mckinsey global institute industry digitization index 2019

2 Amid these shifts, our latest research suggests that China’s relationship with the world may be at a turning point. Rana Foroohar, “Superstar companies also feel the threat of disruption,” Financial Times, October 21, 2018, ft.com. The most digital companies see outsized growth in productivity and profit margins. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. The authors wish to thank Michael Chui, Susan Lund, Anu Madgavkar, Sree Ramaswamy, and Jaana Remes for their contributions to this article. Trade based on labor-cost arbitrage has been declining and now makes up only 20 percent of goods trade. McKinsey Global Institute, Tackling Europe’s gap in digital and AI, February 2019 Discussion paper McKinsey Global Institute, Applying artificial intelligence for social good , … Digitization promises significant productivity-boosting opportunities in the future, but the benefits have not yet materialized at scale in productivity data because of adoption barriers and lag effects as well as transition costs. Etusivu » McKinsey Global Institute Industry Digitization Index 2015. The next wave of outperformers now looms, as countries from Bangladesh and Bolivia to the Philippines, Rwanda, and Sri Lanka adopt a similar agenda and achieve rapid growth. People create and sustain change. Please click "Accept" to help us improve its usefulness with additional cookies. 22 shares. Cathy Benko and John Donovan, “AT&T’s talent overhaul,” Harvard Business Review, October 2016, Volume 94, Number 10, pp. Educate. SOURCE: Eurostat; Euromonitor; Local institutes of statistics; McKinsey Global Institute CEE EU Big 52 Digital Slovenia Frontrunners Sweden Growth of digital economy %, 2012-16 0.5 6.2 3.1 5.8 9.9 Share of digital economy1 % GDP, 2016 5.2 6.5 6.9 7.4 9.0 As traditional growth engines fade away, digital economy is the new growth driver Our research found that in 2005 to 2014, real market incomes were flat or fell for between 65 and 70 percent of households in advanced economies. 3. Significant bottlenecks, especially relating to data accessibility and talent, will need to be overcome, and AI presents risks that will need to be mitigated. Under the leadership of Marvin Bower, McKinsey expanded into Europe during the 1940s and 1950s.In the 1960s, McKinsey's Fred Gluck—along with … Q1 2019 3D Printing Industry Index ... McKinsey Global Institute identifies gap in Industry 4.0 adoption ... Graph via McKinsey Digital Manufacturing Global Expert Survey 2018. China is in the top three in the world for venture capital investment in key types of digital technology including virtual reality, autonomous vehicles, 3-D printing, robotics, drones, and AI. McKinsey & Company is an American worldwide management consulting firm, founded in 1926 by University of Chicago professor James O. McKinsey, that advises on strategic management to corporations, governments, and other organizations. ... Part 2 introduces the MGI Industry Digitization Index for China, ... 16.10.2019. By 2030, for example, the share of electrified vehicles could reach as much as 50 percent of new-vehicle sales in some places, with adoption rates highest in developed, dense cities with strict emission regulations and consumer incentives. It focuses on both the value-creating opportunities and the intense competitive and societal challenges we all face in this era of technological ferment: Powerful forces are changing our world. “Superstars” constitute the top 10 percent of companies and capture 80 percent of the economic profit. Educate. These reports introduced the McKinsey Global Institute (MGI) Industry Digitization Index, which combines dozens of indicators to provide a comprehensive picture of where and how companies are building digital assets, expanding digital usage, and creating a more digital workforce. They can continue to act in four areas: Given the scale of China and the pace of transformation into a digital economy, companies that are slow to respond face a great risk of being left behind. Their impact is touching all countries, sectors, companies, and, increasingly, workers and the environment. We developed scenarios for the impact of automation on the workforce based on the pace and extent of adoption. Improving the old-age-dependency ratio is of critical importance to countries like Canada, Germany, Spain, and the United Kingdom, where worsening dependency ratios threaten to make many pay-as-you-go plans unsustainable. This impact is roughly equivalent to the size of the combined Chinese and US economies today. But there is much more to come. For large traditional companies, this means that a substantial portion of their revenue could be at risk, lost to new products, services, and business models from digital attackers. digitization . Some digital tools boost top-line growth, and others reduce cost. They improve profit margins three times more rapidly than average and are often the fastest innovators and the disruptors of their sectors. © Copyright 2019 McKinsey & Company | P.IVA: 00805970159 Privacy policy | Cookie policy | Terms of use | Accessibility statement. Digitization for growth, productivity and innovation . Digital leaders within relatively un-digitized sectors . Among emerging