Rapid information flow, Mother Nature & accelerated change

Edward Erickson - Fmr. Global Head of Cisco's Supply Chain Risk Management, Safety, Security & BCP / Founder Supply Chain Risk Leadership Council, Currently VP, Intrapoint

Edward Erickson – Fmr. Global Head of Cisco’s Supply Chain Risk Mgmt., Safety, Security & BCP, Currently VP, Intrapoint

Forum Host Bill Raisch:  Edward, Cisco is essentially a wide web of interrelationships and operations across an extensive global footprint.  You had responsibility for risk in the supply chain, which if I recall correctly runs into the thousands of suppliers, as well as responsibility for security, safety and business continuity for Cisco.  That’s a lot of moving pieces and functions.  You’re now working on an enterprise resilience platform at Intrapoint.

What do you see the most important disruptors facing global corporations, markets and/or wider society?  

Edward Erickson:

Rapid and / or incorrect information flow i.e. stock market recently, highlights the need to be prepared as you are tried in the public with no time to formulate

Mother nature – seems as volatility is accelerating in combination with interdependencies – low cost regions more susceptible

Accelerated rate of change, both in tech and customer preference, highlights need for forward thinking and agility built into capabilities and mindsets.

Bill Raisch:  What do you see as potential impacts of these disruptors?

Edward Erickson:

  • Brand reputation
  • Market share loss

Bill Raisch:      What strategies would you suggest to address these disruptor – to either mitigate negative impacts and/or to capitalize on potential opportunities?

Edward Erickson: 

  • Develop all hazard plans that can be adapted and invoked through imbedded processes and accelerated and replicated with technology
  • Develop a process for assessing and addressing risks on the horizon – must companies do the former, not the later
  • Diversification

 

Posted by Bill Raisch, Host – Global Disruptors Forum

Digital disruptions and the potential for quick tailspins for markets, reputations, brands and communities

Vice President for Research & Emerging Issues, US Chamber of Commerce Foundation; Principal, Catalyst Partners LLC

Vice President for Research & Emerging Issues, US Chamber of Commerce Foundation; Principal, Catalyst Partners LLC

Forum Host Bill Raisch:  Rich, in terms of “disruptors,” you have broad and diverse experience ranging from your current work on emerging issues at the US Chamber of Commerce to your prior responsibilities at US Homeland Security and NASA as well as work in the high tech field and a variety of other arenas.

From this broad perspective, what do you see as one of the most important disruptors facing global corporations, markets and/or wider society?

Rich Cooper:  On top of the traditional disruptors (e.g. Mother Nature; acts of violence/terror, infrastructure failures, etc.) we now have the advent of the digital disruptor.  All it takes is a simple post to a social media outlet (be it from a hacker; or disaffected customer or rival) that can quickly go viral that can send a market, a reputation or a community into a tailspin.

The very dynamic tools that keep people informed and engaged are extremely susceptible to hacking, hijack and hyperbole.  All you have to do is take a look at the recent hacking of the Associated Press’ Twitter account about “an attack upon President Obama” that sent the trading markets into a brief tailspin. Even some of the real time reporting that was factual and other reports that were later determined to be fictional regarding the recent bombings at the Boston Marathon created anxiety and other challenges for people, law enforcement and others in the greater Boston area.

Companies, communities and organizations of all sizes and shapes are going to have to engage in a 24/7 vigilance of their on-line reputations like never before or risk the long and short term consequences to their reputations if they ignore these tools and how they are used and misused.

Bill Raisch:  What are the potential impacts of this digital disruptor?

Rich Cooper: Real dollars and cents are always at play in any disruption but so are the potential negative impacts to reputation and brand recognition.  The phrase “you only have one chance to make a first impression,” comes to mind but it is inherently unfair when digital disruptors come into play and they can turn a solid reputation into absolute ruin by a few clicks and keystrokes.

Because of the actions of a hacker, the Associated Press is now in a position where they not only have to respond to false information that was put out under their name, they have to address the vulnerability of their networks by outside forces. They must try to not make themselves part of a news story (which is not where a news organization wants to be – they want to report stories – not be their subject line). Further they must try to restore the confidence in their brand and reputation that their customers and consumers have in the information that the AP puts out on a regular basis.

This is just not an AP issue.  Other government departments and agencies; educational institutions, private sector members and individuals have found themselves victims of similar types of digital disruptors.  We hear about the big names and big incidents when things like the AP story, the Boston bombings and other events occur but this is a 24/7 circumstance that is growing exponentially as more and more people and organizations become connected and interact digitally to the world around them.

