Time to place our bets: Europe’s AI opportunity

  • Post category:McKinsey & Company
  • Reading time:26 mins read

At a glance A three-lens approach–on adoption, creation, and energy–is required to assess Europe’s competitiveness in the emerging generative AI (gen AI) economy. While much of the current discourse centers around large language models (LLMs), European policy makers and business leaders must look beyond LLMs. Adopting a holistic approach to…

China Brief: The Truth About Chinese Consumption

  • Post category:McKinsey & Company
  • Reading time:8 mins read

Looking back over the past few months since our last China Brief update in April, not much has changed.China’s GDP grew at a steady 5 percent during the first half of the year, while retail sales ticked modestly upward by 3.7 percent during this period. We see few signs that…

Will autonomy usher in the future of truck freight transportation?

  • Post category:McKinsey & Company
  • Reading time:14 mins read

Autonomous vehicles (AVs), with their potential to reduce shipping costs and address a scarcity of drivers, will likely be delayed by another year, according to McKinsey analysis. Major OEMs are continuing their commitment to autonomous trucking and are investing to bring the first vehicles of their kind on the road…

What building owners need to know about decarbonizing operations

  • Post category:McKinsey & Company
  • Reading time:7 mins read

The real estate industry faces growing pressure to reduce the emissions caused by building operations. The good news is that the technology already exists to solve the problem, and a new way to formulate decarbonization plans can make it easier and cost effective to take action, as McKinsey partner Brodie…

Keeping companies safer by matching them with the right cybersecurity providers

  • Post category:McKinsey & Company
  • Reading time:8 mins read

On this page: Opportunity | Solution | Impact $0.5Tannual global cybersecurity damage by 20250+enterprise customers across sectors0%savings in cybersecurity spending The Opportunity A new way to source cybersecurity Cyberattacks are on track to cause $10.5 trillion a year in damage by 2025. In their efforts to fight back, business leaders…

Lockheed Martin’s Stacy Kubicek on using multidomain tech in defense

  • Post category:McKinsey & Company
  • Reading time:6 mins read

The defense industry has long endeavored to equip forces with enhanced communication by connecting technologies across land, sea, air, and space. This goal might seem easily attainable in today’s smartphone-enabled world, but aging hardware, fragmented install bases, and inconsistent standards across devices and networks may weaken secure communications. As adversaries…

Driving the future: How connectivity will shape the truck industry

  • Post category:McKinsey & Company
  • Reading time:12 mins read

Momentum around connected and data-enabled services in commercial vehicles is accelerating. Data-enabled services are critical for new opportunities in charging energy solutions, connected insurance, the automotive aftermarket, advanced financing solutions, and transport as a service [TaaS]. Their potential to solve complex problems for OEMs, automakers, and fleet managers is too…

The big shift: Moving commercial vehicle OEMs to centralized E/E and Software

  • Post category:McKinsey & Company
  • Reading time:17 mins read

In an era marked by rapid technological advancements, the commercial vehicle industry stands on the cusp of a transformative evolution. The decentralized electrical/electronic (E/E) architectures that have long been the backbone of vehicle operations are now being redefined, and so is the software running on them. To master this evolution…

A road map for revving up the Asian electric two-wheeler market

  • Post category:McKinsey & Company
  • Reading time:12 mins read

Electric two-wheelers, with their affordability, ease of access, and environmental benefits, are leading the charge to vehicle electrification around the world. Electric two-wheeler markets in Asia are loaded with potential. Annual sales in the Indian electric two-wheeler market, the second-largest globally, are expected to increase from one million micromobility units…

How batteries will drive the zero-emission truck transition

  • Post category:McKinsey & Company
  • Reading time:28 mins read

Road freight vehicles account for a significant share of global CO2 emissions. Hence, minimizing their carbon footprint is a vital step toward achieving global climate targets. Over the past decade, governments, fleet operators, and truck OEMs have realized this need for action and have gone to significant lengths to make…