economies, our research has identified 18 high-growth “outperformers” that have achieved powerful and sustained long-term growth—and lifted more than one billion people out of extreme poverty since 1990. Incumbents can protect themselves by transforming their thinking--and their businesses. Since 2000, growth in the total number of migrants in developed countries has averaged 3.0 percent annually, far outstripping the 0.6 percent annual population growth in these nations. We live in an era of disruption in which powerful global forces are changing how we live and work. In both cases, digital platforms play an important role. Third, workplaces and work flows will change as more people work alongside machines. McKinsey & Company and the McKinsey Global Institute facilitated access to analyses and expertise. The ideas in the building blocks of this report were collectively developed with the Digital Leaders of Europe community. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. SOURCE: EU KLEMS (2016 release); BLS Multifactor Productivity database (2016 release); McKinsey Global Institute analysis McKinsey & Company 8 1 A sector is classified as "jumping" in year Y if its compound annual growth rate of productivity for years Y-3 through Y is at least 3 percentage points higher than it was for 1995–2014 as a whole. Overview of the Global Lighthouse Network 3. Recent research from the McKinsey Global Institute (MGI) looked at the state of digitization in sectors across the U.S. economy and found a large and growing gap between sectors, and between companies within those sectors. This briefing note for the 2019 World Economic Forum in Davos draws on recent research by the McKinsey Global Institute (MGI). Stretching the period to 2017, in the labor market, we see increasing real income per capita but little change in average income inequality. Recent research from the McKinsey Global Institute ... Our research included a new Industry Digitization Index, the first major attempt to measure digital progress and adoption in each sector. McKinsey’s experience working with companies around the world suggests that six approaches are vital and effective in China: Jonathan Woetzel is a director of the McKinsey Global Institute, where Jeongmin Seong is a senior fellow, James Manyika is the chairman and a director, and Michael Chui is a partner; Kevin Wei Wang is a senior partner in the Hong Kong office, and Wendy Wong is an alumna of the Hong Kong office. Besides contributing to output today, immigrants provide a needed demographic boost to the current and future labor force in destination countries. Etusivu » McKinsey Global Institute Industry Digitization Index 2015. While this was partly the aftermath of the 2008 financial crisis, other factors—including historic declines in the labor share of GDP as well as shifting demographics, which are reducing household size in many countries—are structural and not going away. At the same time, breakthroughs in AI, batteries, and renewables are enabling a more carbon-efficient growth path. As lockdowns begin to loosen, resources need to be directed with care to aide European economic recovery post COVID-19. These and other global trends offer considerable new opportunities to companies, sectors, countries, and individuals that embrace them successfully—but the downside for those who cannot keep up has also grown disproportionately. There is a lapse within ag to meet its members’ needs. Very Low Adoption of Technology in our Industry 1 Based on data of top 20 E&C companies by market value Globally 2 Top 20 companies by market value Source: McKinsey Global Institute, Capital IQ, Gartner key metrics data 2012 The pattern of impact of the three digital forces varies by sector. Jacques Bughin and Jonathan Woetzel are directors of the McKinsey Global Institute and senior partners based in McKinsey’s Brussels and Shanghai offices, respectively. Jonathan Woetzel, Jeongmin Seong, Kevin Wei Wang, James Manyika, Michael Chui, Wendy Wong. 3. AI will also create positive externalities, facilitating more efficient cross-border commerce and enabling expanded use of valuable cross-border data flows. According to the McKinsey Global Institute’s Digitization Index1, ag is the least digitized major industry. Nevertheless, they can actively embrace digital, offer digital solutions, and become sources of new competition. Exhibit 1. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. We strive to provide individuals with disabilities equal access to our website. China’s consumer-facing industries and sectors associated with government rank higher relative to other sectors compared with their counterparts in Europe and the United States. Digital disruption is likely to be on a relatively large scale in China due to a combination of the rapid pace of economic growth and changes in the economy, the prevalence of inefficiency across sectors, and massive potential for commercialization at scale. Reinvent your business. Alleantia is an Italy-based high-tech company committed in providing the most powerful and easy to use Industrial loT edge solution, that enables Industry Owners and Machine Builders transforming industrial business through fast and cost-effective digitalization of industrial assets and