Companv People & Organizational Performance Practice Gen AI's next inflection point: From employee experimentation to organizational transformation As many employees adopt generative AI at work, companies struggle to follow suit. To capture value from current momentum, businesses must transform their processes, structures, and approach to talent. By Charlotte Relyea, Dana Maor, and Sandra Durth with Jan Bouly August 2024 After nearly two years of debate, the verdict is in: generative AI (gen AI) is here to ...

McKinsey & Company McKinsey Explainers What is digital transformation? Digital transformation is the rewiring of an organization, with the goal of creating value by continuously deploying tech at scale. June 2023 Digital transformation is the fundamental rewiring of how an organization operates. The goal of a digital transformation, as outlined in the new McKinsey book Rewired: A McKinsey Guide to Outcompeting in the Age of Digital and Al (Wiley, June 20, 2023), should be to build a competitive advantage by ...

Industry Investment Rating - The report does not explicitly provide an industry investment rating [1][2] Core Viewpoints - CFOs are increasingly focusing on long-term planning and resource allocation, with 55% citing it as a top priority, up from 30% in the previous survey [4][9] - Strategic planning is also a growing priority, with 60% of CFOs considering it a top priority, compared to 38% in 2023 [9] - CFOs expect their industries' growth rates and companies' investment levels to remain steady, a shift from previous surveys where they predicted increased investment [6] - Supply chain disruptions are a significant concern, with 49% of CFOs citing it as a threat to growth, up from 20% in 2023 [6] - Economic volatility remains a risk, with a majority of respondents highlighting it as a concern [6] CFO Priorities and Challenges - Operational value drivers and KPI management remain top priorities for CFOs, consistent with the previous year [9] - CFOs face organizational challenges in digitization, including demanding workloads, lack of relevant capabilities, and insufficient resources [13] - Only 41% of CFOs report that more than 76% of their finance processes are currently digitized or automated [12] Technology and AI Expectations - Nearly all CFOs (98%) have invested in digitization and automation, but many are still early in their digital transformation journeys [11][12] - CFOs have high expectations for AI and generative AI, with 85% believing it will create insights that reduce manual analysis and 83% expecting improved employee productivity [15][16] - Strategy and leadership support is the most cited potential application of generative AI, with 49% of CFOs identifying it as useful [15][17] - Only 20% of CFOs report using generative AI tools, with 71% of those users citing improved employee productivity as a key benefit [19][20] Long-Term Focus - CFOs are increasingly looking beyond short-term concerns, focusing on long-term planning and resource allocation [4][9] - They are balancing short-term management with long-term value creation, playing a critical role in navigating economic volatility and technology-driven change [21]

McKinsey Digital Technology Trends Outlook 2024 July 2024 McKinsey & Company McKinsey & Company is a global management consulting firm, deeply committed to helping institutions in the private, public, and social sectors achieve lasting success. For more than 90 years, our primary objective has been to serve as our clients' most trusted external adviser. With consultants in more than 100 cities in over 60 markets, across industries and functions, we bring unparalleled expertise to clients all over the world. ...

McKinsey Global Institute A new future of work The race to deploy AI and raise skills in Burope and beyond Authors Eric Hazan Anu Madgavkar Michael Chui Sven Smit Dana Maor Gurneet Singh Dandona Roland Huyghues-Despointes May 2024 About the McKinsey Global Institute The McKinsey Global Institute was established in 1990. Our mission is to provide a fact base to aid decision making on the economic and business issues most critical to the world's companies and policy leaders. We benefit from the full range of ...

