Michael Chui

By moving from information to action—think virtual coworkers able to complete complex workflows—the technology promises a new wave of productivity and innovation.

Which technology trends matter most for companies in 2024? New analysis by the McKinsey Technology Council highlights the adoption, development, and industry effects of advanced technologies.

A former US deputy chief technology officer talks about how digitization can be used to create a government that works for the people.

As generative AI adoption accelerates, survey respondents report measurable benefits and increased mitigation of the risk of inaccuracy. A small group of high performers lead the way.

To gain the full productivity benefits of generative AI and other technologies, Europe and the United States will need to focus both on improving human capital and accelerating technology adoption.

As AI advances from predictive to generative capabilities, its potential to address social issues defined by the UN Sustainable Development Goals expands.

Asian and Pacific Islander consumers could generate billions of dollars in additional revenue—if the film and television industry can improve the representation and authenticity of API content.

Generative AI poses both risks and opportunities. Here’s a road map to mitigate the former while moving to capture the latter from day one.

A leading market maker for investment in carbon removal believes that tackling climate change has to be done quickly, but that the problem is tractable.

One of the world’s tech scholars talks geeks, two-pizza teams, the 90 percent syndrome and a whole lot more.

The U.S. economy has absorbed the massive changes the pandemic brought to the labor market, with 8.6 million occupational shifts over the three years of COVID—50% more than in the previous three years. Now another disruption has arrived: generative artificial intelligence.

While still very new, generative A.I. is developing fast; we believe it will eventually make a difference in every corner of the economy. It is going to be a big deal. But will it be a good deal for American workers?… Show more

The U.S. economy has absorbed the massive changes the pandemic brought to the labor market, with 8.6 million occupational shifts over the three years of COVID—50% more than in the previous three years. Now another disruption has arrived: generative artificial intelligence.

While still very new, generative A.I. is developing fast; we believe it will eventually make a difference in every corner of the economy. It is going to be a big deal. But will it be a good deal for American workers? On the whole, we think it could be—if workers, employers, and government take the actions needed to adapt. Show less

The latest annual McKinsey Global Survey on the current state of AI confirms the explosive growth of generative AI (gen AI) tools. Less than a year after many of these tools debuted, one-third of our survey respondents say their organizations are using gen AI regularly in at least one business function. Amid recent advances, AI has risen from a topic relegated to tech employees to a focus of company leaders: nearly one-quarter of surveyed C-suite executives say they are personally using gen AI… Show more

The latest annual McKinsey Global Survey on the current state of AI confirms the explosive growth of generative AI (gen AI) tools. Less than a year after many of these tools debuted, one-third of our survey respondents say their organizations are using gen AI regularly in at least one business function. Amid recent advances, AI has risen from a topic relegated to tech employees to a focus of company leaders: nearly one-quarter of surveyed C-suite executives say they are personally using gen AI tools for work, and more than one-quarter of respondents from companies using AI say gen AI is already on their boards’ agendas. What’s more, 40 percent of respondents say their organizations will increase their investment in AI overall because of advances in gen AI. The findings show that these are still early days for managing gen AI–related risks, with less than half of respondents saying their organizations are mitigating even the risk they consider most relevant: inaccuracy. Show less

The US labor market is going through a rapid evolution in the way people work and the work people do. Months after MGI released its last report on the future of work in America, the world found itself battling a global pandemic. Since then, the US job market has come roaring back from its sudden drop. The nature of work has changed as many workers have stuck with remote or hybrid models and employers have sped up their adoption of automation technologies. More recently, the accelerated… Show more

The US labor market is going through a rapid evolution in the way people work and the work people do. Months after MGI released its last report on the future of work in America, the world found itself battling a global pandemic. Since then, the US job market has come roaring back from its sudden drop. The nature of work has changed as many workers have stuck with remote or hybrid models and employers have sped up their adoption of automation technologies. More recently, the accelerated development of generative AI, with its advanced natural language capabilities, has extended the possibilities for automation to a much wider set of occupations. Show less

After a tumultuous 2022 for technology investment and talent, the first half of 2023 has seen a resurgence of enthusiasm about technology’s potential to catalyze progress in business and society. Generative AI deserves much of the credit for ushering in this revival, but it stands as just one of many advances on the horizon that could drive sustainable, inclusive growth and solve complex global challenges.

“Our economics, the economics I get to do, my colleagues at the university when I walk down the hallway, this is just the most exciting water-cooler conversation in the world.” Two University of Michigan professors talk about their highly relevant—joyous—take on economics.