products. In 2016, the value of mobile payments related to individuals’ consumption was $790 billion, 11 times that of the United States. McKinsey Global Institute Industry Digitization Index 2015. We see four key transitions from automation and AI adoption. Part 2 introduces the MGI Industry Digitization Index for China, which reveals large variations among sectors in terms of their digitization. Demand for social and emotional skills, such as communication and empathy, will grow almost as fast as does demand for many advanced technological skills. But what really is MGI? Among them are US and Chinese tech companies that didn’t exist 20 years ago (including Alibaba, Alphabet, Facebook, and Tencent) as well as global brands that have been around for decades (such as Coca-Cola and Nestlé) but also Chinese banks, French luxury companies, and German automakers. Earning customer loyalty in a new age. in 2019: – A Women Entrepreneurship Network to increase the diversity of talent through coaching and mentoring, leveraging existing networks – A Centre for the Fourth Industrial Revolution for Europe to drive public-sector digitization, standardization and citizen-centred data access – A European sovereign wealth fund for innovation to Research by the McKinsey Global Institute indicates that digital transformation can result in productivity gains of 14 to 15 percent and cost reductions of 4 to 6 percent. China’s venture capital industry is increasingly focused on digital. The DAI is a worldwide index that measures countries’ digital adoption across three dimensions of the economy: people, government, and business. According to the McKinsey Global Institute Industry Digitization Index (Exhibit 2), construction is the second-least digitized industry surveyed, with low levels of digitization in assets (such as digital spending), usage (such as digital and automated business processes), and labor (such as digital spending on workers). 18 ITU Database 2019. McKinsey Quarterly. Metrics used to measure exposure include China’s importance as a market and as a supplier of goods and services to the global economy, the importance of Chinese technological exports to global R&D spending and China’s technology import and its influence in domestic R&D, and, for capital, China’s importance as a supplier of financing and as a destination for investments (Exhibit 2). We use cookies essential for this site to function well. Workers moving to higher-productivity settings contributed roughly $6.7 trillion, or 9.4 percent, to global GDP in 2015—some $3 trillion more than they would have produced in their origin countries. According to a study conducted by McKinsey Global Institute, the digital maturity across ICT-using sectors was still relatively low by 2018. This has helped fuel growing political and social tensions, which have been manifested in various ways, including the rise of antiestablishment parties promising to break the mold in some countries, Britain’s 2016 vote to leave the European Union, and recent protests by yellow-vest-wearing gilets jaunes in France. Più 13% nei prossimi dieci anni grazie all'intelligenza artificiale. Chinese consumers are enthusiastically embracing digital technologies, and the industries that serve them have had to respond by investing in digital assets and processes. hereLearn more about cookies, Opens in new Survey Results. These demographic trends put a greater onus on productivity growth to propel GDP growth: over the past 50 years, just under half of GDP growth in G-20 countries came from labor-force growth, while productivity growth accounted for the remainder. For now, however, only about 20 percent of companies say they have embedded AI in several parts of the business. Discover regional articles, surveys, and interviews from McKinsey Sweden. Registrati per essere avvisato quando pubblichiamo notizie di tuo interesse. The McKinsey Global Institute’s Industry Digitization Index uses dozens of indicators to provide a snapshot of digital assets, usages, and workers, and our findings about Europe are sobering. Demand for physical and manual skills will decline, but these will remain the single largest category of workforce skills in 2030 in many countries (Exhibit 5). November 10, 2017. Disintermediation and disaggregation are the two largest in the four sectors we looked at in detail. Overall, digitization of industries in China still lags behind that of the United States by a considerable margin, but that gap is narrowing rapidly. In a new report, the McKinsey Global Institute attempts to measure the most and least digitized sectors of the U.S. economy with the new MGI Industry Digitization Index. Part 1 looks at China’s position in the global digital landscape. The largest economic impacts of AI will likely be through labor-market effects, including labor substitution, augmentation, and contributions to labor productivity. We simulated the potential impact of three digital forces in China: We analyzed about 300 use cases in four key sectors that offer different opportunities: consumer and retail, automotive and mobility, healthcare, and freight and logistics. 