Preface The Fourth Industrial Revolution is transforming entire systems of production, distribution and consumption, providing opportunities for value creation through game-changing technologies and challenges to ensure inclusivity. To ensure success in the midst of digital disruption, there will be a premium placed on innovation, a willingness of organizations to disrupt themselves, a quest for active collaboration and a commitment to advance inclusive growth strategies. In the context of this seismic change, the World Economic Forum System Initiative on Shaping the Future of Consumption envisions a future where technology is firmly Sarita Nayyar, embedded in people’s lives, making their daily experiences simpler, highly personal Chief Operating Officer, and more enjoyable as well as imbued with trust and harmonious with nature. World Economic It takes a holistic view by addressing the question, “How can technological Forum LLC disruption drive enhanced models of consumption with sustainable benefits for business and society?” Introduced in June 2016, this System Initiative features a portfolio of projects designed to create forward-looking scenarios with corresponding roadmaps as the consumption landscape rapidly evolves. Its inaugural project, Shaping the Future of Retail, deepened the understanding of how the world of retail, the largest private employer in the world, will continue to evolve over the next decade, fuelled by hyperconnected consumers and a multitude of technology-enabled business models. In 2017, the Operating Models of the Future project explored how organizations must transform to support innovative business models and integrate Zara Ingilizian, disruptive technologies and data analytics into the DNA of their businesses to Head of Future of realize benefits across the enterprise. Consumption System Initiative, Member The Forum is pleased to present this insight report developed in partnership with of the Executive Accenture to global leaders as they manage disruption on multiple fronts. Extensive Committee, World Economic Forum LLC qualitative and quantitative research was conducted to understand the current environment and develop a vision of the future. The future-oriented insights along with the commensurate challenges in the report can be applied to a broad range of businesses that are preparing to navigate the uncharted waters of the Fourth Industrial Revolution. It is important to highlight that the transformation of operating models will impact employees by altering roles, requiring new skills and changing how work is done. To mitigate employment risk, the private and public sectors have the opportunity to leverage the perspectives in this report and proactively advance workforce transition strategies to meet the demands of the digital age while also ensuring economic equality. It is only through collective effort that a pathway to realizing a prosperous future with substantial benefits for both business and society can gain momentum. On behalf of the Forum’s Future of Consumption System Initiative team, our profound appreciation and gratitude are extended to all parties that played a key role in the development of this insight report: the Accenture team led by Oliver Wright, the project Steering Committee and all participants who contributed via interviews and workshops. Operating Models for the Future of Consumption 3