 Boa tarde. Thank you for sticking around. It's a pleasure to be back. Lisbon has become one of my favorite places to go to. It's also a country where my book is actually in the store, which is quite an achievement. My book came out about two and a half years ago. It's available in Portuguese outside if you want to get one later, but I wrote this book because everywhere I speak, you know, I've been speaking roughly for 15 years around the world, and the last five years people saying, you know, technology is great, but you know, what about us? What about humans? Culture? Work? Education? Habits? You know, are we going to become one with the machine? So people asked me to write this book, and I wanted to call the book technology and humanity. But my publisher said it's not good, because you know, it's kind of sounding too mellow. So let's make it technology versus humanity. I'm going to talk to you about what that means and which way I'm going with this. Now, first I want to start with this. The future is better than we think. I mean, we can see in the last three or four years, there's been a lot of fear about the future. And it's funny how the fear of the future came along with the rise of social networks. Now, social networks use went up like this, and people worried about the future went up like this, and populist voting went up like this. People are worried about the future for climate change. That's a real problem. And for robots and intelligent machines. You know, everywhere I go, people are saying, you know, it's great that technology can do this, but you know, the robots will take our work, and then they will come to kill us. So fear just not bad. It's not good. So here's a couple of facts to make you understand why the future is actually better than we think. Looking at the current graphs of today, decline of poverty, most people aren't aware of this. Brazil, for example. Even though there's many problems in Brazil, but this has been less, life expectancy. The kids of my kids will live to be a hundred years old. That's mostly a positive thing, I think. Child mortality is basically not gone, but almost gone in terms of the graphs. And the declining cost of solar panels and solar energy, very important here in Portugal, of course. So all the facts are showing that basically batteries, we're going to drive our cars for 2,000 kilometers on one filling in five years. Robots, that's not all just good news, because robots are becoming so cheap we can use them everywhere, including in the hospital. We can analyze our DNA, our internal genomes. That used to be a million dollars just a little while ago, and now it's 800 euros. And five years to have your DNA check will cost five euros and 10 years it'll be free. So many, many positive things. Of course, I'm aware of all the difficult things, but I think this is a positive movement. So there's only one thing when we think about the future. It's all great technology and great achievements, but we have to progress wisely. We have to govern the process. For example, every technology can be bad. People got addicted to television. We don't need Facebook for addiction. We have the television. And nuclear power is both good and bad, maybe. Artificial intelligence is both good and bad. So we need some sort of governance to understand why we use the good things and try to decrease the bad things. And that takes wisdom. In the shopping industry, where you guys are mostly from, it's going to be a huge balancing act between tracking surveillance and following people and using the data and actually giving a good experience. What we have on the internet today is essentially a surveillance economy. We're being watched everywhere. And because of the watching, it's easy to sell things. So if you're selling, it's good, but if you're not selling, then you're saying, well, I'm not so sure I want everything that I do watch. Now, this device here is tracking us absolutely everywhere. The iPhone maybe a little bit later, less than the other phones. But this is a whole story about Huawei, right? It's not a new story. It's just, I think we cannot continue to use these devices both for good and for bad. And then the bad kind of takes over. I mean, look at this chart. If you think that we have a lot of changes in the past, the industrial society, World War II, the atomic bomb, the internet, I mean, now it's basically going to be hands off anything that used to sound like science fiction is becoming real. We can speak to a computer. We can drive an autonomous car. We can print a tennis shoe. I mean, we can do all these things that were essentially stayed out of, stayed out of a Star Trek. And this is a funny part. All of these things are happening at the same time because we have very big scientific breakthroughs. Material sciences, 3D printing, quantum computing. So in the next 20 years, we're going to see more change than the previous 300 years. And that's actually not a bad thing. It's mostly a good thing. For example, climate change or energy. But in return, we have to say, well, you know, this technology can be very good, but it can also be very bad. You know, how do we govern? And that's going to be very, very important for buying and selling things, as you can imagine. So what we don't want is we don't want to heaven for advertising and marketing, but a hell for the consumer. That would not be a very wise move. This is here a mobile phone connected to the 5G network. You know the 5G network is the new network that's coming for telecom. You see the speed here? That's actually pretty low for 5G. 630 megabytes per second. The 5G network will bring up to two gigabytes per second. You know what that means? Not just a free download for movies or so. It means I can go instantly into any size of information. Huge