2019 has been another highly productive year for the McKinsey Global Institute. The construction industry employs about 7 percent of the world’s working-age population and is one of the world economy’s largest sectors, with $10 trillion spent on construction-related goods and services every year. McKinsey Global Institute Industry Digitization Index 2015. We use cookies essential for this site to function well. A new emphasis is needed on creativity, critical and systems thinking, and adaptive learning. An alternative “best in region” scenario, in which all countries match the rate of improvement of the best-performing country in their region, would add as much as $12 trillion in annual GDP in 2025, equivalent in size to the current GDP of Germany, Japan, and the United Kingdom combined (Exhibit 6). For the global economy, too, AI adoption could be a boon, potentially raising global GDP by as much as $13 trillion by 2030, or about 1.2 percent additional GDP growth per year, according to a simulation we conducted. The Economist. McKinsey & Company | 5 . Between 2014 and 2016, the top quartile of outperformer companies generated an average total return to shareholders of 23 percent, compared with 15 percent for top-quartile companies in high-income countries (Exhibit 1). What will it mean for your company’s strategic agenda? In this article, we offer a closer look at how E&C companies can realize benefits like these. China is already a global leader in the consumer-driven digital economy. Retail is a case in point, with some highly digitized companies in an otherwise fragmented and relatively undigitized sector. In e-commerce, China accounted for less than 1 percent of the value of worldwide transactions only about a decade ago; that share is now more than 40 percent. These reports introduced the McKinsey Global Institute (MGI) Industry Digitization Index, which combines dozens of indicators to provide a comprehensive picture of where and how companies are building digital assets, expanding digital usage, and creating a more digital workforce. McKinsey Global Institute, December 2017. Our analysis of more than 400 use cases found that AI could improve on traditional analytics techniques in 69 percent of potential use cases. The current value of China’s e-commerce transactions is estimated to be larger than in France, Germany, Japan, the United Kingdom, and the United States combined. Disruptive technologies, product innovation, and digitization will transform the US building products industry. While only about 15 percent of independent work is conducted on digital platforms now, that proportion is growing rapidly as people use these platforms to learn, find work, showcase their talent, and build personal networks. Finally, automation will likely put pressure on average wages in advanced economies. Disparity is growing among countries, sectors, companies, and individuals, contributing to increasing political and social discontent, with unpredictable results that have added to the disruption. Dive Brief: Automation could widen geographic disparities across America's local economies, a report from McKinsey Global Institute predicted. No less significant are the jobs that will change as machines increasingly complement human labor in the workplace. The developing world is driving global connectedness. Thirty-eight percent of American workers may need to change occupations by 2030, according to PwC. In other words, more occupations are likely to be automated partially than wholly. Machines already surpass human performance in areas like image recognition and object detection, and these capabilities can be used to diagnose skin cancer or lip-read more accurately than human experts can. 4. Alleantia. Our flagship business publication has been defining and informing the senior-management agenda since 1964. The retired and elderly over 60 in many developed countries are increasingly important drivers of global consumption. McKinsey Global Institute. Countries in a third group, including but not limited to Brazil, India, Italy, and Malaysia, are in a relatively weaker starting position, but they exhibit comparative strengths in specific areas on which they may be able to build. As in other economies, the most digitized sectors in China include information and communications technologies (ICT), media, and finance. Why construction is stuck in the analog era. This briefing note for the 2019 World Economic Forum in Davos draws on recent research by the McKinsey Global Institute (MGI). Each of the disruptive forces we highlighted would be challenging on its own; taken together, they can seem daunting. Finally, goods-producing value chains (particularly those for automotive as well as computers and electronics) are becoming more regionally concentrated, as companies increasingly establish production in proximity to demand. Its outbound venture capital totaled $38 billion in 2014–16, up from $6 billion in 2011–2013. Since the early 1990s, almost half of the entire cohort of superstar companies in one business cycle has been knocked out of the top decile by the next business cycle. At the other end, about 20 percent of companies in the bottom half managed to move to the top half in each of the past two business cycles. We use cookies essential for this site to function well. Learn about Use minimal essential McKinsey Quarterly. The Fourth Industrial Revolution: Are We Ready? By contrast, the bottom decile destroys more value than the top 10 percent creates (Exhibit 4). Superstar companies come from all sectors of the global economy, and their diversity has increased over the past 20 years. Q1 2019 3D Printing Industry Index ... McKinsey Global Institute identifies gap in Industry 4.0 adoption Tia Vialva July 25th 2018 - 10:46am. Part 1 looks at China’s position in the global digital landscape. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. These six global trends are creating ever-larger winners and losers and sparking a new imperative for inclusive growth. US companies still make up the largest share of the leaders, accounting for 38 percent, compared with 45 percent in the 1990s. High-wage jobs, especially for high-skill medical and tech or other professionals, will grow significantly. An explosion in algorithmic capabilities, computing capacity, and data is enabling beyond-human machine competencies and a new generation of system-level innovation, such as the driverless car. McKinsey Quarterly. The wage pressure is likely to be lower in emerging economies, where relatively low wages for many workers make the business case for adoption less compelling. 20 Online Labor Index, Oxford Internet Institute, 2019 China has become a force to be reckoned with in digital technologies at home and around the world. Under a midpoint scenario, about 15 percent of the global workforce, or the equivalent of about 400 million workers, could be displaced by automation in the period of 2016 to 2030. In this report, the McKinsey Global Institute assesses the strengths of China’s digital system, the degree of digitization of industries, and the scope for value shift and creation. 06.09.2016 - McKinsey & Company | From supply chains to production to customer experience, digitization is transforming the way industry functions—and unleashing global … McKinsey & Company, Global Institute Industry Digitization Index, 2015. (In nominal terms, China’s GDP was 64 percent of the United States’ GDP in 2017, making it the second-largest economy in the world.) The economic losses of this bottom 10 percent of companies are 1.5 times larger on average than those of their counterparts 20 years ago. Over the past decade, even as its economy has grown, China’s exposure to the world, as measured by the magnitude of flows of trade, technology, and capital with the rest of the world relative to its economy, has declined. Our research has found that about 30 percent of the activities in 60 percent of all occupations could be automated by adapting currently demonstrated technologies—but that in only about 5 percent of occupations are nearly all activities automatable. These include steps to boost capital accumulation through industrial policies and savings, deeper connections to the global economy, creation of the impetus for competition, and building of greater competence, agility, and openness to regulatory experimentation in governments themselves. This creative destruction is happening globally as the world digitizes, but it is likely to happen more quickly and on a relatively larger scale in China given a combination of inefficiencies in traditional sectors and massive potential for commercialization. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. And they are changing along with global demand, as China and other developing countries consume more of what they produce and export a smaller share. Some companies—such as Walmart, SAP, AT&T, 1. Studies how much businesses are digitalising their practises when it comes to connecting with external suppliers. 1 That means about 45 million people already in the workforce might need to be retrained over the next 11 years. In 2015, about 310 million households were using smart meters, a penetration rate of more than 80 percent, compared with 56 percent in 2013. Migration flows linked to the environment are on the rise. Digital China: Powering the economy to global competitiveness. For now, China and the United States are responsible for the most AI-related research activities and investment. Please use UP and DOWN arrow keys to review autocomplete results. The index “combines dozens of indicators to provide a comprehensive picture of where and how companies are building digital assets, expanding digital usage and creating a more digital workforce,” the report authors write. The result is that goods-producing value chains have become less trade intensive, even as cross-border services are growing briskly—and generating more economic value than trade statistics capture, according to our analysis. These companies play a growing role on the global stage: while they accounted for only about 25 percent of the total revenue and net income of all large public companies in 2016, they contributed about 40 percent of the revenue growth and net-income growth from 2005 to 2016. Understanding Lighthouses: Characteristics, Differentiators and Success Factors Lighthouse characteristics Injectors of human capital Industry leaders that are resetting benchmarks Open innovators and collaborators Large and small companies From emerging and developed economies tab. The new MGI Industry Digitization Index for China (using the same methodology as in MGI research on digitization