When the money runs out: K–12 schools brace for stimulus-free budgets

  • Post category:McKinsey & Company
  • Reading time:16 mins read

As the end of ESSER funding approaches in September 2024, K–12 district leaders are reflecting on which investments were effective to help shape their priorities in the post-ESSER years ahead. In this third and final article in our series on K–12 district funding, we follow the flow of funds to…

How talent can power the ‘telco to techco’ transformation

  • Post category:McKinsey & Company
  • Reading time:28 mins read

Telcos worldwide want to evolve from traditional connectivity providers into customer-centric, platform-oriented innovators akin to today’s top tech players. Industry leaders and experts view this shift toward broader services and partner ecosystems as the most promising path to reignited and sustainable growth after many years of declining performance (especially in…

Building Europe’s electric-truck charging infrastructure

  • Post category:McKinsey & Company
  • Reading time:23 mins read

The expected global mass rollout of electric trucks is going to require a dense charging network to keep these zero-emission vehicles moving. For Europe, McKinsey estimates that, by 2030, more than 300,000 public and private charge points will be required across the continent for medium- and heavy-duty trucks, up from…

A new era: Trends shaping China’s heavy-duty trucking industry

  • Post category:McKinsey & Company
  • Reading time:11 mins read

The Chinese heavy-duty-truck (HDT) market has faced a variety of challenges. Nearly a decade of rapid growth gave way in 2022, with sales plummeting 45 percent year over year. As the market finds its footing, several new trends are at play: the emergence and rise of new powertrains, partnerships exploring…

Special Olympics’ health chief on championing inclusive care

  • Post category:McKinsey & Company
  • Reading time:7 mins read

Since its founding in 1968, Special Olympics has grown into a global program that provides year-round athletic training and competition for millions of children and adults with intellectual disabilities. The program fosters and celebrates its athletes’ abilities and promotes equal access to healthcare for all, according to Dimitri Christakis, MD,…

Global Economics Intelligence executive summary, August 2024

  • Post category:McKinsey & Company
  • Reading time:10 mins read

While resilient, global economic growth is uneven, forward-looking indicators now show a divergence between manufacturing and services on a global basis. The manufacturing sector has contracted for the first time in 2024, registering 49.7 in July on the global Purchasing Managers’ Index (PMI), while services continue to grow steadily, clocking…

The role of technology in the arts: An interview with Deborah Rutter

  • Post category:McKinsey & Company
  • Reading time:10 mins read

The conventional view of art may be that it is incompatible with technology. But in recent years, digital forms of art have complemented and perhaps enhanced traditional arts such as opera, film, and dance. In her ten years at the helm of the Kennedy Center, Deborah Rutter has led a…

AI can transform workforce planning for travel and logistics companies

  • Post category:McKinsey & Company
  • Reading time:17 mins read

For many travel and logistics providers, workforce challenges have become an increasing source of anxiety. Labor shortages are frequent and labor costs are rising. Workforce planning missteps can result in reduced margins and degraded customer service. These workforce challenges affect more than three million people employed at the 40 top-grossing…

Reimagining healthcare industry service operations in the age of AI

  • Post category:McKinsey & Company
  • Reading time:17 mins read

As the healthcare industry continues to evolve, operations leaders face a complex set of challenges, including high administrative costs and employee attrition rates. Administrative accounts for about 25 percent of the more than $4 trillion spent on healthcare annually in the United States. Simultaneously, in response to rising expectations, organizations…

Achieving hypergrowth: It’s all about the people

  • Post category:McKinsey & Company
  • Reading time:14 mins read

Most founder CEOs will tell you that it’s the people who matter most for a start-up’s success—that entrepreneurial band of software engineers, product developers, marketing managers, finance associates, and others who can help bring an idea to life and then to market. Founder CEOs know that talent is a key…

