Dentsu Aegis at the World Economic Forum Dalian
Last week saw the successful gathering of the The World Economic Forum Annual Meeting of the New Champions, also known as "Summer Davos", and held in Dalian. The theme was "Leadership 4.0: The Way to Success in a New Era of Globalization." Leaders from all over the world with the vision and ambition to shape the future came together discuss the major changes and opportunities brought about by the global 4.0 era.
Michelle Lau, CEO of Dentsu Aegis Network China, joined the event, participating in a range of meetings that addressed the latest technologies and innovations shaping the world economy today. With speakers from across public and private industries, key topics covered included; developing your AI strategy, using data for the benefit of humanity, data privacy and policy. With China playing host there was rich discussion and debate with an Asian perspective.
Notable sessions included the “View from Asia, leveraging the power of technology. This focused on China, pinpointing the rapid growth of external innovation, creativity and leadership. Building on the conferences theme of ‘new champions,’ the three day event brought speakers and guests together to provoke debate around new conversations what it means to adopt a Leadership 4.0 mindset and how organizations can best structure themselves to adapt to rapid change and be truly agile.
Despite a heavy focus on data and the impact of AI, the agenda also took time out to cover creativity, with a Creativity Lab. Michelle commented "we know in a digital economy that consumers are ones who call the shots, but connecting with them in a meaningful way has to begin with idea led experiences. That’s still the true power of creativity. "
In his closing address, World Economic Forum President Borge Brende spoke to highlight the uniqueness of the forum as a “gathering of the future…what we’ve seen in the past three days is that the speed of change in the future is only going to get quicker”
Summarizing her experience, Michelle concluded "Globalization 4.0 is reshaping the growth of our corporate, social and business models at an unprecedented scale and speed. As leaders it’s critical for us to better understand the disruption that is currently taking place. We need to take every opportunity to be curious and look at how we adopt new leadership and business models to better embrace the potential and opportunities brought the fourth industrial revolution. "
"The issues I’ve had the pleasure of exploring with the leaders here this week are worthy of further consideration and debate. We have a mission to drive sustainable growth for our clients. To help them win, keep and grow their best customers. We will only be able to continue to do that by innovating at pace. I’m looking forward to sharing more of this inspiration and building that into the solutions we’re developing for our clients in China. "
During the conference, Michelle also published a signed article "We all have a 'hierarchy of needs'. But is technology meeting them?" on the World Economic Forum blog, sharing the importance of "demand hierarchy" theory to understand the human needs of the current digital economy era. And use this framework to provide strategic advice to business leaders in the Asia Pacific region. The following is the content sharing:
The world looked very different in 1943, when the psychologist Abraham Maslow’s “hierarchy of needs” model was first published. The world was just in the early stages of realising the potential of computing power, which codebreakers would use to help bring an end to the world war.
Fast forward to 2019, and we stand on the brink of another seismic shift: the Fourth Industrial Revolution. Amid a picture of further disruption and change, how can this model of human motivation help us understand the needs people have in today’s digital economy?
This question sits at the heart of our recent report, the Digital Society Index 2019: Why human needs must power Asia-Pacific innovation. While providing a strategic view on how well countries in Asia-Pacific are creating a digital economy that works for all in society, it also provides a very personal way of understanding how technology is meeting fundamental human needs.
Maslow for a digital age
Drawing on a global survey of over 43,000 people across 24 countries, our analysis explores what an individual requires to achieve their potential in today’s tech-driven landscape. Taking inspiration from Maslow’s needs model, the framework comprises four dimensions:
Our digital needs framework
1. Basic needs
First, there’s the basics. People need access to digital infrastructure, in terms of quality mobile and internet networks, as well as trust in data privacy and security. 54% of people in Asia-Pacific believe this need is being met, above the global average of 49%. With many markets in the region leapfrogging developed economies in terms of tech infrastructure (just look at the spread of mobile payments in China, for example), people are clearly feeling the benefit.
2. Psychological needs
From smartphones to wearables, digital technologies have huge power to connect us to new communities, access health services and monitor our vital statistics. But there’s a flipside. The potential negative impact on our mental health is increasingly well documented. Striking a healthy balance in personal use of digital technologies is a critical need today. However, just 28% of people in Asia-Pacific believe this need is being met – significantly lower than the global average of 38%.
3. Self-fulfilment needs
Meeting the need for fulfilling employment in a disrupted future relies on having the right skills, experiences and workplace opportunities. More than half (51%) of people in Asia-Pacific believe this need is being met, versus 45% globally. But there are big gaps across the region. In China, 68% of people believe that their formal education has given them the tech skills they need. In Japan, only 18% agree.
4. Societal needs
As the world becomes more interdependent and interconnected, how optimistic people are that the digital economy will be a positive force for society is increasingly important. Do people believe technology will create jobs for them, solve global challenges and, overall, have a positive impact on society? For people in Asia-Pacific the answer is yes: 59% believe this need is being met, versus 49% globally.
These results sound a note of caution to business leaders and policymakers in the region. People in Asia-Pacific are generally more positive that their needs in digital are being met. But the impact on psychological needs (health, well-being and quality of life) is a notable exception. Technological progress appears to be exacting a personal price.
What this tells us about consumer behaviour
Taking action to meet people’s digital needs isn’t just the right thing to do. It’s also the smart thing to do. Our analysis shows a strong correlation between meeting self-fulfilment and societal needs, and the likelihood of engaging with digital products and services. Put another way, the more digitally savvy you are – or the higher your levels of optimism in the future – the more likely you are to shop online, stream music, use an app to hail a taxi or access banking services, for example.
However, higher levels of digital literacy, set against a backdrop of low levels of trust in how personal data is used, are having some unintended consequences. In the year before our survey, four out of ten people globally said they had taken steps to reduce the amount of data they shared online, more than a quarter had installed ad-blocking software and over one fifth had actively limited the amount of time they were spending online. But these are also the people who are most likely to engage with digital products and services. The best customers are now the hardest to reach.
Digital needs and Leadership 4.0
The Fourth Industrial Revolution requires strong leaders. But what does that look like today? Transforming industry and business models, creating the right international frameworks and policies, and ultimately enabling societies to adapt to the digital world is no small feat. But it is possible.
To achieve it, as Klaus Schwab has noted, leaders must leave their egos at the door. Their strength should be founded in empathy and cooperation – “a different, more human kind of leadership”.
Our digital needs framework is a way of providing a human-centric lens to leaders that can focus their strategies and increase their understanding of today’s consumers. It also reminds them: technology’s future potential rests not on leaders’ shoulders, but on the other seven billion sets of shoulders around the world. By putting human needs at the heart of what they do, leaders can safeguard innovation for generations to come.
Image Source: From the WEF website text, REUTERS/Fabrizio Bensch