Informed i’s Weekly Business Insights

WHEN DONALD TRUMP lands in Saudi Arabia on May 13th for the opening state visit of his second term in office—a reprise of his very first state visit eight years ago—you should pause for a moment to take in just how unexpectedly the situation has changed. Mr Trump has become wilder and more autocratic. By contrast, his host, the crown prince and de facto Saudi ruler, Muhammad bin Salman (MBS), has transformed his country into a force for order.

The most surprising attribute of the new Saudi Arabia is its constructive role in world politics.  It no longer sponsors terrorism. It now counsels other countries to wind down their conflict with the Houthis. It has helped Syria’s new government by paying some of its debts to the World Bank, and promising to invest in the country if American sanctions are lifted.

Social change is the second component of MBS’s new contract with his people, and it has been nothing short of extraordinary.  Women are free to travel, work and live where they like. The vice squad has been disbanded. Like the rest of the world, Saudis can now watch rock stars on stage and superheroes on the silver screen. Even in conservative parts of the country crowds of young people are out and about, revelling in their new freedoms.

The area where Saudi Arabia’s reinvention remains incomplete is the economy. Since 2016 the government has spent heavily in order to diversify away from oil. The main targets have been gaudy “giga-projects”—such as the futuristic city of NEOM and a giant cube the size of 20 Empire State buildings—which by 2030 were projected to gobble up nearly $900bn. To cultivate new industries, the sovereign-wealth fund has backed more than 100 firms in areas from electric vehicles and e-sports to coffee-making and chip manufacturing.

Despite this, the economy remains stubbornly oily. About 60% of the government’s revenues still comes from selling crude. Although the hospitality and leisure industry is thriving, the flood of money being channelled into public spending is raising costs and crowding out private enterprise. Foreign investors are not yet excited about Saudi Arabia.

Worse, the fiscal strain is growing. Oil prices are at $61 a barrel, well below the $92 that the imf reckons the kingdom needs to balance the books. The country’s debt stock, though low, has doubled as a share of gdp since 2016. Although Saudi Arabia has got off with a so-called “reciprocal” tariff of just 10%, Mr Trump’s trade war will only worsen the strain. If the world economy slows, then oil prices and foreign investment could sink further.

To truly transform the economy, MBS must seize the chance to curb vanity projects that offer scant hope of a return. The government could retrench from areas such as tech, where private firms may invest. Improving areas where they will not, such as education and enhancing the business environment, would do more for long-term growth. A new investment law is welcome, but businesses remain unsure that their rights will be upheld, especially if they clash with the government.

The stakes for MBS and his country are high. Social liberalisation has bought him time among a youthful population. However, if economic change stalls and Saudis’ livelihoods suffer, their goodwill could easily dissipate. Unrest at home could lead the government to crack down, undoing the progress the kingdom has made. Saudi Arabia has come a long way in just a few years. It still has far to go.

Innovation is a critical ingredient in any growth recipe. And the biggest growth—both for the innovator and the broader economy—comes from revolutionary innovations. Such breakthroughs don’t only result from new products or services. Some of the most important recent advances have been spurred by new business models, processes, and experiences.  The authors define these four categories of innovation as follows:

1. Product or service innovation: An offering that either is new or improves an existing one
2. Experience innovation: customer touchpoints and interactions that complement and improve offerings
3. Process innovation.  a new approach to developing, manufacturing, distributing, or delivering an offering
4. Business model innovation: changing the value chain, diversifying profit streams, altering the economic model, or evolving the delivery approach of an offering.

What makes an innovation revolutionary? First, it is truly novel, attesting to the innovator’s bold vision and willingness to take risks. Second, it exerts an outsize influence, enabling secondary innovations or spurring societal changes. Third is the size of its impact: The innovation materially and durably shifts the economics of entire markets. Last, that effect extends beyond individual companies to entire ecosystems and even other industries.

While there have been numerous groundbreaking innovations over recent decades, the eight here, at different stages of maturity, are already having an impact—and there’s more to come.