Digitalizing operations at Airbus: An interview with Delphine Bazaud

  • Post category:McKinsey & Company
  • Reading time:8 mins read

Aerospace OEMs are under pressure to ramp up production, improve operations, and increase sustainability, but multiple challenges persist. Supply chain issues are particularly acute, and a delay in shipping a single component often creates a domino effect that ripples through the production process. While tackling these problems can be challenging,…

A new tech-driven era of impactful marketing and sales

  • Post category:McKinsey & Company
  • Reading time:10 mins read

Marketing is at a pivotal moment, with data and new technology propelling rapid changes and expanding opportunities for growth. The promise is enormous, with the economic value of generative AI (gen AI) potentially reaching $4.4 trillion, with a large percentage of that value set to come from marketing and sales. Amid…

What are Scope 1, 2, and 3 emissions?

  • Post category:McKinsey & Company
  • Reading time:15 mins read

Five smoke stakes line up against a backdrop of a blue sky. A thick cloud of white smoke pours out from one of the stakes.For centuries, philosophers have opined on the nature of control and the challenge of recognizing what’s in one’s power to change. Solving the problem of climate…

Women in the Workplace 2024: The 10th-anniversary report

  • Post category:McKinsey & Company
  • Reading time:15 mins read

This year marks the tenth anniversary of the Women in the Workplace report. Conducted in partnership with LeanIn.Org, this effort is the largest study of women in corporate America. Over the past decade, more than 1,000 companies have participated in the study, and we have surveyed more than 480,000 people…

Global Materials Perspective 2024

  • Post category:McKinsey & Company
  • Reading time:3 mins read

The global metals and mining industry is entering a new era. Historically, the industry has been driven by economic growth and the development of the middle class, resulting in major demand growth for materials such as steel, aluminum, and coal. While 80 percent of the industry today primarily consists of…

Direct from Michael Dell: Leadership lessons and the future of AI

  • Post category:McKinsey & Company
  • Reading time:19 mins read

There are only a handful of people who have taken a start-up from zero to $88 billion in revenue and continue to lead it today. Michael Dell is one of them. The founder, CEO, and chairman of Dell Technologies has steered his company through four decades of change and wave…

Truck as a service: The next step en route to zero-emission fleets

  • Post category:McKinsey & Company
  • Reading time:17 mins read

Today, more than 95 percent of trucks on the road around the world run on diesel or gasoline. The traditional truck ownership model of combining purchasing or leasing with selected add-on services is a proven model for both OEMs and customers. Large-fleet customers have a strong understanding of vehicle life…

Demand for efficient airplanes persists: An interview with Darren Hulst

  • Post category:McKinsey & Company
  • Reading time:12 mins read

Throughout his 19-year career at Boeing, Darren Hulst has seen the aerospace sector change in many ways. As the vice president of Boeing’s Commercial Marketing division, Hulst keeps his finger on the pulse of the industry to see how consumer demand, technology, and the global dynamics have evolved. Today, sustainability,…

Revitalizing organizational health in the care delivery sector

  • Post category:McKinsey & Company
  • Reading time:12 mins read

Research conducted over two decades has continually affirmed that organizational health (how you run the place) is a valuable, competitive differentiator across industries. Organizational health has been linked to value creation, profitability, resilience, and safety metrics (see sidebar “How to assess organizational health”). Organizations in the care delivery sector are…

The bumpy road to zero-emission trucks

  • Post category:McKinsey & Company
  • Reading time:27 mins read

As major trucking companies decarbonize their fleets, they are currently prioritizing lower-carbon fuels such as natural gas and biofuels over zero-emission trucks. Adopting these fuels marks a positive step toward sustainable commercial mobility but represents only an intermediate step toward zero-emission mobility in the commercial sector. Meanwhile, true zero-emission mobility…

