InnovationISSUE 6 · SPRING 2017 INVENTING Journal THE BLENDED WORLD OF TOMORROW Global trends shaping our future In this issue: Navigating the future: HP 2017 Megatrends report Page 4 Virtual Reality comes of age Page 7 Inside HP’s Engine Room Page 10 How to influence purchases and win friends along the way Page 13 Here’s a bright idea: use less energy! Pages 15 HP and Yale: Reinventing the classroom Page 17 Energy for everyone Page 19 Colorful side of innovation Pages 20 Investing in a Virtual Reality future Page 21 Find out what awards HP’s leaders recently won Page 22 Abraham Lincoln once said, “you cannot escape the responsibility of tomorrow by evading it today.” As innovators and for- ward thinkers, I believe the onus is us to understand what lies ahead, how societies will change, economies will ebb and flow and the world around us will transform. That’s why each year HP deep dives into the major socio, economic and global trends happening in an effort to understand where the world is heading. In this issue, we get a glimpse at the future through our annual HP Megatrends report. This year’s report explores future themes including the evolution cities will endure in the coming years, the differing realities of middle class families across the globe and the rise of the autonomous workers thanks to artificial intelligence, machine learning and robotics. We marry these learnings with our advancements in technologies to help to inform our strategic decisions around future products and services; and the experiences we deliver through them. Virtual Reality (VR) and Augmented Reality (AR) certainly offer up new ways to experience games, consumer content and now commercial applications. Pan HP teams have been working furiously to bring new VR solutions to our customers and I’m excited we get to share those efforts and where the team sees VR heading. Our technology advancements in VR and AR are just the tipping point of what’s brewing in the HP Engine Room. The Engine Room creates a multi-disciplinary environment so solutions can share the same capa- bilities and attributes — allowing us to move faster and smarter. Making way for amazing innovations like Sprout by HP, which is being used by Yale University to reinvent the classroom and unleash student imaginations. I feel confident that with an eye to the future, HP’s amazing spirit of inno- vation and close collaboration with our customers and partners, we are charting the right course forward. Let’s journey to the future together! . Shane Wall Chief Technology Officer and Global Head of HP Labs 2 Innovation Journal · Issue 6 · Spring 2017 InnovationISSUE 6 · SPRING 2017 INVENTING Journal THE BLENDED WORLD F TOMORROW EDITORIAL STAFF Mei Jiang Chandrakant Patel Editor-In-Chief Managing Editor Doug Warner Executive Editor CONTRIBUTORS Andrew Bolwell Vincent Brissot Judy Glazer Nate Hurst he HP Innovation Journal is a celebration of HP’s culture of invention and innovation — blending Gus Schmedlen Randall Rode the heart and energy of a startup with the brains and muscle of a Fortune 50 company. Each Yale Tissue 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 time travel as we explore how global socio-economic, demograph- ic and technological trends will transform cultures, societies, workforces and the environment in the Madhu Athreya Paul Martin future. We explore the coming of age of Virtual Reality and the impact it is having on both consumer and commercial experiences. Plus, we go behind the scenes to learn about HP’s multi-disciplinary engine room and how it is propelling us forward. Finally, we travel to Yale University to get a glimpse at how students are creating their own Blended Reality solutions and reinventing the classroom. Bob Campbell John Ludwig We want to hear from you! Email [email protected] Get involved! to share your thoughts on the Innovation Journal. Mike Ho Robert Centa Issue 6 · Spring 2017 · Innovation Journal 3 FEATURED ARTICLE Navigating the future: HP 2017 Megatrends report Megatrends — helping HP adapt, chart, and reinvent the future by Andrew Bolwell, VP, Chief Disrupter, Global Head of HP Tech Ventures, HP; Doug Warner, VP and Global Head of Tech Vision & Strategy, HP 4 Innovation Journal · Issue 6 · Spring 2017 t HP, our work on Megatrends is focused on directionally predicting where the Middle class consumer spending Aworld is headed, and about boldly en- (in trillions of dollars) suring a successful and relevant place in it for 32.9 HP and our customers. Middle class consumption in In Issue 2 of the Innovation Journal, we Asia-Pacific is expected to expand discussed how four Megatrends — Rapid rapidly, with India’smiddle class +571 growth Urbanization, Changing Demographics, reaching 256M by 2025 Hyper Globalization, and Accelerated Innovation — will have a sustained and transformative impact on businesses, soci- 11.1 eties, economies, cultures, and our personal 8.1 2.2 1.5 5.5 5.6 4.9 lives in the future. 