databases, virtuality, algorithms, holograms. There's no latency here. This is the other thing. It's actually very quick, not just strong, but also quick. So I can do telemedicine. I can control devices. That's going to really change. I mean, it's going to change the entire way that we look at the future. So this curve you see many times before the exponential curve, I keep using it because it's really important to understand, we don't live in a world that gets gradually different. We're in a world that is jumping exponentially in Moore's law, Merkel's law, 4, 8, 16, 32. That's exponential. That's exponential. That's going to change the way that we look at the future. So 4, 8, 16, 32, that's exponential. Humans are 1, 2, 3, 4, 5, 6. Nature is up, then destruction, back down, back up, dinosaurs, you know. Nature is like a cycle. But technology is not. I mean, the thing I use today, for whatever I want to use it for, whatever machine that brought the Americans to the moon. It's hard to imagine. And in 10 years, this machine will have the computing power of all of the existing small computers today. So unlimited computing. I mean, basically in this world, we have to think exponentially. So if you're running a shopping mall or whatever you're doing in this business, you have to think about 5, 10 years, not 1, 2, 3, 4, 5, but 2, 4, 6, you know, 8, sorry, 16, like this. In 10 years, I mean, if you're building a shopping mall, it will take a while. You have to think of 10, 15 years, so you're on the top of this curve. In a world that's 100 times as different. So you really have to think about that. I take this principle from a Hemingway book, where Ernest Hemingway talked about how you go bankrupt, and he said gradually, then suddenly. And it's the same here. How do we face the future? Well, the future isn't coming like with a big warning sign. It's coming like, first you don't see anything, and all of a sudden boom is here. You know, I used to be in the music business. We thought 2000 would be downloading from the cloud and legal music took until 2014, until Spotify became really powerful. And Spotify has 100 million paying users. Many of you pay for Spotify. We used to say in 2010, nobody will ever pay for music. So it's basically very slow and it just goes explodes. So how will people change their shopping habits and their buying habits very slowly and then all at once? You don't get much warning. So you have to think like this. You know, there's three important things that are going to come in as exponential, converging industries, combinatorial technology. Converging industry means the biggest competitor for shopping and for e-commerce is of course digital platform companies. It's not the other guys. It's not the other providers of shopping services, whatever you're looking at. It's other industries. I mean, every single industry in the world is converging with technology. So first music films, television, books, publishing, advertising, you know, it's all becoming one thing. And then the next in the car industry is going digital with technology. The banking industry, the insurance industry, the energy industry, convergence. If any of you have issues, for example, taking cholesterol pills or statins, you know, blood pressure medication, in 10 years we have technology solutions for these problems. And we're converging with technology. So I'll give you a short example of what's happening. I always say jokingly, science fiction is becoming science fact. So if you think about the future, you always have to be a little bit open minded about what is real and what is not real. But I'm talking about basically five to seven years, not 50 years. And this is why it's so important that imagination is one thing that we're working on. Imagination becomes really important when things are moving this quick. I'll stop here because I could go on for hours. The most important skill today is to understand what is fiction and what is not. And what do people want? You know, years ago when Jeff Bezos came up from Amazon, he said, people really want to read books on the e-reader. I mean, none of us knew what an e-reader was. If Jeff Bezos had asked me, do you want to read a book on the Kindle or like an e-reader, he said, what are you talking about? He invented the e-reader. And he thought people would want it. And these things are going to happen all the time now. So this is very important, paying attention. I'm not talking about reading research reports or watching TED videos. I'm talking about understanding. Understanding means to go inside. You don't understand your kids until you actually go inside their heads. You can get information. That's completely different. We're talking actually doing things, trying stuff. I mean, in China, people buy already like $100 billion worth of commerce goods every week on WeChat, on The Messenger. But of course, the culture is entirely different. Would we do that? I don't know. I live in Switzerland. Probably not. But we got to think about, we have to be able to imagine. So I'm going to talk briefly about transformation and what I call the mega shifts, which is a big part of my book. These three things are the most important things for you guys. I customize a little bit for today. So first, data. Whoever has the data and who's allowed to use it and who's the smartest with the data and who doesn't violate the user rights wins. It's that simple. That's why Google, Facebook, Alibaba, you know, that's why they're always winning. We have to be very smart with data. We have to use data. We have to borrow data. We have to exchange data. Lots and lots of issues with this. And then if we have lots of data, we can't do without intelligent systems, artificial intelligence. I'll talk shortly more about that, but it's actually not what it sounds like. It's not