiple scenarios and their associated opportunity / threat impact assessments, along with their probability of materialising – covers a wide range of possible and probable Opportunity / Threat situations – describing a rich variety of POSSIBLE, PROBABLE and ALTERNATIVE FUTURES • • Scenario Forecasting – Impact Analysis: – – – Possible, Probable and Alternative Future Scenarios Clustered Assumptions, Critical Success Factors, Strategy Themes Possible Future Business Models and Value Propositions, Products and Services Thinking about the Future 9. STRATEGY VISIONING, FORMULATION AND DEVELOPMENT • After forecasting has laid out a range of potential Future Scenarios, visioning comes into play — generating a pragmatic view of our “preferred” Future Environment – thus starting to suggest stretch goals for moving towards our “ideal” Strategy Models - using the Strategic Principles and Policies to drive out the “desired” Vision, Missions, Outcomes, Goals and Objectives • • Strategy Visioning, Formulation and Development: – – – Strategic Principles and Policies, Guidelines and Best Practices Strategy Models and desired Vision, Missions, Outcomes, Goals and Objectives Proposed Future Business Models and Value Propositions, Products and Services Thinking about the Future 10. PLANNING: = the bridge between the VISION and the ACTION – the “ACTION LINK” • Here, the Strategy team transforms the desired Vision, Missions, Outcomes, Goals and Objectives into the Strategic Master Plan, Enterprise Landscape Models, Strategic Roadmaps and Transition Plans for organisational readiness and mobilisation – maintaining Strategic Foresight mechanisms (Horizon Scanning, Monitoring and Tracking) to preserve the capability to quickly respond to fluctuations in internal and external environments • • Strategy Enablement and Delivery Planning: – – – Horizon Scanning, Monitoring and Tracking Systems and Infrastructure Planned Future Business Models and Value Propositions, Products and Services Strategic Master Plan, Enterprise Landscape Models, Roadmaps and Transition Plans Thinking about the Future 11. ACTING • This penultimate phase is about communicating results and developing action agendas for mobilising strategy delivery – thus launching Business Programmes that will drive forwards to the realisation of Strategic Master Plans and Future Business Models through Business Transformation, Enterprise Portfolio Management, Technology Refreshment and Service Management - via Cultural Change, innovative multi-tier and collaborative Business Operating Models, Emerging Technologies (Smart Devices, the Smart Grid and Cloud Services) Business Process Re-engineering and Process Outsource - Onshore / Offshore. • • Strategy Enablement and Delivery Programmes: – – – – – – Launched Future Business Models and Value Propositions, Products and Services Enterprise Portfolio Management - Technology Refreshment • System Management • Business Transformation – Organisational Re-structuring • Cultural Change • Business Process Management • Operating Models • Programme Planning & Contrl DCT Models - Demand / Supply Models • Shared Services.• Business Process Outsource • Emerging Technologies – Real-time Analytics • Smart Devices • Smart Grid • Mobile Computing • Cloud Services • Service Management - Service Access • Service Brokering • Service Provisioning • Service Delivery • Thinking about the Future 12. REVIEWING • In this final phase, we focus on Key Lessons Learned and maintaining the flow of useful information from the Strategic Foresight mechanisms and infrastructure – in order to support an ongoing lean and agile capability to continually and successfully respond to the volatile and dynamic internal and external environment - through Futures Studies, Strategy Reviews, Business Planning and long-range Forecasting. • We also prepare for the next round of the Strategy Cycle, beginning again with Phase 1 – Framing and Scoping. • Strategy Review: – – – Reviewed Business Models and Value Propositions, Products and Services Horizon Scanning, Monitoring and Tracking Systems, Infrastructure and Data Futures Studies, Strategy Reviews, Business Planning and long-range Forecasting Peter Bishop and Andy Hines – University of Houston Outsights "21 Drivers for the 21st Century" 1. 2. 3. 4. War, terrorism and insecurity Layers of power Economic and financial stability BRICs and emerging powers • • • • Brazil Russia India China 5. The Five Flows of Globalisation • • • • • Ideas Goods People Capital Services 6. Intellectual Property and Knowledge 7. Health, Wealth and Wellbeing 8. Demographics, Ethnographics and Social Anthropology - Transhumanism 9. Population Drift, Migration and Mobility 10. Trust and Reputation 11. Human Values and Beliefs 12. History, Culture and Human Identity 13. Consumerism and the rise of the Middle Classes 14. Networks and Social Connectivity 15. Space - the final frontier • The Cosmology Revolution 16. Science and Technology Futures • • • • • The Nano Revolution The Quantum Revolution The Information Revolution The Bio-Technology Revolution The Energy Revolution • Oil Shale Kerogen • Tar Sands • Methane Hydrate • Nuclear Fusion • 17. Science and Society - Social Impact of Technology 18. Natural Resources – availability, scarcity and control 19. Climate Change • Global Massive Change – the Climate Revolution 20. Environmental Degradation & Mass Extinction 21. Urbanisation Outsights "21 Drivers for the 21st Century" • Scenarios are specially constructed stories about the future - each one portraying a distinct, challenging and plausible world in which we might one day live and work - and for which we need to anticipate, plan and prepare. • The Outsights Technique emphasises collaborative scenario building with internal clients and stakeholders. Embedding a new way of thinking about the future in the organisation is essential if full value is to be achieved – a fundamental principle of the “enabling, not dictating” approach • The Outsights Technique promotes the development and execution of purposeful action plans so that the valuable learning experience from “outside-in” scenario planning enables building profitable business change. • The Outsights Technique develops scenarios at the geographical level; at the business segment, unit and product level, and for specific threats, risks and challenges facing organisations. Scenarios add value to organisations in many ways: - future management, business strategy, managing change, managing risk and communicating strategy initiatives throughout an organisation. FIVE VISIONS OF THE FUTURE – THE ELTVILLE MODEL There are five viewpoints or lenses from which we may understand the future: 1). GOAL ANALYSTS 2). EXTRAPOLATION and PATTERN ANALYSTS 3). EVOLUTIONISTS 4). STRATEGIC POSITIVISTS 5). RATIONAL FUTURISTS FIVE VISIONS OF THE FUTURE – THE ELTVILLE MODEL There are five viewpoints, lenses or paradigms – from which we may understand how the shape of the future might unfold: – 1. GOAL ANALYSTS – Goal Analysts believe that the future will be governed by the orchestrated vision, beliefs, goals and objectives of various influential, well connected, integrated and highly coordinated individuals – and realised through the plans and actions of global and influential organizations, institutions and groups to which they belong. The shape of the future may thus be discerned by analysis and interpretation of the policies, behaviours and actions of such individuals and of those groups to which they subscribe and belong. • The Preferred Future – Vision: – – – – – – Goal Analysis Value Models and Roadmaps Political Science and Policy Studies Religious Studies and Future Beliefs Peace and Conflict Studies, Military Science Leadership Studies and Stakeholder Analysis FIVE VISIONS OF THE FUTURE – THE ELTVILLE MODEL 2. EXTRAPOLATION – TREND and PATTERN ANALYSTS – believe that the past is the key to the future. The future is thus a logical extrapolation, extension and continuum of past historic patterns, cycles and trends. As the future develops and unfolds it does so as a continuum of time past, time present and time future – so eternally perpetuating the unfolding, extension, replication and preservation of those historic cycles, patterns and trends that have shaped and influenced actions and events throughout time….. • The Probable Future – Assumptions: – – – – – – Patent and Content Analysis Causal Layer Analysis (CLA) Fisher-Pry and Gompertz Analysis Pattern Analysis and Extrapolation Technology and Precursor Trend Analysis Morphological Matrices and Analogy Analysis FIVE VISIONS OF THE FUTURE – THE ELTVILLE MODEL 3. EVOLUTIONISTS – Global Evolutionists believe that the earth and society behave as a self-regulating collection of interactive forces and systems. Global climatic, geological, biosphere, anthropologic and geo-political systems dominate at the macro-level – and at the micro-level local weather, ecology, environmental, social and economic sub-systems prevail. The future will evolve from a series of actions and events which emerge, unfold and develop – and then plateau, decline and collapse. These actions and events are essentially natural responses to human impact on ecological and environmental support systems - creating massive global change through population growth, environmental degradation and scarcity of natural resources. Over the long term, global stability and sustainability of those systems will be preserved – at the expense of world-wide human population levels. • The Creatable Future – Opportunities: – – – – – – Evolution - Opportunities and Adaptation Geological Cycles and Biological Systems Social Anthropology and Human Behaviour Global Massive Change and Human Impact Climatic Studies and Environmental Science Population Curves and Growth Limit Analysis FIVE VISIONS OF THE FUTURE – THE ELTVILLE MODEL 4. STRATEGIC POSITIVISTS – Future outcomes, goals and objectives are determined via Strategic Foresight and defined by design, planning and future management – so that the future becomes realistic and achievable. The future may develop and unfold so as to comply with our positive vision of an ideal future – and thus fulfil all of our desired outcomes, goals and objectives – so that our preferred options may ultimately be realised. • The Planned Future – Strategy: – – – – – – Linear Systems and Game Theory Scenario Planning and Impact Analysis Future Landscape Modelling and Terrain Mapping Threat Assessment and Risk Management Economic Modelling and Financial Analysis Strategic Foresight and Future Management FIVE VISIONS OF THE FUTURE – THE ELTVILLE MODEL 5. RATIONAL FUTURISTS – Rational Futurists believe that the future is, to a large extent, both unknown and unknowable. Reality is non-liner – that is, chaotic – and therefore it is impossible to predict the future. With chaos comes the potential for disruption. Possible and Alternative Futures emerge from the interaction of chaos and uncertainty with the interplay of current trends and emerging factors of change. Probable future outcomes and events may be synthesised and implied via an intuitive assimilation and cognitive filtering of Weak Signals, inexorable trends, random and chaotic actions and disruptive Wild Card and Black Swan events. Just as the future remains uncertain, indeterminate and unpredictable, so it will be volatile and enigmatic – and it will be amazing..... • The Amazing Future – Surprises: – – – – – – Disruptive Futurism Weak Signals and Wild Cards Complex Systems and Chaos Theory Horizon Scanning, Monitoring and Tracking Cognitive Filtering and Intuitive Assimilation Nominal Group Conferences and Delphi Surveys Thinking about the Future of Energy….. How different will tomorrow be? The energy industry has one of the longest timelines of any business sector. Decisions are being made today for oil or natural gas fields that will only begin to flow fifteen years from now. A power plant approved tomorrow may be operating for more than half a century. Increasingly, the cost of many major capital investment decisions will be measured not in the hundreds of millions, but billions, of dollars. Investors, in the meantime, have to decide where to put their bets on technologies that will take many years to develop and mature Cambridge Energy Research Associates (CERA) Thinking About the Future of Energy • The energy industry has one of the longest timelines of any business sector. Decisions are being made today for oil or natural gas fields that will only begin to flow fifteen years from now. A power plant approved tomorrow may be operating for more than half a century. Increasingly, the cost of major capital investment decisions will be measured not in the hundreds of millions, but billions, of dollars. Investors, in the meantime, have to decide where to put their bets on emerging technologies that may take many years to establish, develop and mature. • Inevitably, much will change over those time