Rodney W. Zemmel

To ensure organizations have access to the quantum computing talent they need when they need it, leaders will have to upskill workers and create pathways for new talent, just as they did for AI.

Digital is here to stay, with 125 million new consumers in the United States and Europe adopting digital channels since the onset of the COVID-19 pandemic. But there are still plenty of opportunities out there, according to McKinsey’s third annual global consumer sentiment survey
That should be welcome news for CEOs and other business leaders who are looking to bolster their companies’ resilience in this period of economic and geopolitical uncertainty.

The survey uncovers three… Show more

Digital is here to stay, with 125 million new consumers in the United States and Europe adopting digital channels since the onset of the COVID-19 pandemic. But there are still plenty of opportunities out there, according to McKinsey’s third annual global consumer sentiment survey
That should be welcome news for CEOs and other business leaders who are looking to bolster their companies’ resilience in this period of economic and geopolitical uncertainty.

The survey uncovers three “opportunity sets”:

> new opportunities with consumers in large demographic segments, such as those in rural areas, younger populations, and emerging markets, who are digitally underserved

> engagement opportunities through specific services consumers are looking for, particularly in banking and telco, with mobile channels emerging as perhaps the most important digital route to engage with consumers

> opportunities to protect, where companies need to shore up their flanks, such as addressing both consumer dissatisfaction with digital experiences and their concerns with how their data are used and protected Show less

Companies can leverage digital twins in a way that delivers significant value today—while building the engine for the enterprise metaverse of tomorrow.

Organizations are set to look dramatically different in coming decades.

We envision a world where the lines between physical and digital environments blur. Every asset, process, or person within and related to an enterprise will be replicated virtually—and connected. As a result, nearly every aspect of work can take place solely… Show more

Companies can leverage digital twins in a way that delivers significant value today—while building the engine for the enterprise metaverse of tomorrow.

Organizations are set to look dramatically different in coming decades.

We envision a world where the lines between physical and digital environments blur. Every asset, process, or person within and related to an enterprise will be replicated virtually—and connected. As a result, nearly every aspect of work can take place solely digitally or, at the least, before it does so physically. Immersive experiences, enabled by augmented (AR) and virtual reality (VR), will allow employees to gain real-world product design experience and training from their desks as they manipulate 3-D digital replicas of equipment.

Mass simulations and AI technologies will use data streams from across and beyond the enterprise to help senior executives predict what’s next with tremendous precision and prescribe the best course of action in even the most turbulent of times. Show less

Transforming the core is difficult. In this video, I explore the six key elements at the heart of each successful digital transformation

n this episode of The McKinsey Podcast, Kate Smaje and I talk with McKinsey Global Publishing’s Lucia Rahilly about digital transformation: what it really means, how to deliver on it, and why it should remain front and center on the CEO agenda.

An inconvenient truth for businesses undertaking digital transformations is that without focused and active CEO commitment, there is almost no chance of success. That’s because a digital transformation is a business-model reinvention that requires different functions across the organization to work together in new ways, and can happen only through large-scale investments in building an entirely new set of capabilities. The only person who can make that level of sustained change happen is the… Show more

An inconvenient truth for businesses undertaking digital transformations is that without focused and active CEO commitment, there is almost no chance of success. That’s because a digital transformation is a business-model reinvention that requires different functions across the organization to work together in new ways, and can happen only through large-scale investments in building an entirely new set of capabilities. The only person who can make that level of sustained change happen is the CEO.

Our work on digital transformations with more than 100 large incumbent companies over the past ten years has shown that there is a playbook for success to guide CEOs in focusing their interventions. Show less

While quantum computing promises to help businesses solve problems that are beyond the reach and speed of conventional high-performance computers, use cases are largely experimental and hypothetical at this early stage. Indeed, experts are still debating the most foundational topics for the field.

Still, the activity suggests that chief information officers and other leaders who have been keeping an eye out for quantum-computing news can no longer be mere bystanders. Leaders should start… Show more

While quantum computing promises to help businesses solve problems that are beyond the reach and speed of conventional high-performance computers, use cases are largely experimental and hypothetical at this early stage. Indeed, experts are still debating the most foundational topics for the field.

Still, the activity suggests that chief information officers and other leaders who have been keeping an eye out for quantum-computing news can no longer be mere bystanders. Leaders should start to formulate their quantum-computing strategies, especially in industries, such as pharmaceuticals, that may reap the early benefits of commercial quantum computing. Change may come as early as 2030, as several companies predict they will launch usable quantum systems by that time.

To help leaders start planning, we conducted extensive research and interviewed 47 experts around the globe about quantum hardware, software, and applications; the emerging quantum-computing ecosystem; possible business use cases; and the most important drivers of the quantum-computing market. In the report Quantum computing: An emerging ecosystem and industry use cases, we discuss the evolution of the quantum-computing industry and dive into the technology’s possible commercial uses in pharmaceuticals, chemicals, automotive, and finance—fields that may derive significant value from quantum computing in the near term. We then outline a path forward and how industry decision makers can start their efforts in quantum computing. Show less

The frustrations of working with complex legacy architecture is hardly an anomaly in the corporate world, but turning to open source as a solution for e-commerce is. Many large companies have been using open source for years now, though often in isolated areas deeper in the stack. But open-source software (OSS) has evolved to the point where it can provide a broad range of benefits in e-commerce, such as speed, low total cost of ownership, flexibility, and access to talent, to name a… Show more

The frustrations of working with complex legacy architecture is hardly an anomaly in the corporate world, but turning to open source as a solution for e-commerce is. Many large companies have been using open source for years now, though often in isolated areas deeper in the stack. But open-source software (OSS) has evolved to the point where it can provide a broad range of benefits in e-commerce, such as speed, low total cost of ownership, flexibility, and access to talent, to name a few.

