Hayden Global

CAPTURING VALUE FROM DATA Achieving business impact with data was a new topic 25 years ago when I was asked by Delta Airlines to accompany them for a meeting with partners Swiss Air and Singapore Airlines in Singapore. Delta had made major commitments to archiving data for future analysis. A truly far reaching and insightful commitment to cutting edge information technology at the time. This article from McKinsey & Company shows how today’s technology and infrastructure are the enablers that help organizations take sustained action on the insights from advanced analytics and create impact.

EUROPEAN FINANCIAL GLOBALIZATION The European markets are in a slower more longer development than in the US. This makes them quite appealing for investments. This report from McKinsey & Company (1) looks at the shifts in global banking; (2) assesses the overall state of financial globalization; (3) provides a forward-looking view on the global financial system, suggesting that it promises more stability and (4) discusses how banks and regulators can respond to the new era of financial globalization and the new digital technologies.

5G TECHNOLOGY LAUNCH IN 2018 Each generation of technology opens new opportunities.4G launched in 2009 and now 5G technology is under testing and poised to launch in some markets later in 2018. What that means to you is faster speed, lower latency, and greater capacity could enable on-the-go, ultra-high-definition video, virtual reality, and other advanced applications. This new article from McKinsey and Company looks at this coming innovation that will impact us all.

CHINA 2018 OUTLOOK I have visited 21 cities throughout China as well as many countries across Asia. One thing I have observed is as China’s economy goes, so goes most of Asia and much of the rest of the world. 2018 will also be the first in which President Xi Jinping will have near-total control. This report from McKinsey & Compnay examines what may lie ahead. One area I thought most interesting is the emergence in China of the Greater Bay Area (GBA) as a coherent, coordinated development area has the potential to draw in a disproportionate share of China’s next wave of growth. Comprising Guangzhou, Shenzhen, and Hong Kong to give a total population of 70 million.

GLOBAL GROWTH SHIFTS About 15 years ago Goldman Sachs economist Jim O’Neil popularized the term BRIC in reference to the growth prospects of Brazil, Russia, India, and China. Since then, Brazil and Russia have sometimes faltered, while other emerging markets, particularly in Africa and Southeast Asia, have grown in importance. Although there will be more volatility in the years ahead, it’s important not to get distracted and lose sight of the numbers. There are three geog...raphic entitiesIndia, China, and Africain which urbanization is empowering populations that exceed one billion people, and a fourth, Southeast Asia, with more than half a billion. Together, these enormous ICASA (India, China, Africa, and Southeast Asia) markets hold the potential for significant continued expansion. These global growth shifts and the disruptions in the market are highlighted in this new article from McKinsey & Company. See more

WOMEN IN THE WORKPLACE IN 2017 Women in the workplace is am important issue that I take seriously. My daughter is a paralegal specializing in court trails. My daughter-in-law was CEO of her own electrical engineering company. One of my granddaughters is an architect and the other grand-daughter will soon enter medical school. Women have earned more college degrees than men for more than 30 years. Women account for 47% of entry-level employees, but only one-third of senior m...anagers and one-fifth of c-suite executives. This new survey by KcKinsey & Company focuses on these issues.

NEW BUSINESS ECOSYSTEMS EMERGE The complex network of interconnected businesses that depend on each other to deliver value for their customers and their key stakeholders are what the new McKinsey Podcast on ecosystems is examing. One example the podcast focuses on is the Apple app ecosystem. In this ecosystem there are some contractual obligations on who gets to use what data and how they’re going to monetize that data, and also how they share the revenues that they get, including the share that Apple gets versus what app developers get. This article examines how these ecosystems are going to evolve.

CHINA’S DIGITAL ECONOMY China is the world’s largest e-commerce market accounting for more than 40 percent of the value of worldwide e-commerce transactions, up from less than 1 percent about a decade ago. China has also become a major global force in mobile payments with 11 times the transaction value of the United States. One in three of the world’s 262 startups valued at over $1US billion is Chinese, commanding 43 percent of the global value of these companies. This article from McKinsey & Company highlights China’s digital economy as a story of commercial success and excitement among investors.

