Predicting the future is arguably the most important and hardest task facing strategists. One way of loading the dice in their favor: scrutinizing the demographic, technological, environmental, macroeconomic, and other long-term forces constantly shaping the global economy. The most eye-opening implications typically lurk at the intersections where multiple trends (and dozens or more subtrends) interact with one another, often in complex and not-so-obvious ways. Moreover, to analyze trends successfully, executives must develop a fine-grained understanding of the potential impact for specific geographies and industries.
Only a dozen years ago, for example, authoritative predictions for the coming decade envisioned no more than a few million mobile-phone users throughout Africa. Local income, consumption, technology, infrastructure, and regulatory conditions seemed to hold little promise for significant growth. Less than ten years later, though, Nigeria alone had 42 million mobile subscribers—80 times more than initial forecasts predicted—as growth skyrocketed, largely as a result of the interaction between just two trends: improved income levels and cheaper handsets. This was a massive growth opportunity that global telcos missed but African and Middle Eastern players captured, to the tune of more than $100 billion, by developing low-cost business models.
How can company strategists spot the next big opportunity or looming threat in their industries before it’s apparent to everyone?