Group 1: Aging Population Insights - By 2027, China is expected to transition from an "aging" society to an "aged" society in just 25 years, significantly faster than France (115 years), the US (69 years), and the UK (45 years) [3] - Approximately 70% of respondents wish to maintain their pre-retirement living standards, indicating a high expectation for retirement financial status [9] - About 80% of respondents are aware of the "personal pension" system, but the actual purchase rate is only 8% [11] Group 2: Financial Preparedness and Concerns - Around 70% of respondents express concerns about their ability to retire comfortably, with 80% lacking a clear retirement plan [13] - Approximately 75% of respondents have retirement savings below RMB 1 million, which is less than the estimated RMB 1.15 million needed for urban residents' retirement [13] - The primary reason for inadequate retirement preparation is a lack of urgency, followed by insufficient funds and the need for professional support [32] Group 3: Market Participation and Financial Institutions - Financial institutions are encouraged to enhance market education to improve the conversion rate from awareness to purchase [28] - Traditional financial institutions, such as banks and insurance companies, are preferred channels for purchasing pension products, with 42% favoring insurance companies [36] - There is a significant preference for diverse withdrawal methods, with 44% of respondents favoring annual fixed withdrawals and 38% preferring a model of higher withdrawals in the first ten years [43]

Consumer Sentiment - Consumers exhibit cautious expectations for growth in 2024, with anticipated growth rates between 2.2% and 2.4%[4] - The primary support for expected consumption growth is a projected increase in average disposable income by 2.5% and a slight rise in the number of households by 0.4%[4] - The proportion of consumption in disposable income is expected to decrease by 0.2 percentage points, indicating a strong savings inclination among consumers[4] Demographic Insights - Different consumer groups show varied confidence levels, with Gen Z, affluent seniors, and wealthy middle-aged individuals being notably more optimistic[62] - In contrast, the new middle class in first and second-tier cities and rural elderly populations exhibit the most pessimistic outlooks, which may suppress consumption[62] Spending Trends - The overall consumer sentiment is influenced by concerns over job stability, income fluctuations, and asset depreciation, leading to a significant impact on spending expectations[44] - Anticipated daily consumption growth for pessimistic groups is significantly lower, averaging -0.3% due to high fixed expenditures like education and elder care[44] Category-Specific Consumption - Four potential growth categories identified are education, food and beverages, health products and services, and travel, driven by emotional and demand-based factors[50] - Conversely, three risk categories include home appliances/furniture, tobacco, and consumer electronics, with spending expected to decline[50] Behavioral Changes - Consumer behavior is shifting primarily due to changes in purchase frequency and quantity rather than price, indicating a trend towards "buying less but better" in certain categories[66] - The trend of consumption upgrading and downgrading is prevalent, with consumers increasingly selective about their spending choices[66] Market Outlook - Despite the cautious sentiment, over two-thirds of respondents remain optimistic about the market, suggesting potential for future consumption growth[54] - Companies are encouraged to explore niche markets and specific demographics to identify growth opportunities amidst the cautious consumer landscape[78]

Gen AI: A cognitive industrial revolution Silicon Valley pioneer Reid Hoffman explains why we should view generative AI as a "steam engine of the mind" that promises to profoundly alter our professional and personal lives. 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. I ...

2024中国消费趋势 调研:预期谨慎 存在潜力 泽沛达(Daniel Zipser) 许达仁(Daniel Hui) 石俊娜(Junna Shi) 陈曦(Cherry Chen) s fo - L 1 ( ) // C A A 3 ed 0.001 //0 l ) 2 ll et l 27 序言 2023年中国消费进入复苏轨道,复苏之路充满机遇与挑战。进入 2024年后,市场参与者都在关心:中国消费市场整体走向如何?消费 者信心如何?如何影响实际消费行为?品类与人群结构会发生什么 变化? 为回答这些重要问题,此次调研基于中国消费趋势的一手信息与数 据,以及大范围、广覆盖的真实消费者调研结果得出五大洞见。此次 调研在2023年底进行,重点询问消费者对2024年的消费信心与预 期。有效分析样本为11,930份,全面覆盖一至四线城市及农村地区; 并按照不同城市线级、年龄代际、家庭收入区间设置配额,细分为 108个人群。 以下我们会围绕5个影响消费市场的关键问题,分享调研中的重点 发现: 1. 中国消费整体走向如何?预期增长是否有足够支撑?体现出哪些 结构性特征? 2. 消费者情绪如何影响消费预期?整体信心程度如何? ...

A microscope on small businesses Spotting opportunities to boost productivity Authors Anu Madgavkar Marco Piccitto Olivia White María Jesús Ramirez Jan Mischke Kanmani Chockalingam Editor Janet Bush May 2024 ...