a miracle machine. It's basically just fancy software. But without that, you can't make sense. You can't take a hundred million data streams and then as a human make sense, you can't. You need intelligent machines. And then lastly, you need to connect everything you have. Your store, your goods, your entry, your out. Basically, everything is becoming part of what's called the Internet of Things. Those three things. And there are, again, lots of issues about connecting all these things because whenever you connect, you have more security issues. And whenever you connect, you have more privacy issues. But on the other hand, you know, can we afford to live in a world that's not connected? Sometimes, but not as a rule. I think there are many ways to go back in what's called the tech lash, not to connect. But connecting stuff is definitely the future. So you've seen all the stuff like radio frequency chips that's widely used. You've seen the stuff like this where basically the intelligent system is creating information and helping you sell stuff. And that kind of becomes like this. We are becoming superhuman using technology. I mean, we're going into a world where we can do things that were basically not possible ever before. In fact, many of us will be doing a job in the future that used to take a hundred people to do it. And now we're doing it with smart software. That's very good even for us, you know, because we can sort of beef up our superhuman skills. But I think the bottom line really is for us, we have to master what's called digital transformation. And I would warn you that this is a very bad sort of a word that we should put away. I mean, everything that people don't know is digital transformation. And I can't tell you how many phone calls I get from whatever company is saying, you know, we want to transform. We want to digitize. That's like you take a box. But the thing about what's happening today is it's not just transformation. It's what I call the MegaShift. You see them here. Chapter three in my book. You can download for free also in Portuguese. Megaships.digital. For example, cocknification. That means that systems are becoming smart. They can read data. They can compare patterns. They can give recommendation. They can do analytics. Cocknification means, you know, getting smarter than just a machine running algorithms. And that's a very, very powerful thing. That's not human. It's not really intelligent, but it's giving you sort of steroids on your thinking. Virtualization. Putting virtual copies of what you do in real life somewhere and have people interact with that, like virtuality, augmented reality. I mean, that's happening all around us. The question is how do we mix the two and who would use it? Robotization, automating processes. This is, of course, everywhere now in society. There's lots and lots of those little things that are sort of overlapping and creating new opportunities. I think the next one is probably a little bit more important, and that should be augmentation. I think automation and augmentation basically means that we can augment our reality and see new things. And automation, of course, will be the biggest drive-off change in our society. I sometimes say that's basically what's happening with automation is that it's a bigger drive-off change than globalization. Because clearly, you know, if we can automate things, we don't need people for the automated things. But there's many discussions about what that means for work. I think if we can automate simple things, that's not necessarily a bad thing if we can find alternatives for us to do. So zero in a little bit on this. Download the Megaships.digitalpdf. It's in Portuguese and many other languages. I'll give you a short example on what's happening with the Megaships and how that's impacting selling and generally commerce. And of course, you know what the biggest challenge here is. That's culture. Portuguese people do different things in Brazilians or different than Germans or Swiss people for certain reasons. In Switzerland, for example, where I live, I'm from Germany originally. But in Switzerland, we tend to buy everything because we have the money to buy gadgets and things. But we don't really change our habits very easily. We have all this stuff, but then we still read the newspaper. So I think it's quite similar in Portugal. Many very progressive things and then many things that will not change very quickly. And we have to think about how that would be a fit and for what target group. I mean, if you're 25, you know, you're not going to go to the store and buy a CD with music. I mean, if I buy a CD for Christmas and I give it to my kids, they will call a therapist. And I think I've lost my mind. But there are still people buying CDs. So that's sort of the fragmentation that we're going to encounter. So here's the problem for us and the challenge. The world isn't black or white. The world isn't going to say, well, if you want to sell more stuff, you do it like this, you know, multi-channel, whatever, omnichannel, whatever. That's the answer. Well, it's not. The world is like this. It's constantly changing color between black and white and we always have to adjust and we have to figure out which fragment do we want to go to. I wonder the question whether it's good or bad, like Facebook is Facebook good or bad? I think it's bad, but you know, you could make many arguments for it being good, right? Among others, commerce. So that's actually a complicated answer because we have to think about, you know, because we have to go beyond this idea of online and offline. We don't live in an online, offline world. So when we go somewhere else where there's no internet, right? But basically in five years, it's over. 2030 will have 9 billion people connected to the internet. 