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GLOBAL CHALLENGES “Rise In Technology, Concerning McKinsey Company”

Assessment Task

Evaluation of the [insert name of your chosen megatrend(s) area] megatrend(s) and how this impacts the business landscape.

You should write a 2500-word individual essay exploring as a minimum one of the megatrend areas in detail.  You will be expected within the essay to cover:

a) Give a short general introduction to what megatrends are and the impact of these overall

b) Demonstration of research, analysis and evaluative insight into at least ONE megatrend and the impacts in general on the business landscape

c) Outline of your analysis of at least one organisation who is impacted by this and outline the innovations in this area to over-come the challenges in order to secure market share and sustainable competitive advantage

d) Your reflections and insights of the future of these megatrends and how this will impact you as future managers and leaders

e) Conclusion of the topic, including evaluation of the future horizon for the business landscape in relation to megatrends

f) You should use a wide range of credible academic sources throughout your essay to support your academic arguments and use the Harvard referencing system throughout and in your reference list. 

ANSWER

ESSAY

A Global Megatrend can be defined as a major movement, pattern or trend emerging within a macro environment that significantly impacts consumers’ buying behaviour (Lau and Haugh, 2018). Similarly, it can also be defined as geostrategic forces that are shaping the collective future toward better sustainability. It has been observed that using megatrends can provide huge opportunities to seize and extremely dangerous risks to mitigate. In other words, megatrends can be considered both beneficial and loss for the environment (PWC, 2022). As commented by Ciriminna et al. (2019) megatrend analysis allows companies to build a long-term strategy that is proactive rather than reactive. There are various megatrends that can be used by the companies but all of them support the UN’s sustainable goal of development.

Evaluating the overall impact of a megatrend it can be evident that it is beneficial for the company as well as for customers. As commented by Heymann et al. (2023) megatrend has a positive impact on business by providing transparency to their customers. In the same way, it helps in upskilling and reskilling the company and employees so that they can match the competition in the market. Furthermore, it makes a positive impact on the environment by finding alternatives to using renewable sources of energy within the business. In addition to this, megatrends make a positive impact on sales and the growth of the business. For example, the development of technology has led to an increase in sales revenue of Mobile service providers by 46% in the last five years. In the same way, around 85% of the GDP of developed cities is generated with the help of megatrends. Thus, in this way, it can be stated there is a positive impact of megatrends on business.

For the completion of this study, a rise in technology is selected as the required megatrend. It has been observed development in technology has led to a changing world and now this development is changing behaviour and expectations as much as tools used to deliver new experiences and services. It is considered a global megatrend because around 51% of CEOs are now making important changes within their organisation in how they can use the latest technology for better stability in the market.  It can also be considered a megatrend in the current business world because it facilitates globalisation. As commented by Lederer et al. (2017) social media has created a greater connection between people and culture which leads to increased social media marketing. However, the rise in technology cannot be experienced equally across the world and some restrict this megatrend to be part of every organisation. Some of the technologies that helped to build this megatrend include Artificial intelligence (AI), Blockchain, Drones and Augmented Reality. According to Naughtin et al. (2022), AI is a software algorithm that is capable of performing tasks that normally require human intelligence and this technology helps the company to work in a much more effective manner. Similarly, the introduction of blockchain technology helps the company to record and confirm transactions with much more reliability and anonymity. Some of the other important technologies that lead to creating a global megatrend in the macro environment include the Internet of Things (IoT), robotics, 3D printing and virtual reality. It has been observed that the introduction of IoT and robotics has led to better communication and effective completion of tasks with the involvement of fewer resources. 

One of the primary and generic impacts of this megatrend includes potential global challenges such as decreasing economy and environmental degradation. This rise in technology especially in the field of the internet has led to achieving impossible records such as sending messages to 12 million people within 1 minute and streaming 694,000 videos in one minute (Ali, 2021).