1. Electric Cars.  The shift from fuel to batteries as a means of powering vehicles is transforming numerous industries, from logistics to mining. It has also spawned advances in related fields, such as battery technology and urban transportation, while focusing attention on the importance of emission reduction. Since building electric vehicles (EVs) requires very different capabilities than traditional automotive manufacturing, the car industry has been severely disrupted. New OEMs have reshaped the market with new value chains and financing and aftermarket offerings. Electric vehicles have also accelerated innovation in driver assistance systems and connectivity.  >50,000 number of patents related to electric vehicles (EVs) approved annually, on average, between 2020 and 2024.  2-3x Projected growth in EV demand (including battery, plug-in hybrid, and range extender EVs) between 2024 and 2030.  China leads the biggest economies in the adoption of electric vehicles.
2. GLP-1 Medications.  The introduction of GLP-1 (glucagon-like peptide-1) agonists has been lauded as a public health breakthrough. Developed to treat type 2 diabetes, GLP-1 medications can also help users reduce their weight by 15 to 20 percent. By lowering the need for obesity-related therapies, surgeries, and end-of-life care, the medications have the potential to substantially lower healthcare spending. Their appetite modulation effects may, in turn, materially shift eating habits, affecting the consumer goods and food service industries.  >$100 billion  Projected global sales of GLP-1 (glucagon-like peptide-1) drugs by 2029.  4–5%  Share of US population projected to be taking GLP-1 drugs by 2030.
3. Blockchain.  Blockchains are decentralized digital ledgers that store records across a network, ensuring transparency, immutability, and tamper resistance. By offering a cost-effective, secure way to handle transactions and private data, blockchain technology is transforming industries from healthcare to financial services. Payments, bonds, and securities transacted on blockchain are key uses that are accelerating growth.  $3.5 trillion  Current market value of all “tokenized” assets, up from $280 billion 5 years ago.  $2 trillion  Projected value of “tokenized” real-world assets by 2030, up from ~$100 billion today.
4. Digital marketplaces.  Platform-based digital marketplaces have revolutionized the way that businesses gain scale. Some platform-focused companies, such as Alibaba and Uber Technologies, have become familiar consumer names. Some sector-specific platforms, such as Valve’s Steam for gaming, have established ecosystems extending beyond their industry borders. As the growing number of users and interactions feeds increasing amounts of data, the presence and impact of platforms will accelerate.  7 of 12 Share of largest companies (by global market cap) that are platform based.  >10%  Projected CAGR of digital platforms between 2024 and 2030.
5. CRISPR.  The gene-editing technology and process that won the 2020 Nobel Prize in chemistry is spurring breakthroughs in the biotech and pharmaceutical industries. CRISPR, in combination with genomic and phenotypic data, allows scientists to make targeted changes to genes. Such changes can enable fundamentally new therapies for humans and increase disease resistance and yields of crops. Extending the technology to synthetic biology could transform manufacturing, environmental remediation, and other fields.  >8,000 Number of CRISPR-related patents approved annually between 2020 and 2024—a 17% growth since 2015.  16–20% Projected CAGR in CRISPR market over next 5 years.  CRISPR market size is projected to more than triple in 2034.
6. Transformer models (also called “sequence-to-sequence models”) may not ring bells, but gen AI certainly should. A type of neural network that learns context and meaning, transformer models underpin large language models. These models, in turn, are the foundation of gen AI. The technology is forecast to generate as much as $4.4 trillion in productivity gains, primarily in customer operations, marketing and sales, software engineering, and R&D.  65% Share of survey respondents who report that their organizations are regularly using gen AI.  $356 billion Projected gen AI market size by 2030, up from $63 billion today.
7. Fracking.  The term “fracking,” from “hydraulic fracturing,” describes an unconventional method of extracting oil and natural gas by injecting high-pressure fluid into rock formations. By allowing companies to tap resources previously considered uneconomical, fracking has revolutionized energy production—particularly in the United States, turning the country from an energy importer to an exporter. It has also lowered energy costs around the world while reshaping trade balances.  >10× Increase in volume of unconventional oil and gas production (largely fracking) between 2007 and 2024.  75% Fracking’s share of North America’s total oil and gas production, up from 20% in 2007.
8. Cost-plus Inversion.  The traditional “cost-plus” approach to government contracts, whereby agencies specify requirements, move through prototyping phases, and pay contractors a set percentage above the development and production costs, can lead to long lead times, slow technology adoption, and overruns due to misaligned incentives. In a growing new method, companies are building products and production facilities for offerings that they believe governments will need, which aligns incentives to accelerate innovation and reduce cost. The result has been a venture capital boon for established industries such as defense and energy, a revitalization of industrial bases, tens of thousands of new jobs, and the ability to get capabilities to markets faster.  >$25 billion Value of venture capital raised in defense sector in past 5 years, thanks in large part to cost-plus-inversion model.

