As we enter an era of hyper connectivity, trillion-dollar corporations and artificial intelligence, industries and companies must adapt to accommodate this new environment badged globalization 4.0 by the World Economic Forum (WEF). As these themes are discussed in Geneva this week, we outline a simple model to take advantage of it.
GLOBALIZATION 4.0 AND THE WEF
For the WEF, 2019 discussions have been striped with the theme of Globalization 4.0, a term derived from comments by the WEF founder, Klaus Schwab, talking about the coming of the fourth industrial revolution. In their annual gathering at Davos in January it was the central theme, one which will be considered again in a more industrial strategiccontext in Geneva this week.
THE FOUR CHALLENGES OF GLOBALIZATION 4.0
For governments and corporations alike there are four main challenges to be overcome:
Responsibility and Accountability for environmental awareness and support.
Navigation and mitigation of the outcomes of geopolitical tensions.
Planning and incorporation of the evidential shifts in long standing economic theories.
Acceptance and integration of technologies into everyday corporate processes.
THE OIL & GAS EFFECT
The nature of the oil and gas industry places it at the forefront of meeting these challenges, and in some cases stakes and hurdles are even higher for these companies. According to this CFO in oil and gas study carried out by Accenture, CFO’s are being asked to balance traditional book keeping with the more strategic and operational issues, including:
Volatility of commodity pricing and currency management