Closing the women’s health gap: A $1 trillion opportunity to improve lives and economies, published in 2024 by the World Economic Forum (the Forum) in collaboration with the McKinsey Health Institute (MHI), reported that the women’s health gap correlates with women living in poor health for 25 percent more of…
Separations have become a widely adopted strategy for creating value, but their popularity does not mean these complex transactions are always effective. For instance, spin-offs—one of the main types of corporate separations, alongside divestitures and carveouts—have hit record numbers in recent years, but these deals are not guaranteed to create value…
With global business corridors subject to geopolitical shifts and structural realignment, Asia’s companies stand at a new crossroads—where old formulas for success are stalling, and new highways to growth are emerging. Long-established global trade and investment patterns are reconfiguring in response to geopolitical tensions, a “just in case” rather than…
Over the past two years, interest in value chain optimization (VCO) has grown as downstream refining businesses come up against volatile market conditions, an emergence of “pure play” portfolios, and technological change. However, many organizations do not take a holistic approach when assessing their value chain; instead they look at…
The world is faced with a dual imperative in the energy transition: the energy system has to be decarbonized, but much more energy is going to be needed in the future. In this episode, Janet Bush, executive editor at McKinsey Global Institute (MGI), talks to McKinsey experts Chris Bradley and…
Technology is increasingly shaping the prosperity and sovereignty of nations. The development of disruptive technologies such as AI, along with geopolitical events, is creating new arenas of competition, centered on investment in the innovation, production, and adoption of advanced technologies. However, large European corporations invested €700 billion a year—or €3,000…
Daniel Yergin explained the state of the world in his 1990 Pulitzer Prize–winning book, The Prize: The Epic Quest for Oil, Money and Power. He did it again in 1998 with Commanding Heights: The Battle for the World Economy and in 2011 with The Quest: Energy, Security, and the Remaking…
Against a backdrop of light blue, three fluffy white clouds release a robust rain of blue pixels. Software as a service (SaaS) refers to cloud-based software programs delivered to users over the internet. You probably use SaaS products even if you don’t realize it; in fact, much of our online lives…
In 2025, corporate action on nature has evolved from what was often seen as an environmental obligation into a strategic necessity. Taking action is not just about preserving our natural resources—it is a key element of business strategy. Nature plays a critical role as a foundation for the global economy,…
As the world grapples with rapid technological advancements, demographic shifts, and evolving work paradigms, it is vital to invest in employee health. Why prioritize workforce health? Investing in employee health can substantially increase economic returns. Research by the McKinsey Health Institute in collaboration with the World Economic Forum indicates that…
While consumer habits and technologies have changed rapidly, the technology function within organizations has tended to be slower to adapt. That realization—and the desire to create experiences that its customers expect—inspired Verizon Consumer and Business Group (Verizon Consumer Group) to make sweeping changes to its technology organization, from a focus…
Business leaders today confront a changing world order: intensifying regional conflicts, rising instability, and potential shifts in trade relationships and policy. On this episode of The McKinsey Podcast, Cindy Levy and Shubham Singhal, global coleaders of McKinsey’s geopolitics work, speak with global editorial director Lucia Rahilly about how leaders can orient…
Government agencies often undertake complex missions that can have a large impact on society. Whether they involve modernizing infrastructure or establishing nationwide health programs, such missions could be described as “big, hairy, audacious goals”—the term coined by management experts Jim Collins and Jerry Porras in their book Built to Last.…
Indian farmers expect better near-term prospects following a year of steady output and multiple years of market and weather-related disruptions. About three-quarters of farmers (76 percent) say they anticipate higher profits over the next two years, with more than 65 percent citing improved yields and higher crop prices as catalysts.…
By the numbers, the United Kingdom’s start-up technology ecosystem has a lot to be proud of. By value, it is the largest in Europe, employing over three million people and surpassing $1 trillion in valuation in 2024. Much of start-up technology investment in the United Kingdom goes to climate technology…
At a glance Falling fertility rates are propelling major economies toward population collapse in this century. Two-thirds of humanity lives in countries with fertility below the replacement rate of 2.1 children per family. By 2100, populations in some major economies will fall by 20 to 50 percent, based on UN…
Over the past five years, the luxury industry experienced a period of exceptional value creation. Between 2019 and 2023, unprecedented demand for personal luxury goods—fashion, leather goods, watches, and jewelry among them—combined with a deep well of supply allowed the sector to achieve a 5 percent compound annual growth rate.…
In McKinsey’s latest ConsumerWise research, consumers report feeling more optimistic about the US economy than they have all year. Even so, US consumer optimism overall is still lower than prepandemic levels, and more than half of consumers (53 percent) report mixed feelings or being pessimistic about the state of the economy.For…
Life sciences is on the cusp of a new era of innovation. The convergence of breakthrough technologies, widespread access to data, and deeper insights into complex biological systems is revolutionizing how the industry approaches R&D. For instance, venture capital funding for machine-learning-enabled drug discovery surged more than sevenfold from 2019…
The competition among biopharmaceutical companies for externally sourced assets is heating up. Despite recent successes delivering innovative therapies at a faster pace and achieving solid returns for shareholders, demand persists across a range of unmet needs. And yet, companies are increasingly pursuing the same disease areas and targets. This “herding”…
