Productivity – the amount of output each worker produces – is the core of our shared global prosperity and as the world wrestles with shifting geoeconomics, it matters more than ever. Asia has experienced a productivity surge in recent years, but cannot afford to be complacent if the region’s economies…
Health systems around the world are facing a host of challenges, including rising costs, clinical-workforce shortages, aging populations requiring more care (for example, to treat chronic conditions), and increasing competition from nontraditional players. At the same time, consumers are expecting new capabilities (such as digital scheduling and telemedicine) and better…
The advent of steam power in the late 18th century utterly transformed manufacturing, transportation, and construction. A new kind of upheaval is already under way—one that will energize all language-based capabilities, including communication, reasoning, analysis, sales, and marketing. In this episode of the At the Edge podcast, Reid Hoffman, a…
A hand with bright yellow nails reaches for the handle of a blue suitcase.All aboard! After the pandemic upended life and leisure as we know it, travel is roaring back. The industry is set to make a full recovery by the end of 2024, after losing 75 percent of its…
Most large corporations have annual processes to allocate capital and other resources across business units and for strategic initiatives enterprise-wide. The typical practice is to begin with a strategy or “strategic refresh,” develop a long-term (three- to seven-year) financial plan, and lay out a highly detailed budget for the first…
In this edition of Author Talks, McKinsey Global Publishing’s Mike Borruso chats with Elspeth Kirkman, chief program officer at Nesta, about her new book, Decisionscape: How Thinking Like an Artist Can Improve Our Decision Making (MIT Press, March 2024). Kirkman draws parallels between how artists create and how we make…
This article is one of McKinsey’s contributions to the Global Lighthouse Network’s latest white paper, published on December 14, 2023. The first article in this series explored the evolution of AI and how leading manufacturers have harnessed it to propel leading-edge manufacturing from the learning phase to the doing phase of…
For all the impressive revelations and technical feats unleashed by the sudden emergence of generative AI (gen AI), one of the most astounding aspects has been the accelerated pace of its adoption, particularly by businesses. Consider that large global enterprises spent around $15 billion on gen AI solutions in 2023,…
Payers currently face economic pressures that are likely to last a few years. Utilization of medical services has been higher than expected, providers are passing along higher costs through rate negotiations, and Medicare Advantage reimbursement rates are facing the most substantial downward pressure that payers have seen in years. In…
American shipbuilding has reached a critical inflection point—can supply keep up with demand? The US Navy, the industry’s principal customer, increased its shipbuilding budget by 12.5 percent per year from fiscal year 2020 to fiscal year 2024, and its most recent 30-year plan calls for the construction of 290 to…
Demand for luxury tourism and hospitality is expected to grow faster than for any other industry segment. This growth is being powered in part by a sharp rise in the number of individuals globally with net worths between $1 million and $30 million. But it’s also resulting from a large…
After falling by 75 percent in 2020, travel is on its way to a full recovery by the end of 2024. Domestic travel is expected to grow 3 percent annually and reach 19 billion lodging nights per year by 2030. Over the same time frame, international travel should likewise ramp…
As destinations and source markets have changed, tourism and hospitality companies have evolved too. Six key trends have shaped business models in this sector over the past decade. In accommodation, asset-light models like franchising and management have proliferated, though luxury and small-scale brands are opting out. Consolidation has driven economies…
Tourism can help build a more connected, more vibrant world. But as tourism grows rapidly, the most visited destinations are experiencing more concentrated flows (Exhibit 1). Recent satellite data suggests that 80 percent of travelers visit just 10 percent of the world’s tourist destinations. The number of travelers and the…
What sorts of journeys do today’s travelers dream about? Where would they like to go? What do they hope to do when they get there? How much are they willing to spend on it all? And what should industry stakeholders do to adapt to the traveler psychology of the moment?…
The McKinsey Global Institute aggregated a richly granular data set of micro-, small-, and medium-size enterprises (MSMEs) and large companies across 12 broad sectors, 68 level-two subsectors, and more than 200 level-three subsectors for 16 countries that account for more than half of global GDP. In these countries, MSMEs on…
For all the financial, operational, and market challenges incumbent telecom operators have faced over the past decade-plus, they still retain real competitive advantages in their efforts to spur renewed growth. Global brand recognition, a large customer base, a rich data set, and a broad array of sales channels are all…
This interview is part of the Leading Asia series, which features in-depth conversations with the region’s most influential leaders on what it takes to lead in Asia today.Asia–Pacific’s changing demographics, growing middle class, and insurance protection gaps are just a few trends shaping opportunities and challenges in the region's life…
Making great products is not enough in software these days. The “build it, and they will come” mindset will no longer lead to success in this ever-competitive space. As software products become more sophisticated and customers more discerning, the path to market acceptance has become much more complicated. Companies need…
In this episode of McKinsey on Building Products, a podcast dedicated to the exploration of software product management and engineering, McKinsey partner Rikki Singh spoke to Dr. Ya Xu, vice president of engineering and head of data and AI at LinkedIn. They discuss strategies engineering leaders can undertake to prioritize…
