• Agenda
  • Initiatives
  • Reports
  • Events
  • About
    • Our Mission
    • Leadership and Governance
    • Our Members and Partners
    • Communities
    • History
    • Klaus Schwab
    • Media
    • Contact Us
    • Careers
    • World Economic Forum USA
    • Privacy and Terms of Use
  • EN ES FR 日本語 中文
  • Login to TopLink

We use cookies to improve your experience on our website. By using our website you consent to all cookies in accordance with our updated Cookie Notice.

I accept
    Hamburger
  • World Economic Forum Logo
  • Agenda
  • Initiatives
  • Reports
  • Events
  • About
  • TopLink
  • Search Cancel

Home Page

<Previous Next>
  • Introduction
  • Executive Summaries
  • Global Shifts
    • Stefanie Babst, NATO – Rethinking Our Approach to Global Security
    • Jeremy Bentham, Royal Dutch Shell Plc – Reframing the Climate Change Debate
    • Wayne Best, Visa Inc – Demographics and Demand
    • Jean-Claude Burgelman, European Commission – A “New Deal” on Green Growth
    • Jakkie Cilliers, Institute for Security Studies – Reclaiming Legitimacy in Global Governance
    • Thomas E. Cremins, NASA – A New Space Age
    • Kristel Van der Elst, The Global Foresight Group – Rethinking Ageing
    • Tina Fordham, Citigroup – Vox Populi Risk
    • Julius Gatune, African Centre for Economic Transformation – Rethinking the Informal Economy
    • Jerome Glenn, The Millennium Project – The Age of Conscious-Technology
    • Derrick Gosselin, SCK.CEN – Predictive Analytics
    • Stefan Hajkowicz, CSIRO – The Potential of the Creative Economy
    • Kathleen Hicks, CSIS – New Security Challenges Posed by Megacities
    • Claudia Juech, The Rockefeller Foundation – Economic Opportunities in the 21st Century
    • Katell Le Goulven, UNICEF – Agile Development
    • Chris Luebkeman, Arup Group Ltd – Ambient Technology in Cities
    • Marios Maratheftis, Standard Chartered Bank – Shifting Geo-Economic Power
    • Daizo Motoyoshi, LIXIL Group Corporation – Revival of Japan
    • Herbert Oberhänsli, Nestlé SA – Rethinking Freshwater
    • Seongwon Park, STEPI – The Rising Appeal of a De-Growth Future
    • Rafael Ramírez, University of Oxford – The Possible Future of the Economics Profession
    • Rogerio Rizzi de Oliveira, Hewlett-Packard Company – Improving the Quality of Life in Megacities
    • Nouriel Roubini, New York University – The Third Industrial Revolution
    • Francisco Sagasti, FORO Nacional Internacional – The Changing Nature of Livelihoods
    • Trudpert Schelb, Siemens AG – The Next Stage of Individualization
    • Peter Schwartz, Salesforce – Fundamental Technological Progress Driving Economic Growth
    • Angela Wilkinson, OECD – Progressing Well-Being through Inclusive Growth
    • Jill Wong, Singapore Government – The Impact of Automation on Jobs and Society
  • Videos
  • Acknowledgements
  • Browse by Topic
    • Issues
      • Ageing
      • Cities and Urbanization
      • Economics Growth and Development
      • Employment and Entrepreneurship
      • Environment and Sustainability
      • Science and Technology
      • Security and Governance
    • Industries
      • Aviation and Travel
      • Electronics
      • Engineering and Construction
      • Global Health and Healthcare
      • Infrastructure
      • IT Software and Services
      • Media Entertainment and Information
      • Oil and Gas
      • Retail Consumer Goods and Lifestyle
      • Telecommunications
Global Strategic Foresight Community Home Previous Next
  • Report Home
  • Introduction
  • Executive Summaries
  • Global Shifts
    • Stefanie Babst, NATO – Rethinking Our Approach to Global Security
    • Jeremy Bentham, Royal Dutch Shell Plc – Reframing the Climate Change Debate
    • Wayne Best, Visa Inc – Demographics and Demand
    • Jean-Claude Burgelman, European Commission – A “New Deal” on Green Growth
    • Jakkie Cilliers, Institute for Security Studies – Reclaiming Legitimacy in Global Governance
    • Thomas E. Cremins, NASA – A New Space Age
    • Kristel Van der Elst, The Global Foresight Group – Rethinking Ageing
    • Tina Fordham, Citigroup – Vox Populi Risk
    • Julius Gatune, African Centre for Economic Transformation – Rethinking the Informal Economy
    • Jerome Glenn, The Millennium Project – The Age of Conscious-Technology
    • Derrick Gosselin, SCK.CEN – Predictive Analytics
    • Stefan Hajkowicz, CSIRO – The Potential of the Creative Economy
    • Kathleen Hicks, CSIS – New Security Challenges Posed by Megacities
    • Claudia Juech, The Rockefeller Foundation – Economic Opportunities in the 21st Century
    • Katell Le Goulven, UNICEF – Agile Development
    • Chris Luebkeman, Arup Group Ltd – Ambient Technology in Cities
    • Marios Maratheftis, Standard Chartered Bank – Shifting Geo-Economic Power
    • Daizo Motoyoshi, LIXIL Group Corporation – Revival of Japan
    • Herbert Oberhänsli, Nestlé SA – Rethinking Freshwater
    • Seongwon Park, STEPI – The Rising Appeal of a De-Growth Future
    • Rafael Ramírez, University of Oxford – The Possible Future of the Economics Profession
    • Rogerio Rizzi de Oliveira, Hewlett-Packard Company – Improving the Quality of Life in Megacities
    • Nouriel Roubini, New York University – The Third Industrial Revolution
    • Francisco Sagasti, FORO Nacional Internacional – The Changing Nature of Livelihoods
    • Trudpert Schelb, Siemens AG – The Next Stage of Individualization
    • Peter Schwartz, Salesforce – Fundamental Technological Progress Driving Economic Growth
    • Angela Wilkinson, OECD – Progressing Well-Being through Inclusive Growth
    • Jill Wong, Singapore Government – The Impact of Automation on Jobs and Society
  • Videos
  • Acknowledgements
  • Browse by Topic
    • Issues
      • Ageing
      • Cities and Urbanization
      • Economics Growth and Development
      • Employment and Entrepreneurship
      • Environment and Sustainability
      • Science and Technology
      • Security and Governance
    • Industries
      • Aviation and Travel
      • Electronics
      • Engineering and Construction
      • Global Health and Healthcare
      • Infrastructure
      • IT Software and Services
      • Media Entertainment and Information
      • Oil and Gas
      • Retail Consumer Goods and Lifestyle
      • Telecommunications
  • IT Software and Services
  • Retail Consumer Goods and Lifestyle
  • Science and Technology
  • Security and Governance