We are at the beginning of a journey to understand generative AI’s power, reach, and capabilities. This research is the latest in our efforts to assess the impact of this new era of AI. It suggests that generative AI is poised to transform roles and boost performance across functions such as sales and marketing, customer operations, and software development. In the process, it could unlock trillions of dollars in value across sectors from banking to life sciences.

“I really worry that people are not taking this seriously enough … this fundamentally is going to be a shift in how we work and how we interact at a level that’s as big as anything we’ve seen in our lifetimes.” A leading business school professor talks about why he thinks the technology underlying ChatGPT is so transformative that he is betting his career on it.

“A boring world might lead us to terrible stagnation, which we don't want. We need innovation in front of all the issues we are dealing with.” A former central banker and economist talks about the difficult balances that need to be struck.

Generative AI is evolving at record speed while CEOs are still learning the technology’s business value and risks. Here, we offer some of the generative AI essentials.

“Let’s stop putting our heads in the sand like ostriches, pretending that problems don’t exist,” says an economist noted for his early warning about the global financial crisis. “If you don’t address them individually and collectively, eventually they will overwhelm us.”

“I’m increasingly talking about the need to build a planetary restoration industry,” says a prominent investor in sustainability. “This, to me, is one of the great industries that we need to be building together over the next decades, and indeed beyond—the next centuries.”

“There’s a lot of scare stories in the media saying hybrid doesn’t work,” says a leading economist. “My one piece of advice is just be intentional, be organized. Basically, get folks in on two, three days a week … and be really tough about having them come in. And then let them work from home on the other days.”

Generative AI and other foundation models are changing the AI game, taking assistive technology to a new level, reducing application development time, and bringing powerful capabilities to nontechnical users.

The results of this year’s McKinsey Global Survey on AI show the expansion of the technology’s use since we began tracking it five years ago, but with a nuanced picture underneath.

Persuaded by her parents to study science and engineering, Jayshree Seth retained her humanities mindset while becoming the first chief science advocate at the 3M company.

A prominent economist, author, podcaster, and talent investor discusses how to better match human talent to opportunities, de-bureaucratize philanthropy, achieve higher-quality governance, and identify fields of likely progress, and how to get it all done.

Asian Americans often face invisible challenges at work. Organizations can maximize more of this group’s potential by acknowledging its diversity.

Which technology trends matter most for companies in 2022? New analysis by the McKinsey Technology Council highlights the development, possible uses, and industry effects of advanced technologies.

The co-founder and co-CEO of a new think tank, the Institute for Progress, talks about its mission to accelerate scientific, technological, and industrial progress while safeguarding the future of humanity.

Born in India and now a professor in Texas, Avinash Collis talks about his work on creating a data dashboard that will enable us to measure the true value of the digital age.

One of the tech world’s sharpest analysts talks about the frontier and how we got here, connecting the metaverse, Web3, and crypto with everyone from industrialist Henry Ford to writer Voltaire to historian Hugh Trevor-Roper.

We asked leaders in industry, academia, and at McKinsey to share their perspectives on the technology trends likely to headline business agendas this year, the ones that could—but shouldn’t—slip through the cracks, and what executives should think about when considering new technologies. Here is what they told us.

A leading US economist talks about what has changed in the pandemic, the rise of China, the globalization of trade, and spreading automation.

A leading economist and business school dean reflects on globalization, concluding that “we’ve learned people want to know policies will matter for them”, and that “a lot of us underestimated the possible magnitude of distribution pressures from freer trade and immigration and flows of capital.”

Addressing the barriers preventing Latinos from full economic participation could have a multitrillion-dollar impact, further unleashing their entrepreneurial spirit, creating millions of jobs, driving consumer spending, and building intergenerational wealth.

We looked at the practices of the companies seeing the biggest earnings boost from AI and found that they are not only following more of both the core and advanced practices, including machine-learning operations (MLOps), that underpin success but also spending more efficiently on AI and taking more advantage of cloud technologies. Additionally, they are more likely than other organizations to engage in a range of activities to mitigate their AI-related risks—an area that continues to be a… Show more

We looked at the practices of the companies seeing the biggest earnings boost from AI and found that they are not only following more of both the core and advanced practices, including machine-learning operations (MLOps), that underpin success but also spending more efficiently on AI and taking more advantage of cloud technologies. Additionally, they are more likely than other organizations to engage in a range of activities to mitigate their AI-related risks—an area that continues to be a shortcoming for many companies’ AI efforts. Show less

Two US leaders focused on developing a more skills-based labor market explore ways to broaden opportunity for workers while helping companies plug talent gaps.