HONG KONG ON ITS 20th ANNIVERSARY OF ITS RETURN TO CHINESE SOVEREIGNTY I was originally scheduled to be in Hong Kong when the Chinese flag was raised over the city on 1 July 1997. I had a room reserved at the original Ritz Carlton in Central District on Hong Kong Island. However, do some last minute contract negotiations I had to fly to London. At the end of the ceremony, Prince Charles and the last governor of Hong Kong, Chris Patten, sailed away on the Royal Yacht Britannia.... Hong Kong for a city with just 7.3 million people and an unemployment rate of just 2.4%, clearly excels. When it come to international ratings the World Bank has it listed as the 4 easiest country to do business. The Heritage Foundation lists it as number one is economic freedom and McKinsey Global Institute lists Hong Kong as number two in flows of goods, services and finance. There are many challenges going forward for the next 20 years. Like other leading metropolises such as London or New York the gap between rich and poor is widening. This current article from McKinsey & Company looks to where Hong Kong’s headed in the future.

THE NEW REALITIES OF INDIA’S BANKING SECTOR Over the years I have spent a lot of time in India. From Dehradun near the Nepal border to New Delhi and Agra in the North to Bangalore in the South. I have traveled the West Coast from the northern city of Mumbai to the central coast city of Panaji and south to Kochi. On the East coast to Chennai. I have always marveled at the enormous amount of commerce being generated and worried about the public-sector banks which are more exp...osed to the industry sectors with a higher share of nonperforming loans than the private sector. These state-owned institutions have deep networks and control 70 percent of banking’s asset base. This article from McKinsey & Company addresses the fact that corporate loan books are continuing to shrink and the next growth opportunity will be serving India’s vast number of small and medium enterprises.

ECONOMIC OUTLOOK FOR 2017 Overall, executives are much more bullish about the global economy than they were for all of 2016. Nearly half of them say conditions in the world economy are better now than they were six months agofar surpassing expectations from six months prior, when only 28 percent expected improvements. McKinsey asked all respondents about the US economy’s prospects, and views vary widely from region to region. Respondents in the United States are more optimi...stic than not, with 49 percent predicting the economy will improve in the next six months. The most bullish are their peers in AsiaPacific and developing markets: 63 percent and 56 percent, respectively, expect improvements. The most skeptical of the US economy’s prospects are executives in Europe and Latin America. Only 35 percent in each region believe US conditions will improve. This report will give you more insight into what to expect globally in 2017.

CAN LONG-TERM GLOBAL GROWTH BE SAVED? Global employment growth has been slowing for more than two decades. By around 2050, McKinsey's research finds, the global number of employees is likely to peak. In fact, employee head counts are already declining in Germany, Italy, Japan, and Russia. In China and South Korea, they are likely to begin falling as early as 2024. While there is significant scope for policies that boost labor-market participation among women, young people, an...d those over the age of 65, that will be far from easy. Employment growth could double, to 0.6 percent, in the countries McKinsey studied which was the G19 (the G20 without the European Union as a composite member) plus Nigeriaeconomies that account for 63 percent of the world’s population and 80 percent of global GDP. But that will happen only if each gender and age group, throughout these countries, closes the employment gap with the high-performing economies. In any case, even a doubling of employment growth won’t fully counter the erosion of the labor pool.So productivity growth must drive the expansion of GDP in the longer term. McKinsey’s report has identified ten enablers that could lift global GDP growth closer to its potential by increasing transparency and competition, creating incentives for innovation, mobilizing labor, and further integrating the world economy. I hope you find it interesting.

CHINA 2017 I have travelled to 21 cities throughout China and worked on projects at the Chinese Ministry of Railways. One thing I have noticed that despite what one reads in the US media, the Chinese government interests are with domestic policy and secondary with the United States. One would expect China’s government priorities this year to remain largely domestic. Ensuring smooth government leadership transitions will take precedence over economic reform perceived as potentially risky. Actions to increase the control of the economy by the Party take precedence over market-based reforms. We will see incremental policy changes. This article by McKinsey & Company reviews areas such as economic growth, the demographic declining birth rates, commodity outlook, currency flows, and new laws.

GLOBAL MIRGRATION’S IMPACT AND OPPORTUNITY With all the interest in immigration reform in the United States, it is important to note that this is a global issue.... Realizing the benefits of immigration hinges on how well new arrivals are integrated into their destination country’s labor market and into society. Today immigrants tend to earn 20 to 30 percent less than native-born workers. But if countries narrow that wage gap to just 5 to 10 percent by integrating immigrants more effectively across various aspects of education, housing, health, and community engagement, they could generate an additional boost of $800 billion to $1 trillion to worldwide economic output annually. McKinsey & Company Global Institute has just completed a study of the top 10 regional movements representing total migrant population for 2015. In light of the current topic in the United States, I think you find this article very informative.