The Next Stage of Individualization
Rethinking Our Growing Dependence on Digital Infrastructure with Significant Monopolistic Power

Trudpert Schelb, Siemens AG

 

Individualization is about to reach new stages, enabled by new technologies, low entry barriers and new value systems. Technology such as e-commerce platforms allows individuals to produce and consume an increasingly tailored blend of products and services, disrupting traditional business models. In future, further disruption may come from the rise of the DIY economy through 3D printing; a more fragmented energy industry with the rise of affordable solar and wind power; and increased innovation and entrepreneurship with more flexible working models. However, these new stages of individualization may create a dangerous dependence on digital backbone systems, such as IT platforms and smart energy grids, with significant degrees of monopolistic power. As a society we need to rethink how we manage this so that everyone can benefit from these new opportunities.

 


Share

Author

27---Schelb-

 

Trudpert Schelb

Director, Strategic Transformation, Siemens AG

Author

27---Schelb-

 

Trudpert Schelb

Director, Strategic Transformation, Siemens AG

Disclaimer

All opinions expressed herein are those of the authors. The World Economic Forum provides an independent and impartial platform dedicated to generating debate around the key topics that shape global, regional and industry agendas.

Disclaimer

All opinions expressed herein are those of the authors. The World Economic Forum provides an independent and impartial platform dedicated to generating debate around the key topics that shape global, regional and industry agendas.

Highlight

Tweet
Greater individualization will lead to more creativity and human flourishing

Highlight

Tweet
Greater individualization will lead to more creativity and human flourishing
Individualization is now about to reach new stages, enabled by new technologies, low entry barriers and new value systems. It will further change our society and economy and increase the power of individuals. However, it will also make them more vulnerable by increasing dependence on often monopolistic backbone technologies. Can we find ways to ensure that everyone can benefit from the new opportunities?

Today’s societies are increasingly pluralistic, with more and more opportunities for individuals to consume and produce a uniquely tailored blend of products and services. Technology such as e-commerce platforms and online shops increasingly enable targeted marketing and delivery of nuanced offerings. An example of this “long tail” phenomenon is the German beer market. Over the last decade, per-capita consumption of beer has fallen, while the number of beer brands and breweries has grown.