In 2015, the McKinsey Global Institute published a research report entitled The Internet of Things: Mapping the value beyond the hype. The report analyzed the economic potential that the IoT could unleash through consideration of hundreds of use cases in the physical settings in which they could be deployed. Six years later,The Internet of Things: Catching up to an accelerating opportunity updates the analysis to estimate how much of that value has been captured, how the potential value of the… Show more

In 2015, the McKinsey Global Institute published a research report entitled The Internet of Things: Mapping the value beyond the hype. The report analyzed the economic potential that the IoT could unleash through consideration of hundreds of use cases in the physical settings in which they could be deployed. Six years later,The Internet of Things: Catching up to an accelerating opportunity updates the analysis to estimate how much of that value has been captured, how the potential value of the IoT could evolve in the coming decade, and the factors that explain both. The market has grown considerably in the intervening years but not as fast as we expected in 2015. The IoT has faced headwinds related to change management, cost, talent, and cybersecurity, particularly in enterprises. Show less

One of the US Navy’s first female fighter pilots, the engineering and robotics professor talks about the promise and peril of automation in airplanes and cars, predicting a “very distinct shift away from replacing human reasoning to augmenting human reasoning.”

In addition to the moral argument, the former White House economic adviser explains that gender diversity is “a matter of human capital. It’s a matter of talent. It’s a matter of the evidence mounting over time.”

The influential economist connects the dots between artificial intelligence, productivity, wages, and inequality, and how to counterbalance the impacts of automation.

This researcher is making sure more AI information flows back from China to the West, and his insights are surprising.

This research provides a fact base to document the racial gaps that exist in the US economy today and offer a vision of what could be gained if they were closed. We adopt the lens of the economic roles individuals play as workers, business owners, savers/investors, consumers, and residents. These roles are obviously not neat silos. But collectively, they offer a multidimensional view of economic life, examining how individuals make a living, spend their incomes, and build wealth or manage debt.

The leaders of Ginkgo Bioworks and the BIO organization discuss the future of biological technologies, from developing vaccines faster to changing how we produce food.

The COVID-19 pandemic has increased threats to food security around the world, underscoring the need for innovation to make agriculture and aquaculture more resilient and efficient. Fortunately, the biological innovations needed to do just that are quickly becoming competitive and scalable.

The results of this year’s McKinsey Global Survey on artificial intelligence (AI) suggest that organizations are using AI as a tool for generating value. Increasingly, that value is coming in the form of revenues. A small contingent of respondents coming from a variety of industries attribute 20 percent or more of their organizations’ earnings before interest and taxes (EBIT) to AI. These companies plan to invest even more in AI in response to the COVID-19 pandemic and its acceleration of all… Show more

The results of this year’s McKinsey Global Survey on artificial intelligence (AI) suggest that organizations are using AI as a tool for generating value. Increasingly, that value is coming in the form of revenues. A small contingent of respondents coming from a variety of industries attribute 20 percent or more of their organizations’ earnings before interest and taxes (EBIT) to AI. These companies plan to invest even more in AI in response to the COVID-19 pandemic and its acceleration of all things digital. This could create a wider divide between AI leaders and the majority of companies still struggling to capitalize on the technology; however, these leaders engage in a number of practices that could offer helpful hints for success. And while companies overall are making some progress in mitigating the risks of AI, most still have a long way to go Show less

As the novel coronavirus infects millions worldwide and ravages the global economy, our best hope to overcome it is a new and rapidly evolving generation of biological tools and capabilities. But addressing COVID-19 only scratches the surface of what biological innovation can do.

Imagine a world in which we can produce meat without animals, cure previously incurable diseases by editing an individual’s genetic fabric, and manufacture industrial chemicals in yeast factories. The foundational technologies that could make all this possible largely exist. Rapid and ever-cheaper DNA sequencing has deepened our understanding of how biology works and tools such as CRISPR are now being used to recode biology to treat diseases or make crops less vulnerable to climate change. This… Show more

Imagine a world in which we can produce meat without animals, cure previously incurable diseases by editing an individual’s genetic fabric, and manufacture industrial chemicals in yeast factories. The foundational technologies that could make all this possible largely exist. Rapid and ever-cheaper DNA sequencing has deepened our understanding of how biology works and tools such as CRISPR are now being used to recode biology to treat diseases or make crops less vulnerable to climate change. This is what we call the Bio Revolution. Show less

The co-discoverer of CRISPR-Cas9 speaks about how genetics technology can expand coronavirus testing and what the future holds for the Bio Revolution.

Nature can help heal nature. Scientists and businesses increasingly are looking to biology to use the natural resources we extract more productively and to tackle climate change.

