Reconfiguring the global industrial system transcript

Megatrends like climate change and technological disruption are fundamentally altering our world. As a result, businesses are faced with tackling the short-term crises these megatrends create, while simultaneously reinventing themselves to survive and thrive in the long term.

It’s clear that our decades-old systems are no longer fit for purpose. That’s why the overwhelming business imperative today is simultaneous systemic reinvention on a global scale. In this reconfigured world, value and profit pools shift rapidly, putting existing ones in jeopardy as new ones form. The result? Fundamental changes to how we feed ourselves, move around, build things, make things, power things, and care for ourselves.

The reinvented world looks fundamentally different, with industries now working together in ecosystems in new ways. Think about global mobility. Traditional value chains and pools were made up of parts manufacturers, dealers, auto financers, petrol stations. But in a world of electric vehicles, value creation takes place in an entirely different ecosystem. Powerful new batteries require massive new factories and supplies of critical minerals, like lithium. EVs can be charged up at home, at the office, or at fast-charging stations, disrupting the supply chain. And some of the biggest EV manufacturers bypass dealers altogether, selling direct to consumers. All of this is leading to a major shift in where value is created. And it’s this effect, spread out across multiple ecosystems, that is propelling value in motion.