In short, worldwide markets reward swift and agile companies, and those that win the race for talent and customers must be responsive to both. To be truly responsive, corporations must be good as well as great.

Mobile technology is changing the way businesses interface with customers, and the way customers interface with one another. In China, home to the world's largest mobile network, this is particularly true. "On New Year's Day, we had about 5 billion SMS New Year's greetings," said the man who runs the network, Wang Jianzhou, Chairman and Chief Executive, China Mobile Communications Corporation.

Worldwide, mobile phone owners total 3 billion and may reach 4 billion in the next four years. "We've been talking about the mobile Internet and mobile stuff for a very long time. And it's obvious that with 3 billion people and ... hundreds of millions of very high-end mobile phones, that there's going to be a huge revolution," said Eric Schmidt, Chairman of the Executive Committee and Chief Executive Officer of Google Inc.

A parallel technological revolution is taking place in advertising, with Internet and mobile ads surging and traditional television ads waning. The future is particularly bleak for old print advertising, but viral marketing continues to grow as a cost-effective alternative. Research is needed to determine what types of Internet advertising work best.

In addition to shifts in technology, the global business climate continues to be profoundly affected by shifts in the location of power. The emerging markets of Brazil, Russia, India and China are drawing huge capital investments, and have spawned innovative multinational corporations that compete on an even footing with established companies from the developed world. "We were bold, we were passionate in what we believed, we persevered, we were committed, and underpinning all of that was a sound business strategy," said one such new champion, Aditya Mittal, Chief Financial Officer of ArcelorMittal Limited and Young Global Leader.

India in particular holds the potential for tremendous growth. Since reorienting from a command economy to one driven by entrepreneurship, India has given birth to countless innovations, and Indian corporations have scaled up their research and development budgets exponentially. However, for India to sustain its growth over the long term, it must make sure that the 550 million of its citizens under age 24 have adequate skills training for the future. It must also address the needs of the half of the Indian population that survives on less than a dollar a day.

Globalization is decentralizing power, a trend visible not just in the shift away from the West, but also in the shift of influence away from CEOs and towards customers and employees. To survive and prosper, successful multinationals must be ready to collaborate effectively.

The world is currently undergoing a demographic shift that amounts to an earthquake for business. With much of the planet experiencing a youth bulge, rates of mortality and fertility are falling in the developed world, with average life expectancy projected to reach 100 by the end of the century. In Europe, talent is increasingly mobile and thus tough to retain: employees between the ages of 25 and 34 spend an average of just 2.9 years in a job. In Africa, a surplus of workers is driving immigration to the north.

To retain talent, management must demonstrate empathy for its needs and create attractive workplaces. Corporate boards must be diverse, and CEOs must be able to manage across political and cultural boundaries. Increasingly this means recruiting leadership from countries outside of Europe and North America.

Customers are also enjoying more clout than ever, as businesses vie to learn from, and respond to their needs. "There has been a massive shift in power to the consumer," said Mark G. Parker, President and Chief Executive Officer of Nike. "And the other thing that's changed is the relationship isn't just a company like Nike just communicating out to a consumer; it's a dialogue".

In an economy where a knowledge base is increasingly replacing a manufacturing base, and where the Internet is breaking down corporate walls, collaboration also means sharing information. "We have to fundamentally decide whether you want closed networks or open networks: closed networks are islands," said Schmidt, while "an open Internet produces more content, more users, more revenue, more competition, more choices, more growth".

The world's top 1,250 companies spent 10% more on research and development in 2006 than they did in 2005; but most innovation now comes through collaboration with employees, customers and business partners. Still, the growing open source community must not mean a total erosion of intellectual property rights. Excessive IP regulation will stifle growth; but forehanded policies that nurture future innovation rather than protect past methods will make happy shareholders.

Finally, shareholders also respond to prudential corporate global citizenship, and companies that succeed must be good as well as great. By partnering with governments and civil societies and working within core competencies, companies can greatly benefit societies and improve their bottom lines. One Edelman study of 5,000 consumers in nine countries found that 70% would pay more for a socially or environmentally responsible brand. But such responsibility must be integrated into the essence of the companies - and emblazoned in the hearts of its employees - for it to resonate with consumers.

"It's not what you do with your money after you've earned it that matters," said H.M. Queen Rania Al Abdullah of the Hashemite Kingdom of Jordan, a Member of the Foundation Board of the World Economic Forum. "But it's how you've earned the money that determines your success and your value added to society".

2008: "Make or Break" Year for Doha Trade Talks

After more than six years of stop-start negotiations, the Doha talks between members of the World Trade Organization (WTO) have ground to a halt. With less than a year before US President George Bush leaves office and with fears growing of a global economic recession, time is may be running out for reaching an agreement to reduce tariffs, subsidies and promote freer and fairer trade. Despite important progress on technical issues over the past six months, trade experts at the World Economic Forum Annual Meeting 2008 said that WTO members remain no closer to an agreement. In particular, concerns persist among developing countries that lower tariffs will unfairly expose poor rural farmers to global competition and jeopardize growth that would be a potential buffer against a global slowdown. Not reaching a deal in 2008 would "give the wrong signals to the global economy. And this will be detrimental to everybody, most of all the developing economies," said Celso Amorim, Minister of Foreign Relations of Brazil. Failure in the Doha Round would also likely increase protectionist pressures around the world and result in a rollback from the progress already made towards freer global trade. Pascal Lamy, Director-General, World Trade Organization (WTO), Geneva, said a failure in the talks could exacerbate the impact of a slowing global economy and heighten geopolitical tensions.

"We've been talking about the mobile Internet and mobile stuff for a very long time. And it's obvious that with 3 billion people and hundreds of millions of very high-end mobile phones, that there's going to be a huge revolution."
Eric Schmidt, Chairman of the Executive Committee and Chief Executive Officer, Google, USA

"There has been a massive shift in power to the consumer."
Mark G. Parker, President and Chief Executive Officer, Nike, USA