frames. Unexpected geopolitical clashes will disrupt markets. Economic performance will be surprising. innovative Technology will bring in to focus new energy sources and change the competitive balance. Governments will undoubtedly change their minds on the dominance of laisez-faire market forces on the one hand, and imposition of regulation and state ownership on the other - and flip the balance between extremes more than once. • Today, the outlook for regulation of carbon emissions creates another layer of uncertainty. There could be strong pressure to change the fuel choices in the face of tighter carbon regulations. Or the other hand, the international community may fail to agree on effective carbon controls, and state legislation and regulation could be absent, limited or not effectively enforced. There will certainly be much debate as to whether to rely on markets or regulation to meet climate change targets and goals. Thinking About the Future of Energy • How do we make decisions in the face of such chaos, disruption and uncertainty? • “Scenario Planning and Impact Analysis” can play a very useful role. A disciplined process of scenario development provides a framework for managing the possibility of chaos, disruption and uncertainty. These are not forecasts or extrapolations. Rather, they are logical “stories” about alternative futures that force one to think about the “what-ifs,” the surprises and the range of uncertainties. Think of them as thought experiments, but grounded in wide-ranging research and analysis. Our energy scenarios combine structured narratives of how the larger world could evolve in the future with detailed energy market modeling. Yes, they are thought experiments, but the objective is to help people to think systematically about trends and the potential for changes, ruptures and discontinuities. Scenarios, of course, can be used for any industry or for public policy. • Cambridge Energy Research Associates (CERA) recently completed a study entitled “Dawn of a New Age - The Future Energy Timeline to 2030”: which presents three possible, probable and alternative long-term energy scenarios. The objective of the study is to clarify the risks and choices ahead. Each of the scenarios examines an important strategic question about how the world may unfold over the next 25 years and what this means for energy markets (see CERA’s Dawn of a New Age Scenarios in Brief). Scenario Planning and Impact Analysis Price Index Inflation Scenario 1 - The Asian Phoenix • SCENARIO 1 - What happens if the BRICS - Brazil, Russia, China and India – along with other countries in Asia Pacific continue to grow at their current rate? • The Asian Phoenix Scenario examines the implications of a possible scenario for energy markets of such a transformed world. In this scenario, Asia reaches 54 percent of world GDP in 2030 and grows from its current 29 percent of world energy consumption to 42 percent. Continued strong economic growth in Asia pushes oil consumption to new highs. Tight markets keep prices well above the last 25 year average price per barrel. • One outcome is that the international rivalry and competition for access to oil and gas resources not only grows but involves new players. “Eastern oil companies” emerge to compete with the traditional Western companies, especially in new regions of supply such as Central Asia and Africa. Another result, perhaps surprising to some, is that coal consumption will grow substantially, particularly in China and India. Coal powers these nations to new global standing but it also will become, if without mitigation, an increasing source of geopolitical tension as climate concerns mount. Scenario 2 – Oil Price Break Point • SCENARIO 2 - What would happen if oil prices move well above $100 price per barrel as experienced a few years ago? Could oil and gas lose its current totally dominant position in the energy sector? These are the questions that the Oil Price Break Point Scenario explores in the most probable scenario - a world in which oil breaks through the $100 per barrel barrier for a sustained period of time. In this scenario, it is not shortage of oil and gas resources as reserves above ground - nor accessible / exploitable hydrocarbon reservoirs below ground that pushes prices up - but rather global geopolitical events. This scenario demonstrates how ultra-high oil prices and global energy insecurity could unleash the second collapse in a double-dip depression - with a mix of policy and price responses along with enhanced technology innovation that would propel the worlds major industrial economies to begin finally to break away from the current massive dependency on hydrocarbon energy sources. • In this scenario, one result of government and industry action, and new entrants in the energy business, is that by 2020, oil no longer has a monopoly grip on the transportation sector. Other liquid fuels derived from bio-fuels, kerogen oil shale, oil tar sands, coal-to-liquids, gas-to-liquids and even solid-to-gas (methane hydrate) technologies jostle for commercial feasibility and market share. Plug-in hybrid sources may also begin to win market share in such a high-cost energy future, Scenario 2 – Oil Price Break Point • SCENARIO 2 - Another outcome of high energy prices explored in detail within the Oil Price Break Point Scenario is progress toward reducing carbon emissions. National security concerns associated with high oil prices work hand-in-hand with concern over climate change (see “Aspen Group Declaration of Energy Independence”). • Dessertec is investing in a massive Photo-voltaic array the size of Wales – deep in the heart of the Sahara Dessert. The European Union is planning a European Super-grid to transmit this energy to consumers. In the UK, there are advanced plans for an offshore Grid to service Wind and Wave power generation farms in the North Sea . • The result is that across the U.S., Europe, Japan and even the BRICS - Brazil, Russia, China and India - new energy policies are embraced that expand investment in renewable energy, nuclear and emerging carbon capture and storage technologies. The high oil price scenario also creates strong incentives to improve global energy efficiency. A feature of the Oil Price Break Point Scenario is that global energy intensity (the amount of energy required to produce a unit of GDP) in 2030 is reduced by 32 percent in comparison with the 2005 baseline. Scenario 3 – Geo-political Fissures • SCENARIO 3 - What would happen if public opinion and government support for globalization around the world wanes as war, terrorism, economic insecurity and social exclusion feeds increased nationalism, isolationism and protectionism? That is the question at the heart of the Global Geo-political Fissures Scenario – under which energy markets could evolve in an entirely novel way as suggested in this alternative scenario. Diminished economic growth would cause oil prices to tumble back into the sub $50 range. In this scenario, governments assert more control over the energy sector. The trend in the electric power industry in many countries is to move away from competition and toward corporate responsibility with social mandates and more regulatory intervention-in some cases, even the nationalization of assets. • Given the high stakes and uncertainty surrounding the future of energy, there is a need for structured ways of thinking about how the future may unfold. The next 25 years will be full of surprises. Scenarios can help us better prepare for these surprises - and perhaps even anticipate those surprises before they impact or materialize. • Daniel Yergin, chairman of CERA, received the Pulitzer Prize for “The Prize: The Epic Quest for Oil, Money & Power” and the United States Energy Award for lifelong achievements in energy and the promotion of international understanding. Vist CERA at http://cera.ecnext.com. Scenario 4 – Geo-political Collapse • SCENARIO 4 -- Global Geo-political Collapse Scenario - Over the next ten years - the cost of energy of all types climbs above the rate of inflation – then rises more steeply. Energy Prices begin to become more unstable, oscillating wildly between High Price / Low Demand and Low Price / High Demand until the price of energy becomes so unpredictable that Energy Commodities are no longer tradable – so that Energy markets collapse. • As a result of the Global Geo-political Collapse Scenario - societies around the world plateau, decline and then collapse due to resource scarcity and energy shortage. Industrial nations turn inwards to self-sufficiency based “localisation” economic strategies and solutions. Only societies with access to sustainable natural resources - clean water, good soil, temperate climates, maintainable agriculture, and sufficient sources of renewable energy – alone maintain any semblance of an industrial economy - and so retain a level of civilization that we could recognize as such today. Doug Blair - Carnegie Mellon University Sustainability and the Global Economy Economic Sustainability is a characteristic of a process or mechanism that can be maintained indefinitely at a certain constant level or state – without showing any long-term degradation, stress, impact, decline, failure or collapse. Sustainability • Sustainability is a characteristic of a process or state that can be maintained at a certain level indefinitely. The term, in its environmental usage, refers to the potential longevity of vital human ecological support systems, such as the planet's climatic system, systems of agriculture, industry, forestry, fisheries, and the systems on which they depend. In recent years, public discourse has led to a use of "sustainability" in reference to how long human ecological systems can be expected to be usefully productive. In the past, complex human societies have died out, sometimes as a result of their own growth-associated impacts on ecological support systems. The implication is that modern industrial society, which continues to grow in scale and complexity, will also collapse. • The implied preference would be for systems to be productive indefinitely, or be "sustainable." For example, "sustainable agriculture" would develop agricultural systems to last indefinitely; "sustainable development" can be a development of economic systems that last indefinitely, etc. A related side discourse links the term sustainability to longevity of natural ecosystems and reserves (set aside for otherthan-human species), but the challenging emphasis has been on human systems and anthropogenic problems, such as anthropogenic climate change, or the depletion of fossil fuel reserves. Renewable Resources • • • • • • • • • A natural resource is a renewable resource if it is replenished by natural processes at a rate comparable or faster than its rate of consumption by humans or other users. Solar radiation, tides, winds and hydroelectricity are perpetual resources that are not in danger of being consumed at a rate in excess of their long-term availability or renewal. The term renewable resource also has the implication of sustainability of handling and absorption of waste products by the natural environment. Nuclear Fusion supports Low Carbon Generation but carries with it problems of both renewability and sustainability. Nuclear Fission is both renewable and sustainable. Some natural renewable resources such as geothermal, fresh water, timber, and biomass must be carefully managed to avoid exceeding the environment's capacity to replenish them. A life cycle assessment provides a systematic evaluation of renewability. Petroleum, coal, natural gas, diesel, are commodities derived from fossil fuels and are nonrenewable. Unlike fossil fuels, a renewable resource can have a sustainable yield. Renewable resources may also mean commodities such as wood, paper, and leather. Solar power is the energy derived directly from the Sun. It is the most abundant source of energy on Earth. It is captured by photovoltaic cells, or by using sunlight to heat water. The Sun ignited about 4.6 billion years ago and will continue for another 5 billion years. Wind power is derived from uneven heating of the Earth's surface from the Sun and the warm core. Most modern wind power is generated in the form of electricity by converting the rotation of turbine blades into electrical current by means of an electrical generator. In windmills (a much older technology) wind energy is used to turn mechanical machinery to do physical work, like crushing grain or pumping water. Hydropower, energy derived from the movement of water in rivers and oceans (or other energy differentials), can likewise be used to generate electricity using turbines, or can be used mechanically to do useful work. It is a very common resource. Combined heat and power (CHP) • What is CHP? • Who is it suitable for? • Combined heat and power (CHP), also known as co-generation, is the generation and exploitation