Innovation is flourishing in the biopharmaceutical industry. Over the past decade, the volume of Phase I candidates in the drug development pipeline has grown by 60 percent, promising potential breakthroughs in treating a wide range of diseases. At the same time, there has been a noticeable shift across the industry…
In this episode of McKinsey on Building Products, McKinsey partner Rikki Singh sits down with Yuhki Yamashita, chief product officer at Figma, a company that provides collaborative online design tools. With a career in product and design at companies of all sizes, Yamashita has an approach to product development that…
Power politics. Wars. Trade battles. Climate change. Pandemics. Geopolitics is increasingly influencing how businesses operate, pushing senior leaders to look well beyond the walls of the corner office. Council on Foreign Relations president Michael Froman has spent his career bridging these worlds, from senior positions in the administrations of Presidents…
Since 2019, the United States healthcare industry has experienced substantial financial pressure, with industry EBITDA as a proportion of the National Health Expenditure declining by an estimated 150 basis points (Exhibit 1). The decline has hit payers and providers particularly hard—payers’ estimated margins in 2024 could be at their lowest…
Digital payments in the B2B arena have lagged far behind consumer e-commerce, even with the big shift to digital brought about by the COVID-19 pandemic. The vast majority of B2B payments occur between small and midsize businesses (SMBs), which are the target market for the B2B financial operations platform BILL.…
Back in July 2023, researchers at the McKinsey Global Institute estimated that gen AI could unlock between $60 billion and $110 billion a year in economic value for the pharmaceutical and medical products industries, boosting productivity and innovation in domains across the industry’s value chain—from the way new treatments are…
Life science companies have traditionally kept patients and consumers at arm’s length. Pharmaceutical, biotech, and medtech companies have viewed providers and payers, not patients, as their key customers and have rarely interacted with them as end customers. This approach has had to evolve in recent years. Consumers are now accustomed…
Despite dedicated efforts across the biopharmaceutical industry to streamline clinical development, clinical trials remain complex, costly, and time-consuming. These challenges are compounded by an increasingly competitive and crowded trial landscape. Yet accelerating clinical development remains crucial—not just for patients but for the enterprise. A 12-month reduction in the clinical development…
We are in a moment of vast potential in life sciences—of diversified investments, breakthrough discoveries, and rapid expansion of therapeutics into new modalities and platforms. And AI is increasingly enabling data-driven decision-making across the product life cycle, from AI-supported drug candidate selection to real-time clinical trial site monitoring. However, overall…
Amid growing complexities, escalating costs, and a heightened demand for innovative therapies, biopharmaceutical R&D organizations are under pressure to find ways to boost their productivity. Preclinical studies are increasingly using diverse assays, complex “omics” data, and humanized models to evaluate drug candidates. Clinical trials are adopting new trial designs and…
The journey to bring new medicines to market remains long and costly, despite recent technological and process improvements in biopharma R&D. It takes about a decade, on average, from candidate nomination to launch, and study and application costs for investigational new drugs (INDs) have soared in recent years by 20–30…
Brazilian farmers have endured multiple challenges since 2023, including crop failures, commodity price declines, and intensified droughts, rain, and wildfires. The result is greater caution, with two-thirds of producers expecting profits to remain stable or decrease in 2024, according to a McKinsey survey. Rising input costs were Brazilian farmers’ main…
During the past five years, healthcare stakeholders’ expectations of sources of industry growth and profits have shifted toward alternative subsegments. For example, healthcare services and technology (HST) subsegments, which represented about $65 billion in earnings in 2023, will experience an estimated 9 percent CAGR during the next five years. By…
At a glance The ‘empowerment line’ measures progress toward a world where everyone’s essential needs are met. About 40 percent of the global population lives above the empowerment line—they can afford a standard basket of essential goods and services and begin to save. The rest live below the line, mostly…
Beauty is no longer in the eye of the beholder; it’s at the fingertips of the generative AI (gen AI) prompter. Gen AI could add $9 billion to $10 billion to the global economy based on its impact on the beauty industry alone, and early movers have already begun testing…
At the end of 2023, the final McKinsey Talks Operations podcast of the year concluded that there was no such thing as normal for operations leaders. Looking back on the 12 months since then, it seems the sentiment holds true—both everything and nothing has changed. In this episode, hosts Christian…
Companies in the automotive and industrial sectors are rewiring to become software-enabled enterprises. As in-vehicle software emerges as a critical differentiator, companies have started to reevaluate the role of software and overhaul their development approaches. Today, software serves as the backbone for advanced features and safety-critical functions while enhancing operational…
Self-driving cars once seemed beyond the realm of possibility, but they are now being piloted on city streets. Now another mobility innovation has emerged that could accelerate and complement autonomy: remote driving.By combining sophisticated communication systems with real-time video feeds, remote-driving systems can instantly convey information about road conditions, traffic,…
Over the past two decades, the shift from fixed-function hardware to software-defined hardware has revolutionized industries ranging from networking to mobile communications. With software-defined hardware, developers can improve products and services by continually updating software rather than undertaking more costly and time-consuming hardware upgrades. Devices that were once rigid and…
Shared autonomous vehicles (AVs) now operate in more than ten cities worldwide, including Beijing, Oslo, Phoenix, and San Francisco. More deployments are planned in other regions as AVs with level four capabilities—those that can handle most functions without human intervention—become increasingly sophisticated. While engineers have overcome many technological hurdles for…