Michael leads McKinsey’s fast-growth tech service line in Israel and spends much of his time working on FinTech with both global banks and … Unleash their potential. STRATEGY, NOT TECHNOLOGY, DRIVES DIGITAL TRANSFORMATION • MIT SLOAN MANAGEMENT REVIEW 3 Strategy, not Technology, Drives Digital Transformation MExecutive Summary IT Sloan Management Review and Deloitte’s 1 2015 global study of digital business found that maturing digital businesses are focused on integrating digital technologies, such as social, mobile, … To set a digital transformation on the right course a company must place it at the core of its agenda, and understand the magnitude of that undertaking. Full Report (PDF-2MB) ... A new report from the McKinsey Global Institute (MGI), China’s digital transformation: The Internet’s impact on productivity and growth, projects that new Internet applications could fuel some 7 to 22 percent of China’s incremental GDP growth through 2025, depending on the rate of adoption. Digital transformation is often most challenging when it comes to scaling change, reinventing processes, and choosing a relevant approach. We strive to provide individuals with disabilities equal access to our website. tab. Consumers are increasingly willing to buy goods and services through digital channels. A good example of digital reinvention in healthcare is the life sciences giant Johnson & Johnson: the company has undertaken a massive digital transformation of its IT organization, moving a bulk of its processing workload to a hybrid cloud environment and incorporating data lakes, data analytics, and agile development practices into its operations. That translates into 4 trillion to 14 trillion renminbi in annual GDP in 2025. Our insights in this chapter are based on quantitative analysis and discussions with numerous market experts. H�dTIn�@�����M6�d�s�9�!d9L8�?�bK��c�Y�*�ӗ��X��:�4�D�����+>�~ݤ)�P�2hH�>�sп�ۯ�ek��S��zބ�o�x�QB��1)ܹ+��W�zro�n[�hG� �� %PDF-1.5 %���� endstream endobj 146 0 obj <>stream But over the last few years, we’ve seen an explosion of technologies such as mobile and social media and big data. 0 161 0 obj <>/Filter/FlateDecode/ID[<226B888CD98548879A577F9D9FD54A05><0FAEA356232102448B08E3A47E7BE411>]/Index[142 28]/Info 141 0 R/Length 92/Prev 447930/Root 143 0 R/Size 170/Type/XRef/W[1 2 1]>>stream Deliver. 1 ning to adopt customer-centric thinking, prompted by the consumerization of health insurance. Essays in Digital Transformation Internet Matters Essays in Digital Transformation. Following these apects, we consider a comprehensive, yet prioritised list of digitization enablers for Slovakia, including the rela - tive strengths of the country and key areas on which to focus going forward (Chapter 3). Digital Transformation has gained great research interest in both academia and practice. �N��Pg�A.X����%�D�I�~��s\�E�1$g�s��H�T���T2��Q�sMV3��~�nC㜜iƸT�]�d4���ך>]���ɔ-l�9Oqִk[a4`���;���)��o��S�}�����n�pt�?N�����M?�Ç_�G� ���|�ջ�՞���n�]�\yھ�he۩�o0�#��8������9.� S\b��(P4���l�����nWG�����âٶXb���f�j���Pa�uI�7;�`c[WWn��VU7� y[6s��:�.��jjjݐdWޢ�²��~�:��lq���~��k��8t�Q����ˎI�qS�᰹�:\�N]G�خ���ͱ�n�/{�nrɦ~�&�mRV�P�i@&��ٵ×��p5������ah�H& N���bP/+����3KU_��Ӗߴ�����i,z`8��uW>��e�����=.oQ����B� �_}H+��q��US�掎$��9�Rs�ꮄ �}��=�>)�������I��d��Re�GI�K��zf��6UUKz)2� �a,�(6a���q&�>Z��c'���^D���&��|S&�L�L�'�Ǹ!� ��̏�i��}DQй��(�B�z�\�>��^���������7z�bFO���I��?��uTC�d�!B1E��X�41�EF6��K.�3gzu��� People create and sustain change. cookies, McKinsey_Website_Accessibility@mckinsey.com. endstream endobj startxref Jun 12, 2017 - Go to www.slidebooks.com to Download and Reuse Now a Digital Transformation Strategy & Framework in Powerpoint | Created By ex-McKinsey & Deloitte Strategy Consultants. Combining people, novel digital technologies, and advanced analytics can yield a new breakthrough in productivity if companies learn to weave them all together. mckinsey.com. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. 22. endstream endobj 143 0 obj <>>> endobj 144 0 obj <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/TrimBox[0.0 0.0 612.0 792.0]/Type/Page>> endobj 145 0 obj <>stream Learn about Financial Services technology is currently in the midst of a profound transformation, as … McKinsey & Company McKinsey & Company is an international management consulting firm that helps leading corporations and organizations make distinctive, lasting, and substantial improvements in their performance. McKinsey Digital is an exciting new group at the forefront of corporate transformation. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. By combining the latest innovations with deep industry, functional, and technological expertise, we help clients capture value from data and succeed in the digital age. These are McKinsey & Company’s ‘Four Ds’ of digital transformation outlined in a new report.. About the Digital Challengers research About McKinsey & Company About McKinsey in Central Europe McKinsey & Company opened its first offices in Central and Eastern Europe in the early 1990s, soon after the momentous democratic changes in the region. \/���օ����fb��;ە�P�{� 6�z� Anyone interested in the subject would be wise to listen to their advice. � Why digital transformation should be a strategic priority for health insurers Basel Kayyal, Sti eve Keyll, and Madhu Pawar Healthcare Systems and Services Practice. There are three main reasons for this: 1. Research online, purchase offline, e.g. ����y�恑\���)" ��z93���M��˄XL�#�"k*�tL����Lq!-S&��eĠ��'ő?ZMIAD�C�憙�n��7��!��` �� hޜ��n�8�_��-��/�D ( A new report from the McKinsey Global Institute (MGI), China’s digital transformation: The Internet’s impact on productivity and growth, projects that new Internet applications could fuel some 7 to 22 percent of China’s incremental GDP growth through 2025, depending on the rate of adoption. Most transformations fail. Companies have always relied on technology to innovate and improve productivity and so on. h�bbd``b`�� b;�`�[ $��@D��b��X9 ���qO �( !�H�Il |�@"E����A�b``�M�gL�` �� 1 McKinsey: Digital transformation in healthcare must preserve paper - for now . McKinsey Digital Banking in Asia, (March 2015) 10 Digital Europe: Pushing the Frontier, Capturing the Benefits, McKinsey (2016) ... Digital Transformation for the Retail Banking Industry 6 Top Strategic Digital Imperatives You and your decision-makers have the opportunity – and the need – to make a profound difference in the way your business is run. That’s the power of Operations 4.0 for organizations willing to commit themselves to it. our use of cookies, and This positive environment gives new digital initiatives a head start. �PQ�RQ�b��3� h�b```��fAd`e`�s|5vSb�[�{�;C��g�dǽ�B^m���K��%�=[�#Co G} �ͭM;�r���Zȍ@FK;wdDo�rǩ&�L�7�]5��8�dI᳹[�\;8�R�g뼐c��R�\: Our flagship business publication has been defining and informing the senior-management agenda since 1964. Flip the odds. As companies make the shift to a software-enabled world, McKinsey Digital is well positioned to help companies set themselves up for success in the coming decades. In order to fully benefit from the digital transformation, the time for CEE’s public and private sectors to act is now. Over the past eight decades, the Firm’s primary objective has remained constant—to … How digital transformation will unfold across different economic sectors is another key question. How heavy digital investment separates leaders from laggards . McKinsey played an active role in the region’s economic rebirth, working with leading business organiza-tions, governments, and nonprofits. “Investment is likely to result in lower profits for a while,” the authors added, “but without it there is a serious risk to profits in the longer term. And in turn, that’s creating huge new opportunities—and threats—for most enterprises. In our 2016 survey, the rate of success was 20 percent; in 2014, 26 percent; and i… Discover. We define a successful transformation as one that, according to respondents, was very or completely successful at both improving performance and equipping the organization to sustain improvements over time. Now at McKinsey for more than 19 years, Michael has served clients across multiple industries with a special emphasis on support function transformation, large performance transformation programs and technology-driven innovation. DIGITAL MCKINSEY 7 initiatives don’t lead to more profound changes to the core business and avoid the real work of re-architecting how the business makes money, the benefits can be fleeting and too insignificant to avert a steady march to oblivion. McKinsey’s Digital Quotient (DQ) assessment tool measures maturity across four categories (strategy, culture, organization, and capabilities) and 18 management practices ranging from agility and customer focus to governance and connectivity. See more ideas about digital transformation, digital, strategies. The rise of Digital Challengers 1 This report is part of a wider research into the potential of the digi-tal economy in Central and Eastern Europe. The World Economic Forum gathering in January 2016 contemplated the possibilities of digital transformation under the banner of the Fourth Industrial Revolution. 