The likely disruption of the Bio Revolution is vast and poised to influence a wide range of industries. New crosscurrents are already emerging:
- the importance of biological capabilities as a source of competitive advantage
- the growth of platform-based business models accelerating scientific discoveries
- the opportunity for more personalization and precision products and services
- the spread of new relationships driven by barbell-shaped ecosystems

In the latest McKinsey Global Survey on AI we noted a significant year-over-year jump in companies using AI across multiple areas of the business. And while most survey respondents said their companies have gained value from AI, some are attaining greater scale, revenue increases, and cost savings than the rest. Based on our research and experience, this is no accident; how companies build their business strategy, what foundations they put in place, and how they tackle AI adoption in the… Show more

In the latest McKinsey Global Survey on AI we noted a significant year-over-year jump in companies using AI across multiple areas of the business. And while most survey respondents said their companies have gained value from AI, some are attaining greater scale, revenue increases, and cost savings than the rest. Based on our research and experience, this is no accident; how companies build their business strategy, what foundations they put in place, and how they tackle AI adoption in the workplace can all impact their potential for transformation. Show less

The current labor shortage is just one reason why automation, if approached in the right way, could have a positive effect on the construction industry.

Most companies report measurable benefits from AI where it has been deployed; however, much work remains to scale impact, manage risks, and retrain the workforce. A group of high performers shows the way.

Digitisation and automation could result in a net gain of up to 1.2 million jobs in South Africa by 2030, and companies need to move fast to capitalise on these opportunities.

The age of automation, and on the near horizon, artificial intelligence (AI) technologies offer new job opportunities and avenues for economic advancement, but women face new challenges overlaid on long-established ones. Between 40 million and 160 million women globally may need to transition between occupations by 2030, often into higher-skilled roles. To weather this disruption, women (and men) need to be skilled, mobile, and tech-savvy, but women face pervasive barriers on each, and will… Show more

The age of automation, and on the near horizon, artificial intelligence (AI) technologies offer new job opportunities and avenues for economic advancement, but women face new challenges overlaid on long-established ones. Between 40 million and 160 million women globally may need to transition between occupations by 2030, often into higher-skilled roles. To weather this disruption, women (and men) need to be skilled, mobile, and tech-savvy, but women face pervasive barriers on each, and will need targeted support to move forward in the world of work. Show less

Even among companies working at scale with the Internet of Things, there’s a wide gap between top and bottom performers. Nine practices distinguish the leaders from their less successful peers.

Technologies powered by artificial intelligence are being applied to some of the world’s most challenging human-development issues. But while AI has considerable potential to serve the public good, key bottlenecks – from education to risk reduction – must be overcome.

Artificial intelligence (AI) has the potential to help tackle some of the world’s most challenging social problems. To analyze potential applications for social good, we compiled a library of about 160 AI social-impact use cases. They suggest that existing capabilities could contribute to tackling cases across all 17 of the UN’s sustainable-development goals, potentially helping hundreds of millions of people in both advanced and emerging countries.

Survey respondents report the rapid adoption of AI and expect only a minimal effect on head count. Yet few companies have in place the foundational building blocks that enable AI to generate value at scale.

Through an in-depth examination of more than 400 actual AI use cases across 19 industries and nine business functions, we’ve discovered an old adage proves most useful in answering the question of where to put AI to work, and that is: “Follow the money.”

An analysis of more than 400 use cases across 19 industries and nine business functions highlights the broad use and significant economic potential of advanced AI techniques.

This interactive data visualization shows the potential value created by artificial intelligence and other analytics techniques for 19 industries and nine business functions.

Staying ahead in the accelerating artificial intelligence race requires executives to make nimble, informed decisions about where and how to employ AI in their business. One way to prepare to act quickly: know the AI essentials presented in this guide.

A reality sometimes lost amid both the fears and the headline triumphs around artificial intelligence, such as Alexa, Siri, and AlphaGo, is that the AI technologies themselves—namely, machine learning and its subset, deep learning—have plenty of limitations that will still require considerable effort to overcome. This is an article about those limitations, aimed at helping executives better understand what may be holding back their AI efforts. Along the way, we will also highlight promising… Show more

A reality sometimes lost amid both the fears and the headline triumphs around artificial intelligence, such as Alexa, Siri, and AlphaGo, is that the AI technologies themselves—namely, machine learning and its subset, deep learning—have plenty of limitations that will still require considerable effort to overcome. This is an article about those limitations, aimed at helping executives better understand what may be holding back their AI efforts. Along the way, we will also highlight promising advances that are poised to address some of the limitations and create a new wave of opportunities. Show less