of both heat and power (usually in the form of electricity) from the same equipment set, in the same place, at the same time. • • Not only does CHP enable the conversion of a high proportion of otherwise waste heat to usable heat, but it is very efficient because power is generated close to where it is being used (and thus electricity transmission losses are minimised). The predominant fuel used for CHP schemes is natural gas (62% in 2000). Other fuels include oil, coal or even renewables (such as municipal and industrial waste, sewage gases, biogases, from anaerobic digestion, biodiesel, gasification etc and wood). CHP can be used throughout the commercial, industrial and public sectors. Larger, tailor-made systems are particularly suited to applications where there is a high heat demand, such as hospitals, leisure centres, hotels and industrial sites with process heating requirements (especially chemical, brewing and paper industries). • Some industrial processes which use hot water or steam are suited to small scale (<1MW) CHP, including the following sectors: chemicals; textiles and leather; food and drink; rubber and plastics; engineering; and agriculture/horticulture. • For a site to support a successful CHP installation, it should typically have a heat and power requirement for at least 4,500 hours/year (although it could be cost-effective with fewer operating hours). Generally, the greater the annual period of demand, then the greater the benefits….. Combined heat and power (CHP) • How does CHP work? • In its simplest form a CHP system comprises a gas turbine, engine or steam turbine to drive an alternator. • The resulting electricity is used primarily on-site. The waste heat, in the form of steam or hot water, is collected and can be used to provide heat for industrial processes, for community heating and for space heating. It can also provide cooling - using advanced absorption cooling technology. • Systems vary considerable in size, from micro turbines (<50 kW) to many MW of electrical output Petroleum Reservoir Simulation and Exploitation Petroleum Reservoir depletion may take place over periods up to and exceeding 30 years….. • Reservoir Simulation – – – – The Grid System The Well Model Conservation Equations Geological Mapping, Log Data and Spatial Analysis – Reservoir Modelling and Typological Characterization • Aquifers • Salt Domes – Model Initialization • Prediction Runs • History Matching – Exploitation Modelling • Depletion Options • Extraction Rates • Recovery Extents – Enhanced Recovery Techniques • Water Injection • Gas Injection • Reservoir Exploitation – Economic Modelling for Oil & Gas Production – Geological Science – Transient Well Logging – Open Hole Logging – Production Logging – Subsurface Reservoir Geology – Exploration Geophysics – Reservoir Mapping – Reservoir Modelling – Heavy Oil Technology – Enhanced Oil and Gas Recovery • Water flooding – Reservoir Analysis – Recovery Prediction – Injection Design • Gas displacement – Reservoir Analysis – Recovery Prediction – Injection Design Typical Petroleum Recovery was 35% until Enhanced Recovery Techniques drove up to and over 65%….. Petroleum Reservoir Modelling and Simulation Petroleum Reservoir Modelling and Simulation Sustainability and Global Ecosystems Ecological Sustainability. In the past, many complex human societies (Clovis, Mayan, Easter Island) have failed, died out or just simply disappeared - often as a result of either climate change or their own growth-associated impacts on ecological and environmental support systems. Thinking about the Future….. • The way that we think about the future must mirror how the future actually unfolds. As we have learned from recent experience, the future is not a straightforward extrapolation of simple, single-domain trends. We now have to consider ways in which the possibility of random, chaotic and radically disruptive events may be factored into enterprise threat assessment and risk management frameworks and incorporated into enterprise decision-making structures and processes. • Managers and organisations often aim to “stay focused” and maintain a narrow perspective in dealing with key business issues, challenges and targets. A concentration of focus may risk overlooking those Weak Signals indicating potential issues and events, agents and catalysts of change. These Weak Signals – along with their resultant Wild Cards, Black Swan Events and global transformations - are even now taking shape at the very periphery of corporate awareness, perception and vision – or even just beyond. • These agents of change may precipitate global impact-level events which either threaten the very survival of the organisation - or present novel and unexpected opportunities for expansion and growth. The ability to include weak signals and peripheral vision into the strategy and planning process may therefore be critical in contributing towards the organisation's continued growth, success, well being and survival. Futures Studies • Futures Studies, Foresight, or Futurology is the science, practice and art of postulating possible, probable, and preferable futures. Futures studies (colloquially called "Futures" by many of the field's practitioners) seeks to understand what is likely to continue, what is likely to change, and what is a novel, emerging pattern or trend. Part of the discipline thus seeks a systematic and extrapolation-based understanding of both past and present events - in order to determine the probability and impact of future events, patterns and trends. • Futures is an interdisciplinary curriculum, studying yesterday's and today's changes, and aggregating and analyzing both lay and professional content and strategies, beliefs and opinions, forecasts and predictions with respect to shaping tomorrow. It includes analysing the sources, agents and causes, patterns and trends of both change and stability in an attempt to develop foresight and to map possible, probable and alternative futures. Foresight • Foresight draws on traditions of work in long-range forecasting and strategic planning horizontal policymaking and democratic planning, horizon scanning and futures studies (Aguillar-Milan, Ansoff, Feather, van der Hijden, Slaughter et all) - but was also highly influenced by systemic approaches to innovation studies, global design, massive change, science and technology futures, economic, social and demographic policy, fashion and design - and the analysis of "weak signals" and "wild cards", "future trends“ "critical technologies“ and “cultural evolution". – The longer-term - futures that are usually at least 10 years away (though there are some exceptions to this, especially in its use in private business). Since Foresight is an actionoriented discipline (via the planning link) it will rarely be applied to perspectives beyond a few decades out. Where major infrastructure decisions such as petrology reservoir exploitation, aircraft design, power station construction, transport hubs and town master planning decisions are concerned - then the planning horizon may well be half a century. – Alternative futures: it is helpful to examine alternative paths of development, not just what is currently believed to be most likely or business as usual. Often Foresight will construct multiple scenarios. These may be an interim step on the way to creating what may be known as positive visions, success scenarios or aspirational futures. Sometimes alternative scenarios will be a major part of the output of a Foresight study, with the decision about what preferred future to build being left to other mechanisms (Planning and Strategy). Strategic Foresight • Strategic Foresight is the ability to create and maintain a high-quality, coherent and functional forward view, and to use the insights arising in useful organisational ways. For example to detect adverse conditions, guide policy, shape strategy, and to explore new markets, products and services. It represents a fusion of futures methods with those of strategic management (Slaughter (1999), p.287). • Strategic Envisioning – Future outcomes, goals and objectives are defined via Strategic Foresight and are determined by design, planning and management - so that the future becomes realistic and achievable. Possible futures may comply with our preferred options - and therefore our vision of an ideal future and desired outcomes could thus be fulfilled. – Positivism – articulating a single, preferred vision of the future. The future will conform to our preferred options - thus our vision of an ideal future and desired outcomes will be fulfilled. – Futurism – assessing possible, probable and alternative futures – selecting those futures offering conditions that best fit our strategic goals and objectives for achieving a preferred and desired future. Filtering for a more detailed analysis may be achieved by discounting isolated outliers and focusing upon those closely clustered future descriptions which best support our desired future outcomes, goals and objectives. Risk Management • Risk Management is a structured approach to managing uncertainty through foresight and planning. A risk is related to a specific threat (or group of related threats) managed through a sequence of activities using various resources: – • Risk Research – Risk Identification – Scenario Planning & Impact Analysis – Risk Assessment – Risk Prioritization – Risk Management Strategies – Risk Planning – Risk Mitigation Risk Management strategies may include: – – – – Transferring the risk to another party Avoiding the risk Reducing the negative effect of the risk Accepting part or all of the consequences of a particular risk . • For any given set of Risk Management Scenarios, a prioritization process ranks those risks with the greatest potential loss and the greatest probability of occurrence to be handled first – and those risks with a lower probability of occurrence and lower consequential losses are then handled subsequently in descending order of impact. • In practice this prioritization can be challenging. Comparing and balancing the overall threat of risks with a high probability of occurrence but lower loss -versus risks with higher potential loss but lower probability of occurrence -can often be misleading. Scenario Planning and Impact Analysis • • Scenario Panning and Impact Analysis: - In any Opportunity / Threat Assessment Scenario, a prioritization process ranks those risks with the greatest potential loss and the greatest probability of occurring to be handled first - subsequent risks with lower probability of occurrence and lower consequential losses are then handled in descending order. As a foresight concept, Wild Card or Black Swan events refer to those events which have a low probability of occurrence - but an inordinately high impact when they do occur. – Risk Assessment and Horizon Scanning have become key tools in policy making and strategic planning for many governments and global enterprises. We are now moving into a period of time impacted by unprecedented and accelerating transformation by rapidly evolving catalysts and agents of change in a world of increasingly uncertain, complex and interwoven global events. – Scenario Planning and Impact Analysis have served us well as a strategic planning tools for the last 15 years or so - but there are also limitations to this technique in this period of unprecedented complexity and change. In support of Scenario Planning and Impact Analysis new approaches have to be explored and integrated into our risk management and strategic planning processes. Back-casting and Back-sight: - “Wild Card” or “Black Swan” events are ultra-extreme manifestations with a very low probability of, occurrence - but an inordinately high impact when they do occur. In any post-apocalyptic “Black Swan Event” Scenario Analysis, we can use Causal Layer Analysis (CLA) techniques in order to analyse and review our Risk Management Strategies – with a view to identifying those Weak Signals which may have predicated subsequent appearances of unexpected Wild Card or Black Swan events. Weak Signals and Wild Cards • “Wild Card” or "Black Swan" manifestations are extreme and unexpected events which have a very low probability of occurrence, but an inordinately high impact when they do happen Trend-making and Trend-breaking agents or catalysts of change may predicate, influence or cause wild card events which are very hard - or even impossible - to anticipate, forecast or predict. • In any chaotic, fast-evolving and highly complex global environment, as is currently developing and unfolding across the world today, the possibility of any such "Wild Card” or "Black Swan" events arising may, nevertheless, be suspected - or even expected. "Weak Signals" are subliminal indicators or signs which may be detected amongst the background noise - that in turn point us towards any "Wild Card” or "Black Swan" random, chaotic, disruptive and / or catastrophic events which may be on the horizon, or just beyond...... • Back-casting and Back-sight: - In a post-apocalyptic Black Swan Event Scenario, we can use Causal Layer Analysis (CLA) techniques in order to analyse and review our Risk Management Strategies to identify those Weak Signals which may have predicted, suggested, pointed towards or indicated subsequent Wild Cards or Black Swan Events – in order to discover changes and improvements to strengthen Enterprise Risk Management Frameworks. At the very Periphery of Corporate Vision and Awareness….. • Foresight and Precognition – Contemplative, mystic, meditative and psychic methods for pre-cognitive viewing of the future and how the future will unfold. These activities have been recorded throughout history (Josephus, Nostradamus) and are well known within certain cultures (Central American Indians) and government agencies (US and Soviet Military) - and may also involve the use of hypnotic or hallucinogenic states. • The Intelligence Revolution – Artificial Intelligence will revolutionise homes, workplaces and lifestyles and new virtual worlds will become so realistic that they will rival the physical world. Robots with humanlevel intelligence may finally become a reality, and at the ultimate stage of mastery, we'll even be able to merge human capacities with machine intelligence and attributes – via the man-machine interface. • The Biotech Revolution – Genetics and biotechnology promise a future of unprecedented health and longevity: DNA screening could prevent many diseases, gene therapy could cure them and, thanks to laboratory-grown organs, the human body could be repaired as easily as a car, with spare parts readily available. Ultimately, the ageing process itself could be slowed or even halted. • Trans-humanism – advocates the ethical use of technology to expand current human capacities, supporting the use of future science and technology to enhance human capabilities and qualities, in order to overcome undesirable and unnecessary aspects of the present human condition. • The Quantum Revolution – The quantum revolution could turn many ideas of science fiction into science fact - from meta-materials with mind-boggling properties like invisibility through limitless quantum energy and room temperature superconductors to Arthur C Clarke's space elevator. Some scientists even forecast that in the latter half of the century everybody will have a personal fabricator that re-arranges molecules to produce everything from almost anything. Yet how will we ultimately use our mastery of matter? Like Samson, will we use our strength to bring down the temple? Or, like Solomon, will we have the wisdom to match our technology? At the very Periphery of Corporate Vision and Awareness….. • Renewable Resources. Any natural resource is a renewable resource if it is replenished by natural processes at a rate comprisable to or faster than its rate of consumption by humans or other users. Some renewable resources - solar radiation, tides, wind and hydroelectricity, nuclear fusion - are also classified as perpetual resources, in that they will never be able to be consumed at a rate in excess of their long-term availability or renewal. The term renewable resource also carries the implication of prolonged or perpetual sustainability for the processing and absorption of waste products via natural ecological and environmental processes. • Sustainability is a characteristic of a process or mechanism that can be maintained indefinitely at a certain constant level or state – without showing any long-term degradation, decline or collapse.. This concept, in its environmental usage, refers to the potential longevity of vital human ecological support systems - such as the ecology, environment the and man-made systems of agriculture, industry, forestry, fisheries - and the planet's climate and natural processes and cycles upon which they depend. • Global Massive Change is an evaluation of global capacities and limitations. It includes both utopian and dystopian views of the emerging world future state, in which climate, the environment and geology are dominated by human manipulation – – – – • Human impact is now the major factor in climate change and environmental degradation. Extinction rate is currently greater than in the Permian-Triassic boundary extinction event Man now moves more rock and earth than do natural geological processes. In the past, many complex human societies (Clovis, Mayan, Easter Island) have failed, died out or just simply disappeared - often as a result of either climate change or their own growth-associated impacts on ecological and environmental support systems. Thus there is a clear precedent for modern industrial societies - which continue to grow unchecked in terms of globalisation complexity and scale, population growth and drift, urbanisation and environmental impact – societies which are ultimately unsustainable, and so in turn must also be destined for sudden and catastrophic instability, failure and collapse. Global Massive Change Global Massive Change is an evaluation of global capacities and limitations. It encompasses both utopian and dystopian possibilities of the emerging world future state, in which climate, the environment, ecology and geology are dominated by human manipulation Global Massive Change EA-envision • Global Massive Change is an evaluation of global capacities and limitations. It encompasses both utopian and dystopian possibilities of the emerging world future state, in which climate, the environment, ecology and geology are dominated by human manipulation: – Human impact is now the major factor in climate change. – Species extinction rate is now greater than in the late Permian mass extinction event – in which 90% of all species were eliminated – Man now moves more rock and earth than do all geological processes. Climate Change • Most scientists agree that global warming represents the greatest threat to the earth’s environmental and ecological systems. There is ample evidence that the Earth is heating up average Global temperature has increased by 0.75 degrees Centigrade over the last 150 years. In the last century, however, average temperature has increased about 0.6 degrees Centigrade (about 1 degree Fahrenheit) around the world – Global Warming is accelerating. • From the melting of the ice cap on Mount Kilimanjaro, Africa's tallest peak, to the loss of tropical coral reefs as oceans become warmer, the effects of global warming are clear. Just as the evidence is irrefutable that temperatures have risen in the last century, it's also well established that carbon dioxide in the Earth's atmosphere has increased about 30 percent since the start of the Industrial Revolution - enhancing the atmosphere's ability to trap heat. • The precise relationship between the increase in carbon dioxide emissions and the higher temperatures has now been suggested by Professor Richard Alley (Penn State University) and clearly demonstrated by ice-core data. Most scientists now believe that human activity - the burning of fossil fuels such as coal and petroleum and environmental degradation (such as deforestation) - are largely to blame for the global increase in carbon dioxide levels. As of now, the exact nature of this link is unclear - some scientists cite contribution of greenhouse gas from natural sources in the Carbon Cycle (such as volcanic activity), however unlikely.. • The current rate of warning is unprecedented. It is apparently the fastest warming rate in millions of years, suggesting that Global Warming is probably not a natural occurrence. Many scientists believe that the rise in temperatures will in continue to accelerate. The United Nations-sponsored Intergovernmental Panel on Climate Change (IPCC) reported in 2001 that the average temperature is likely to increase by between 1.4 and 5.8 degrees Celsius (2.5 and 10.4 degrees Fahrenheit) by the year 2100. This is now considered to be conservative. Factors of Climate Change Factors of Climate Change • Human Activities – – • Natural Cycles – – • Astronomic Periodicity –Orbital (Milankovitch) Cycles and Insolation Plate Tectonics – Continental Drift, Vulcanicity, Mountain Building and Erosion Climate Change Processes – – – • Consumption of Natural Resources Environmental Degradation Radiative Forcing The Biosphere The Greenhouse Effect Climate Characteristics and Mechanisms – – – – Energy Absorption Characteristics – Land, Oceans and Atmosphere Energy Distribution Mechanisms – Oceanic Currents and Global Weather Systems Biosphere Balancing Mechanisms Climate Modelling • • • • Historic Analysis – Greenhouse Gases, Temperature, Precipitation, Ice Mass Balance and Sea Level Current Climate - Global Average Temperature, Precipitation and Sea Level - Regional Variation and Trends Future Predictions - Greenhouse Gases, Temperature, Precipitation, Ice Mass Balance and Sea Level Climatic Events – – – – Extreme Climatic Changes – Storms, Flooding and Droughts; El Nino / La Nina Events Atmospheric Greenhouse Gas Changes Ice Mass Balance Changes Sea Level Changes Human Activities • Consumption of Natural Resources – Fossil Fuel Burning – Biomass Reduction – Mineral Exploitation • Environmental Degradation – Land Use Changes • Deforestation – Human impact on Land Use due to Agriculture and Forestry contributing towards the global loss of ecosystems and biomass • Desertification – Deforestation due to Human Impact on Land Use extending deserts and impacting climate change - causing increased aridity and drought – Urbanisation and Globalisation – Agricultural, Urban and Industrial Pollution – Greenhouse Gases • Water Vapour – Cloud Formation - Jet Aircraft Condensation Trails • Carbon Dioxide – Fossil fuel consumption • Methane – Biogenic Methane due to impact of Agriculture and Environmental Degradation along with Global Warming and loss of Arctic Tundra • CFCs – Man-made Greenhouse Gases Natural Cycles • Astronomic Periodicity – Solar Radiation Output • Solar Radiation Output has increased by about 25% over the last 4 billion years – Orbital (Milankovitch) Cycles • Precession, Obliquity, Eccentricity and Inclination – Solar Cycles • Insolation Variation and Periodicity • Plate Tectonics – Continental Drift • Continental Aggregation (Pangea, Gondwana etc.) and Dispersal (Oceanic Rift) – Vulcanicity • Basaltic Vulcanicity – Sea Floor Spreading and Continental Rifts – Mid-Oceanic Ridge, Rift Valleys – Convection Hotspots – Continental Flood Basalts, Mid-plate Oceanic Island Chains • Andesitic Vulcanicity (Oceanic Plate Subduction Zones) – Mountain Building and Erosion • Alpine and Himalayan Orogenies – Horse-shoe Mountain Chains and Plateaus • Erosion and Deposition – Isostatic Equilibrium, Normal Faulting, Valleys, Deltas Climate Change Processes • Radiative Forcing – Solar Forcing – Solar Radiation Output – Milankovitch (Solar Orbital) Cycles • The Biosphere - Carbon Cycle – Geological Activity • CO2 Fixing – Carbonate and Fossil Fuel Deposition • CO2 Release - Andesitic Vulcanicity (Oceanic Plate Subduction) – Biological Activity • Direct effects - CO2 Fixing and Release via Metabolic Processes • Indirect effects - CO2 Fixing via Accelerated Rock and Soil Weathering and Erosion • Greenhouse Effect – Water Vapour • Atmospheric Humidity and Cloud Formation – Carbon Dioxide • Carbon Cycle – Atmospheric / Oceanic / Terrestrial / Biomass Carbon Mass Balance – Methane • Biogenic Sources - due to impact of Change of Land Use and loss of Arctic Tundra • Geological Sources – due to escape of Methane from Methane Hydrate Deposits – NOx and SOx • Nitrous and Sulphuric Acids - Atmospheric Dispersal of Aqueous Aerosols – Atmospheric Particles • Terrestrial (Volcanic) and Extra-terrestrial (Meteorites, Asteroids and Comets) Climatic Characteristics and Mechanisms • Energy Absorption Characteristics – Land – Oceans – Atmosphere • Energy Distribution Mechanisms – The Ocean Currents – Global Weather Systems • Biosphere Balancing Mechanisms – Carbon State Balance • Carbon Cycle Input / Output Mechanisms – Carbon Fixing and Release – Energy Balance • Forcing Scenarios • Greenhouse Effect • Climate Modelling • Historic Analysis – Greenhouse Gases, Temperature, Precipitation, Ice Mass Balance and Sea Level Changes • Current Climate - Global Average Temperature, Precipitation and Sea Level Regional Variation and Trends • Future Predictions - Greenhouse Gases, Temperature, Precipitation, Ice Mass Balance and Sea Level Changes Climatic Events • Extreme Climatic Events – – – – • Storms Flooding Droughts El Nino / La Nina Events Atmospheric Greenhouse Gas Concentration – Water Vapour • – Carbon Dioxide • – Carbon Cycle – Atmospheric / Oceanic / Terrestrial and Biomass carbon state balance Methane • • • Atmospheric Humidity and Cloud Formation Biogenic Sources - due to impact of Change of Land Use and Global Warming Geological Sources – due to release of Methane from Methane