Technology alone is never enough for true productivity

  • Post category:McKinsey & Company
  • Reading time:26 mins read

As generative AI (gen AI) grips the attention of business, corporate leadership can support their companies’ growth most by prioritizing the needs of their workers while simultaneously standardizing the use of cutting-edge tech. In this episode of the At the Edge podcast, economist and Stanford professor Erik Brynjolfsson speaks with…

How Ventas used machine learning and AI to create a net-zero plan

  • Post category:McKinsey & Company
  • Reading time:10 mins read

Ventas, Inc. is a real estate investment trust (REIT) and S&P 500 company that occupies an essential role in the longevity economy. With roughly 1,400 properties in the United States, Canada, and the United Kingdom, the company’s portfolio serves a large and growing aging population. Among its assets are senior…

A data leader’s operating guide to scaling gen AI

  • Post category:McKinsey & Company
  • Reading time:17 mins read

After almost two years of infatuation with generative AI (gen AI), companies are moving past the honeymoon phase to embrace the work that matters most: creating value from this tantalizing technology. Expectations are high. A recent McKinsey Global Survey found that 65 percent of companies across sizes, geographies, and industries now…

Five fundamental truths: How B2B winners keep growing

  • Post category:McKinsey & Company
  • Reading time:19 mins read

Amid today’s economic uncertainty, the B2B landscape is undergoing significant transformation. Fueled by rapid integration of digital technologies, sellers continue to invest, innovate, and experiment with how they present their offerings. Their B2B customers are shifting toward consumer-like purchasing behavior. They’re also demanding a much more sophisticated buying experience and…

A new dawn for the technology officer

  • Post category:McKinsey & Company
  • Reading time:23 mins read

A new era of technological change is ushering the technology officer to the center stage, and expectations are high. Companies want their chief information officers (CIOs), chief technology officers (CTOs), and chief digital and information officers (CDIOs) to deliver on the often-elusive goal of turning the promise of tech into…

The beauty boom and beyond: Can the industry maintain its growth?

  • Post category:McKinsey & Company
  • Reading time:14 mins read

In 2023, global beauty market retail sales grew to $446 billion, up 10 percent from 2022. In the year since the release of our inaugural state of beauty report, published in collaboration with The Business of Fashion in May 2023, the industry—comprising fragrance, makeup, skin care, and hair care—beat expectations…

Innovation hubs: How GCCs are shaping the future of business

  • Post category:McKinsey & Company
  • Reading time:19 mins read

Enterprises are looking to Global capability centers (GCCs) as critical innovation hubs to stay ahead in the competitive landscape, but the difficulty lies in aligning strategic priorities with the capabilities of GCCs to maximize their impact. In this episode of McKinsey Talks Operations, host Daphne Luchtenberg is joined by McKinsey…

Asia–Pacific’s family office boom: Opportunity knocks

  • Post category:McKinsey & Company
  • Reading time:29 mins read

According to McKinsey analysis, between 2023 and 2030, ultra-high-net-worth (UHNW) and high-net-worth (HNW) families in the Asia–Pacific region are set to experience an intergenerational wealth transfer estimated at $5.8 trillion. UHNW families are expected to account for about 60 percent of the total wealth transfer (Exhibit 1), and many are…

HR leaders’ role in M&A: An interview with Lisa Blair Davis

  • Post category:McKinsey & Company
  • Reading time:17 mins read

The HR function plays an important—if often unrecognized—role in M&A. When it comes to bringing together separate businesses, structures, and cultures, “people make all the difference,” says Lisa Blair Davis, the global head of HR for Johnson & Johnson (J&J) MedTech. Davis has seen and helped drive substantial growth in…

Going all in: Why employee ‘will’ can make or break transformations

  • Post category:McKinsey & Company
  • Reading time:15 mins read

Lasting performance improvements that establish a competitive advantage: What organization doesn’t want that? For a company undergoing transformation, cultivating employee “will” to change the way it operates is critical for success. Organizations that focus on generating this will, along with building critical skills, executing with rigor, and setting a holistic…