This report examines both the potential labor market disruptions from automation and some potential sources of new labor demand that will create jobs. We develop scenarios that seek to address some of the questions most often raised in the public debate. Will there be enough work in the future to maintain full employment, and if so what will that work be? Which occupations will thrive, and which ones will wither? What are the potential implications for skills and wages as machines perform some… Show more

This report examines both the potential labor market disruptions from automation and some potential sources of new labor demand that will create jobs. We develop scenarios that seek to address some of the questions most often raised in the public debate. Will there be enough work in the future to maintain full employment, and if so what will that work be? Which occupations will thrive, and which ones will wither? What are the potential implications for skills and wages as machines perform some or the tasks that humans now do? Show less

New technologies are opening a new era in automation for manufacturers—one in which humans and machines will increasingly work side by side.

Through a study of AI that included a survey of 3,073 executives and 160 case studies across 14 sectors and 10 countries, and through a separate digital research program, we have identified 10 key insights CEOs need to know to embark on a successful AI journey.

The pressure is on for companies and governments to address the ways that artificial intelligence (AI) is altering the future of work. In this video, recorded at the Aspen Ideas Festival in June, experts—Markle Foundation CEO and president Zoë Baird; Joy Buolamwini, founder of the Algorithmic Justice League at MIT Media Lab; James Fallows, national correspondent of the Atlantic; and Coursera cofounder Andrew Ng—discuss how to make the transition into this new age easier for everyone.

Our new survey suggests that the enterprise Internet of Things is poised for strong growth. Here are the trends companies need to understand.

Senior executives need to understand the tactical as well as strategic opportunities to deploy automation, redesign their organizations, and commit to helping shape the debate about the future of work.

The next generation of social technologies is beginning to transform the way people communicate and work with each other, according to our survey.

After decades of extravagant promises and frustrating disappointments, artificial intelligence (AI) is finally starting to deliver real-life benefits to early-adopting companies. The entrepreneurial activity unleashed by these developments drew three times as much investment in 2016—between $26 billion and $39 billion—as it did three years earlier. For all of that investment, much of the AI adoption outside of the tech sector is at an early, experimental stage. This research includes a survey… Show more

After decades of extravagant promises and frustrating disappointments, artificial intelligence (AI) is finally starting to deliver real-life benefits to early-adopting companies. The entrepreneurial activity unleashed by these developments drew three times as much investment in 2016—between $26 billion and $39 billion—as it did three years earlier. For all of that investment, much of the AI adoption outside of the tech sector is at an early, experimental stage. This research includes a survey of more than 3,000 AI-aware companies around the world, we find early AI adopters tend to be closer to the digital frontier, are among the larger firms within sectors, deploy AI across the technology groups, use AI in the most core part of the value chain, adopt AI to increase revenue as well as reduce costs, and have the full support of the executive leadership. Show less

In our research we took a detailed look at 46 countries, representing about 80% of the global workforce. We examined their automation potential today — what’s possible by adapting demonstrated technologies — as well as the potential similarities and differences in how automation could take hold in the future.

The ways we consume energy and produce commodities are changing. This transformation could benefit the global economy, but resource producers will have to adapt to stay competitive.

Advances in robotics, artificial intelligence, and machine learning are ushering in a new age of automation, as machines match or outperform human performance in a range of work activities, including ones requiring cognitive capabilities. In this report, part of our ongoing research into the future of work, we analyze the automation potential of the global economy, the factors that will determine the pace and extent of workplace adoption, and the economic impact associated with its potential.

Since the concept took hold, big data has made big waves. The field of analytics has developed rapidly since the McKinsey Global Institute (MGI) released its landmark 2011 report, Big data: The next frontier for innovation, competition, and productivity. But much value remains on the table as organizations wrestle with issues of strategy and implementation. In this episode of the McKinsey Podcast, MGI partner Michael Chui and McKinsey senior partner Nicolaus Henke speak with McKinsey… Show more

Since the concept took hold, big data has made big waves. The field of analytics has developed rapidly since the McKinsey Global Institute (MGI) released its landmark 2011 report, Big data: The next frontier for innovation, competition, and productivity. But much value remains on the table as organizations wrestle with issues of strategy and implementation. In this episode of the McKinsey Podcast, MGI partner Michael Chui and McKinsey senior partner Nicolaus Henke speak with McKinsey Publishing’s Simon London about the changing landscape for data and analytics, opportunities in industries from retail to healthcare, and implications for workers. Show less

Data and analytics could provide an injection of transparency and efficiency that spurs commerce and builds more inclusive economies

The McKinsey Global Institute's latest research with McKinsey Analytics on the state of the big data revolution measures the progress various industries have made toward capturing the revenue and efficiency gains we envisioned five years ago.