0.4 0.6 0.9 3.3 Each year we revisit these four Megatrends Sub-Saharan Middle East/ Central/South North Europe Asia-Pacific to identify which Megatrend themes are ac- Africa North Africa America America celerating, which are diminishing or changing, Source: OECD 2009 2030 (projected) and what new themes are on the horizon. Here is a brief overview of our findings the US, it is estimated that women controlled At the same time, by 2030 we’ll have twice this year: an estimated $14 trillion of wealth in 2015, as many people over age 65 — nearly one and today influence 85% of all consumer billion. This is leading to a shrinking and ag- Rapid Urbanization purchases. ing workforce, putting a strain on economies, While urbanization is also driving a growing government spending, and healthcare. We will By 2030 there will be an estimated 8.5 billion middle class in emerging economies, in de- need to harness the exponential technology people walking the earth. They will be drawn veloped nations a rift is developing between growth of faster computing, artificial intel- to cities in massive numbers for the promise of haves and have-nots, with many consumers ligence (AI), big data, mobility, microfluidics, a better life. According to McKinsey, by 2025, driven more by value than quality. and the Internet of Things to help us meet urbanization will welcome an additional 1.8 As millions of people move to cities every these growing health challenges. billion consumers to the world economy, 95% week, this will also put a huge strain on space, of them in emerging markets. city resources, energy requirements, and in- As economic conditions improve and so- frastructure costs, forcing homes, offices, and cial attitudes change, more women will have cities to become smarter and more efficient. a major impact on the world economy, from From smart-city to micro-living initiatives, growing participation in the global labor force there will be an increasing focus, around the to economic wealth and spending drivers. In globe, on optimizing space, products, and services for urban living. Changing Demographics We have a new generation about to enter the workforce, Generation Z (Gen Z), born In 2030, between 1995 and 2010. Gen Z is about a 13% of the population quarter of the U.S. population and predict- will be over the ed to make up 36% of the global workforce age of 65 by 2020. This generation was raised on the Internet, expects to communicate and digest In the next decade information instantaneously, and has a shorter nearly 1 Billion women attention span for inbound information. As the Hyper Globalization will enter the formal online generation, Gen Z is acutely aware of economy and become the issues and global challenges happening How and where we design, sell, and manufac- economic contributors in the world around them. ture products will become both hyper-global and hyper-local thanks to a globally connected Issue 6 · Spring 2017 · Innovation Journal 5 and advertising, and even making investment Payment habits of Millennials decisions in the boardroom. This “smart movement” will impact every aspect of our lives, with intelligent agents 52% 41% 29% and bots always at the ready, orchestrating Use smartphone Use their phone Expect to use our everyday activities. The possibilities are as mobile payment to make a payment PayPal at least endless for a Man + Machine-enabled world. device at least monthly weekly by 2020 So how will these trends shape HP’s future strategy and 22% 26% 13% innovations? Use wearables Expect to use digital Use digital HP uses Megatrends to inform strategic, ac- as a payment currencies daily currencies today tionable choice points for our products and device daily/weekly or weekly by 2020 daily or weekly services. Megatrends give HP a directional look at how markets, industries, and behav- iors are changing, and what type of solutions world with a diverse set of local requirements. mature and become commoditized, they might be needed to overcome the challenges It’s now easier than ever for start-ups to scale transform into building blocks for new break- and demands of those shifts. globally, and for emerging market companies throughs. Emerging technology trends like Looking at short and long-term time to become real challengers to established mul- Hypermobility, 3D Transformation, Internet intervals, HP identifies key technology ad- tinationals. This challenge will disrupt markets of ALL Things, and Smart Machines will har- vancements and new solutions that have the and business models.