2. For example, our colleagues in McKinsey Digital & Analytics work together with clients to drive technology-enabled transformations. Digital upends old models. Given the nature of building and launching software, McKinsey Digital employs a wide range of people - from engineers to designers … How companies transform themselves depends, to a great extent, on the capabilities they need most. If you would like information about this content we will be happy to work with you. the digital transformation. There is an increasing shift towards digital in insurance Source: McKinsey –proprietary insurance database 1. New, highly agile, digitally native firms are entering the market and could sig-nificantly disrupt existing business models. Use minimal essential tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility, Nachhaltigkeit & Ressourcen­produktivität. The economies of the Digital Challengers are booming In 2017 the Digital Challengers saw their highest levels of GDP growth in more than a decade. But the problem now, as a generation ago, is that organizations too often overinvest in technology while underinvesting in the human capabilities needed to make it useful. McKinsey is a thought leader when it comes to digital transformation. It is not for the fainthearted, but CEOs are heading in the right direction if they grasp the fundamental importance of heavyweight management commitment, are willing to make significant investments, and set clear, ambitious targets. Reinvent your business. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. %%EOF One example McKinsey pointed to as proof of this is European insurer Axa, which invested €950 million in digital transformation over just two years. �!%�t���I�掐��������}Muwv�,>X�Ҩ1�/0 ��꺝�"��. hereLearn more about cookies, Opens in new challenges’, McKinsey & Co., 2016. Digital Transformation: McKinsey’s Take. Select topics and stay current with our latest insights, Ops 4.0: Fueling the next 20 percent productivity rise with digital analytics. I only just stumbled across this 124 page report from McKinsey and, building on yesterday’s free research from Deloitte, this report is all about digital transformation and replacing core systems, my favourite subject.. Here’s the intro: Next-gen Technology transformation in Financial Services. We see four primary structures, which collectively become Operations 4.0: The next level of product transformation not only combines the latest design thinking with multiple sources of data but also exploits sophisticated advanced-analytics methodologies to generate insights about potential cost and value improvements. According to McKinsey, the digital transformation is allowing companies to quickly virtualize and automate products, services, as well as supply chains to include new disruptive business models and redesigned processes. benefits and, in many cases, are a crucial first step for a digital transformation. �}����P collaboration with select social media and trusted analytics partners misunderstood, part of digital transformation because it enables enterprises to accelerate innovation and performance improvement. De-risk. 169 0 obj <>stream For established companies, the pressure to digitize business models and products has reached new intensity.McKinsey research shows that the best-performing decile of digitized incumbents earns as much as 80 percent of the digital revenues generated in their industries.Ascending to that elite group is far from easy. Measuring the Digital Transformation: A Roadmap for the Future provides new insights into the state of the digital transformation by mapping indicators across a range of areas – from education and innovation, to trade and economic and social outcomes – against current digital policy issues, as presented in Going Digital: Shaping Policies, Improving Lives. Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. The purpose of the Four Ds is to aid a company’s reinvention in order to find new, significant, and sustainable sources of revenue. Four key sectors warrant further discussion as they are all central to global commerce and ripe for deep transformation: buildings, data centers, industry, and infrastructure. Digital transformation is topping the agenda of organisations worldwide. ��ks��\JR��p������-�H�w� �:��� 2�w�i� We believe that productivity includes every aspect of operational excellence, from the generation of an idea for a product through its manufacture, sale, maintenance, and, potentially, dismantling and recycling once it becomes obsolete. But if these . Please click "Accept" to help us improve its usefulness with additional cookies. 142 0 obj <> endobj Design. Years of research on transformations has shown that the success rate for these efforts is consistently low: less than 30 percent succeed. Over 50 percent of air travel is now purchased online… digital transformation into crystal-clear urgency. 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