| This week, the evolution of connectivity with 5G and beyond, and changing perceptions about the value of environmental, social, and governance (ESG) programs. Plus, reading picks from McKinsey partner Jonathan Dunn. |
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| Hype is an expected part of any new technology’s arrival, and 5G is no exception. The next-gen wireless technology’s promise of unprecedented speed, larger capacity, and low latency has fueled many lofty visions of a coming age of boundless connectivity. Perhaps not surprisingly, the reality of how long it will take to roll out 5G is more challenging and complicated than the hype would suggest. |
| But hang on a minute. While the wide-scale deployment and adoption of high-band 5G is sure to take longer than its most bullish boosters would have you believe, some of the future innovation and productivity spikes it’s supposed to usher in are already possible with existing technologies. That’s according to the McKinsey Global Institute’s new report, Connected world: An evolution in connectivity beyond the 5G revolution. |
| For starters, the report finds that by 2030, the most promising use cases in just four sectors—mobility, healthcare, manufacturing, and retail—could increase global GDP by $1.2 trillion to $2 trillion. Fully 70 to 80 percent of those use cases can be achieved with current advanced-connectivity technologies, such as fiber, Wi-Fi 6, and low- to midband 5G that runs on existing 4G infrastructure. Since those four industries make up only about a third of global GDP, the value at stake could run trillions of dollars higher across the entire world economy. |
| And that doesn’t even account for the estimated two billion people, primarily in the developing world, who will likely come online in this new era, which should generate an additional $1.5 trillion to $2 trillion in GDP. But there are still obstacles to overcome, including regulatory uncertainty, data complexity, and the need for partnerships and coordination. |
| Most important, as with 5G, the question remains whether those who shoulder the financial burden to make this a reality will reap appropriate shares of the return. Telecom operators find themselves in that unenviable position more than most. They’re already grappling with saturated mature markets and new competition, and they now have to invest (or continue to invest) heavily in new digital infrastructure while the economics are still uncertain. |
| It’s no wonder they’re looking for ways to do things differently. This includes exploring novel approaches to becoming more energy efficient. We still don’t know how much (or how fast) these moves could really help 5G and advanced connectivity start to live up to their billing. But if any of them can help the telecom industry improve, then it’s probably a step in the right direction. |
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| MORE ON MCKINSEY.COM |
| The value of the ESG premium | In a new survey, executives and investment professionals largely agree that ESG programs create short- and long-term value. Perceptions of how they do this have evolved over the past decade. |
| Asia and banking in the digital age | The West has led the world’s banking industry in growth and innovation, but now Asia is tilting the scales. As the pace of growth slows, Asia’s banks must reinvent themselves to survive. |
| Beyond hiring: How companies are reskilling to address talent gaps | As potential skill shortages loom, a new survey finds that many companies are using multiple tactics to close gaps and that reskilling efforts are paying off. |
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| WHAT WE’RE READING
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| Jonathan Dunn |
| Jonathan Dunn, a McKinsey partner based in New York, works with technology, media, and founder-led growth companies. His focus is on M&A, accelerating disruptive strategies, and improving business performance.
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| I love to read Maynard Webb’s weekly “Dear Founder” post on Fast Company in which he offers universal and relatable advice to founders of companies and entrepreneurs. It gives me a fresh take for whatever I happen to be working on that week. I also enjoy what Stephanie Mehta, Fast Company editor in chief, and her team have done with the magazine over the past year or two. They cover themes that matter to me—innovation in technology, leadership, creativity, and design. |
| Last year, an executive coach I work with suggested I read the work of authors Robert Kegan and Lisa Laskow Lahey, two scholars of adult development. I took to one of their books, How the Way We Talk Can Change the Way We Work: Seven Languages for Transformation, because it makes something I care about—leadership style on a personal level—relatable. The powerful central idea is that our choice of words determines feelings, attitudes, and actions. Each chapter ends with language that you can adjust to improve your ability to empower others. Practicing has helped me recode my language to say, “How should we tackle this problem?” less and “I feel,” “I understand,” and “I appreciate” more. |
| I love all things design. I have small children, and I like to share that love with them. Design for Children: Play, Ride, Learn, Eat, Create, Sit, Sleep is a 536-page picture book that Phaidon Press published last year. It’s a tour de force of the most beautifully designed children’s objects in history. My three-and-a-half-year-old daughter spends hours with it. She likes to spot toys she recognizes or objects from local New York designers she loves. We talk about how designers solve problems for us. I hope it teaches her to care for design. We also hope it teaches her to care for and respect her things! |
| Deb Roy is a professor at MIT—and former Twitter chief media scientist—who has done some great work on AI and storytelling. The research he and his colleagues have done has informed much of my thinking on McKinsey’s work with creative clients. They published an article in Science that applied their research to the spread of true and false news online, just when this phenomenon was beginning to be understood. Their research also built a frame for new ways of thinking about audience segmentation and media diffusion that I find myself applying in my day-to-day thinking and client service. |
| I get energy from all of the experimentation happening in storytelling with podcasts. Audible commissioned this comedy—Is Anyone Alive Out There?—that is both hilarious and macabre. It’s about two podcasters who survive the apocalypse and keep podcasting, not knowing if anyone is able to listen to them or not. I saw the creators perform it live in a theater. It was fantastic. |
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| BACKTALK |
| Have feedback or other ideas? We’d love to hear from you. |
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