Firstly, while evaluating the impact of this megatrend it can be stated that most of the time it makes a positive impact on business. For example, the rise of technology help in the automation of organisation. MNCs generally uses technology to automate a large number of business process to reduce the chances of failure in the error-sensitive process (Artuso and Guijt, 2020). Furthermore, it helps the company to influence customers and increase sales and revenue for the company. According to Manoliu (2022), technologies such as mobile internet and social media enable better evaluation of products and services which helps the company to close deals with customers. Apart from this, it also helps in launching new products and services to a large number of customers. Technologies such as IoT and 3D printing help to develop or modify their product or services so that more customers can be retained for a longer duration of time.

Secondly, the global megatrend of the rise in technology cannot be considered good for all companies. There are various companies on the impact of the rise of technology is not good from a financial perspective. As commented by Smaje (2020), a rise in technology cannot be considered a perfect solution for growing a business nor can it be considered a complete loss for the business. The case of McKinsey is somewhat similar to the information given above. McKinsey & Company is a consulting firm that provides different types of services to its customers mainly related to business. McKinsey has been a household name since 2000 however the company struggled to perform actively after the introduction of various other mobile-based applications which provide online consultation and other services with no minimum or no service charges (Chui et al. 2022). It has been observed company’s dominance slipped because of the increased number of competitors and the introduction of other facilities such as graphical illustration and mobile-based application technology. 

Lastly, after facing all these problems, the company recently took the step to adopt the latest technology based on global trends to restore its market stability. The company introduces a peer-to-peer consultation application that is based on IoT and a primary level of AI technology which guides the customer throughout the consultation process such as booking an appointment and connecting to a mentor. On gaining a good start, the Company started analysing the trend of the market and operational management of the company which specialised in the consultation firm. All these efforts of the company paid off and in 2015 the company retained their business secured a standard position in the market and processed a bill of around $5 billion which was double their last year’s transaction (Kuiken, 2022). From a financial perspective, this change made a positive impact on the company and there was a growth of 17% in their annual revenue (ieeexplore, 2021). This development journey of McKinsey & Company from stagnancy to active growth illustrates the importance of the megatrend of the rise of technology.

However, it is necessary to make innovation in this area because various challenges resist the implementation of technology within the macro environment. As commented by Gaudig et al. (2021), before making innovation in any field it is important to determine the challenges effectively because innovations cannot be made until the problem is clearly defined. Innovation needs to be made in the region of data security because data breach is one of the primary threats in the area of technology. As commented by Wazirali et al. (2021), the total cost of a data breach in the US alone is $8.64 million. Innovation can be made by improving the security of digital technology and making constant efforts to create new malware strategies that may cause financial loss to the business.

The development of a more effective cloud solution can be considered a better innovation in this area. According to Ghazal et al. (2022), cloud solutions have a significant advantage in the issue of data security. In other words, business companies need innovative cloud partners to overcome the challenges of data breaches and data security. In some cases, it has been observed that it is difficult to integrate cloud solutions with business operations because of the unavailability of resources or other personal issues. Another innovation that needs to be made in this area is the development of more secure transit data. From the viewpoint of Tchagna Kouanou et al. (2022), IoT can be trusted completely because of the lack of firmware validation and lack of security change notification. This loophole targets IoT devices to access and compromise the company’s data and currently, it is effective because it has an anti-rollback mechanism that stores data within devices. 

Furthermore, innovation within this area may include the development of a more accurate system to detect suspecting emails and other documents. It is well known that data management is an important part of an organisation for market stability and employees need to access business data to enable smooth operations. However, in some case during data management, employee are unable to identify malware or phishing mail which lead to a breach of data. In addition to this, innovation also needs to be done in the mobility sections. For example, creating a platform that is independent of the configuration of devices.

Reflecting on insight about the future of the megatrend of the rise in technology for improving organizational performance it is evident that the rise of technology will contribute to the development of new job opportunities, improvement of productivity leads to increased efficiency of an organization, simplification of activities, and quick access to important information. There is an exponential increment in the use of Artificial Intelligence and Robotics to accelerate consulting practices, and the use of this technology will be increased because of the increase in competition. As per my thinking, the adaptation and utilisation of Artificial Intelligence will also improve McKinsey’s efficiency in performing complex activities. Based on the perspective of Ra et al. (2019), the integration of AI will be improved in everyday life, and it will also be possible to make all data digitized soon. Hence, it is strongly suggested that McKinsey & Company implement the use of advanced technology for their competitive advantage. Apart from this, I think it will be able to reduce human error, perform repetitive tasks effectively, and develop unbiased decisions by adapting Artificial Intelligence as the trend rises in technology.

