1.
@McKinsey_MGI
Implications
Companies
Opt out at your peril
Know where the digital
frontier is–and realize
that it's not waiting
for you
Just having IT is not
enough–you need the
"must-have"
digital capabilities
Beware competitors
from everywhere
Governments
Embrace and
enable digital
Ease the transition
Don’t kill the goose,
but solve for the
issues together
with technologists
Adapt and learn
Individuals
It's a great time to be
a consumer and
a user
Embrace the
evolution of your “job”
Build digital savvy
Automation could also accelerate
displacement of middle-skill jobs
45%
Millions of middle-skill jobs displaced
1960s 1970s 1980s 1990s 2000s 2007-15 2015-25
US MIDDLE-SKILL JOBS DISPLACED DUE TO
TECHNOLOGICAL CHANGE
2 3 5 5 6 6 12
5%
7%
4%
6%
9%
8%
10%
13%
15%
Low
Estimate
Medium
Estimate
High
Estimate
of tasks could be automated
Up to
30%of tasks in 60% of jobs could
be automated
Up to
1997 2005 2013
1x
baseline
1.7x
increase in
leading sectors
4.1x
increase in
leading sectors
8% 12%
14%
Most digitized sectors
Rest of US economy
Overall
...and the digital leaders are maintaining an
enormous lead over everyone else
Selected sectors Overall Assets Usage Labor
Some industries, however, are more digitized
than others...
ICT sector
Finance and insurance
Wholesale trade
Oil and gas
Advanced manufacturing
Government
Personal & local services
Retail trade
Education
Transportation/warehousing
Basic goods manufacturing
Health care
Construction
Hospitality
Relatively
low digitization
Relatively
high digitization
Denotes leading digitized firms within relatively un-digitized sectors
By 2025, digitization could contribute at least
$2 trillion to annual US GDP*
*This sizing is not comprehensive and reflects only certain applications of big data, the Internet of
Things, and online talent platforms. The potential for technology-fueled growth is much wider.
~0.5
~0.8
1.6
~1.3
0.3 0.4
Total
Multifactor
productivity
Capital
productivity
Labor
productivity
$2.2
Trillion
Low estimate
High estimate
98%
Digitization now touches up to 98% of
the economy
Those on the digital frontier have 2-3X faster
profit margin growth.
10%
ICT* as a share of GDP,
taking into account
price effects
5%ICT* as a share of GDP in
official statistics
It’s much broader than purchasing
IT equipment and systems
*Information and communications technology
The Accelerating
Digitization of the
US Economy
MCKINSEY GLOBAL INSTITUTE