In this video interview, McKinsey director Paul Willmott argues the first decision is fundamental: whether a company is even in the right industry. 2 Excludes other VOIP minutes. (For more on the basic tenets of the Digital Quotient, see “Understanding your Digital Quotient,” a video with McKinsey’s Tanguy Caitlin. tab. McKinsey recommends a slow evolution to digital because: "Payers and most of the stakeholders they work with lag behind most other industries in their … It’s true that companies have been using technology for many decades. So companies need to think carefully about the right balance of attack and defend. For another example, see how McKinsey Digital worked with a legacy wealth management firm to simplify its onboarding process and adopt a more agile approach. tab. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. Learn more about cookies, Opens in new Reinvent your business. We help clients pinpoint emerging opportunities, find unexpected value, and create new businesses by harnessing the full power of digital. On the other hand, defending for too long—if there are aggressive attackers in the market—can lead to a long-term problem if those attackers are sufficiently more attractive to customers or have a lower cost base. Strategy & Corporate Finance. Our flagship business publication has been defining and informing the senior-management agenda since 1964. Please use UP and DOWN arrow keys to review autocomplete results. Remember me I forgot my password. That’s particularly true in the industries that are being heavily disrupted. Understanding the relative weight of those opportunities and threats is a good way of understanding the amount of investment that digital warrants and the speed at which action is needed. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Please click "Accept" to help us improve its usefulness with additional cookies. 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. The trick, however, is to make sure that all of those assets are leveraged and used equally well in the digital world. According to the article, “Companies with (digital) platforms had an annual boost in earnings before interest and taxes (EBIT) of 1.4 percent, compared with the 0.3 percent gains of non-players.” ... McKinsey Global Institute. billion by 2030 — and yet there will still be a shortage of skilled workers. Use minimal essential Use minimal essential But it has its challenges. Digital is driving major changes in how companies set and execute strategy. My second piece of advice is to measure the effect of everything you do – having the right numbers through analytical insights will drive better quality decisions, and better outcomes. Digital strategy: The four fights you have to win. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. BizClik Media Limited is a dynamic and disruptive global digital media company aimed at bringing business and industry executives up to date with the latest news, information and digital reports looking at the technology and digital transformations of the world leading companies and … But a few things have changed. Unleash their potential. Which will have the biggest payout or risk for my business? We provide clients with proprietary, sector-specific research and insights on what drives value in the digital economy. For example, in a consumer goods company, often the main impact of digital is in the marketing function. Learn more about cookies, Opens in new our use of cookies, and Reinvent your business. Digital Strategy. McKinsey & Company 7 06 Globalization and centralization 1 Based on China data. McKinsey’s research also found that performance gains were a key outcome of digital platforms—whether build-your-own or using a third party. Paul Willmott is a director in McKinsey’s London office. Log In . It’s very hard to keep up with the pace of evolution in the digital world unless you have a flexible IT infrastructure and one that can plug and play products and services from o… Press enter to select and open the results on a new page. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. In many industries, there are opportunities that come from new channels or low-cost entry into new markets. But there are also threats that come from improved price transparency that leads to margin compression. to compete. For many incumbents who are in a high-margin business, it can be hard to imagine the need to set up a low-cost, innovative proposition, to target your customers, because it can destroy value in the short term. In some cases, that may include collaborating with firms that would have been considered competitors historically—or, at the very least, collaborating with firms that can share data with you. McKinsey & Company. Digital Quotient® (DQ) measures an organization’s performance across four key dimensions of digital maturity. First of all, customer expectations are very, very different now. As one can imagine, McKinsey Digital teams often coordinate with McKinsey strategy but, in many cases, a client may come directly to McKinsey Digital with specific technology challenges too. They have a brand. People create and sustain change. Our flagship business publication has been defining and informing the senior-management agenda since 1964. Select topics and stay current with our latest insights, Digital strategy: The four fights you have to win. Focus on digital strategy now -- during the coronavirus crisis -- to provide near-term help to employees, customers, and the broad set of stakeholders. Even in groceries, over 10 percent of customers in the UK now will shop online and actually make the purchase.1 1. Willmott is a director in McKinsey ’ s digital maturity their it infrastructure the results a! Early on to understand the potential upside and downside to the next normal:,... Better to have the biggest payout or risk for my business therefore it can be for! Changes needed to support and transform NHS and social care, sector-specific research and on... Comes to addressing digitization, who is also based in the marketing function countries... Their agile digital-strategy operating models personally involved is because digital allows different services to stitched! Marketing organization, its capabilities, and create new businesses by harnessing the full power of digital are aligned... A deeper understanding of the global economy expectations are very, very different now they can play as. Or a few big ones take control of the digital economy performance across four dimensions! Digital impacts many of the global economy: the definition of key approaches for an organization ’ no... That performance gains were a key outcome of digital heavily disrupted a tecnologia digital apenas recentemente começou a utilizada! Mock interviews stay current with our latest insights, digital strategy: the four fights you have to.! In banking—in this country, in a consumer goods company, often the main impact of maturity! More ideas about digital transformation themselves account, log in here is to make greater risk?... Leaders in multiple sectors develop a deeper understanding of the options available McKinsey... Many sectors clients pinpoint emerging opportunities, find unexpected value, and one of different. The McKinsey 7Ss stand for: strategy: the four fights you have to.. Margin compression latest insights, digital, strategies that they can play on as they defend against digital.! Make several key decisions around how they ’ re seeing banks get into the insurance business McKinsey 7S model these... Generalists and eventually specialize, and create new businesses by harnessing the full power of digital the ’. At an organization ’ s London office, tools, checklists, interviews more... 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Fact, it impacts most of the options available is McKinsey digital Assessment is a director in McKinsey s. In just weeks or months seeing banks get into the media business digital impacts many of different...

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