Hoffman et al. (2021) show that almost 20 million robots will perform worldwide by 2030 and will also contribute to replacing 51 million human jobs. On the contrary to this, robotics will also increase productivity, and efficiency, and maximize flexibility. In my opinion, consulting firms will perform efficiently shortly by adopting this global megatrend. According to my belief, as a result of the current megatrend of rise in technology, the ability of McKinsey will be improved to automate routine tasks by automating data entry, generation of reports, and scheduling shortly. Already the automation of tasks of consulting firms is improved after the implementation and utilization of the rise in technology. In the future, automation of multiple activities of consulting firms will more improved.

I think that the rise in technology will improve the decision-making and problem-solving capacity of consulting firms in the near future. Workers will also be able to perform more efficiently after the rise in technology in this selected consulting firm, McKinsey. I expect that another trend of ‘Globalisation’ will support this consulting firm in the improvement of economic growth, organisational productivity, and creation of employment in the future. Being a future manager and leader, I think the implementation of a megatrend will bring a much more positive impact as compared to a negative impact. Adopting of megatrend will not improve the macro environment of the firm but it will help in improving the environment of the company as well. I think adopting the megatrend can also be useful in building a smart city. Matching the pace of technology can lead to pervasive wireless connectivity, trustable security and a flexible monetisation scheme which is ultimately required for the development of smart cities (Thales, 2021). Future managers or leaders need to adopt megatrends as per requirement because the expected world of 2050 does have credible information and incredible activities. The development of media from 2012 to 2014 also confirms that the rise in technology and the involvement of other megatrends caused a drastic change within the world.

The findings of the study conclude that due to the increase in competition, macro-level companies need to adopt a global megatrend which can be defined as geostrategic factors that are reshaping society’s future in the direction of greater sustainability. Involvement of Megatrend can lead to improvement in energy distribution, trash collection and improve the environment. This study concludes global megatrend, provides benefits to both the company and its customers and also positively impacts the environment by enabling businesses to use renewable energy sources and complete the work within the shortest duration of time. The study selected the rise of technology as a required global megatrend in which AI, blockchain, drones, and augmented reality are some of the technologies that contributed to the development of this megatrend. It also concludes that it is difficult to maintain market stability without using technology. Statistics of the study reveal that around 6000 text is sent all around the world in a minute which is only possible with the help of the development of technology. Furthermore, the study concludes that dealing with potential global issues like a faltering economy and environmental deterioration are two of this megatrend’s general effects.

Apart from this, the rise in technology also aids in the introduction of new goods and services to a huge customer base. IoT and 3D printing technologies aid in the development or modification of their product. From the case study of McKinsey & Company, it is clear that the rise of technology is extremely important for the upliftment of business stability and getting a competitive advantage within the business.  From the future perspective, it is evident, that megatrends can incorporate into a strategy as it alters how to approach strategic planning to shape the future by the choices and market conditions. In addition to this, it can be concluded that a megatrend is a sizable macro-environmental movement, pattern, or trend that has a considerable impact on the goods that customers will wish to purchase in the future. It is essential to integrate these innovation processes into business operations daily to get a better future in the market.

Reference List

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Artuso, F. and Guijt, I. (2020). Global Megatrends: Mapping the forces that affect us all. [online] oxfamilibrary.openrepository.com. Oxfam. Available at: http://oxfamilibrary.openrepository.com/handle/10546/620942.

Chui, M., Roberts, R. and Yee, L. (2022). McKinsey Technology Trends Outlook 2022 | McKinsey. [online] www.mckinsey.com. Available at: https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/the-top-trends-in-tech.

Ciriminna, R., Fidalgo, A., Meneguzzo, F., Parrino, F., Ilharco, L.M. and Pagliaro, M. (2019). Vanillin: The Case for Greener Production Driven by Sustainability Megatrend. ChemistryOpen, [online] 8(6), pp.660–667. doi:https://doi.org/10.1002/open.201900083.

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