Our aging population, climate change and new and emerging technologies spell opportunity
By Anne Golden,
President and CEO,
The Conference Board of Canada
Cost-cutting and survival: these are the immediate necessities that Canadian companies must focus on to get themselves
through the current economic crisis. Businesses will only be sabotaging themselves if they allow today’s urgencies to distract them from strategies that will enable them to succeed in the longer term.
To sharpen competitiveness and capture new market opportunities, companies will have to seize on three major trends that were already in motion before the economic downturn and will certainly outlast it, forcing major changes in our ways of doing things. These trends are the aging population, climate change, and new and emerging technologies.
The aging of our population will reshape both workplaces and consumer markets. We at the Conference Board have been stressing the need for vigorous responses to this demographic shift. High-performing organizations must select and retain experienced workers in leadership roles. These people are the custodians of corporate memory and can mentor the next generation of workers. Home Depot takes advantage of the allure of sunshine for older Canadians: the company offers a snowbird program that transfers employees to southern U.S. locations during the winter months. Wal-Mart, with 20 per cent of its workforce over the age of 50, is considering a similar plan. It also acknowledges the practical needs of older workers by making changes like the choice of larger print for corporate communications. The City of Calgary has launched an internal employment agency to reach out to retirees who can apply their expertise to short-term assignments.
On the market side, business has new opportunities to serve older consumers in fields like health care. Forgetfulness in taking medications is a problem that’s been addressed by Memotext of Toronto. The company’s system uses cell phones and other wireless devices to deliver medication reminders and patient education. Patients who are managing their own chronic disease at home can get daily remote monitoring by health-care professionals, thanks to a system developed by Quebec-based New IT Healthcare and recently acquired by TELUS
Health.
The second trend – climate change – has spurred serious action by governments in Canada and the U.S. Carbon taxes and cap-and-trade systems are either in place or imminent; regulations to cut greenhouse gas emissions are under discussion. Companies – whether they produce energy or consume it – must plan for these changes by investing in renewable energy, environmental technologies and energy-efficient production and transportation.
In October, Enbridge Gas Distribution Inc. opened a 2.2-megawatt hybrid fuel-cell power generation station in Toronto, an efficient, low emissions plant that is the first of its kind in the world. Vancouver-based Smartcool Systems Inc. has a system to reduce refrigeration and air conditioning energy use by 15 to 20 per cent in hotels, supermarkets and commercial buildings. Blue Line Innovations Inc. of St. John’s has developed a device that displays household power consumption in real time, so that consumers can see their power use and cost, providing incentives to conserve.
Finally, the 21st century will be reshaped by new and emerging technologies – notably biotechnology, nanotechnology and information and communication technologies (ICT). Companies that invest in them will become more efficient and will outpace their competitors. They will also be able to sell new higher-valued products and services. Plant- and forest-based biomass is abundant compared to diminishing oil and gas reserves. Recognizing this, DuPont is directing R&D investments towards replacement of petroleum-based products with those based on biomass. And Woodbridge Group is producing “green” auto parts from bio-materials.
Yes, these are times of economic volatility and uncertainty. Successful companies – like GE in the 1880s, Lego in the1930s, and FedEx in the 1970s – were forged in times like these. When survival itself is at stake, it may not be easy for business leaders to invest human and financial resources in the exploration of new strategies and opportunities. But having the vision to make those investments in innovation
now will enable organizations to re-emerge from today’s tough environment more competitive than ever.