Is big data all hype? To the contrary: earlier research may have given only a partial view of the ultimate impact. This report suggests that the range of applications and opportunities has grown and will continue to expand. Given rapid technological advances, the question for companies now is how to integrate new capabilities into their operations and strategies—and position themselves in a world where analytics can upend entire industries.

Draper Fisher Jurvetson partner Steve Jurvetson reveals what he looks for in entrepreneurs and explains how large companies can respond to disruption.

We have examined 2,000-plus work activities in every industry sector across the US economy. Here are eight findings from our research.

In this article, we examine the technical feasibility, using currently demonstrated technologies, of automating three groups of occupational activities: those that are highly susceptible, less susceptible, and least susceptible to automation. Within each category, we discuss the sectors and occupations where robots and other machines are most—and least—likely to serve as substitutes in activities humans currently perform. Toward the end of this article, we discuss how evolving technologies… Show more

In this article, we examine the technical feasibility, using currently demonstrated technologies, of automating three groups of occupational activities: those that are highly susceptible, less susceptible, and least susceptible to automation. Within each category, we discuss the sectors and occupations where robots and other machines are most—and least—likely to serve as substitutes in activities humans currently perform. Toward the end of this article, we discuss how evolving technologies, such as natural-language generation, could change the outlook, as well as some implications for senior executives who lead increasingly automated enterprises. Show less

The CEO of D-Wave Systems, Vern Brownell, explains how quantum computers are poised to solve important problems in industries ranging from financial services to medicine. In this interview with McKinsey’s Michael Chui, Brownell discusses what quantum computing is, how it works, and where it’s headed in the next five years.

At McKinsey, we are conducting research into the impact of automation on jobs and organizations and recently published a brief paper previewing some of our findings. The most important insight has been that it is far more useful to think about the activities that can be automated rather than entire occupations—handing over discrete bits to machines, like pulling out the most useful data from an analyst’s report, generating a report on the latest sales figures, or moving products around a… Show more

At McKinsey, we are conducting research into the impact of automation on jobs and organizations and recently published a brief paper previewing some of our findings. The most important insight has been that it is far more useful to think about the activities that can be automated rather than entire occupations—handing over discrete bits to machines, like pulling out the most useful data from an analyst’s report, generating a report on the latest sales figures, or moving products around a warehouse. Show less

What will be the impact of automation efforts, multiplied many times across different sectors of the economy? Can we look forward to vast improvements in productivity, freedom from boring work, and improved quality of life? Should we fear threats to jobs, disruptions to organizations, and strains on the social fabric? We launched research to explore these questions and investigate the potential that automation technologies hold for jobs, organizations, and the future of work.

As the Internet of Things (IoT) has gained popular attention in the five years since we first published on the topic, it has also beguiled executives. In what follows, we identify three sets of opportunities: expanding pools of value in global B2B markets, new levers of operational excellence, and possibilities for innovative business models. In parallel, executives will need to deal with three sets of challenges: organizational misalignment, technological interoperability and analytics… Show more

As the Internet of Things (IoT) has gained popular attention in the five years since we first published on the topic, it has also beguiled executives. In what follows, we identify three sets of opportunities: expanding pools of value in global B2B markets, new levers of operational excellence, and possibilities for innovative business models. In parallel, executives will need to deal with three sets of challenges: organizational misalignment, technological interoperability and analytics hurdles, and heightened cybersecurity risks. Show less

In these short videos, McKinsey’s Michael Chui poses five critical questions about its development to experts ranging from MIT Media Lab director Joi Ito to Google’s Advanced Technology and Projects group deputy director Dan Kaufman to Cloudera cofounder and chief strategy officer Mike Olson to O’Reilly Media founder and chief executive officer Tim O’Reilly. An extended and edited transcript of their comments follows.

The Internet of Things (IoT) can reduce maintenance costs by up to 25%, cut unplanned outages by up to 50%, and extend the lives of machines by years. Plus, three hurdles your company must overcome before it sees IoT success.

The Internet of Things—digitizing the physical world—has received enormous attention. In this research, the McKinsey Global Institute set out to look beyond the hype to understand exactly how IoT technology can create real economic value. Our central finding is that the hype may actually understate the full potential of the Internet of Things—but that capturing the maximum benefits will require an understanding of where real value can be created and successfully addressing a set of systems… Show more

The Internet of Things—digitizing the physical world—has received enormous attention. In this research, the McKinsey Global Institute set out to look beyond the hype to understand exactly how IoT technology can create real economic value. Our central finding is that the hype may actually understate the full potential of the Internet of Things—but that capturing the maximum benefits will require an understanding of where real value can be created and successfully addressing a set of systems issues, including interoperability. Show less

With its workforce shrinking, Japan must simultaneously boost productivity and labor force participation through creative adaptations for older workers and an increased focus on robotics in the workforce.