9 billion. That's like 90% of 10 billion in 2030. So being online will be like breathing. Well, already is, as you know. Feel like you don't have oxygen when you can't connect. Kind of pathetic, but it's true. So, I mean, this is converging. So if you're thinking about the future of buying stuff, it's going to be completely a world put together from different segments of all of those things, depending who you are. You know, if you listen to Spotify, it makes a great example. The major record label, Universal, BMI, Sony, and I used to be in the music business, I'm quite familiar with this. They used to sell most of their stores, 90% of what they sold was the major stars. Where they was, you know, even in the niche like Cesare or Aurora or so, you know, stars in the niche, but anything else wouldn't sell. And now that we have on Spotify, we have 20 million songs, guess what's selling? Everything is selling. Because you have all the choice. If you like, you know, if you like music from the Cup Word or from Goa Trans music, you can find it there. You don't have to listen to Elton John anymore. And the same thing has happened with shopping. Fragmentation. Choice. Abundance. Now for me, I have about 20 records in my major as a musician. Don't look for them on Spotify, they're hard to find, but that's good and bad because I have a lot of competition. So we have to think about this sort of multi-channel way in a new way. And this is really the challenge for us. The market is fragmenting. People want all different things at different times, different food, different cars, different clothes, everything different, because we have all the choice. I mean, do you really think a 25-year-old kid that's moving out from home today they're going to get cable television or watch RTP all day long? They have the internet, right? They have limitless choices of media. In five years, like every TV show in the world, you can sit down and say, I want to watch Kojak, 1983, in Portuguese. No problem. Voice controlled. Think about what difference that will make for shopping. All the choices, all the sizes, all the colors, all different countries, not just Etsy and those kind of things. So this fragmentation will be a big challenge for us. It's all about being a hit in the niche. You can still be a hit, you can still be Elton John, but it's harder to be a hit because there's so many options. You have to pick your niche and say, only for XYZ closing and the stores and experience. I think that's going to mean success is to be a hit in the niche, to be the market leader in one particular thing rather than many different things. So that brings me to the next thing, what do humans actually want and why are we different than machines? What is ultimately the discussion about this? When you think about these days, the most commonly used word for consumers and shopping and retail is artificial intelligence. I was going to, you know, I have prepped a thing I brought along the other day is a little thing of sun lotion that says AI on it. So because I like to joke that my sun lotion now has AI so it can be faster and quicker. That's what everybody is saying these days. When you use AI, it's all of a sudden like gold. But think about this for a second. Human intelligence? What is human intelligence? Well, we know from research it's not so easy to define. There's like eight or nine, sometimes ten different types of intelligence. Emotional intelligence. Research has shown that women have more emotional intelligence relating to others and not better listening and those kind of things. And social intelligence can aesthetic the body. And we have a long list of those things. So when you meet a customer, it can take you half a second to realize what's going on. Not a word has been said, but you understand what goes on. Impossible for a computer. Because a computer has one kind of intelligence. Calculating. Logic. Endless numbers. You cannot memorize Wikipedia, the average person. Computer, 0.4 seconds roughly to read a million books. I think about two seconds to read Wikipedia. No problem. But what does it actually mean? What's the difference? And I think if we look at what's happening to us, we shouldn't worry so much about machines becoming intelligent. So really what's happening is they're taking the part of our brain that deals with logic. Numbers. That's what machines can do. And does it mean that our numbers or logic will go away? I don't think so. It will be probably as important in the process of doing, you know, monkey work and menial tasks and those kind of things. But it's very important to realize that I think for us, you know, if we go on into the future, we have to think about the next step of this. And it's very important to think about this. This is a very common problem, is that humans can quickly recognize things that are important to other humans and have a very hard time with this. Here's a principle, a deriving of Morovedge, who said it's whatever is very simple for a human is very hard for a computer and vice versa. And this is why we should not give things to computers that are important to us. We should let the computer do all the work that's hard for us, like adding stuff up. Like tracking, researching, monkey work, so to speak. Automatable work. And all of us are doing quite a bit of this. I made a list the other day and I looked at my work and I said, which part of my work is routine? And then I said about getting rid of the routine. Fact checking, billing, invoicing, I have people who do that for me, of course, but still, my job should just be doing the opposite of this. Imagine a computer that can read all this information. I think it's really quite clear that when a computer has information, it doesn't really have knowledge. It has a certain kind of