Bill Raisch:  So what strategies would you suggest to address this digital disruptor – to either mitigate negative impacts and/or to capitalize on potential opportunities?

Rich Cooper:  The same strategies that you deploy for any other type of disruptor should be applied in these circumstances and it all starts with vigilance and awareness.  Accepting and understanding that these types of events can happen to you and in all likelihood will happen to you in some shape or form is part of the game.  Thinking that your name and brand are unsinkable and untouchable are the famous last words of the captain of the Titanic and we all know how that ends.   You end up becoming a test case for what not to do in these circumstances and a perpetual example of what not to do forevermore.

It is possible to capitalize on these opportunities though if you demonstrate the veracity of your vigilance; show your attention to detail and address the circumstances head on and apply the lessons learned immediately.  I think the example of the recent hacking of the Associated Press account demonstrates how quickly they addressed the situation to correct the mis-information that was put forward; share what happened and discuss corrective actions and therefore reinforce the integrity of their name and daily works.

Some may argue that this all comes down to active messaging and that would be entirely true because if you are not vigilant and active to recognize the situation and address it accordingly, you risk greater harm long-term by showing your ignorance and non-acceptance of the situation.  In those situations, I don’t care what form your disruptor takes, you are hamstringing your response from being effective, strategic and addressing the circumstance head on.

Posted by Bill Raisch, Host – Global Disruptors Forum

More assertive nation states, shifting labor forces & changing global demographics

Ted Fishman, Author - Shock of Gray and China, Inc.

Ted Fishman, Author – Shock of Gray and China, Inc.

Forum Host Bill Raisch:  Ted, you are a veteran journalist, essayist and former member and trader of the Chicago Mercantile Exchange.  Further, you’ve authored two books as of late.  All of which give you a distinct perspective on current and emerging disruptors.  

In Shock of Gray, The Aging of the World’s Population and How it Pits Young Against Old, Child Against Parent, Worker Against Boss, Company Against Rival, and Nation Against Nation, you look at how the aging of the world is propelling globalization, redefining nearly every important relationship we have and changing life for everyone young and old.

In China, Inc.: How the Rise of the Next Superpower Challenges America and the World, you described the effects of China’s recent emergence as a world power on the lives and businesses of people across the globe.

With that broad perspective, what do you see as the most important disruptors and their likely impacts facing global corporations, markets and/or wider society?

Ted Fishman:  A few things come to mind.

A) The reassertion of the state as a powerful economic player in realms that were ceded to the private sector.  As emerging markets rise toward middle incomes for their populations, states such as China, Venezuela, Russia and Brazil show how tempting it is to re-engage in the marketplace and take, for connected state players, larger stakes in national economies.  The moves also push competition and innovation out, raise new possibilities for corruption and populist economic policies that use resource riches to, in effect, buy off votes.  Regulation becomes almost impossible because of the lack of separation between the regulators and the regulated.

B)  Shifting labor forces driven by a difficult combination of demographic transition and economic straits.  In countries where historically low fertility rates are shrinking the local force, the workplace is changing forever.  Manufacturing is increasingly  handled in highly automated plants or outsourced to places with abundant, and low-cost labor.  At the same time, service sectors grow, and immigrants are frequently called into to fill low-wage service sector jobs.  This creates a whole new population that is employed outside their home countries but who travel through their own work lives without social safety nets.

C) On the positive side, changing demographics are also one of the chief drivers of global prosperity creating new middle class consumers.   As families shrink, children benefit as they get larger portions of their families’ means, usually spent to keep them healthy and to get them schooling.  This is raising their prospects, their skills, their wages and the lifespans.

Bill Raisch:  What strategies would you suggest to address these disruptors – to either mitigate negative impacts and/or to capitalize on potential opportunities?

Ted Fishman:

A)  For dealing with the reemergence of state sectors, it becomes much more important to have international norms of regulation.  With international norms, enforced across borders, countries do not have to depend on their own, often mobbed-up, regulatory systems to protect people as businesses, consumers and citizens.

B)  The best response to changing demographics is to help workers be as productive and contributive over their lives as possible.  This requires new modes of education that prepares workers for highly automated work conditions; it gives them skills to strike out on their own when employers are less than willing to hire them late in their work lives.  It makes mid- and late-career workers more valuable later in life than they were earlier in life, because of their accumulated skills.

C)  Demographic shifts will bring prosperity to parts of the globe that have long been under-appreciated economically.  Look to new markets that will develop very rapidly as their people enjoy both the fruits of lower fertility and the demand for their youthful labor forces.