Hydrate Deposits Ice Mass Balance Changes – Alpine Glaciers – Sea Ice Shelves – Arctic, Antarctic – Polar Ice Caps – Greenland, Antarctica • Sea Level Changes – Thermal Expansion – Ice Mass Contribution Climate Models • Due to the enormous complexity of the atmosphere, the most useful tools for gauging future changes are 'climate models'. These are computer-based mathematical models which simulate, in three dimensions, the climate's behaviour, its components and their interactions. Climate models are constantly improving based on both our understanding and the increase in computer power, though by definition, a computer model is a simplification and simulation of reality, meaning that it is an approximation of the climate system. The first step in any modelled projection of climate change is to first simulate the present climate and compare it to observations. If the model is considered to do a good job at representing modern climate, then certain parameters can be changed, such as the concentration of greenhouse gases, which helps us understand how the climate would change in response. Projections of future climate change therefore depend on how well the computer climate model simulates the climate and on our understanding of how forcing functions will change in the future. • According to the range of possible forcing scenarios, and taking into account uncertainty in climate model performance, the IPCC projects a best estimate of global temperature increase of 1.8 -4.0°C with a possible range of 1.1 -6.4°C by 2100, depending on which emissions scenario is used. However, this global average will integrate widely varying regional responses, such as the likelihood that land areas will warm much faster than ocean temperatures, particularly those land areas in northern high latitudes (and mostly in the cold season). In Antarctica, however, average summer temperatures are rising – with increased ice loss. Globally, it is very likely that -as a result of increased climatic energy -storms, floods, heat waves, drought and other climatic extremes will increase. Climate Models • For Northern Hemisphere temperature, recent decades appear to be the warmest since at least about 1000AD, and the warming since the late 19thcentury is unprecedented over the last 1000 years. Older data sets are insufficient to provide reliable hemispheric temperature estimates. Ice core data suggest that the 20th century has been warm in many parts of the globe, but also that the significance of the warming varies geographically, when viewed in the context of climate variations of the last millennium. • Large and rapid climatic changes affecting the atmospheric and oceanic circulation and temperature, and the hydrological cycle, occurred during the last ice age and during the transition towards the present Holocene period (which began about 10,000 years ago). Based on the incomplete evidence available, the projected change of 3 to 7°F (1.5 -4°C) over the next century would be unprecedented in comparison with the best available records from the last several thousand years. • The IPCC Special Report on Emission Scenarios determines the range of future possible greenhouse gas concentrations (and other forcings) based on considerations such as population growth, economic growth, energy efficiency and a host of other factors. This leads a wide range of possible forcing scenarios, and consequently a wide range of possible future climates. Climate Modelling Climate Simulation • Energy Balance and Conservation Equations – Energy Absorption and Loss – Energy Distribution – The Greenhouse Effect • Climate Modelling – – – – – • Radiative Forcing and Milankovitch Cycle Models The Biosphere and Carbon Cycle Input / Output Models Greenhouse Gas Level Models Global Average Temperature Models Ice Mass Balance and Global Mean Sea Levels Models Paleo-climatic, Historic and Current Data Sets – Climatic Cycles – Annual Chronology – Detailed Records • Climate Scenario Analysis – Data Analysis and Climatic Scenario Modelling Runs • Model Initialization and Calibration – Baseline Data and Prediction Runs – History Matching and Model Tuning • Geographic Mapping and Analysis – The Atmosphere - Weather Data and Spatial Analysis – The Oceans – Current / Historic Temperature, Salinity, Currents and Sea Levels Climate Prediction • Energy Balance and Conservation Equations – Energy Distribution, Absorption and Loss Algorithms – The Biosphere and Human Impact Algorithms – The Greenhouse Effect Algorithms • Climate Modelling – Greenhouse Gas Level Models – Global Average Temperature Models – Ice Mass Balance and Global Mean Sea Levels Models • Historic and Current Climatic Data Sets – Paleoclimatic Cycles, Patterns and Trends – last 30m years – Annual Climatic Chronology – last 100k years – Detailed Climatic Records 1750-Present Day • Climate Scenario Projection – Monte Carlo Simulation and Scenario Planning Runs – Impact Analysis - Possible, Probable and Alternative Future Climatic Scenarios • Future Climatic Data Sets – Future Climatic Cycles, Patterns and Trends – Projected Annual and Seasonal Climatology • Geographic Mapping and Analysis – The Atmosphere – Future Weather Data and Spatial Analysis – The Ocean – Projected Sea Levels, Oceanic Currents and Sub-surface Modelling Global Warming • Examination of changes in climate extremes requires long-term daily or even hourly data sets which until recently have been scarce for many parts of the globe. However these data sets have become more widely available allowing research into changes in temperature and precipitation extremes on global and regional scales. Global changes in temperature extremes include decreases in the number of unusually cold days and nights and increases in the number of unusually warm days and nights. Other observed changes include lengthening of the growing season, and decreases in the number of frost days. • Global temperature extremes have been found to exhibit no significant trend in inter-annual variability, but several studies suggest a significant decrease in intra-annual variability. There has been a clear trend to fewer extremely low minimum temperatures in several widely-separated areas in recent decades. Widespread significant changes in extreme high temperature events have not been observed. There is some indication of a decrease in day-to-day temperature variability in recent decades. • Many individual studies of various regions show that extra-tropical cyclone activity seems to have generally increased over the last half of the 20thcentury in the northern hemisphere, but decreased in the southern hemisphere. Furthermore, hurricane activity in the Atlantic has shown an increase in number since 1970 with a peak in 2005. It is not clear whether these trends are multi-decadal fluctuations or part of a longer-term trend. Global Warming • Global surface temperatures have increased about 0.74°C (plus or minus 0.18°C) since the late19th century, and the linear trend for the past 50 years of 0.13°C (plus or minus 0.03°C) per decade is nearly twice that for the past 100 years • Current levels of atmospheric CO2 have risen to 430ppm (up 150ppm from 280ppm at the start of the industrial revolution). Furthermore, the global rate of increase in levels of atmospheric CO2 is higher than at any time in the last 20,000 years and continues to rise exponentially (Professor Richard Alley, Penn State University). It is widely agreed that when CO2 levels exceed 500ppm then the tipping point of irreversible climate change will be surpassed – therefore catastrophic environmental degradation will become inevitable – destroying natural ecosystems and disrupting agriculture and fisheries with the consequent loss of up to 90 per cent of human population through scarcity of natural resources, resulting in population drift, war, famine and disease. • Recent research has established a direct correlation between sea levels and average global temperature. For each one degree centigrade increase / decrease in average global temperature then there is a corresponding 20 metre rise / fall in sea level (Professor Richard Alley, Penn State University). The IPCC projects a best estimate of global temperature increase of 1.8 - 4.0°C with a possible range of 1.1 - 6.4°C by 2100 – indicating a catastrophic corresponding rise in sea levels in the range 22 –128 metres. Global Temperature Anomalies • This graph shows annual mean global temperature anomalies over the period 1880-2001. The zero line represents the long term mean temperature from 1880-2001, and the red and blue bars are showing annual departures from that mean. As is evident in the graph, 2001 was second only to 1998 in terms of global temperature, and the trend has been toward increasing temperatures at least since the beginning of the 20th century. Land temperatures have greater anomalies than the ocean, which is to be expected since land heats up and cools down faster than water. Sea Level Rising • Recent research has established a direct correlation between sea levels and average global temperature. For each one degree centigrade increase / decrease in average global temperature then there is a corresponding 20 metre rise / fall in sea level (Professor Richard Alley, Penn State University). The IPCC projects a best estimate of global temperature increase of 1.8 - 4.0°C with a possible range of 1.1 6.4°C by 2100 – indicating a potential catastrophic corresponding rise in sea levels in the range 22 –128 metres. • Global mean sea level has been rising historically at an average rate of around 1.7 mm / year (plus or minus 0.5mm) over the past 100 years - which is significantly larger than the rate averaged over the last several thousand years. Global Mean Sea Level is, however, currently rising at nearly 3mm / year - and that rate is accelerating. Scientists fully expect average sea levels to have risen by 30cm or more by the year 2100 on a simple projection of these oceanic thermal expansion figures alone. • Depending on which greenhouse gas increase scenario is used (high or low) projected sea-level rise is projected to be anywhere from 0.18 (low greenhouse gas increase) to 0.59 meters by 2100 for the highest greenhouse gas increase scenario. Acceleration of global warming may lead to a ten-fold future Global Mean Sea Level increase – suggesting a potential 3 meter rise in average sea levels by 2100 due to small inputs from Thermal Expansion and significant inputs from Ice Mass contribution. Climate Change • Most scientists agree that global warming represents the greatest threat to the earth’s environmental and ecological systems. There is ample evidence that the Earth is heating up average Global temperature has increased by 0.75 degrees Centigrade over the last 150 years. In the last century, however, average temperature has increased about 0.6 degrees Centigrade (about 1 degree Fahrenheit) around the world – Global Warming is accelerating. • From the melting of the ice cap on Mount Kilimanjaro, Africa's tallest peak, to the loss of tropical coral reefs as oceans become warmer, the effects of global warming are clear. Just as the evidence is irrefutable that temperatures have risen in the last century, it's also well established that carbon dioxide in the Earth's atmosphere has increased about 30 percent since the start of the Industrial Revolution - enhancing the atmosphere's ability to trap heat. • The precise relationship between the increase in carbon dioxide emissions and the higher temperatures has now been suggested by Professor Richard Alley (Penn State University) and clearly demonstrated by ice-core data. Most scientists now believe that human activity - the burning of fossil fuels such as coal and petroleum and environmental degradation (such as deforestation) - are largely to blame for the global increase in carbon dioxide levels. As of now, the exact nature of this link is unclear - some scientists cite contribution of greenhouse gas from natural sources in the Carbon Cycle (such as volcanic activity), however unlikely.. • The current rate of warning is unprecedented. It is apparently the fastest warming rate in millions of years, suggesting that Global Warming is probably not a natural occurrence. Many scientists believe that the rise in temperatures will in continue to accelerate. The United Nations-sponsored Intergovernmental Panel on Climate Change (IPCC) reported in 2001 that the average temperature is likely to increase by between 1.4 and 5.8 degrees Celsius (2.5 and 10.4 degrees Fahrenheit) by the year 2100. This is now considered to be conservative. Climate Change • Since our entire climatic system is fundamentally driven by energy from the sun, it stands to reason that if the sun's energy output were to vary, then so would the climate. Since the advent of space-borne measurements in the late 1970s, solar output has indeed been shown to exhibit cyclic variation. With 28 years of reliable satellite observations