mckinsey   2221

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Global Energy Perspective 2019 | McKinsey
The Global Energy Perspective Reference Case provides our view on how the energy transition will unfold.
mckinsey  energy 
7 days ago by JINYONG86
Supercharging retail sales through geospatial analytics
March 2019 | | McKinsey | By Rob Hearne, Alana Podreciks, Nathan Uhlenbrock, and Kelly Ungerman.

A retailer can now use geospatial analytics to understand the interactions between its online and offline channels. With these insights, it can create a higher-performing retail network.
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Is our outlet store in San Francisco hurting foot traffic and sales at our full-price store two miles away? Or is it doing the opposite—attracting new customers and making them more likely to visit both stores? How are our five Manhattan stores affecting our e-commerce revenue? Are they making consumers more likely to shop on our website or to search for our products on Amazon? If we open a new mall store in the Dallas metro area, what impact will it have on sales at our existing stores, at our department-store partners, and online?

The answers to these kinds of questions are increasingly crucial to a retailer’s success, as more and more consumers become omnichannel shoppers......most retailers don’t give adequate thought to the cross-channel impact of their stores. They rely on gut feel or on high-level analysis of aggregated sales data to gauge how their offline and online channels interact.....there’s a way for retailers (and other omnichannel businesses) to quantify cross-channel effects, thus taking the guesswork out of network optimization. Through advanced geospatial analytics and machine learning, a retailer can now generate a detailed quantitative picture of how each of its customer touchpoints—including owned stores and websites, wholesale doors, and partner e-commerce sites—affects sales at all its other touchpoints within a micromarket......US retail sales are on an upward trajectory.....despite the growth of e-commerce, the vast majority of these purchases still happened in brick-and-mortar stores. .....So why have US retailers closed thousands of stores in the past year, with thousands more closures to come?....Because the consumer journey is changing!!......Consumers are transacting in different channels....engaging across multiple channels, often simultaneously rather than sequentially. It’s critical for omnichannel retailers to have a detailed understanding of the interplay between online and offline touchpoints, and between owned and partner networks.

Quantifying cross-channel effects

the starting point is data......from a wide range of internal and external sources. Inputs into a geospatial model would ideally include not just transaction and customer data but also store-specific details such as store size and product mix; site-specific information such as foot traffic and retail intensity; environmental data, including local-area demographics; and anonymized mobile-phone location data.......A simulation model can then quantify the sales effect of each of the retailer’s customer touchpoints on its other channels within a local market. The model must be sophisticated enough to simulate the upward or downward revenue impact of adding or removing a particular touchpoint.

Geospatial analysis reveals that the consistency and magnitude of cross-channel effects vary significantly across channel types and markets.
analytics  bricks-and-mortar  cross-channel  customer_journey  data  e-commerce  foot_traffic  geospatial  location_based_services  McKinsey  omnichannel  privacy  retailers  store_closings  security_consciousness  site_selection  gut_feelings 
8 days ago by jerryking
Ahead of the curve: The future of performance management | McKinsey
Because they are collected in real time from fresh performance events, employees find the information more credible, while managers can draw on real-world evidence for more meaningful coaching dialogues.
performance  mckinsey 
8 days ago by creimers99
Snapshots of the global mobility revolution | McKinsey
How will regional variations of the mobility revolution in China, Europe, Brazil, India, and the United States reshape cars, carmakers, and the automotive “user experience”?
mobility  mckinsey  ACES 
9 days ago by JINYONG86
The business value of design | McKinsey
We found a strong correlation between high MDI scores and superior business performance. Top-quartile MDI scorers increased their revenues and total returns to shareholders (TRS) substantially faster than their industry counterparts did over a five-year period—32 percentage points higher revenue growth and 56 percentage points higher TRS growth for the period as a whole.
mckinsey  design  creative-effective 
16 days ago by JohnDrake
How McKinsey is helping to prove the value of design
While design was once largely thought of as a way of making products more attractive, it is now a way of thinking: a creative process driven by the desire to better understand and meet consumer needs.”

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The headline findings may provide the industry with the ‘aha’ moment many have been looking for. McKinsey’s researchers found “a correlation between design best practices and financial performance — those companies scoring in the top quarter of MDI respondents increased revenues and shareholder returns at nearly twice the rate of their industry peers on an annual basis”. And this wasn’t just a one-off: “Over a five-year period this resulted in 32 percentage points higher revenue growth and 56 percentage points higher shareholder return growth compared with industry peers,” the authors say.

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“This suggests that improving your design capability can improve your company’s financial performance whether you are making physical products, digital apps, services, experiences or a combination,” the authors conclude.