Individualization has progressed furthest in digital goods. The music and media industries have been transformed by the ability of individuals to pick and choose from a range of entertainment sources and to find an audience and market for their own self-expression. The rise of 3D printing is set to do the same for physical goods, by enabling individuals to shape product design and manufacture objects out of cellulose or plastic in their own homes. This DIY economy will enter the mainstream with user toolkits and intuitive product configurators making specialized design and production knowledge obsolete. 

This phenomenon is not confined to advanced economies. Individualization in emerging countries is still much lower, but growing. The key drivers towards individualization are technological progress, levels of education and prosperity, and urbanization, as cities tend to be associated with higher levels of creativity – all trends likely to continue in the coming decades, especially in emerging countries.

The growing middle classes in the emerging world seem especially eager to individualize and have a high affinity for new technologies that enable them to stand out from the crowd. An example is the trend to customize high-end cars in China, with Porsches or Ferraris being chrome-painted or painted unusual colours. The vehicle modification business in China is estimated to be worth about $8 billion.

The advance of individualization will have profoundly disruptive effects on a wide range of industries. Just as the media and music industries have struggled to adapt their business models in recent years, other sectors will increasingly be disrupted by the rising power of the individual – from product design and manufacture through 3D printing, to energy utilities as a fragmented and emancipated customer base increasingly produces its own energy using technology such as solar and wind power. 

All of this can be considered as a major threat for traditional industry players due to the radically lower entry barriers to their changing markets. The only way to survive is to transform their structures and to innovate business models.

Highlight

Tweet
Can we all benefit from the shift towards greater individualization?

Highlight

Tweet
Can we all benefit from the shift towards greater individualization?

Greater individualization will lead to more creativity and human flourishing. The positive side of the disruption of established players is the greater chance it gives to individuals to create niche businesses with low capital investment and global market reach via e-commerce platforms. Hidden potential for innovation and entrepreneurship will be unleashed, and different and more flexible working models will emerge. The socialization of arts and media offers huge spaces for individual creativity.

As technology becomes more accessible, the benefits could include new solutions to bottom-of-the-pyramid issues. With local access to global knowledge resources and innovation networks, it will become increasingly possible for individuals to develop solutions and make them available for everybody within low-cost innovation networks, an example being the rice husk gasification plants now supplying villages in India with stable and sustainable power.

However, the new stages of individualization also create dangerous dependence and new vulnerabilities. They typically rely on strong backbone systems, such as smart energy grids or information platforms, the centralized structure of which makes them easy to manipulate. Global monopolistic structures among these backbones, especially in the IT industry, can already be observed today. Providers of non-physical systems can more easily hide in unlegislated areas and misuse their market power.

As individuals grow more reliant on these backbone systems, the potential for harm increases: whether from authorities filtering information or shutting down networks in response to protests, as already observed in some autocratic systems; or from livelihoods coming to depend on monopolistic online platforms which could suddenly change policies to privilege certain sellers over others, or increase costs knowing that it is difficult for individuals to switch to other systems – the individual as a market player does not have the power of large companies to fight for his/her own interests. Additionally, system-wide IT security gaps pose enormous risks.

Should we consider bringing parts of the digital backbone under public ownership, or enshrining individual rights to its use? Can we revitalize competition among system providers to strengthen the position of the individual? How could technology empower and protect individuals while enabling the opportunities of an individualized world?

If we can overcome these risks, the next stages of individualization offer significant benefits – both economically and for human freedom.

Back to Top
Subscribe for updates
A weekly update of what’s on the Global Agenda
Follow Us
About
Our Mission
Leadership and Governance
Our Members and Partners
The Fourth Industrial Revolution
Centre for the Fourth Industrial Revolution
Communities
History
Klaus Schwab
Our Impact
Media
Pictures
A Global Platform for Geostrategic Collaboration
Careers
Open Forum
Contact Us
Mapping Global Transformations
Code of Conduct
World Economic Forum LLC
Sustainability
World Economic Forum Privacy Policy
Media
News
Accreditation
Subscribe to our news
Members & Partners
Member login to TopLink
Strategic Partners' area
Partner Institutes' area
Global sites
Centre for the Fourth Industrial Revolution
Open Forum
Global Shapers
Schwab Foundation for Social Entrepreneurship
EN ES FR 日本語 中文
© 2022 World Economic Forum
Privacy Policy & Terms of Service