there is now confirmation of earlier suggestions of an 11 (and 22) year cycle of solar irradiance related to sunspots - but no longer term trends can readily be extrapolated from this relatively short span of tine of the data sample. • Based on paleo-climatic (proxy) reconstructions of solar radiation there is a suggestion of a trend of about +0.12 W/m2 since 1750 which is about half of the estimate given in the last IPCC report in 2001. There is though, a great deal of uncertainty in estimates of solar irradiance beyond that which can be measured directly by satellite instruments, and still the contribution of direct solar irradiance forcing is small compared to the greenhouse gas. Furthermore, there are variations in the attitude of the Earth to the Sun (axis tilt and wobble) and cyclic changes to the orbit of the Earth around the Sun – which affect the amount of radiation actually received surface at the earth over time • Currently our understanding of the indirect effects of changes in solar output and it’s impact on the global climatic system are evolving. There is a clear desire to refine our understanding of key climatic natural forcing mechanisms – including solar irradiance variation and cyclic changes in the movement of the Earth – in order to improve our climate models and reduce the uncertainty around future projections of climate change. Climate Change • In addition to changes in the amount of energy received from the sun itself, the Earth's position and orientation relative to the sun (Earth's orbit) also varies slightly, thereby bringing us closer and further away from the sun in predictable cycles (Milankovitch Cycles). Variations in these cycles are believed to be the cause of Earth's ice-ages (glacial episodes). Over several centuries, it may be possible to observe the effect of these orbital parameters. • One important factor of particular significance for the development of alpine glaciations on high ground in Europe, Greenland and Canada is the amount of radiation received at high northern latitudes in the summer. Cool summers allow more winter snow to remain on the ground of north facing slopes from one season to the next – allowing the gradual accumulation of snow and ice year-on-year as a precursor for glaciations. Diminishing radiation at these latitudes during the summer months would have enabled the winter snow and ice cover to persist throughout the year - eventually leading to a permanent snow-cap (on land) or icepack (over the ea). • While Milankovitch Cycles have tremendous value in explaining ice-ages and long-term climatic changes on the earth, there are other factors which have very high impact on the decade-century timescale. However for the prediction of climate change in the 21st century, these long-term factors will be far less significant than other changes - such a radiative forcing from greenhouse gases. The Earth’s Movements EA-envision • As the Earth spins around its axis and orbits around the Sun, several quasi-periodic variations occur. Although the curves have a large number of sinusoidal components, a few components are dominant. Milankovitch studied changes in the eccentricity, obliquity, and precession of Earth's movements. Such changes in movement and orientation change the amount and location of solar radiation reaching the Earth. This is known as solar forcing (an example of radiative forcing). Changes near the north polar area are considered important due to the large amount of land, which reacts to such changes more quickly than the oceans do. • Currently the difference between closest approach to the Sun (perihelion) and furthest distance (aphelion) is only 3.4% (5.1 million km). This difference is equivalent to about a 6.8% change in incoming solar radiation. Perihelion presently occurs around January 3, while aphelion is around July 4. When the orbit is at its most elliptical, the amount of solar radiation at perihelion is about 23% greater than at aphelion. This difference is roughly 4 times the value of the eccentricity. • Orbital mechanics require that the length of the seasons be proportional to the areas of the seasonal quadrants, so when the eccentricity is extreme, the seasons on the far side of the orbit can be substantially longer in duration. When autumn and winter occur at closest approach, as is the case currently in the northern hemisphere, the earth is moving at its maximum velocity and therefore autumn and winter are slightly shorter than spring and summer. Thus, summer in the northern hemisphere is 4.66 days longer than winter and spring is 2.9 days longer than autumn. EA-envision: Strategic Enterprise Management Framework Milankovitch Cycles EA-envision • Milankovitch Cycles are the collective effect of changes in the Earth's movements upon its climate, named after the Serbian mathematician Milutin Milanković. The eccentricity (E), axial tilt (T), and precession (P) of the Earth's orbit vary in several patterns, resulting in 100,000-year ice age cycles of the Quaternary glaciations over the last few million years. The Earth's axis completes one full cycle of precession (P) approximately every 26,000 years. At the same time, the elliptical orbit rotates, more slowly, leading to a 21,000-year cycle between the seasons and the orbit. In addition, the angle between Earth's rotational axis and the normal to the plane of its orbit moves from 22.1 degrees to 24.5 degrees and back again on a 41,000-year cycle. Currently, this angle is 23.44 degrees and decreasing. • The Milankovitch Cycles, or ‘orbital’ theory of the ice ages is now well developed. Ice ages are generally triggered by minima in high-latitude Northern Hemisphere summer insolation, enabling winter snowfall to persist through the year and therefore accumulate to build Northern Hemisphere glacial ice sheets. Similarly, times with especially intense high-latitude Northern Hemisphere summer insolation, determined by orbital changes, are thought to trigger rapid deglaciations, associated climate change and sea level rise. These orbital forcings determine the pacing of climatic changes, while the large responses appear to be determined by strong feedback processes that amplify the orbital forcing. Over multi-millennial time scales, orbital forcing also exerts a major influence on key climate systems such as the Earth’s major monsoons, global ocean circulation and the greenhouse gas content of the atmosphere. • Current evidence indicates that current warming will not be mitigated by a natural cooling trend towards glacial conditions. Understanding of the Earth’s response to orbital forcing indicates that the Earth will not naturally enter another ice age for at least 30,000 years. Milankovitch Cycles EA-envision: EA-envision Strategic Enterprise Management Framework Milankovitch Cycles National Oceanic and Atmospheric Administration EA-envision Orbital shape (eccentricity) EA-envision • The Earth's orbit is an ellipse. The eccentricity is a measure of the departure of this ellipse from circularity. The shape of the Earth's orbit varies from being nearly circular (low eccentricity of 0.005) to being mildly elliptical (high eccentricity of 0.058) and has a mean eccentricity of 0.028. The major component of these variations occurs on a period of 413,000 years (eccentricity variation of ±0.012). A number of other terms vary between 95,000 and 136,000 years, and loosely combine into a 100,000-year cycle (variation of −0.03 to +0.02). The present eccentricity is 0.017. • If the Earth were the only planet orbiting our Sun, the eccentricity of its orbit would not vary in time. The Earth's eccentricity varies primarily due to interactions with the gravitational fields of Jupiter and Saturn. As the eccentricity of the orbit evolves, the semi-major axis of the orbital ellipse remains unchanged. From the perspective of the perturbation theory used in celestial mechanics to compute the evolution of the orbit, the semi-major axis is an adiabatic invariant. According to Kepler's third law the period of the orbit is determined by the semi-major axis. It follows that the Earth's orbital period, the length of a sidereal year, also remains unchanged as the orbit evolves. EA-envision: Strategic Enterprise Management Framework Orbital inclination EA-envision • The inclination of Earth's orbit drifts up and down relative to its present orbit with a cycle having a period of about 70,000 years. Note: Milankovitch did not study this threedimensional aspect of orbital movement. • More recent researchers noted this drift and that the orbit also moves relative to the orbits of the other planets. The invariable plane, the plane that represents the angular momentum of the solar system, is approximately the orbital plane of Jupiter. The inclination of the Earth's orbit has a 100,000 year cycle relative to the invariable plane. This 100,000-year cycle closely matches the 100,000-year pattern of ice ages. • It has been proposed that a disk of dust and other debris is in the invariable plane, and this affects the Earth's climate through several possible means. The Earth presently moves through this plane around January 9 and July 9, when there is an increase in radar-detected meteors and meteor-related noctilucent clouds. • A study of the chronology of Antarctic ice cores using oxygen to nitrogen ratios in air bubbles trapped in the ice, which appear to respond directly to the local insolation, concluded that the climatic response documented in the ice cores was driven by Northern Hemisphere insolation as proposed by the Milankovitch hypothesis (Kawamura et al, Nature, 23 August 2007, vol 448, p912-917). This is an additional validation of the Milankovitch hypothesis by a relatively novel method, and is inconsistent with the "inclination" theory of the 100,000-year cycle. EA-envision: Strategic Enterprise Management Framework Axial tilt (obliquity) EA-envision • The angle of the Earth's axial tilt (obliquity) varies with respect to the plane of the Earth's orbit. These slow 2.4° obliquity variations are roughly periodic, taking approximately 41,000 years to shift between a tilt of 22.1° and 24.5° and back again. When the obliquity increases, the amplitude of the seasonal cycle in insolation increases, with summers in both hemispheres receiving more irradiative flux from the Sun, and the winters less irradiative flux. As a result, it is assumed that the winters become colder and summers warmer. • But these changes of opposite sign in the summer and winter are not of the same magnitude. The annual mean insolation increases in high latitudes with increasing obliquity, while lower latitudes experience a reduction in insolation. Cooler summers are suspected of encouraging the start of an ice age by melting less of the previous winter's ice and snow. So it can be argued that lower obliquity favours ice ages both because of the mean insolation reduction in high latitudes as well as the additional reduction in summer insolation. There may be some evidence of warmer winters in the northern hemisphere and warmer summers in the southern hemisphere. • Currently the Earth is tilted at 23.44 degrees from its orbital plane, roughly half way between its extreme values. The tilt is in the decreasing phase of its cycle, and will reach its minimum value around the year 10,000 AD. EA-envision: Strategic Enterprise Management Framework Precession (wobble) EA-envision • Precession is the change in the direction of the Earth's axis of rotation relative to the fixed stars, with a period of roughly 26,000 years. This gyroscopic motion is due to the tidal forces exerted by the sun and the moon on the solid Earth, associated with the fact that the Earth is not a perfect sphere but has an equatorial bulge. The sun and moon contribute roughly equally to this effect. In addition, the orbital ellipse itself precesses in space (anomalistic precession), primarily as a result of interactions with Jupiter and Saturn. This orbital precession is in the opposite sense to the gyroscopic motion of the axis of rotation, shortening the period of the precession of the equinoxes with respect to the perihelion from 26,000 to 21,000 years. • When the axis is aligned so it points toward the Sun during perihelion, one polar hemisphere will have a greater difference between the seasons while the other hemisphere will have milder seasons. The hemisphere which is in summer at perihelion will receive much of the corresponding increase in solar radiation, but that same hemisphere will be in winter at aphelion and have a colder winter. The other hemisphere will have a relatively warmer winter and cooler summer. • When the Earth's axis is aligned such that aphelion and perihelion occur near the equinoxes, the Northern and Southern Hemispheres will have similar contrasts in the seasons. At present perihelion occurs during the Southern Hemisphere's summer, and aphelion is reached during the southern winter. Thus the Southern Hemisphere