knowledge, understanding numbers. But a computer does not have understanding, it doesn't have wisdom, it doesn't have purpose, it doesn't care. A computer is not alive. Could a computer be alive? Yeah, in principle, maybe in 50 years. If we set our mind to it, probably a bad idea. But let's make no mistakes about this. A computer is a powerful tool in artificial intelligence for us to understand everything. But understanding, purpose, wisdom, that's our department. So we should use a computer as a tool, but not as a purpose. Technology is just a really powerful tool. So when artificial intelligence was invented, we went from this idea of tabulating the stuff and then programmed machines, and now we're at the age of cognitive computing. This is a very big promise. Cognitive means the computer can actually do things without being programmed. And that is what's happening today. It's called deep learning, machine learning. And that will have great impact on your business because, as Demis says from DeepMind, one of the leading AI companies says, those are computer systems that can turn information and data into knowledge. So if you have kids or you plan to have kids, do not let your kids learn anything that a computer can turn into knowledge. Because that knowledge will be absolutely everywhere. It's a commodity. Human knowledge is different. What's called shop floor knowledge? Actually understanding what goes on. Even, for example, when you come home, you meet your kids and your son is talking about how he missed the bus and what kind of grades they received, and that's called information. Data, basically. When you look at your son, he's not saying anything, but he's grinning widely and looking really crazy. You realize for the first time in his life he's fallen in love. That's called understanding. But he's not saying that. Of course, would never. That's called understanding. And that's really what we have. So what we have to do is combine those two things and think about where it's going. 98% of what we see today, the most important things in your business, is what's called intelligent assistance. So robotic analytics, prediction models, marketing issues, CRM engines, basically better software. They are not thinking, they're not human, they're not anywhere close. They're basically really powerful tools that we can use for all kinds of things. And that is the low-hanging fruit that we should invest in. The next level we're going to see in five years is called intelligent assistance. This is really AI, machines that can think a little bit further. And this is what we are. We're generally intelligent. It's called AGI. We would not want machines to be generally intelligent. I mean, imagine a machine that has an IQ of a billion that connects to many other machines with an IQ of a million. That'd be very little for us to do. I mean, we'd be lucky if their tree does like pets. Petting us occasionally like a zoo. So I think it's better if we keep that around here and I think this is really powerful stuff and this will likely be regulated so we can think about the consequences of this. We play a short video. This is the CEO of Google. Google is a funny company because they're always talking about how technology can change the world to make it better and all these things. It's a really interesting scenario. And then they roll out these products that really scare people. Like Google Duplex is a machine that calls people on your behalf. It's a voice engine that can speak in your voice and make an appointment for the dentist. I mean, here in Portugal or Switzerland, we would say, no, why? But Americans love that stuff. But I'll show you another video which is much more practical. That shows the power of intelligent assistance. So we are looking at rental car bookings as well as movie ticketing. Today, when you make a new reservation online, you have to navigate a number of pages and steps, filling out information, and making selections along the way. I'm sure you're all familiar with this experience. It's time-consuming, and if users leave during the workflow, businesses lose out as well. We want to make this experience better for both users and businesses. So let me show you how the assistant can do it better. Say you get a calendar reminder about an upcoming trip and you want to book a rental car. You can just ask Google, book a national car rental for my next trip. The assistant opens the national website and automatically starts filling out your information on your behalf, including the dates of the trip. You can confirm the details. Now, how does Google know this? Google knows that from your email and from your calendar and everything that Google knows about you. Imagine this for shopping. You are in deep trouble if you're in commercial selling things. When you think about this engine that will basically anywhere in the world you just say, hey, you know, I want a special latte macchiato and it just searches around and even orders it for you. It's another middleman. It's a mediation. Luckily, I think it's a much more complicated thing to order those kind of things than to order a rental car. But you see where this is going. The science is just intelligent systems that Google is rolling out here. One thing to remember, you know, when we look at what's happening with intelligent machines like autonomous cars, this is the Tesla. Okay? When you look at this, you say, well, that's amazing and the car kind of knows its own way and can make its own decisions and stuff. But what is the bottom line here? I'm still in the car. I'm not sitting in the back eating a hamburger. I'm not in a robot taxi here. I can read my emails while the car does this. Well, that's a great achievement. And it's going to be absolutely everywhere. But this is not autonomous in the sense of not doing