While cost savings are an important benefit, the real value of using open source is in acquiring key talent, helping build up an open architecture, and accelerating the culture of speed and flexibility that’s needed to be competitive in a digital world. Being serious about being digital means being serious about open source.

However, to borrow a well-worn phrase, “With great power comes great responsibility,” going the OSS route requires a greater commitment and more accountability from the enterprise. It is not a silver bullet and requires thoughtful discussions about trade-offs and priorities. The benefits of OSS can be claimed only when companies invest in finding and retaining top engineering talent, reduce complexity through better processes, and institute effective security and governance practices. Show less

While many industrial companies have e-commerce websites, they have struggled to fully embrace this strategy because of the complexities involved, particularly those related to distributor management, and thus they remain stuck at the pilot stage. With this in mind, we embarked on a series of articles to help industrial companies transform digital M&S from a minor focus to the heart of their growth strategy. The first, “Creating strong digital B2B channels at industrial companies,” examined… Show more

While many industrial companies have e-commerce websites, they have struggled to fully embrace this strategy because of the complexities involved, particularly those related to distributor management, and thus they remain stuck at the pilot stage. With this in mind, we embarked on a series of articles to help industrial companies transform digital M&S from a minor focus to the heart of their growth strategy. The first, “Creating strong digital B2B channels at industrial companies,” examined big-picture strategic questions, and the second, “Implementing a digital transformation at industrial companies,” discussed how to translate a digital vision into reality. This third article focuses on helping industrial companies move from dabbling in e-commerce to building their growth strategy around it. Show less

Few board directors would dispute the importance of digital and how it’s fundamentally reshaping the competitive landscape in almost every sector. But many of those we speak to are uncertain about what their role should be in helping senior management drive the digital transformations that businesses need to execute in order to survive.

In-depth discussions with dozens of board directors has helped shed some light on where boards can add value. What is emerging is a model where the core… Show more

Few board directors would dispute the importance of digital and how it’s fundamentally reshaping the competitive landscape in almost every sector. But many of those we speak to are uncertain about what their role should be in helping senior management drive the digital transformations that businesses need to execute in order to survive.

In-depth discussions with dozens of board directors has helped shed some light on where boards can add value. What is emerging is a model where the core mandate of the board is unchanged but its scope for intervention on issues such as risk and competition is expanding. We see five things boards members can do to have the greatest impact. Show less

The cohead of US buyout and growth at Carlyle shares thoughts on the state of private equity, the path forward on diversity and inclusion, and advice on building a successful career in the industry.

In this video, I break down how consumer behavior has changed during the COVID-19 pandemic.

In this video, I explore the six elements that companies need to drive to get value from a digital transformation in the post-pandemic world.

In this video, I explore why the role of the CIO needs to evolve to support the post-pandemic, tech-forward needs of enterprises.

In this video, I explore the evolution of B2B selling, and why remote selling is working and how sales is evolving to generation 2.0.

I share six questions all executives should ask to drive value and ensure their digital transformation will succeed.

In this video, I break out how the digital game is changing and the six key questions businesses need to ask to help their digital transformations succeed.

How the COVID-19 pandemic is changing customers’ needs—and how Ted Doheny's company is adapting its packaging solutions to address those needs.

A digital future lies ahead. By acting early and being bold and decisive, CEOs can accelerate their digital transformation and reach the next normal sooner.

Five principles are useful in guiding CEOs in their third, fourth, and fifth years on the job.

In this episode of the McKinsey Podcast, McKinsey senior partner Rodney Zemmel and Mike Useem, a professor at the Wharton School of the University of Pennsylvania, talk with McKinsey Publishing’s Simon London about how senior executives can run companies for the long term while also managing demands for short-term performance.

Inspired by the CEO Academy®, the annual off-the-record gathering of chief executives organized by the authors, Go Long reveals how some of the world’s most prominent business leaders resisted short-term pressures to successfully manage their organizations for the long term, and in turn, aim to create more jobs, more satisfied customers, and more shareholder wealth.

We recently analyzed more than 350 industrial companies to gauge their digital prowess—basically, the extent to which they were investing in digital tools and analytics—and determine if this had any impact on revenue growth or total returns to shareholders (TRS). The results revealed that a select group of companies stand out from the pack when it comes to driving performance improvement through digitization. The insights from this research, combined with our work with industrials, allowed us… Show more

We recently analyzed more than 350 industrial companies to gauge their digital prowess—basically, the extent to which they were investing in digital tools and analytics—and determine if this had any impact on revenue growth or total returns to shareholders (TRS). The results revealed that a select group of companies stand out from the pack when it comes to driving performance improvement through digitization. The insights from this research, combined with our work with industrials, allowed us to identify some common success factors for digitization, including a clear focus on impact, employee buy-in, cross-functional collaboration, and a detailed implementation plan. This article reviews these concepts, as well as the benefits of a strong digital sales and marketing function. The next article in this series will provide more details about the framework for implementing digital initiatives at industrials. Show less

Setting up a winning digital and advanced-analytics organization is hard. Decisions about talent and technology will often determine the transformation’s success.