It is tempting for a company to believe that it will somehow benefit from AI while others will not, but history teaches a different lesson: Every serious technical advance ultimately becomes equally accessible to every company. Personal computers, the internet, semiconductor fabs, blockchain technology, genetic sequencing — these technologies are no longer competitive advantages for any organization.

AI is similar, and its increasing ubiquity should cause us to rethink our assumptions about how it will — and will not — change competitive dynamics. It is easy to paint a picture of a glistening, AI-driven future and the untold riches it harbors, ripe for the taking; it is just as easy to believe that companies that invest heavily in AI technology or move first will reap the lion’s share of potential profits.

But all such narratives obscure a critical point: While there will doubtless be transitory competitive advantages in embracing AI, AI does not change the fundamentals of what makes for a sustainable competitive advantage.

How can AI be the centerpiece of a sustained competitive advantage when everyone has it? We argue that it simply cannot. The value that AI unlocks will be unlocked for all. The advantages AI confers will be conferred on all. By definition, if everyone has access to the same technology — even if it is new and valuable — it may move the market as a whole but will not uniquely advantage anyone.

Far from being a source of differentiation, artificial intelligence will be a source of homogenization.  Realistic thinking about this homogenization clarifies where a business should be strategically aiming for advantage. The leveling effect of AI will amplify the value of what we term residual heterogeneity — the ability of a company to go beyond what is accessible to everyone else and create something unique. It is not enough just to have AI; companies must still go beyond it. Therefore, the key to unlocking sustained advantage is the same as it always has been: Companies must cultivate creativity, drive, and passion. That creativity must be technical, involving research and development. It must include novel ways to use AI. But it also includes conceiving of novel partnerships and finding novel ways to connect with customers. These are the same pillars of innovativeness that have always distinguished great companies; AI does not change any of it.

AI can be at the center of a product, a strategy, or even a company’s DNA, but it cannot be at the center of a sustainable competitive advantage. Testing AI against the three defining aspects of a sustainable advantage reveals why: To be sustainable, an advantage must be valuable, unique to an organization, and inimitable by other businesses. If a technology is valuable but not unique, then it is not an advantage; similarly, if a technology is unique to a company but not valuable, it is not an advantage. If a technology is valuable and unique to a company but can be imitated by others, then it does not confer a sustainable advantage. AI is unquestionably valuable, but it fails the other two tests because it is neither unique to any organization nor inimitable.

Why might a company believe that the benefits of AI will somehow accrue to it but not to its competitors? Some reasons include access to capital or hardware, novel algorithms, advanced models, superior engineering talent, business insight, or proprietary data.  Dissecting each of these reasons reveals that none is sustainable.

Fundamental hallmarks of human intelligence — the ability to see novel possibilities, forge unexpected connections, and make leaps of logic — are still unmatched by AI. Human creativity will be the greatest source of sustainable advantage companies can rely on in an uncertain world, and companies must not lose sight of the individuals and relationships that drive that creativity. Investing in untapped individual potential, promoting training and upskilling, and rewarding innovation will result in human capital that can sustain companies no matter how the technological landscape morphs.

According to the author, in this past month, he found himself in a room filled with some of the most forward-thinking leaders in industry — at the annual executive meeting of a Fortune 500 company in Washington, D.C. The setting couldn’t have been more fitting: the National Museum of American History, a place dedicated to ingenuity, resilience, and the constant reinvention of what it means to lead.  The backdrop was iconic, but what struck the author even more was the content of the conversations. These weren’t abstract strategy sessions. They were real, candid dialogues about what it takes to stay ahead in a world defined by accelerating change.