seasons are somewhat more extreme than the Northern Hemisphere seasons, when other factors are equal. Currently there is significant evidence of warmer winters in the northern hemisphere, and correspondingly there are warmer summers in the southern hemisphere. Climate Change • Indirect indicators of global warming such as ice borehole temperatures, snow cover, and glacier recession data, are in substantial agreement with the more direct indicators of recent warmth. Evidence such as changes in glacial mass balance (the amount of snow and ice contained in a glacier) is useful since it not only provides qualitative support for meteorological data, but glaciers are often found in places too remote to support meteorological stations. The records of glacial advance and retreat often extend back further than weather station records, and glaciers are usually at much higher altitudes than weather stations, allowing scientists more insight into temperature changes prevalent higher in the atmosphere - though extending the Antarctic sea-ice record back in time is more difficult due to the lack of direct observations in this part of the world. • Large-scale measurements of sea-ice have only been possible since the satellite era, but through looking at a number of different satellite estimates, it has been determined that September Arctic sea ice has decreased between 1973 and 2007 at a rate of about -10% +/0.3% per decade. Sea ice extent for September for 2007 was by far the lowest on record at 4.28 million square kilometres, eclipsing the previous record low sea ice extent by 23%. Sea ice in the Antarctic has shown very little trend over the same period, or even a slight increase from 1979 to 1995. • In 1995, however, Larsen Ice Shelf A disintegrated. In 2002 the whole of the Larsen Ice Shelf B disappeared in just a few weeks – an area the size of Rhode Island in the USA. The mechanism is thought to be summer liquid water pooling at the surface, filtering down cracks and crevices and subsequently freezing – shattering the ice sheet The Climate System Climate Change Glacial Ice Mass Balance Sea Ice Extent Global Warming • Clouds are an important indicator of climate change. Surface-based observations of cloud cover suggest increases in total cloud cover over many continental regions – including areas of increased urbanization such as tropical Africa and southern Asia. This increase since 1950 is consistent with regional increases in precipitation for the same period. However, despite regional variation, analyses of cloud cover over land for the period 1976-2003 shows little statistically significant overall global change. • An enhanced greenhouse effect would be expected to cause cooling in higher parts of the atmosphere because the increased "blanketing" effect in the lower atmosphere holds in more heat, allowing less to reach the upper atmosphere. Cooling of the lower stratosphere (about 49,000-79,500 ft.) since 1979 is shown by both satellite Microwave Sounding Unit and weather balloon data, but is larger in weather balloon data (most likely this is due to unidentified / uncorrected data errors). • Relatively cool surface and tropospheric temperatures, and a relatively warmer lower stratosphere, were observed in 1992 and 1993, due to atmospheric volcanic dust following the 1991 eruption of Mount Pinatubo. The warming reappeared in 1994. A dramatic global warming took place in 1998 - at least partly associated with the record El Niño. This warming episode was consistent from the surface right to the top of the troposphere. Global Warming EA-envision Global surface temperatures have increased about 0.74°C (plus or minus 0.18°C) since the late-19th century, and the linear trend for the past 50 years of 0.13°C (plus or minus 0.03°C) per decade is nearly twice that for the past 100 years The warming has not been globally uniform. Some areas (including parts of the south-eastern U.S. and parts of the North Atlantic) have, in fact, cooled slightly over the last century. The recent warmth has been greatest over North America and Eurasia between 40 and 70°N, Lastly, seven of the eight warmest years on record have occurred since 2001 and the 10 warmest years have all occurred since 1995. Global Warming • Examination of changes in climate extremes requires long-term daily or even hourly data sets which until recently have been scarce for many parts of the globe. However these data sets have become more widely available allowing research into changes in temperature and precipitation extremes on global and regional scales. Global changes in temperature extremes include decreases in the number of unusually cold days and nights and increases in the number of unusually warm days and nights. Other observed changes include lengthening of the growing season, and decreases in the number of frost days. • Global temperature extremes have been found to exhibit no significant trend in inter-annual variability, but several studies suggest a significant decrease in intra-annual variability. There has been a clear trend to fewer extremely low minimum temperatures in several widely-separated areas in recent decades. Widespread significant changes in extreme high temperature events have not been observed. There is some indication of a decrease in day-to-day temperature variability in recent decades. • Many individual studies of various regions show that extra-tropical cyclone activity seems to have generally increased over the last half of the 20th century in the northern hemisphere, but decreased in the southern hemisphere. Furthermore, hurricane activity in the Atlantic has shown an increase in number since 1970 with a peak in 2005. It is not clear whether these trends are multi-decadal fluctuations or part of a longer-term trend. Global Warming Recent analyses of temperature trends in the lower and mid- troposphere (between about 2,500 and 26,000 ft.) using both satellite and weather balloon data show warming rates that are similar to those observed for surface air temperatures. These warming rates are consistent with their uncertainties and these analyses reconcile a discrepancy between warming rates noted on the IPCC Third Assessment Report (U.S. Climate Change Science Plan Synthesis and Assessment Report 1.1). . Storms Precipitation • Globally-averaged land-based precipitation shows no statistically significant upward trend - with most of the increase occurring in the first half of the 20th century. Furthermore, observed precipitation changes have been spatially variable over the last century. • On a regional basis, increase in annual precipitation have occurred in the higher latitudes of the Northern Hemisphere, in southern South America and in northern Australia – areas remote from major cities. Decreases have occurred in tropical Africa and in southern Asia. • This may be explained by the dramatic increase in air travel from the early 1960s onwards. Up to 10% of global cloud cover is generated by jet condensation trails – acting to both reduce the amount of energy from sunlight reaching the earth, and also the amount of evaporation of surface water caused by photon energy in sunlight directly exciting surface water molecules - thus making them more energetic and increasing overall evaporation. • Jet aircraft traffic density is lower in higher latitudes of the Northern Hemisphere, southern South America and in northern Australia – therefore jet condensation trails have a smaller impact on reducing evaporation. Clearly, although jet travel contributes greatly to rising greenhouse gas levels, jet condensation trails act to suppress impact on the environment • Due to the difficulty in measuring trends in annual precipitation, it has been important to validate these observations by analysing other related variables. The measured changes in precipitation are consistent with observed changes in stream flow, lake levels, and soil moisture (where data sets are available and have been analysed). Precipitation Globally-averaged land-based precipitation shows no statistically significant upward trend - with most of the increase occurring in the first half of the 20th century. Furthermore, observed precipitation changes have been spatially variable over the last century. On a regional basis, increase in annual precipitation have occurred in the higher latitudes of the Northern Hemisphere, in southern South America and in northern Australia – areas remote from major cities. Decreases have occurred in tropical Africa and in southern Asia. Precipitation On a regional basis, increase in annual precipitation have occurred in the higher latitudes of the Northern Hemisphere, in southern South America and in northern Australia – all areas that are remote from major cities. Decreases in annual precipitation have occurred in tropical Africa and in southern Asia – all areas of increased urbanisation. El Niño and La Niña • El Niño's are not caused by global warming. Clear evidence exists from a variety of sources (including archaeological studies) that El Niño's have been present for thousands, and some indicators suggest maybe millions, of years. However, it has been hypothesized that warmer global sea surface temperatures can enhance the El Niño phenomenon, and it is also true that El Niño's (and La Niña's) have been more frequent and intense in recent decades. Whether El Niño occurrence changes with climate change is a major research question. • A rather abrupt change in the El Niño - Southern Oscillation behaviour occurred around 1976/77. Often called the climatic shift of 1976/77, this new regime has persisted. There have been relatively more frequent and persistent El Niño episodes rather than the cool episode La Niñas. This behaviour is highly unusual in the last 130 years (the period of instrumental record). Changes in precipitation over the tropical Pacific are related to this change in the El Niño - Southern Oscillation, which has also affected the pattern and magnitude of surface temperatures. However, it is unclear as to whether this apparent change in the ENSO cycle is related to global warming. • In areas where a drought or excessive wetness usually accompanies an El Niño or La Niña, these dry or wet spells have been more intense in recent years. Further, there is some evidence for increasing drought worldwide, however in the U.S. there is no evidence for increasing drought. In some areas where overall precipitation has increased (ie. the mid-high northern latitudes), there is evidence of increases in the heavy and extreme precipitation events El Niño and La Niña • In areas where a drought or excessive wetness usually accompanies an El Niño or La Niña, these dry or wet spells have been more intense in recent years. Further, there is some evidence for increasing drought worldwide. In the U.S.A. however, here is little evidence for increasing continental drought – the exception being the ten-year regional drought in the South-West, which has reduced water levels in Lake Mead. • In some areas where overall precipitation has increased (ie. the mid-high northern latitudes), there is also evidence of increases in the heavy and extreme precipitation events. Even in areas such as eastern Asia, it has been found that unusual / extreme precipitation events have increased despite total precipitation remaining fairly constant - or even decreasing somewhat. This is related to an observed increase in severity along with a decrease in the frequency of precipitation events in this region. • On a regional basis, increase in annual precipitation have occurred in the higher latitudes of the Northern Hemisphere, in southern South America and in northern Australia – all areas that are remote from major cities. Conversely, decreases in annual precipitation have occurred in tropical Africa and in southern Asia – all areas of increased urbanisation and massive expansion in airline activity since the 1960’s. El Niño and La Niña In areas where a drought or excessive wetness usually accompanies an El Niño or La Niña, these dry or wet spells have been more intense in recent years. Further, there is some evidence for increasing drought worldwide, however in the U.S. there is no evidence for increasing drought. Even in areas such as eastern Asia, it has been found that extreme precipitation events have increased despite total precipitation remaining constant or even decreasing somewhat. This is related to an increase in severity and decrease in the frequency of precipitation in this region. Sea Level Rising – Historic EA-envision • Large-scale measurements of sea-ice have only been possible since the satellite era, but through looking at a number of different satellite estimates, it has been determined that September Arctic sea ice has decreased between 1973 and 2007 at a rate of about -10% +/- 0.3% per decade. Sea ice extent for September for 2007 was by far the lowest on record at 4.28 million square kilometres, eclipsing the previous