InnovationISSUE 2: SPRING 2016 INVENTING Journal THE BLENDED WORLD OF TOMORROW Charting a course for the future In this issue: Megatrends shaping our future & HP strategy Page 4 Ambient computing in the fabric of everyday life Page 8 Celebrating HP Labs 50th anniversary Page 11 Accelerating into the future with partners Page 12 Innovation spotlight: HP Sprout Pro & Elite X3 Page 16 Meet amazing talents in HP Taiwan & Brazil Page 18 Megatrends are on our minds as we release this second installment of the quarterly HP Innovation Journal. As I noted in the first issue, the vision of the new HP is to create technology that makes life better for everyone, everywhere. As you’ll read in these pages, that’s a commitment we are doubling down on with deep thinking, planning, and innovating around socio-economic trends that are profoundly influencing where and how we live and work. As a global population, we’re looking at who we are, how we are, where we are, and what kind of world we’ll be living in, a decade or two from now. Taken together, these trends create a picture of where the world is going, and of the technology that will be needed in the future. We study developments that are transforming our business and social land- scape, and we’re inspired to adapt and evolve. From Bristol to Boise to Taipei, our passion for shaping our future by engineering experiences that amaze is unwavering. In celebration of that global commit- ment we are releasing this issue to coincide with the Personal Systems Innovation Summit in Taiwan. The features you’ll find in this issue include an over- view of megatrends, and an exploration of ambient computing and its role in the future of home and work. You’ll also learn about how our innovation efforts apply not only to products—but to processes, as we expand the journal to include coverage of the dramat- ic and positive changes in our channel strategy. As we share so much at HP that is exciting and new, we’re also marking, this month, an incredible mile- stone. March 3, 2016 marked the 50th anniversary of HP Labs. Our innovative spirit shines every bit as brightly today as it did at HP’s founding. Labs continues its mission to create, identify, and develop novel technologies and experiences that delight customers and define the future of HP. To the road ahead, Shane Wall Chief Technology Officer and Global Head of HP Labs 2 Innovation Journal Issue 2 InnovationISSUE 2: SPRING 2016 INVENTING Journal THE BLENDED WORLD OF TOMORROW Contributors Mei Jiang Editor-In-Chief Chandrakant Patel Managing Editor Doug Warner Executive Editor Andrew Bolwell Contributor Philipp Jung Contributor The HP Innovation Journal is a celebration of HP’s culture of invention and innovation— Ticky Thakkar blending the heart and energy of a startup with the brains and muscle of a Fortune 50 Contributor company. Each issue will shine a spotlight on the intersection of our people and their ideas; on the notable new technologies and experiences that we’re developing; and on the key industry trends that we will drive through innovation. In this issue, we’re also looking at global trends that are shaping our efforts even as our work is shaping the future. We’re Jos Brenkel passionate about staying ahead of the curve, and ensuring our partners’ and customers’ Contributor success. As we celebrate HP Labs’ 50th anniversary, we also celebrate the momentum and opportunity we find in innovating for this fast-changing world. We want to hear from you! Email [email protected] to share your thoughts Get involved! on the Innovation Journal. Louis Kim Contributor Innovation Journal Issue 2 3 :::::::::::::::::::::::::::::::::::::::: Megatrends shaping ::::::::::::::::::::::::::::::::::::::: ::::::::::::::::::::::::::::::::::::::: our future ::::::::::::::::::::::::::::::::::::::: Using global trends to chart our course By Andrew Bolwell, Global Head, Technology Vision and HP Ventures, HP 4 Innovation Journal Issue 2 :::::::::::::::::::::::::::::::::::::::: ::::::::::::::::::::::::::::::::::::::: Two-ThirdsTwo-thirds of theof the Population population ::::::::::::::::::::::::::::::::::::::: Will Livewill live in Cities in cities by by 2050 2050 1950 2050 ::::::::::::::::::::::::::::::::::::::: =10% of the world population There’s so much change happening around us these days that it’s easy to forget the speed at which things are changing. We now have more computing power in Rural our pocket than all of NASA had in 1969 Population to put the first man on the moon. India sent a spacecraft to Mars for less money than it took Hollywood to make the movie Gravity.1 It took Uber a mere four years to hit $10 Billion in gross revenue.2 And Artificial Intelligence took just 42 hours to solve the 100-year-old mystery of how flatworms