According to the author as he boarded his flight home, he kept coming back to one question: What makes great companies great? Across the many sessions and side conversations, three qualities consistently rose to the top — and they’re worth reflecting on for any organization aiming to lead in today’s complex environment.

1. Enterprise Excellence Starts with a Mindset for Innovation.  In every corner of the organization, from R&D to finance, from commercial teams to corporate strategy, there was a shared belief: solving new problems in new ways is everyone’s job. Innovation wasn’t treated as a silo or a function. It was a shared language, infused with urgency and creativity. This mindset — that everyone is a builder, a thinker, a challenger of the status quo — is what gives truly great companies their edge.
2. Humility As a Competitive Advantage in Enterprise Excellence.  What stood out just as clearly was the humility with which these leaders approached complexity. There was no pretense of having all the answers. Instead, the author heard a genuine openness to ideas — whether they came from inside the company, partners, startups, or even competitors. This was more than lip service. It was a commitment to partnership, to integrating the best thinking from across the ecosystem faster and more effectively than others. In today’s environment, the ability to learn fast — and from everyone — is what sets the best apart.
3. Customer Obsession: The Core of Enterprise Excellence.  In every session, regardless of the topic, the conversation inevitably looped back to the customer. To trust. To performance. To quality. In complex, high-stakes industries, reputation isn’t built on branding alone — it’s earned every day through reliability, precision, and measurable value delivered. The relentless pursuit of quality isn’t just good practice. It’s the only sustainable currency that matters.

Mattering—a mainstay concept in the fields of psychology and sociology for more than 40 years—is the experience of feeling significant to those around us because we feel valued and know that we add value. It is a primal need. When people know that they matter at work, they thrive. Mattering enhances self-esteem (“I’m worthy”) and self-efficacy (“I’m capable”) and strengthens motivation, well-being, and performance. This is critical for organizations to recognize: Employees who believe they matter report greater satisfaction, are more likely to be promoted, and are less likely to leave.

The concept is different than ‘belonging’.  Belonging is feeling welcomed and accepted in a group, whereas mattering is feeling significant to the group’s individual members. Mattering is an even more fundamental need than belonging.

Today polls show that 30% of people report feeling invisible at work, 65% feel underappreciated, and close to 82% of workers feel lonely. These trends persist despite investments in new engagement surveys and platforms, well-being programs, better hiring and retention initiatives, increased wages, and DEI initiatives. That’s because mattering doesn’t result from pay, policies, or perks.  The author research with his team found that creating a sense of mattering happens most fundamentally in the course of daily interpersonal interactions.

To be clear, creating a culture of mattering through individual interactions is not a substitute for paying livable wages, providing predictable schedules, and giving access to basic healthcare. But people are unlikely to feel they matter unless they experience an individualized approach.

The first and most important step in cultivating a sense of mattering is to truly notice people. Noticing requires two skill sets: seeing people, which means acknowledging them and paying attention to the details, ebbs, and flows of their life and work; and hearing people, which means demonstrating a real interest in the meaning and feelings behind their words and inviting them to share their experiences, perspectives, and feedback within a climate of psychological safety so that they feel comfortable doing so.  We tend to think that seeing others comes naturally, but in today’s rushed work world, that’s far from the case. To notice others, try the following:  Make time and space.  Pay deep attention.  Listen for total meaning.  Respond compassionately.  Follow up.  

Once you fully see and hear people, you can affirm them meaningfully by showing them how they make a singular impact. Affirmation is not just thanking them for what they’ve done or who they are; it’s about showing them their uniqueness. You can also help them see how they’re needed by giving them evidence that people rely on them and that their efforts are indispensable.  Show people their unique gifts.  Tell stories of significance.  And show people how they’re indispensable.

How to scale the skills to cultivate mattering?  Set the right intention and increase motivation.  Develop and practice the right skills.  Measure mattering.  And optimize the environment.

Leadership isn’t about titles—it’s about impact. It’s about the energy you bring and the legacy you leave. Pope Francis embodied this, reshaping our understanding of leadership beyond the spiritual realm.  Here are eight leadership lessons from Pope Francis that we apply daily—and that you, as an entrepreneur, can leverage. 