The apparel and footwear industry’s standard playbook for managing global supply chains has been overtaken by recent events and rising complexity. The sprawling footprint of global supply chains was supposed to the lower the chance for disruption, but the pandemic and resulting dramatic demand shifts punctured that veil. With volatility…
The promise and peril of cloud is a common refrain in many C-suites: huge economic potential and regularly underperforming reality. What’s much less clear, however, is what to do about it.Out of the more than 80 enterprises McKinsey profiled for its CloudSights database, 40 percent have found limited value in…
Fueled by record-high investment from semiconductor players and once-in-a-generation federal backing, semiconductor manufacturing capacity is poised for a massive expansion in the United States. This strategy aims to rebalance the country’s supply and demand profile to establish greater autonomy in semiconductor manufacturing, design, and intellectual property rights; as the US…
Advances in AI have accelerated dramatically over the past two years, marked by an ability to design, train, and—most important—run AI at a large scale and for many millions of users. AI’s potential impact spans sectors and could deliver positive social change. In fact, AI is already being used to further…
Eric Kutcher, a senior partner at McKinsey, talks to the chief executive officers of two of Indonesia’s largest telecommunications providers—Ririek Adriansyah, chief executive officer of PT Telkom Indonesia Tbk (Telkom), and Vikram Sinha, president director and chief executive officer of Indosat Oredoo Hutchinson (Indosat or IOH). Referencing the diversity of…
In this episode of McKinsey on Building Products, a podcast dedicated to the exploration of software, product management, and engineering, McKinsey partner Rikki Singh talks to Kareem Yusuf, senior vice president of product management and growth at IBM. Throughout his career, Yusuf has worked across disciplines to sharpen his product…
Nonstop disruption. We have all lived through it the past several years: a global pandemic, geopolitical and economic instability, and the rise of new technologies such as generative AI (gen AI). This increasing pace of change, coupled with the anxiety of prolonged uncertainty, has created a situation in which companies…
Midsize companies don’t dominate the headlines and investor attention the way corporate behemoths do, but they are the economic engines of many countries and a vital part of the global business ecosystem. The world’s 50,000-plus midcap companies—which we define as organizations with $200 million to $2 billion in revenue—represent more…
In just two years, the debit card has replaced cash as the preferred payment method among Spanish-speaking Latin Americans, and mobile payments have quickly gained ground, too, particularly in countries such as Argentina and Peru.Those are some of the key findings from our two comprehensive payments surveys polling more than…
Speaking up is vital to advancing meaningfully in our careers—yet many of us have made a habit of keeping quiet. In this edition of Author Talks, McKinsey Global Publishing’s Lucia Rahilly chats with Elaine Lin Hering, author, facilitator, and speaker, about her new book, Unlearning Silence: How to Speak Your…
Anant Bhalla became chief executive of American Equity Investment Life (AEL) in March 2020, a turbulent time as COVID-19 was spreading around the world. When he joined AEL, which was founded in the mid-1990s and based in West Des Moines, Iowa, the company was the last big independent seller of…
A year of strong funding coupled with sturdy underlying fundamentals and significant technological advances reflected strong momentum in quantum technology (QT). Updated McKinsey analysis for the third annual Quantum Technology Monitor reveals that four sectors—chemicals, life sciences, finance, and mobility—are likely to see the earliest impact from quantum computing and could…
The US film and television industry has an unmatched influence on popular culture and broader attitudes. The stories it tells and the trends it sparks reverberate in every corner of the country. By many outward measures, the influence of the Asian and Pacific Islander (API) community on the film and…
Global preconceptions about Japanese organizations have often resulted in their potential being overlooked. Yet, as discussed by Naoyuki Iwatani and Michele Raviscioni, McKinsey senior partners and co-authors of the Japanese-language book, Unlocking the Full Potential of Japanese Corporates, the strengths of Japanese corporations are numerous, ranging from focused customer orientation,…
By 2050, carbon dioxide removal could be a $1.2 trillion industry. On this episode of The McKinsey Podcast, McKinsey senior partner Mark Patel joins editorial director Roberta Fusaro to discuss McKinsey’s recent report about the business of carbon dioxide removal and how it could play a vital role in responding to hard-to-abate…
The speed of battery electric vehicle (BEV) uptake—while still not categorically breakneck—is enough to render it one of the fastest-growing segments in the automotive industry. Our projections show more than 200 new battery cell factories will be built by 2030 to keep up with rising demand. Overall, the market for…
In this episode of the McKinsey Global Institute’s Forward Thinking podcast, co-host Janet Bush talks with Ed Glaeser. Glaeser is the Fred and Eleanor Glimp Professor of Economics and the chairman of the Department of Economics at Harvard University, where he has taught since 1992. His latest book, coauthored with…
Peak disease burden for chronic physical health conditions typically occurs in an individual’s 50s and 60s, whereas the prevalence of mental and substance use disorders peaks much earlier—in an individual’s 20s or 30s. About half of all mental disorders appear by age 14, and three-quarters by age 24. When left untreated,…
In this episode of Talking Banking Matters, payments industry expert and McKinsey partner Roshan Varadarajan talks with Johnny Ayers, the founder and CEO of the digital identity verification and fraud prevention company Socure. As digital payments and commerce continue to expand throughout every facet of the economy, digital identity verification…
US healthcare leaders are actively pursuing innovative business models, including both vertical integration and pure-play specialization (Exhibit 1). However, the growth rates of these business models have diverged in the past few years. While no organization focuses on just one of them, business models that emphasize vertical integration have produced…