Posted by Bill Raisch, Host – Global Disruptors Forum

The almost instantaneous loss of “trust equity”

Steve Parrish Former Senior Vice President, Altria Group (Kraft Foods, Philip Morris & Miller Brewing) & Current Principal, Steve Parrish Consulting

Steve Parrish Former Senior Vice President, Altria Group (Kraft Foods, Philip Morris & Miller Brewing) & Current Principal, Steve Parrish Consulting

Forum Host Bill Raisch:  Steve, you have decades of experience in crisis management, corporate social responsibility, public affairs and communications as a senior executive at Philip Morris and Altria as well as at a number of other major firms in a consulting capacity.  You have been at the nexus of crisis and communications in number of high profile situations.

From that vantage point, what do you see as one of the most important disruptors facing global corporations, markets and/or wider society?

Steve Parrish:  Information or communications (accurate or inaccurate) can almost instantaneously and negatively affect attitudes and perceptions of the company.

Bill Raisch:  What are the potential impacts of inaccurate information / communications?

Steve Parrish:  Because of the speed and global nature of information flow and the multitude of channels of communications, negative information or communications can erode, and in some cases even destroy, trust in a corporation’s brands and its image (a company’s “trust equity”).  This can happen with respect to opinion leaders, government officials and consumers, among others.  Depending upon pre-existing perceptions of a company and its products, it can take years to rebuild trust in the products and the corporate image.

Bill Raisch:  What strategies would you suggest to address this disruptor – to either mitigate negative impacts and/or to capitalize on potential opportunities?

Steve Parrish:   No one can guarantee that bad things will not happen.  No one can guarantee that inaccurate things will not be said.  No one can guarantee that things will not be misunderstood.  But, pre-existing relationships with key stakeholders, including critics–especially critics–can help.  Pre-existing relationships with key stakeholders can prevent the occurrence of some disruptors and speed the rehabilitation process with respect to others IF those relationships are built on respect and trust.

Posted by Bill Raisch, Host – Global Disruptors Forum

Lack of confidence in our data leading to distrust across government, business and wider society

Steve Chabinsky – Past Deputy Assistant Director, FBI Cyber Division; Current SVP - Legal Affairs & Chief Risk Officer, Crowd Strike

Steve Chabinsky – Fmr. Deputy Assistant Director, FBI Cyber Division; Current SVP – Legal Affairs & Chief Risk Officer, Crowd Strike

Forum Host Bill Raisch:  Steve, you organized and led the FBI’s Cyber Intelligence Program as well as serving in the Office of the Director of National Intelligence.  You are now Chief Risk Officer for the cybersecurity technology firm, CrowdStrike.  You definitely have a distinct perspective on the cyber world.

What do you see as one of the most important disruptors facing global corporations, markets and/or wider society? 

Steve Chabinsky:  The increasing inability to have a high level of confidence that our data, as well as technology driven products and services, are and will remain (1) available;  (2) reliable; and (3) exclusively within the owners control.

Bill Raisch:  What are the potential impacts of this lack of confidence in data?

Steve Chabinsky:  Governments will be unable to rely upon their military platforms. Businesses and professional practices will be unable to protect corporate secrets, client confidences, or customer data, and will be unable to rely upon electronic commerce platforms. Society will grow to distrust technology, and will be at risk of loss of life when driving automobiles or having implanted medical devices, all of which can be hacked.

Bill Raisch:  What strategies would you suggest to address this disruptor – to either mitigate negative impacts and/or to capitalize on potential opportunities?

Steve Chabinsky:  The primary design element of certain technologies will begin to include assurance and attribution, allowing for quick detection of hostile activity, graceful declining of service, and attribution to determine responsibility.  Governments will begin to pay less attention to the impossible goal of security through invulnerability, and will start focusing first and foremost on threat mitigation efforts in coordination with the private sector.

Posted by Bill Raisch, Host – Global Disruptors Forum

Societal

We welcome insights on emerging and prospective Societal Disruptions including but not limited to the following key areas:

  • Demographic Revolutions: Urbanization, aging, generational mixing, dynamic middle-class and others
  • Changing Consumer Behaviors & Developing Mega-Trends
  • Disruptive Forces in Sport
  • Explosive Violence: Civil Unrest, Backlash Against Globalization, Workplace Threats,
  • Contagion: Pandemic & Drug Resistant Bacteria
  • New Waves in Immigration: Likely reforms, costs and benefits to business
  • Hyper-Connectivity & the Volatility of Reputations