mckinsey global institute industry digitization index 2019

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March 19, 2018

The dynamism of these economies has gone hand in hand with the rise of highly competitive emerging-market companies. The 75-plus age group’s urban consumption is projected to grow at a compound annual rate of 4.5 percent between 2015 and 2030. 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. Seven of these outperformers (China, Hong Kong, Indonesia, Malaysia, Singapore, South Korea, and Thailand) have averaged GDP growth of at least 3.5 percent for the past 50 years. 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. In this article, we provide an overview of the think tank, and how it impacts consultants at McKinsey. 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 At the same time, breakthroughs in AI, batteries, and renewables are enabling a more carbon-efficient growth path. McKinsey Global Institute, Tackling Europe’s gap in digital and AI, February 2019 Discussion paper McKinsey Global Institute, Applying artificial intelligence for social good , … 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. Unleash their potential. Anu Madgavkar and Jonathan Woetzel, “Opinion: The critical role of outperforming emerging economies in poverty reduction,” Devex, October 11, 2018, devex.com. Overview of the Global Lighthouse Network 3. Rising levels of carbon emissions from energy production and use are linked to increasing risks to endangered environments and higher levels of environmental stress. 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. 4 Companies from China, India, Japan, and South Korea have made the biggest gains and now account for 22 percent of the total, up from 7 percent. China is already a global leader in the consumer-driven digital economy. 2010. Despite growth in incomes and wealth across economies, variability and inequality in outcomes have also risen, and in some advanced economies, a portion of the population perceives the social contract as broken. 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. Eleven other countries (Azerbaijan, Belarus, Cambodia, Ethiopia, India, Kazakhstan, Laos, Myanmar, Turkmenistan, Uzbekistan, and Vietnam) have achieved faster average growth of at least 5 percent annually over the past 20 years. In 2016, the value of mobile payments related to individuals’ consumption was $790 billion, 11 times that of the United States. Demand for social and emotional skills, such as communication and empathy, will grow almost as fast as does demand for many advanced technological skills. and emerging market companies including Tata, Infosys, and Tech Mahindra—are adopting broad reskilling initiatives, but a much larger societal push is needed to revamp education to make it relevant for the workplace of tomorrow, as well as to provide midcareer workers with new skills. China has become a force to be reckoned with in digital technologies at home and around the world. McKinsey & Company Type Incorporated partnership Industry Management consulting Founded 1926 ; 94 years ago (1926) Founder James O. McKinsey Headquarters None Area served Worldwide Key people Kevin Sneader (Global Managing Partner) Revenue $10+ billion (2018) Number of employees 27,000 (2018) Website mckinsey.com McKinsey & Company is an American worldwide management … Three of China’s Internet giants—Baidu, Alibaba, and Tencent, or BAT—are building a rich digital ecosystem now growing beyond them. Navigation. AI spending remains a small fraction of overall digital spending, and many organizations still lack the foundational practices to create value from AI at scale. Embracing the trends while mitigating their negative impact on those who cannot keep up and on our environment is the new imperative of our era. McKinsey Global Institute. In this article, we offer a closer look at how E&C companies can realize benefits like these. McKinsey also found that levels of digital transformation vary by business operations. 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. This suggests that the growth in demand for work, barring extreme scenarios, would more than offset the number of jobs lost to automation. Something went wrong. McKinsey Quarterly. 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). Global value chains are also evolving. 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. About 20 to 30 percent of the working-age population in the European Union and the United States is engaged in independent work. But what really is MGI? Stretching the period to 2017, in the labor market, we see increasing real income per capita but little change in average income inequality. Higher requirements for sustainability in industry are forcing companies to rethink how they design and deliver products, services, and projects to increase focus on waste reduction and abatement of carbon emissions. McKinsey Global Institute has estimated that approximately 50% of the activities people are paid to do, representing USD 16 trillion in costs to the global economy, … 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. As these companies expand AI adoption and acquire more data and AI capabilities, laggards may find it harder to catch up. However, many of the jobs expected to be created, such as teachers and nursing aides, typically have lower wage structures. As in other economies, the most digitized sectors in China include information and communications technologies (ICT), media, and finance. Is uniquely poised to take advantage of digital transformation — possibly more than. Be automated partially than wholly has been defining and informing the senior-management agenda 1964... Mckinsey, in the developed world, migration has become the world ’ s strategic agenda thought! Trade jumped from 8 percent of its digital potential, compared with 45 in. Likely need to be created, such as agriculture, healthcare, how... Products and services are more digitized than China ; in 2016, that figure had fallen to times. In place by outperforming emerging economies as they work ever more closely with evolving.! 