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 AI (Wiley, June 20, 2023), should be to build a competitive advantage by continuously deplo ...

Strategy & Corporate Finance Practice The transformation imperative for midcap companies Transformations, when done right, can enable midmarket companies to unleash their full potential. August 2024 Midsize companies are the lifeblood of many economies but can often increase their scale and impact by undertaking transformations. In this episode of the Inside the Strategy Room podcast, three experts offer advice on how midcaps can reach a higher level of performance. Zak Gaibi, who leads McKinsey's Transform ...

Investment Rating - The report does not explicitly provide an investment rating for the insurance industry or Prudential Group. Core Insights - Prudential Group is undergoing a customer-centric transformation driven by digitalization, data, and artificial intelligence, while maintaining the importance of human interaction [1][2][3]. - The company aims to create a seamless and personalized customer experience across all touchpoints by leveraging data and technology [2][3]. - The focus on customer satisfaction, loyalty, and advocacy is seen as a pathway to sustainable growth and value creation [2][3]. Summary by Sections Digital Transformation - Prudential has recognized the importance of artificial intelligence and data analytics in enhancing customer experience and operational efficiency [3][5]. - The company is investing in a digital platform to support agents in better interacting with customers, providing timely reminders and personalized information [5][6]. Customer-Centric Approach - The organization emphasizes the need for a culture that prioritizes customer insights and feedback, integrating these into decision-making processes [5][6]. - Prudential aims to engage all employees in customer interactions, with a goal for each employee to connect with 100 customers within a year [6]. Data Utilization - Data is identified as a top priority for Prudential, especially in understanding customer behavior and optimizing communication strategies [5][6]. - The company is committed to complying with data privacy regulations while leveraging data to enhance customer trust and experience [6]. AI Integration - AI is viewed as a transformative force in the service industry, enabling personalized solutions and automating processes to improve service delivery [3][5]. - The integration of AI is aimed at simplifying underwriting processes and enhancing customer service efficiency [3][5]. Cultural Shift - A cultural shift towards a customer-centric mindset is essential for Prudential's transformation, requiring the right attitudes, skills, and tools among employees [3][5]. - The company is fostering a symbiotic relationship between human expertise and AI, emphasizing the importance of listening to customer feedback [5][6]. Performance Metrics - Customer satisfaction scores are utilized as a key metric to gauge progress towards a more customer-centric approach, with a goal to reach the top quartile by 2027 [6].

Financial Services Practice Prudential embraces customer centricity: An interview with Priscilla Ng Prudential plc's shift to customer-centric insurance hinges on digital transformation, with data and artificial intelligence as key enablers and humans still playing a crucial role. August 2024 As Prudential plc embraces digital transformation, the 176-year-old insurance company finds itself navigating a delicate balancing act: harmonizing the power of AI with a human touch, essential to delivering exceptiona ...

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]