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1. Firstly, they argue, design is “more than a feeling: it’s analytical leadership”. They point out that “the companies in our index that performed best financially understood that design is a top-management issue, and assessed their design performance with the same rigour they used to track revenues and costs. In many other businesses, though, design leaders say they are treated as second-class citizens.

2. Second, they highlight the importance of starting with the user, and committing to putting their needs first. “The best performing companies in McKinsey’s research break down internal walls between physical, digital and service design. They start with the user, not the spec, and design a seamless physical, service and digital user experience,” the authors say. Despite this, over 40% of the companies surveyed still aren’t talking to their end-users during development,

3. Design also needs to be recognised as a cross-functional talent, not just a single, siloed department. The best MDI performers “convene dedicated cross-functional product and service design teams, with aligned design and business incentives. They protect these teams’ budget to allow for multiple rounds of end-user concept design and testing,”

4. Finally, the report argues that design is “more than a phase: it’s continuous iteration”. Those companies “that continuously listen, test and iterate with end-users outperform their industry peers,”
design  creative_effectiveness  mckinsey 
17 days ago by JohnDrake
Planning in an agile organization | McKinsey
- Focus on a small set of strategic priorities
- Ensure teams have clear, specific goals
- Accelerate planning cycles to reallocate resources more frequently
- Enable teams instead of directing them
agile  planning  McKinsey 
21 days ago by tom.reeder
The trillion-dollar opportunity for the industrial sector: How to extract full value from technology | McKinsey
enue growth is generated by a range of factors: new business models with services and features that unlock value for end users; better knowledge of customers that helps companies tailor products, develop new services, and increase customer loyalty; the broadening of channels and access to new customers via e-commerce; and the optimization of pricing across products and services. Meanwhile, the cost savings that drive margin expansion come from the use of automation, analytics, and di...
mckinsey  manufacturing  digital 
4 weeks ago by JINYONG86
Enterprise software: An industry in transformation | High Tech | McKinsey & Company
Software leaders contend with a growing array of challenges, and new commercial models, artificial intelligence, and digital technologies are raising the competitive bar. This suite of articles offers our latest thinking to navigate changes and to capitalize on the opportunities they present.
mckinsey  software  cybersecurity  management 
4 weeks ago by JINYONG86
Strategy’s strategist: An interview with Richard Rumelt | McKinsey
Now, lots of people think the solution to the strategic-planning problem is to inject more strategy into the annual process. But I disagree. I think the annual rolling resource budget should be separate from strategy work. So my basic recommendation is to do two things: avoid the label “strategic plan”—call those budgets “long-term resource plans”—and start a separate, nonannual, opportunity-driven process for strategy work.

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Can you predict clearly which positions will pay off? Not easily. If we could actually calculate the financial implications of such choices, we wouldn’t have to think strategically; we would just run spreadsheets. Strategic thinking is essentially a substitute for having clear connections between the positions we take and their economic outcomes.

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Innovation: Richard Rumelt: There is no substitute for entrepreneurial insight, but almost all innovation flows from the unexpected combination of two or more things, so companies need access to and, in some cases, control over the right knowledge and skill pools.

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The Quarterly: What sort of group can analyze these kinds of things?

Richard Rumelt: A small group of smart people. What else can I say? Doing this kind of work is hard. A strategic insight is essentially the solution to a puzzle. Puzzles are solved by individuals or very tight-knit teams. For that, you need a small group. With big groups and complex processes you can select the better solution to the puzzle, and you can get consensus and buy-in and even commitment.

One other thing. If I had my way, small groups like this would be absolutely prohibited from doing PowerPoint presentations! Using bullet points so much drives out thinking. One of the nice features of PowerPoint is how fast you can create a presentation. But that’s the trouble. People end up with bullet points that contradict one another, and no one notices! It is simply amazing.

If you ask a group to put aside the bullet points and just write three coherent paragraphs about what is changing in an industry and why, the difference is incredible. Having to link your thoughts, giving reasons and qualifications, makes you a more careful thinker—and a better communicator.
brand_apple  campaignplanning  mckinsey  innovation  strategy  steve-jobs 
5 weeks ago by JohnDrake
Why digital strategies fail | McKinsey
Pitfall 1: Fuzzy definitions
Pitfall 2: Misunderstanding the economics of digital
Pitfall 3: Overlooking ecosystems
Pitfall 4: Overindexing on the ‘usual suspects’
Pitfall 5: Missing the duality of digital
failure  digital_strategy  McKinsey 
5 weeks ago by tom.reeder

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