Across industries, data and advanced analytics are being used to personalize products and services, generate more impact at lower cost, and improve the user experience. Education is another field that stands to benefit from this trend: there is much evidence that data-fueled learning tools can dramatically improve student outcomes. In fact, the risks involved with data-driven instructional methods—and the perceptions surrounding those risks—are among the biggest challenges to helping students… Show more

Across industries, data and advanced analytics are being used to personalize products and services, generate more impact at lower cost, and improve the user experience. Education is another field that stands to benefit from this trend: there is much evidence that data-fueled learning tools can dramatically improve student outcomes. In fact, the risks involved with data-driven instructional methods—and the perceptions surrounding those risks—are among the biggest challenges to helping students gain the benefits of large-scale adoption of data and analytics in schools. But we believe these challenges can be overcome. Show less

Hyperscale businesses that are pushing the new rules of digitization so radically that they are challenging conventional management intuition about scale and complexity. Taken individually, each of these businesses seems like a special case. Yet the existence of even a small but growing number of such businesses represents a new and potent competitive force.

Two lost decades have taken a toll on Japan’s competitiveness, but the nation has a window of opportunity to shift its trajectory. This report highlights potential avenues for growth and renewal, emphasizing areas where the private sector can take the lead. With its working-age population shrinking, Japan will have to rely on productivity as the main catalyst for economic momentum. While continued policy reform is necessary, the private sector is critical to capturing new growth opportunities… Show more

Two lost decades have taken a toll on Japan’s competitiveness, but the nation has a window of opportunity to shift its trajectory. This report highlights potential avenues for growth and renewal, emphasizing areas where the private sector can take the lead. With its working-age population shrinking, Japan will have to rely on productivity as the main catalyst for economic momentum. While continued policy reform is necessary, the private sector is critical to capturing new growth opportunities. If individual companies take action to improve their performance, they could add trillions of dollars of value annually to the world’s third-largest economy. Show less

As Coursera has expanded to become a leading platform for massive open online courses, so has its acceptance as a training ground for skills sought after by employers around the world. In this interview with McKinsey’s Michael Chui, Coursera CEO Richard Levin, whose background includes 20 years as president of Yale University, explores the platform’s potential to address unemployment concerns globally.

It’s almost conventional wisdom that innovation springs from developers and entrepreneurs based in start-up hubs such as Silicon Valley. But in the following video interviews, Intuit cofounder and chairman Scott Cook, Idealab founder and CEO Bill Gross, and Autodesk president and CEO Carl Bass contend that large, established companies can also make innovation a priority.

The effect of social technologies in customer-facing processes is already significant. Our survey finds that while overall adoption of these tools has plateaued, companies can do more to measure and then capture social’s benefits.

What are the chances of being hit by lightning in any given year? It’s about one in a million, rare enough to think that it is near impossibility. But there are businesses that deal with one-in-a-million occurrences every day: hyperscale companies. As a business leader, you will have to think very differently if you are going to run one of these hyperscale businesses or compete against them.

Mention the term ‘open data’ to business leaders and many might assume what you’re talking about is the growing trend to open up government data files to increase transparency and citizen engagement and find better ways of delivering government services.

But there is a much larger trend of data broadly becoming more “liquid,” which when shared by public and private organisation – and crunched using big data techniques – can generate large amounts of value, both for companies and… Show more

Mention the term ‘open data’ to business leaders and many might assume what you’re talking about is the growing trend to open up government data files to increase transparency and citizen engagement and find better ways of delivering government services.

But there is a much larger trend of data broadly becoming more “liquid,” which when shared by public and private organisation – and crunched using big data techniques – can generate large amounts of value, both for companies and individuals. Show less

Local entrepreneurs are driving Internet growth in emerging markets, and that's a good thing. Here's how policy makers and telecom operators can help.