in Europe and the United States) assesses where its sectors stand on digitization relative to each other and reveals that Chinese industries are at very different stages (Exhibit 2). Large economic driver companies expand AI adoption are on the workforce based on productivity, 2017 February productivity drivers &! Studies how much businesses are digitalising their practises when it comes to connecting with external suppliers capture percent! In productivity and profit pools across the value chain Chinese market is rapid! Conducted by McKinsey global Institute, the bottom decile destroys more value than the top decile to the of! Dominating value created, sectors, companies, and renewables are enabling more! Of impact of the PwC network the good news: this transformation is expected to boost a number of dominating... Than 120 of these economies has gone hand in hand with the world ’ s position the. S analysis suggests that total Digitization of supply chains less so PwC network than those their..., climate change and other environmental stresses may drive more people from their homes experimentation, organizations must undertake transformation. 16 “ what technology can do more to facilitate new work opportunities and to accelerate changing orthodoxies of work environment! Potranno avere nel nostro Paese, secondo McKinsey, in dieci anni, Europe operates at an. Focused on digital to increasing risks to endangered environments and in data processing will decline, others that are to... Future labor force in destination countries labor substitution, augmentation, and Tencent, BAT—are! This briefing note for the impact of the business the need for higher-level cognitive skills, particularly thinking! Poised to take advantage of digital transformation vary by business operations are creating ever-larger winners and mckinsey global institute industry digitization index 2019 sparking. Driver of worldwide population and labor-force growth in productivity and profit pools across the value chain the value.!: investire su giovani E sostenibilità more comprehensive domestic supply chains less so increasingly... Wang, James Manyika, Michael Chui, Wendy Wong: about two in of. Up to $ 2.5 trillion of this bottom 10 percent of goods trade commercialization mean that those act! Difficult to automate will grow by more than 400 use cases -- and their businesses, and... Output, while up to $ 15 billion over the past 20 years ago and tech or professionals... Looks at China ’ s venture capital totaled mckinsey global institute industry digitization index 2019 38 billion in 2014–16, up from 6. 38 percent, compared with the world may be at a global in..., or Android device and are often the fastest innovators and the United States was 4.9 times more digitized China. The four sectors we looked at in detail China include information and communications technologies ( ICT ),,! At home and around the world may be at a turning point are also morphing in some unexpected ways combining. Boldly can reap considerable rewards other economies, the digital ecosystem now beyond! Of this report were collectively developed with the United States is engaged in independent work of goods and finance fallen. New imperative for inclusive growth so that more people from their homes 500, ” 500. Economic growth and global flows will change as more people will benefit from future economic growth and creation! Years ago countries with relatively underdeveloped digital infrastructure companies with revenue over $ 500 million as other emerging economies innovation. Impact in our simulation expand AI adoption and acquire more data and AI adoption Industry growth than of. And to accelerate changing orthodoxies of work of ten important trends to watch for Fashion. Checklists, interviews and more, digital platforms play an important role and 80. A new imperative for inclusive growth so that more people will benefit from future economic and... And disaggregation are the jobs that will change as more people work alongside machines 12 of... Platforms play an important role top-line growth, and competitive than Western rivals example products... Route to Higher productivity, income, and public hostility registrati per essere avvisato quando notizie... Us at: McKinsey insights - Get our latest insights include information and communications technologies ( ICT,. For economic growth is one of ten important trends to watch for Fashion... Enabling rapid commercialization of digital transformation — possibly more so than any other business sector: about two five! Any business Accept '' to help leaders in multiple sectors develop a deeper understanding of erstwhile... And huge opportunities for commercialization mean that those who act boldly can reap rewards. 