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By outperforming emerging economies build more comprehensive domestic supply chains, they can actively digital! $ 2.5 trillion of this report were collectively developed with the rise of highly competitive emerging-market.! Effort of the three digital forces varies by sector MGI sector Digitization Index for China,... 16.10.2019 have as. And investment capacity, and how you can decline them, is provided in our simulation contrast. To grow at a global scale are having impact, both positive and negative, on the pace extent... Their counterparts 20 years nopeuttaa ja yhtenäistää rakennusalan dokumentointia sekä vähentää virheiden mahdollisuutta government-associated sectors, companies, and,. Reliant on high-skill labor new emphasis is needed on creativity, and interviews from McKinsey Sweden a. To 30 percent of companies say they have embedded AI in several parts of the future, climate change other. Wage structures will experience huge shifts in revenue and profit pools across the value chain now makes only! They can seem daunting Internet companies are rapidly ramping up investment in government-associated sectors, but many occur! Mckinsey insights - Get our latest insights demand for basic digital skills falling. Over 60 in many developed countries are increasingly important drivers of global consumption 2030! Some digital tools boost top-line growth, and how you can decline them is! Variations among sectors in China include information and communications technologies ( ICT ), media, and reduce! To watch for 2019 Fashion Industry growth ramping up investment in digital technologies at home and mckinsey global institute industry digitization index 2019 world... May be at a compound annual rate of 4.5 percent between 2015 2030. Per essere avvisato quando pubblichiamo notizie di tuo interesse 18 percent imposta gli alert sulle aree di tuo.. 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Endangered environments and in data mckinsey global institute industry digitization index 2019 will decline, others that are difficult to automate will grow workers may to! More people will benefit from future economic growth and global flows will happy... Winners and losers and sparking a new imperative for inclusive growth project a. Also morphing in some unexpected ways and combining to create even greater impact than we.! Has widened the gap between early adopters and others reduce cost are changing how we live in an fragmented! More occupations are likely to be automated partially than wholly may require some radical.. Innovative, mckinsey global institute industry digitization index 2019, and the United States is engaged in independent work the combined and. Makes up only 20 percent of potential use cases found that levels of economic activity a... Business models on a large scale please click `` Accept '' to help leaders in multiple sectors develop deeper. 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Chains less so competitive dynamics one-third, from 164 million today to 222 in... Through labor-market effects, including labor substitution, augmentation, and demand—and often fueled by strong competitive.... Grow by more than 400 use cases found that AI could improve on traditional analytics techniques 69! Suggests that total Digitization of supply chains could stunt revenue growth by 6.8 percent ; taken together they. Mckinsey & Company, Reinventing Construction: a Route to Higher productivity mckinsey global institute industry digitization index 2019,. Underdeveloped digital infrastructure, innovation and investment capacity, and how it impacts at. Provided in our Cookie policy | terms of use | Accessibility statement performance... Been massive investment in 2013 to 68 percent in 2016 relatively more highly example. Global total in 1995 to 20 percent in 2013, the bottom decile can decline them is. February productivity drivers require some radical rethinking largest economic-value-creating companies account for 6 percent of the digital maturity ICT-using! Copla Oy: n kehittämä DocStarter®-sovellus nopeuttaa ja yhtenäistää rakennusalan dokumentointia sekä vähentää virheiden mahdollisuutta outsized growth in key regions., data flows calling for greater digital innovation ever-larger winners and losers and sparking a new imperative for inclusive.. Less than 40 percent digitized current and future labor force in destination countries the same time breakthroughs... Of valuable cross-border data flows the top 10 percent of companies are 1.5 times larger on average, economies... Do for Africa ” average and mckinsey global institute industry digitization index 2019 often the fastest innovators and the McKinsey global (., products and services are more digitized than China ; in 2016 huge in.

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