1. Lead by example, not position.  Pope Francis said, “Leadership is service, not power.” Instead of moving into the opulent papal apartments, Pope Francis chose a simple guesthouse. This wasn’t a PR stunt; it was a statement. He modeled the behavior he expected.
2. Stay humble—even at the top.  Francis’s choice for his name, after Saint Francis of Assisi, signaled a commitment to service over authority. Notably, he’s known for simple acts like personally calling people who write to him.
3. Keep it human.  Pope Francis connected deeply, hugging the sick and looking people in the eye. He understood that genuine human connection is paramount. Did you know he regularly made unscheduled visits to parishes and communities, showing a real desire to connect?
4. Be transparent, even when it’s hard.  Pope Francis confronted decades of abuse within the church, apologizing and taking action. This transparency, while painful, built credibility.  As entrepreneurs, we must own our mistakes.
5. Embrace simplicity.  His simple lifestyle and clear communication made complex truths accessible. Pope Francis traveled in a simple car, and lived in a simple apartment.
6. Be inclusive, not exclusive.  His “Who am I to judge?” statement resonated globally. Pope Francis embraced diversity, creating a more inclusive church. He had been known to meet with people of all faiths, and backgrounds, demonstrating his commitment to inclusion.
7. Serve before you lead.  Pope Francis famously washed the feet of prisoners, a powerful act of service.
8. Create a legacy of love.  Pope Francis is loved for how he made people feel. He prioritized empathy and compassion.

It’s easy to lead when things are going well. The real test? Leading when everything feels unstable: the market shifts, plans unravel, and nothing goes according to script.  In those moments, your team doesn’t need perfection. They need resilience. Not just the grit to push through, but the agility to adapt, the clarity to stay grounded and the trust to speak up when it matters most.  Here’s how to create a team that doesn’t just survive uncertainty but thrives in it.

1. Start with psychological safety.  Resilience doesn’t start with grit. It starts with safety.  If people don’t feel safe to be honest, they won’t help you adapt; they’ll just go quiet. And no team thrives in uncertainty by staying silent.  Model the behavior you want to see. Admit what you don’t know. Ask open-ended questions. And when someone challenges an idea, say “thank you,” not “prove it.”
2. Hire (and promote) for adaptability.  When everything’s going according to plan, it’s easy to look like a rockstar. However, the real test of talent is what someone does when the plan breaks down.  Resilient teams are made up of people who know how to pivot, not just power through. That’s why adaptability needs to be a hiring and promotion filter, not just a “nice to have.”  And it doesn’t stop at hiring. Promoting the right people matters just as much.
3. Create systems, then break them (on purpose).  Systems bring clarity, and they help teams move fast and stay aligned. But if you cling to them too tightly, they can become a liability, especially in moments of change.  One simple fix? Run what we call “controlled disruptions.” According to the author, every quarter, we test how the team handles curveballs: a last-minute priority shift, a change in tooling, a scenario where a key player is out. It’s not about creating chaos. It’s about building confidence that we can handle it.  Schedule a quarterly “system check” where your team audits processes and intentionally asks: “What’s still serving us, and what’s slowing us down?”
4. Normalize recovery, not burnout.  Resilience isn’t just about pushing through hard things; it’s about recovering so you can keep going.  There’s a myth in leadership that mental toughness means working nonstop. But burning out your team doesn’t make them stronger. It just makes them quieter, less creative and eventually gone.  Resilient teams build endurance by taking care of their energy. That includes recovery. According to the author he has started treating rest like we treat deadlines: scheduled, protected and tracked. Leaders have to model that rest is part of performance.
5. Stay grounded in purpose.  When things get chaotic, purpose is the anchor. Metrics shift. Strategies pivot. Plans fall apart. But the why behind the work? That’s what keeps people going.  When people are reminded that their work matters, they’re far more likely to stay resilient, even when the road gets rocky.  Start your next team meeting with this prompt: “What moment this week reminded you why you do this work?” Keep the answers visible. That’s your team’s compass.
6. Resilience is a skill. Build it daily.  Resilient teams aren’t built in a crisis. They’re built in the small moments, the check-ins, the pivots, the space to breathe and the culture that rewards honesty over perfection.  And the same goes for you. As a leader, your own resilience sets the tone.