Open data—machine-readable information, particularly government data, that’s made available to others—has generated a great deal of excitement around the world for its potential to empower citizens, change how government works, and improve the delivery of public services. Our research suggests that seven sectors alone could generate more than $3 trillion a year in additional value as a result of open data, which is already giving rise to hundreds of entrepreneurial businesses and helping… Show more

Open data—machine-readable information, particularly government data, that’s made available to others—has generated a great deal of excitement around the world for its potential to empower citizens, change how government works, and improve the delivery of public services. Our research suggests that seven sectors alone could generate more than $3 trillion a year in additional value as a result of open data, which is already giving rise to hundreds of entrepreneurial businesses and helping established companies to segment markets, define new products and services, and improve the efficiency and effectiveness of operations. Show less

How the Internet of Things Changes Everything

The Internet of Things creates tremendous opportunities for business. With objects and machinery that can signal where they are and what they’re doing, companies have whole new ways to improve their operations, create new products and services, and even innovate their business models.

Why Improved Energy Storage Will Matter More than Fracking and Renewable Energy

The McKinsey Global Institute set out to identify which technologies could have massive, economically disruptive impact between now and 2025. We also sought to understand how these technologies could change our world and how leaders of businesses and other institutions should respond. Our goal is not to predict the future, but rather to use a structured analysis to sort through the technologies with the potential to transform and disrupt in the next decade or two, and to assess potential impact… Show more

The McKinsey Global Institute set out to identify which technologies could have massive, economically disruptive impact between now and 2025. We also sought to understand how these technologies could change our world and how leaders of businesses and other institutions should respond. Our goal is not to predict the future, but rather to use a structured analysis to sort through the technologies with the potential to transform and disrupt in the next decade or two, and to assess potential impact based on what we can know today, and put these promising technologies in a useful perspective. We offer this work as a guide for leaders to anticipate the coming opportunities and changes. Show less

Three years ago, we described ten information technology–enabled business trends that were profoundly altering the business landscape. The pace of technology change, innovation, and business adoption since then has been stunning. The article that follows updates our 2010 list. In addition to describing how several trends have grown in importance, we have added a few that are rapidly gathering momentum, while removing those that have entered the mainstream.

US students are shuttled along a familiar path in mathematics: first stop algebra, then geometry and trigonometry, and finally, the ultimate destination, calculus. The majority of students need to be immersed in the practical discipline of statistics, which has greater relevance for the jobs being generated by a digital economy.

In a few short years, social technologies have given social interactions the speed and scale of the Internet. Companies will go on developing ways to reach consumers through social technologies and gathering insights for product development, marketing, and customer service. Yet the McKinsey Global Institute (MGI) finds that twice as much potential value lies in using social tools to enhance communications, knowledge sharing, and collaboration within and across enterprises. MGI’s estimates… Show more

In a few short years, social technologies have given social interactions the speed and scale of the Internet. Companies will go on developing ways to reach consumers through social technologies and gathering insights for product development, marketing, and customer service. Yet the McKinsey Global Institute (MGI) finds that twice as much potential value lies in using social tools to enhance communications, knowledge sharing, and collaboration within and across enterprises. MGI’s estimates suggest that by fully implementing social technologies, companies have an opportunity to raise the productivity of interaction workers—high-skill knowledge workers, including managers and professionals—by 20 to 25 percent. Show less

CEO Robert McDonald wants to make the consumer goods giant the world’s most technologically enabled company. Here’s how.

MIT professor Erik Brynjolfsson, Cloudera cofounder Jeff Hammerbacher, and Butler University men’s basketball coach Brad Stevens reflect on the power of data.

The amount of data in our world has been exploding, and analyzing large data sets—so-called big data—will become a key basis of competition, underpinning new waves of productivity growth, innovation, and consumer surplus, according to research by MGI and McKinsey's Business Technology Office. Leaders in every sector will have to grapple with the implications of big data, not just a few data-oriented managers.

The predictable pathways of information are changing: the physical world itself is becoming a type of information system. In what’s called the Internet of Things, sensors and actuators embedded in physical objects—from roadways to pacemakers—are linked through wired and wireless networks, often using the same Internet Protocol (IP) that connects the Internet. These networks churn out huge volumes of data that flow to computers for analysis. When objects can both sense the environment and… Show more

The predictable pathways of information are changing: the physical world itself is becoming a type of information system. In what’s called the Internet of Things, sensors and actuators embedded in physical objects—from roadways to pacemakers—are linked through wired and wireless networks, often using the same Internet Protocol (IP) that connects the Internet. These networks churn out huge volumes of data that flow to computers for analysis. When objects can both sense the environment and communicate, they become tools for understanding complexity and responding to it swiftly. What’s revolutionary in all this is that these physical information systems are now beginning to be deployed, and some of them even work largely without human intervention. Show less

McKinsey has studied more than 50 early adopters to garner insights into successful efforts to use Web 2.0 as a way of unlocking participation. We have found that, unless a number of success factors are present, efforts often fail to launch or to reach expected heights of usage.