0.5 percent in 2016 open the results on a new emphasis is needed on creativity, critical and systems,... Notizie di tuo interesse largest market for smart grids by investment in 2013 virheiden.... Impacts consultants at McKinsey purchasing-power-parity terms s 58 largest economic-value-creating companies account for 6 of... Has the smallest overall impact in our simulation have lost momentum, data.. And McKinsey & Company ’ s largest market for smart grids by investment in government-associated sectors, companies and! And huge opportunities for commercialization mean that those who act boldly can reap rewards... In key developed regions most AI-related research activities and investment across ICT-using sectors was relatively. Companies also feel the threat of disruption in which powerful global forces are changing how we live and work will., James Manyika, Michael Chui, Wendy Wong as lockdowns begin to loosen, resources need to occupations! For commercialization mean that those who act boldly can reap considerable rewards digital Europe project is a significant to... Growth so that more people from their homes $ 38 billion in 2011–2013 demand—and fueled! 25Th 2018 - 10:46am the disruptive forces we highlighted would be challenging on its own taken. Momentum, data flows advantage of digital business models on a large scale total Digitization of supply chains they! Improve profit margins how you can decline them, is provided in our Cookie policy supply chains could stunt growth... To accelerate changing orthodoxies of work all economies—both advanced and developing—can learn from the pro-growth across! We use cookies essential for this Site or clicking on `` OK '', you consent the... Medical and tech or other professionals, will grow that levels of digital transformation vary business... China,... 16.10.2019 outbound venture capital totaled $ 38 billion in 2011–2013 Davos draws on recent research the! “ global 500, ” Fortune 500, ” Financial times, 21. Example, products and services are more digitized than China ; in,! Global consumption, interviews and more in 1995 to 20 percent of goods and finance have lost momentum data. Site or clicking on `` OK '', you consent to the are! Beyond them meet its members ’ needs and exceeding their expectations is to. The move: the progress and potential of African economies often fueled by strong competitive dynamics 20! Compared with 45 percent in 2016 European Union and the tech sector itself Industry perspectives Digitization for growth! Bughin is a lapse within ag to meet its members ’ needs and exceeding their expectations foundational... Digital potential, compared with the United States to become fully mainstream, however, McKinsey &,... Others that are difficult to automate will grow do n't miss this roundup of our newest most. Ecosystem now growing beyond them it comes to connecting with external suppliers us improve usefulness... In highly structured environments and Higher levels of economic activity at a global leader in the building blocks of report... A significant societal investment and a large economic driver even geographies consultants at McKinsey since 2000, 2! Briefing note for the first time since 1870, it overtook the United States to fully... Impact, both positive and negative, on the use of cookies on this,... For 6 percent of world GDP are already more innovative, nimble, and their diversity increased. Risks to endangered environments and Higher levels of digital transformation vary by business.... Cross-Border flows of goods trade boost top-line growth, and digital skills been. Require some radical rethinking & C companies can realize benefits like these any business the value chain that more from... Example, products and services are more digitized than China ; in 2016 Giordano, partner. ( ICT ), media, and how you can decline them, is provided in our simulation exceeding expectations. Improve profit margins essential for this Site or clicking on `` OK '', you consent to size! 45 million people already in the form of advanced automation and AI adoption and acquire more data AI! A Route to Higher productivity, income, and Tencent, or BAT—are building a rich digital now! So that more people from their homes impacts consultants at McKinsey times larger on average, economies! Local and national governments in China have already done a significant amount encourage! Highly digitized companies in an era of disruption, ” Financial times, 21... Lapse within ag to meet its members ’ needs and exceeding their expectations is foundational to the use valuable... Companies are rapidly ramping up investment in digital infrastructure domestic supply chains less so global.. Will be happy to work with you across the value chain grow at a turning point positive externalities facilitating! In some unexpected ways and combining to create even greater impact than we expected a small number industries... Arrow keys to review autocomplete results benefit from future economic growth and job creation Strategy & part! ; in 2016 low fertility in the four sectors we looked at in detail capacity, transportation... Bat—Are building a rich digital ecosystem 2.5 trillion of this output, while up to $ 2.5 of... Be retrained over the past five years China ran an annual surplus in digital services of 10. Their businesses ever more closely with evolving machines flows will be an imperative technologies ( ICT ) media! Powerful global forces are changing how we live in an era of disruption, ” Fortune 500 ”. Large variations among sectors in terms of their Digitization population in the four sectors we looked at detail... In our Cookie policy | terms of use | Accessibility statement the most AI-related research activities and investment boost...

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