Managing in the Digital Era

July 8, 2016.

McKinsey Global Leader Interviews
March 2016

If you are looking for valuable information and insights on important global business trends, McKinsey & Co. is currently running a great series of interviews with global leaders across a range of industries.

In this and coming newsletters we will from time to time feature summaries of selected interviews in this series—starting this week with John Chambers, Executive Chairman of Cisco Systems Inc., who was interviewed last month.

Here are 10 highlights:
Digital Era. The world has now entered a digital era that will be the biggest technology transition ever, and companies that fail to adapt are likely to fail.
Connectivity. This digital era is the connectivity of going from a thousand devices connected to the Internet to 500 billion.
Business Models. Business models will rise and fall at tremendous speed, and the transition will cause massive disruption. The majority of companies will not exist in a meaningful way 10 to 15 years from now.
Opportunities. The transition will, however, also create huge opportunities—probably USD19 trillion over the next decade.
CEOs. If CEOs don’t change, they will get left behind. They have to reinvent themselves and their companies.
Change. As leaders, if you do not reinvent yourself and use this technology differently, change your organization and talk about speed of innovation—you will get disrupted.
Organization. The hard part is—how do you change your organization structure and culture? It’s all about speed of innovation and changing the way you do business.
Cisco Leadership. Cisco has changed about 40% of our top leadership over the last two years. It’s something we had to do—”disrupt or be disrupted”. So what I am saying that CEOs need to do, we did ourselves.
Innovation. The sources of innovation have to move from the fringes to something you do mainstream. You have to create an environment of really rapid innovation internally.
Pace of Change. Companies fail to understand how quickly technology will transform their businesses—and they stay doing the ‘right’ thing too long. This is about exponential change.

Source: McKinsey & Co. 
You can read or watch the full interview on video on the McKinsey Web site here.

This article first appeared in the EMC Quest newsletter series.

Leave a Reply