Technology and connectivity have impacted companies and changed the lives of millions of individuals. However, several studies predict that we are about to experience changes of tremendously greater importance. 

During the years to come, we will witness the lightning-speed development of “Artificial Intelligence” in computers, improved means for instant communications, the multiplication of electronic devices and the mass flow of information. All of this will disrupt the way we do business.

The inventor of chess in China, so the story goes, requested the Emperor to compensate him by contributing one grain of rice for the first square of the chessboard and then duplicating the amount for each additional square. The inventor received barrels of rice for the first half of the board, but the amount due for the second half would have bankrupted the Emperor. The latter decided, finally, to grant the former the equivalent of enough grains of rice to cover the face of the earth twice.

 When Moore predicted that computers would double their speed every 18 months, we were at the first half of the “chessboard”. To date, the power of computers is going to multiply in a way similar to the second half of the “chessboard”. This analogy gives you an idea of what's to come. The global flow of “data” and electronic transactions will triplicate over the next decade. Just 20 years ago, only 3% of the world's population had a cell phone and 1% surfed the Internet. Today, over 2/3 of the population owns a cellular and 1/3 uses web.

While technological development accelerates, conceptualizing its use as a source for merely increasing productivity would be a colossal error. Our intuition must lead to our awareness that new businesses could develop on a very large scale, within a very short time period and with a minor investment.

“Startups” could inherently possess major advantages over already consolidated businesses, thereby imposing shorter company life cycles. All of this will require managers to make decisions at a speed unknown until now. The great challenge posed is reinforced by two phenomena highlighted in a study carried out by the McKinsey Institute. The first, the rise of middle classes in emerging markets, entailing their business development. For the first time in 200 years, emerging markets have contributed more toward the global economy than developed countries have. It is expected that by 2025, over 45% (today only 5%) of Fortune 500 companies will be based in emerging economies.

The second factor is the aging of the global population and the lower fertility rate. This phenomenon, already evident in developed countries, will extend to emerging markets. In the absence of a major boost for productivity, a narrower workforce will translate into lower consumption and slower economic growth.

Winning against a backdrop of an increasingly volatile and changing environment will depend on how corporate leaders assimilate and recognize the magnitude of coming changes.