In an era where data abundance poses both a challenge and an opportunity, companies are exploring the potential of transforming data into profitable businesses, say senior partner Ari Libarikian and coauthors. McKinsey’s survey of data business building highlights a significant trend: about 40 percent of business leaders anticipate creating data, analytics, and AI-powered enterprises within the next five years, marking it as the top category for new-business initiatives.
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A bubble chart shows the types of new businesses respondents expect their organizations to build over the next 5 years. The type of new business is shown on the y-axis and the industry on the x-axis. The size of each bubble represents the percentage of respondents who expect to build that type of new business in that industry. The most common types expected are data, analytics, and AI platforms; everything as a service; physical products (including hardware); and environmental-sustainability-focused businesses. The largest bubble, at 64%, represents environmental-sustainability-focused businesses in the energy and materials industry. The other large bubbles are physical products in advanced industries at 57%; data, analytics, and AI platforms in technology, media, and telcos at 55%; and digital retail in consumer goods and retail at 63%.
Source: McKinsey Global Survey on new-business building, 980 senior managers and C-suite executives, June 21–Aug 20, 2023.
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To read the article, see “From raw data to real profits: A primer for building a thriving data business,” July 18, 2024.