anything. And that's going to be exactly the same when you think about shopping. We're going to use these kind of things to expand how we do things, but we're still going to be in it. We're still going to actually be there. To find a car that's level five, what's called level five autonomous, so I can drive with the car like a human? That's pretty far away. That works in Palo Alto, California using Waymo. I should give it a try. But in Palo Alto, California and the suburbs, a five-year-old could drive. That's not much of an accomplishment. I mean, you're basically just an automatic car. So a bunch of philosophers have said, basically what's happening is that algorithms outperform humans when it's not about things that are human. It's not about things that are going to take human understanding. Very important for us to realize when you think about shopping, we're going to use this to put the human back in, not to remove the human. And that's, I think, going to be true for at least the next 10, 15 years until technology gets even better. This is really our future. Fancy technology, algorithms, smart machines, and humans. I call these andro-rhythms in my book, you know, the algorithms and the andro-rhythms. And these things are impossible to replace. I would say at least for the next 50 years. Try to get a machine that understands emotions, intuition, compassion, and mystery. I mean, mystery is one of those things that is very, very important in our lives. Try to get a computer to understand why something should not be known. That's a tough mission. I mean, I think they could probably understand what they're saying, but this is really sort of where we go in the future of those two things. Very important. Humans are actually not contrary to popular belief based on data and connectivity. It's quite clear when we look at what is really important for humans. It's very simple. Relationships, engagement, experiences. That's how we pay money. That's how we spend time. Nothing else matters. The actual decision to buy a Tesla or a Mercedes or a Seat or a Porsche or whatever, that's just an exercise. We are emotionally attached to something that we like to find there. So we have to keep that in mind when you're in a shopping business. This is really what it's all about. Connecting with others and with yourself, of course, experiences, ideas. That's why I say we should invest as much in humanity as we invest technology. That means people, brands, stories, visions, ideas. A lot of people are saying they know the future of retail is all about technology. And of course that's true because technology is everywhere. Spotify is the best example again, right? Yeah, that's true. But if we don't have a strong brand and a strong message and a purpose, your tech is useless. I mean, it's a great example of what we currently are seeing in social media about this whole story about the future of technology which I'll come back to in a second. So let's talk about this question of what's called digital ethics. Very big topic. Right now this is the main question. Does this work? How much money does it make? That's the next couple of years, but the future question is this. Why am I doing this? And who can I trust? I mean, today you're wondering if you're going to order something if the process works or if it's safe and who's in charge? I mean, this is the key question we're going to ask ourselves in the very near future because roughly in 2030 technology will be virtually unlimited. In 2050, computers will have the power of all human brains or the processing power, right? Not the rest of the power, hopefully. So that's a very important question for us. And as we're transforming, you can see all of the old-fashioned businesses, like farming, energy, you know, transport, retail, they're going into what I call the digital transformer. I come out and they're smart, right? Everything is becoming smart. Maybe even politics. Maybe even us. I always like to joke that everything is getting smarter except for us, you know, because we're outsourcing all this thinking. But that's basically what's going on. Every part of it and retail and shopping are becoming smart. I mean, this is a very, very big challenge and also a big solution. I think connected everything, smart everything. But here's the rule. Again, if you believe in technology, the word is this. Everything should be as smart as necessary but not smarter. I'm deriving it from Einstein who said something very similar. It's a good body of mine. So, just kidding. This is important. It's not too smart. When they're too smart, we don't know what they're doing. We can't control them. Or maybe it doesn't make any sense for our customers. Too smart for their own good. There is such a thing as too much of a good thing because it detaches us from things. So this, I mean, this is the internet, scanning our data, making a copy of you, data mining. It's called the surveillance economy. Watching us, selling us stuff. I mean, it's amazing to think that, you know, an estimated 50 million people around the world spent most of their time thinking about how they can track you and sell you stuff. Well, that's interesting, you know. But isn't there a better way when we think about selling? Relationships. Because I always say too much of a good thing can be a very bad thing. Facebook has 2.6 billion users. Mark Zuckerberg owns 62% of Facebook. He's the most powerful man in the world. For sure. He can dictate all of the terms. I mean, it's mind-blowing to see we have to have new rules. I think, you know, we're discussing this in Europe. Government must monitor and supervise and regulate. Users must make choices and industry leaders have to be accountable. So just to bring the point home a little bit, you know, if you imagine what Facebook has been