We continually rave on about the incredible volatility that persists in world markets and our mantra has always been recommending investors put money into businesses that humans rely on for their existence. AGL Energy, BHP, RIO, Woodside, Origin Energy, Ramsay Health Care, CSL, Woolworths and the banks are just a few companies that have been beneficiaries of this strategy and they have served investors well over many years, providing both income and growth.

In this new era of austerity (both self imposed and forced upon many against their will), we need to continually reinvest time and effort into our investment strategies in order to secure our futures.

The gates of creative destruction are well and truly open. Over the next number of weeks, I will be writing what I believe will be the forces that will shape the economy and fabric of society following the most disruptive few years the world has encountered since the first Industrial Revolution which took place around 1760.

We are in the midst of a period of immense and intense change. Change brings resistance and fear. In order to succeed, you need to embrace what is unfolding because resistance is useless. The network will rule and computing power, the internet and the upcoming revolution in cloud computing will fundamentally alter the way we all live, work, play and interact.

Like all previous industrial revolutions, there are winners and losers and hopefully the thoughts following will encourage you to face the new world order with courage and conviction.

1. Creativity and innovation

Creativity and innovation will drive the future – I am convinced that connectivity, collaboration and networks will be central to success in the new world economic order.

2. No more excess and consumption

The old business assumptions of consumption and quantity are finished as I see it, as we continue to wake up to the fact that we have all consumed too much and become too fat following our discretionary spending binge we will work out that we need to have a balance on the production of quality rather than simply blind consumption.

3. Goodbye old ways

Our existing way of doing things is fundamentally misplaced and we need to make some shifts in order to recalibrate what we will pass on to the next generation.

4. Globally connected

Increasingly, we will work locally but connect globally and experience a sense of inclusion.

5. Change our expectations

We need to change our expectations and our hopes. Globalisation has ushered in many changes and technology will continue to be front and centre as we strive to make ongoing breakthroughs in energy resources and medicine.  

6. Getting older

The aging demographics of the Western World will also be an ongoing challenge for governments and society in general.

7. All in the cloud

Cloud computing will revolutionise how the world transacts and gets it’s information, as the costs of computing fall our access and capability increases exponentially. More and more people will continually connect across the globe, from Melbourne to Mumbai, Brisbane to Bangalore and Sydney to Stockholm.

8. Pricing transparency

This connectivity will increase pricing transparency. Comparison websites will update you to the best prices available across the world. Margins will continually be subject to compression and companies will need to compete more and more on a global basis in order to remain relevant.  

9. Technology and access widely available

Sophisticated technology and software will be available to all parts of the globe and a new global infrastructure will be created with many more services available due to the impact of the cloud. Communicating cost will be almost free and assets such as teamwork, collaboration and cooperation will be crucial for success.

10. Improved education

We have already seen the power of the Facebook generation across the Middle East and the UK in recent months. Education will improve as more and more access is granted to the current crop of have-nots in poorer countries.

11. No more monopoly

Until recently the monopolies of the worlds largest corporations were firmly entrenched, the cost of moving goods across the world has fallen dramatically since and companies like Amazon, Apple and Google have surged as their collaborative and inclusive models have engendered consumers the world over.

12. Global choice

Consumers now have choice, not just locally but globally.

The impact will not be sudden but gradual, very much like putting a frog in cold water and turning up the heat rather than just tossing it into the boiling water.

The economic tremors will continue like aftershocks and we need to build models to withstand and sustain.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.