regenerate body parts.3 This pace of change will continue to accel- Urban erate at warp speed, with more change Population expected in the next 15 years than in all of human history to date. 19501960 1970 1980 19902000 2010 2020 2030 2040 2050 So how does a company like HP stay ahead of Rural (%) 70 66 63 61 57 53 48 44 40 37 34 all this change, to innovate, adapt, reinvent Urban (%) 30 34 37 39 43 47 52 56 60 63 66 and engineer experiences for a future that promises to look very different from today? Source:Source: World UrbanizationWorld Urbanization Prospects: Prospects: 2014 2014 Revision, Revision, United United Nations Nations Population Population Division DIvision While we can’t know what the future will 10 million people,7 but by 2030 we will urbanization? Given that city economies are hold, we can look to the major socio-eco- have 41 such megacities.8 Meanwhile, the becoming as big as country economies, nomic, demographic and technological area of urbanized land could triple globally should HP consider putting in place City trends occurring across the globe to help from 2000 to 2030. This is equivalent to Managers for top tier cities of the future? guide us: megatrends that we believe will adding an area bigger than Manhattan How can we reduce the energy used across have a sustained, transformative impact on every single day.9 the lifetime of our products? How can we of- the world in the years ahead - on business- fer people living in cities more convenience es, societies, economies, cultures and our With bigger cities come major economic through new services? personal lives. growth. By 2025, urbanization will welcome an additional 1.8B consumers to the world Changing demographics At HP, we’ve identified four major meg- economy, 95% of them in emerging mar- atrends: Rapid Urbanization, Changing kets.10 And consumers in emerging markets Simultaneously, changing demographics will Demographics, Hyper Globalization, and are forecast to spend $30T in 2025, up from dramatically shift the tapestry of our society. Accelerated Innovation. $12T in 2010.11 However, urbanization is not only driving economic growth, it is also As fertility rates decline and life expectancy Rapid urbanization changing how we buy and consume prod- increases, the composition of our popu- ucts and services, propelling the sharing lation, and our workforce, will shift older. By 2030 there will be 8.5 billion people economy and convenience-based services. By 2060 we’ll have 3B more people over walking the earth.4 97% of that population the age of 30 than today.13 More and more growth will be in emerging economies,5 and But urbanization is also having a toll on the countries are becoming super-aged, mean- most of these people will choose to call environment. If nothing changes by 2030, ing that more than 20% of their population cities their home. By 2025, 5B people will mankind would need the resources of two are over the age of 65.14 And by 2030 we’ll live in cities, 2.5B of them in Asia.6 planets to sustain its current lifestyle.12 have twice as many people over 65, nearly And so sustainability becomes an even 1B.15 China is a perfect example of this phe- And as people move to cities, our cities more important theme, for consumers and nomenon. Today 26% of their population is will get larger, and we’ll have more of businesses alike. over the age of 55. By 2030 that number will them, including megacities in places many grow to 43%.16 To deal with this shift they of us have never heard of today. In 1990 How can HP address some of the oppor- recently rescinded their one child policy there were only 10 cities with more than tunities and challenges posed by rapid after 35 years. > Innovation Journal Issue 2 5 < In turn, this will lead to a shrinking and aging Personal and commercial robotic solutions has become the new norm. Long gone are workforce and put a strain on economies to augment our lives and tasks? the days when 75-year-old companies are and government spending, simply because commonplace. The average tenure of compa- as the world ages, there will be fewer people Hyper globalization nies on the S&P 500 dropped from 35 years working to support the number of people in 1980 to 18 years in 2012. By 2027, 75% of retiring. Germany, for example, will lose Globalization arguably began 2000 years S&P 500 companies will be removed from the nearly half its workforce by 2060, putting ago with the 6,000km Silk Road that index.19 Disruption is now happening every- its economy at serious risk.17 Companies will connected Eurasia. However, no one can where to everyone, even to those companies also be forced to reevaluate their workforce argue that a truly dramatic “flattening” of who were themselves doing the disrupting programs for aging workers.