doing, it's essentially eroding our privacy step by step by taking a good shot at it. 28 incidents last year. And now every week there's a major thing that comes out what Facebook has done with our data. That's why I left Facebook last year, even though I understand it's commercially very important. But it's the biggest cartel in history. It's bigger than Microsoft, bigger than Standard Oil. Very, very big discussion about, you know, I always say if we don't have anything to hide, we're probably not human. And this is why it's so important to have things to hide. To have mystery, to have privacy, to have protection of data. So I'll give you eight future paradigms and then we'll have a quick conversation if we have time. So first, basically what transformation is all about is not about technology. You can buy as much technology as you want. You still haven't transformed because you haven't changed a thing. You've just made an app that is about mindset, culture and people. Mindset means you understand how it works. This is a complex moving puzzle. It's not a mousetrap. I can't tell you how many people I talked to about retail and shopping and all they want to do is build a better mousetrap. That will not work. You can be very lucky and it works for a while and then you have even more of a problem. Build something that's built to last. Mindset, culture, people. Culture eats technology for breakfast. Peter Drucker said something very simple. I think he said strategy. No, culture eats strategy for breakfast. But try to turn this around a little bit. I think that's a very important message for us. Second message here is or first message rather, business as usual is dead. This is a 3D printed house in China. It was printed in four days. Inside and outside. Next thing you're going to print the people as well. I mean, this is what's happening now in building and construction. This is a shake that Nestle makes that that's customized food like a coffee, but it's your diet. It's sold in Japan. So it makes a custom shake for your health. Artificial meat. Of course the self-driving car, we talked about that already. We have to build our runway while you can. If you're in the business of selling or shopping and retail, you have to think about what is the future? What is your vision of the future? And at the same time, you have to do the present. I think that's the hard part. Number two. As we're moving into this future, it's all going to be about experiences. And now we've talked about this for a long time. There was a book in the 90s called The Experience Economy from Pine and Gilmore. It's been a long time, but today all the value has moved from commodities like phone calls and so on, to experiences and transformations. The most important companies in the world, that's what they do. And this is because of this chain reaction when we're talking about how things are being commoditized. If you sell a commodity or goods without having a real experience, you fall to the bottom of the food chain. Look what happened to telecom companies. They're competing on price. And now it's basically free. So it's a very important lesson and we have to create very unique experiences. And this experience economy is really the key to the future. Whatever the experience may be, I'll give an example here shortly. But this is the problem, because technology makes routine. Technology takes over the routine and it creates abundance. Basically overflow of everything. Abundant music, abundant films, abundant books, abundant books. Abundant fashion, abundant cars, abundant driving, abundant energy. You know, the story goes on. How are you going to be different? People don't buy things that are abundant. I mean on Spotify I get 21 million songs for 10 euros. Do you think I value each song? There's just too many. I value the platform. It's important for us. We have to think about creating experiences and transforming our culture. The experiences and transforming our customers' lives. The most successful shopping malls and retail places I've seen, they have actually transformed the user into having a different experience there. It's an entirely different thing. I mean Starbucks did this a long time ago. I mean Starbucks, a coffee cost, I don't know, what does a coffee cost? Like four cents per cup is what the coffee costs. Starbucks sells it for five years because they make an experience. They make an experience. Another great company, Airbnb. Many problems with Airbnb, especially here. So I'm not going to talk about that. We'll take forever. But Airbnb has a new business called Airbnb Experiences. And they connect people with locals. In fact, I've done a few here in Lisbon on the river. You know, going boating with the guy that I found on Airbnb. And this is already 25% of revenues from Airbnb since that day. Any person who goes to the other place is the best way to get to know a local. A local that tells you the big tips. And I think from Airbnb you become a local. It's a mixture of karaoke a bit of bossa nova a bit of playing guitar a bit of videos stories of Rio de Janeiro I did a map showing films that go to Orfeu Negro So I bet this guy makes more money by people book in the Airbnb tour that he makes was selling the music This is should make us think What kind of experience can you create and then the product sales kind of along with it? I Mean this is what the Tesla generation has started. I mean when I first test drove the Tesla I almost bought one because of the experience mostly because of the pad the big pad in the middle I could speak to the pad and order a coffee So yeah, I was a little bit too expensive for that, but Okay, point number three Rehumanize That is the key when online offline people will pay for human connections and for humans for actual human things Because that is