record low sea ice extent by 23%. Sea ice in the Antarctic has shown very little trend over the same period, or even a slight increase from 1979 to 1995. • Global mean sea level has been rising historically at an average rate of 1.7 mm/year (plus or minus 0.5mm) over the past 100 years, which is significantly larger than the rate averaged over the last several thousand years. However, the rate of average global sea level rise is currently accelerating, for the most part, at nearly 3mm/year and the rate of acceleration is increasing. Scientists fully expect average sea levels to have risen by 30cm or more by 2100 on a simple projection of ocean thermal expansion figures alone for sea level rising. Sea Level Rising s National Oceanic and Atmospheric Administration Sea Level Rising – Current EA-envision • In Antarctica, however, average summer temperatures are now rising at six to eight times faster than the global average – about 0.5 °C per decade since the late 1940s - massively increasing the rate of summer ice loss. Current studies indicate an acceleration of climate warming towards a predicted two degrees centigrade increase in average global temperature by 2100 – predicating a corresponding 40metre rise in sea level by the end of the century – causing global flooding over the world’s coastline and huge loss of large areas of existing land. • During 1995 Larsen Ice Shelf A disintegrated in just a few weeks. Then, in 2002, the whole of the Larsen Ice Shelf B disappeared – an area the size of Rhode Island in the USA. The mechanism responsible is thought to be driven by warmer Antarctic summers, when liquid water pooling at the surface of the glacier filters down cracks and crevices and subsequently re-freezes – shattering the ice sheet • Many glaciers are now flowing at up to eight times faster than only a decade ago – due to liquid water pooling at the ice surface in the summer, filtering down cracks and crevices and lubricating ice flow at the glacier base. Additionally, the melting of the arctic tundra permafrost in Siberia is contributing vast amounts of additional fresh water into the Arctic Sea – diluting sea water and threatening to halt the Gulf Stream conveying heat from the Gulf of Mexico to the Atlantic coast of NW Europe. Sea Level Rising – Future EA-envision • The greatest danger, many experts are predicting, is rapidly increasing acceleration of global warming will cause sea levels to rise much more dramatically than present. Thermal expansion has already raised the oceans level by around 7 inches (17 to 18 centimetres). This mean sea level rise is insignificant compared to what will happen if, for example, Antarctica or the Greenland Ice Cap melted and disappeared. • However, this linear increase in global mean sea level due to thermal expansion is based only on simplistic single-factor expansion – without any contribution from retreating alpine glaciers – and does not include potential massive contributions from land based melting ice caps in either Greenland or Antarctica. Adding ice mass loss into the equation yields far higher estimations of sea levels – suggesting over 1 meter rise by 2100. Very much larger sea level increases may also be expected – but our current understanding of glacial ice dynamics leads to uncertainties in being able to assess the precise range or extent of large-scale melting of massive ice caps. • Depending on which greenhouse gas increase scenario is used (high or low) future sea-level rise is projected to be anywhere from 0.18 (low constant greenhouse gas increase) to 0.59 meters by 2100 for the high constant greenhouse gas increase scenario. Acceleration of global warming may lead towards up to a ten-fold future global sea level increase – predicating a probable 1.5 minimum increase with a possible 3 meter maximum rise in average sea levels by 2100 for a greenhouse gas increase scenario showing rapidly increasing acceleration. Greenhouse Gases EA-envision • We have learned - from the continuing work on the analysis of ice-cores by the British Antarctic Survey - that levels of atmospheric greenhouse gases, particularly CO2, are at their highest point at any time during the last 700,000 years. • Current levels of atmospheric CO2 have risen to 430ppm (up 150ppm from 280ppm at the start of the industrial revolution (at an average of 6ppm per decade over the last 250 years). Furthermore, the global rate of increase in atmospheric CO2 is higher than at any time in the last 20,000 years and continues to rise exponentially (Professor Richard Alley, Penn State University). It is widely agreed that when CO2 levels exceed 500ppm then the tipping point of irreversible climate change will be surpassed – therefore catastrophic environmental degradation will be inevitable – disrupting agriculture and fisheries with the consequent loss of up to 90 per cent of human population through scarcity of resources, war, famine and disease. • If there is no amelioration in the acceleration of CO2 emissions, then this figure will increase to 750ppm by the end of this century - which would represent higher CO2 levels than those prevalent at any time during the last 30 million years. • Scientists are now looking at what needs to be done to mitigate and adapt to these challenging conditions as the rate of change in greenhouse gases settles down at the new, higher predicted rates. Their emphasis is on building better climate models linking the Milankovitch Cycles (changes in earth orbit, axial tilt and axial wobble) together with average global temperature, atmospheric CO2 and sea level changes. EA-envision: Strategic Enterprise Management Framework Runaway Greenhouse Gas Scenario EA-envision • Recent research has established a direct correlation between average sea levels, global temperature and atmospheric CO2 content. For each increase / decrease in atmospheric concentration of CO2 of 100ppm there is a corresponding one degree centigrade increase / decrease in average global temperature and a resultant 20 metre rise / fall in sea level (Professor Richard Alley, Penn State University). • It is widely agreed that when CO2 levels exceed 500ppm then the tipping point of irreversible catastrophic climate change will be exceeded. In a runaway greenhouse gas scenario, the IPCC projects a best estimate of global temperature increase of 0.1 - 0.2 °C per decade yielding a possible range 1.1 - 1.8 °C by 2100 with sea levels in the range 22 - 36 metres higher than today. A worst case scenario of a global temperature rise is of 4.0°C - 6.4°C by 2400 – predicating a catastrophic corresponding ice mass loss and indicating that future sea levels could level out in the range of 80 - 128 metres higher than today, with a maximum of 140m for total ice mass loss. • Melting of the Alpine and Himalayan mountain glaciers would increase sea levels by around 3m. Should the Greenland Ice Cap disappear, then global sea levels will rise by 7 meters – flooding large parts of the world’s coastal cities, harbours, and all low-lying coastline, estuaries, deltas and archipelagos. The loss of the Antarctic Ice Cap would increase sea levels by a further 130 meters – loosing up to 90km from the existing coastline, drowning most of the worlds capital cities and washing away much of the world’s most productive and intensively cultivated agricultural land – and in the process displacing over one-third of world’s population. Climate Models EA-envision • Due to the enormous complexity of the atmosphere, the most useful tools for gauging future changes are 'climate models'. These are computer-based mathematical models which simulate, in three dimensions, the climate's behaviour, its components and their interactions. Climate models are constantly improving based on both our understanding and the increase in computer power, though by definition, a computer model is a simplification and simulation of reality, meaning that it is an approximation of the climate system. The first step in any modelled projection of climate change is to first simulate the present climate and compare it to observations. If the model is considered to do a good job at representing modern climate, then certain parameters can be changed, such as the concentration of greenhouse gases, which helps us understand how the climate would change in response. Projections of future climate change therefore depend on how well the computer climate model simulates the climate and on our understanding of how forcing functions will change in the future. • According to the range of possible forcing scenarios, and taking into account uncertainty in climate model performance, the IPCC projects a best estimate of global temperature increase of 1.8 - 4.0°C with a possible range of 1.1 - 6.4°C by 2100, depending on which emissions scenario is used. However, this global average will integrate widely varying regional responses, such as the likelihood that land areas will warm much faster than ocean temperatures, particularly those land areas in northern high latitudes (and mostly in the cold season). In Antarctica, however, average summer temperatures are rising – with increased ice loss. Globally, it is very likely that as a result of increased climatic energy - storms, floods, heat waves, drought and other climatic extremes will increase. EA-envision: Strategic Enterprise Management Framework Climate Models National Oceanic and Atmospheric Administration Climate Models • Paleoclimatic data sets are critical for enabling us to extend our knowledge of climatic variability beyond what is measured by modern instruments. • Many natural phenomena are climate dependent (such as the growth rate of a tree for example), and as such, provide natural 'archives' of climate information. Some useful paleoclimate data can be found in sources as diverse as tree rings, ice cores, corals, lake sediments (including fossil insects and pollen data), speleothems (stalactites etc), and ocean sediments. • Some of these, including ice cores and tree rings, are able to provide us also with an annual chronology due to the nature of how they are formed, and so high resolution climate reconstruction is possible. • In these cases. however, there is no continuous, comprehensive or complete 'network' of paleoclimate data as there is with instrumental coverage - so global climate reconstructions are often difficult to obtain. Nevertheless, combining different types of paleoclimate records enables us to gain a near-global picture of climate changes in the distant past. Climate Models Paleoclimatic data sets are critical for enabling us to extend our knowledge of climatic variability beyond what is measured by modern instruments. Many natural phenomena are climate dependent (such as the growth rate of a tree for example), and as such, provide natural 'archives' of climate information. Paleoclimate data may be found in sources as diverse as tree rings, ice cores, corals, lake sediments (including fossil insects and pollen data), speleothems (stalactites etc), and ocean sediments. Climate Models • For Northern Hemisphere temperature, recent decades appear to be the warmest since at least about 1000AD, and the warming since the late 19th century is unprecedented over the last 1000 years. Older data sets are insufficient to provide reliable hemispheric temperature estimates. Ice core data suggest that the 20th century has been warm in many parts of the globe, but also that the significance of the warming varies geographically, when viewed in the context of climate variations of the last millennium. • Large and rapid climatic changes affecting the atmospheric and oceanic circulation and temperature, and the hydrological cycle, occurred during the last ice age and during the transition towards the present Holocene period (which began about 10,000 years ago). Based on the incomplete evidence available, the projected change of 3 to 7°F (1.5 - 4°C) over the next century would be unprecedented in comparison with the best available records from the last several thousand years. • The IPCC Special Report on Emission Scenarios determines the range of future possible greenhouse gas concentrations (and other forcings) based on considerations such as population growth, economic growth, energy efficiency and a host of other factors. This leads a wide range of possible forcing scenarios, and consequently a wide range of possible future climates. Abiliti – contact details • Abiliti is a consortium of SAP I/S Utilities, I/S Oil & Gas and Energy Strategy Consulting, Strategic Foresight & Future Management consultants • Graham Harris – Email: – Telephone: • Nigel Tebbutt SAP Agile Academy Director @ Abiliti [email protected] (Office) +44 (0) 1527 591020 (Office) 奈杰尔 泰巴德 – Future Business Models & Emerging Technologies @ Abiliti – Telephone: +44 (0) 7832 182595 (Mobile) – +44 (0) 121 342 3998 (Office) – Email: [email protected] (Private) Abiliti:: Strategic Enterprise Management (SEM) Framework ©