what is scarce Technology every will be everywhere as a commodity Everybody will have fancy mirrors and you know what I mean You can't say it just come to my store because I have a Twitter mirror, you know Like what do you actually mean? What do you stand for? That's I think that's the really important part of this and going back to the mega shifts with all that stuff happening in technology You could easily be outdone by any large company. That's what they do So this is the answer to that is to bring that back into rehumanizing Creating something that's unvisible That also goes for tourism and those kind of things as well Tourism is pretty much in the same position here So that I always say technology is not what we seek, but how we seek It's a tool People will not come and shop with you just because you have fancy technology They're looking for other things that they may appreciate the technology and they would definitely hate it if you have bad technology But that's not really a selling point It's the experience that you create from it So as the world becomes entirely technology Which is pretty much inevitable. We're inventing like crazy everywhere in the world As the world goes digital, it's your humanity and the purpose that makes a difference not your technology Putting the human back inside I'll make no mistake about this if your technology is bad and you can't serve the customer You can't do all the things you are in deep trouble But it's not enough We have to invest in both fronts Clearly Ariana Huffington said something really important the other day last year she talked about retelling She says technology has been very good at giving us what we want But not so good at giving us what we need Because that's kind of a tall order to give us what we need And this is what we need Psychologists say in general, right, you know, it's called perma positivity engagement relationships meaning accomplishment That's what we're looking for. That's what we look for when we go shopping In some way or the other it's very important that we don't lose track of this I'll come to the end just saying two more things here first. I really believe that offline is the new luxury Long people to disconnect For some people only it's quite clear that other people would hate the idea But yeah, I work with a couple hotels in Switzerland and this is what they do They say if you come to us and stay with us, it's guaranteed you can't go on the internet and The mobile phone doesn't work People saying oh my god. That's such a good thing. Finally. I could disconnect Yeah, and here's a scene from New Zealand where I was the other day where the mobile phones are nailed to the You know That's kind of a lot drastic approach to this issue right but okay, so this is really important getting the balance right between humans and machines Great technology great service great CRM liquid interfaces all that stuff. Yes, but then the balance right on the one hand We have human issues privacy identity security safety rights Autonomy and then we have to start that we want from tech liquidity low-cost efficiency That's your mission Connecting those two and I would tell you that for some brands like say Mandarin Oriental Hotel or so It's probably less important that they spend too much money on this And because they have a very particular way of presenting who says as being valuable the more human you are the more valuable you are You could in fact say extension of the previous thing that human is the new luxury Because humans are expensive So that's kind of an important message here at the end of fifth point is that we have to transcend technology We don't have to transcend humanity and it's a one crazy idea Because then we become a machine and then we're useless We have to actually transcend technology We have to think about holistic offerings of circular economy sustainability Put in the human at the center That's what's going to give you a lasting value Everything else is just technology that we used to get to the goal I'll skip this because we don't have much time left. We have to wrap up just a final message I'm a strong believer in the United States of Europe. I know this is a crazy story after this election But also in general people are saying you must be mad, right, but I really believe That's our future And I think we're going to be able to solve those issues together I think roughly a true United States of Europe by 2030 So I have to think about what that would mean for for your business and finally I think it would be very good for all of us to think a little bit broader. I call that assume less discover more I mean sometimes the solution to your problem is right next to something you already are doing But you just never thought there was anything next to what you're doing And it's basically we're always so focused on things. We're just taking a sidestep So for example in our business we used to write research reports on the future and now we can go the Twitter or IBM Watson Or Google Trends and he can get your research report Instantly So then right next to this was the idea of coaching You know talking to people and that's our new research report So basically looking at this you know taking a wider view on things and go a little bit more in a different direction So I want to summarize, you know, these are the six things that we talked about The future is better than we think And it belongs to those who can keep here with coming. This is the important part When you hear it coming you have time to react you have time to think of something Most of us will find a solution and find a good way forward So hopefully that is a positive note on which to end your event on Thanks very much for listening. We we have the books outside. I have a couple free English copies. Thank you very much