Jacques Bughin
Director McKinsey Global Institute
Brussels office
Jacques_Bughin@McKinsey.com
• A leader in the Corporate
Finance, Strategy, and Media
& Entertainment Practices
• Established McKinsey
Digital Labs in 2000
• Serves global clients in high tech,
media, retail, telecom and B2B services
• Deep expertise in digital marketing, business
technology, and operations performance
• Holds a Ph.D. in Economics from the
Université Catholique de Louvain, and
Master’s Degrees from the University of
Namur and University of Pennsylvania
• Author of more than 50 academic papers in
top international journals, and of 50
management articles in McKQuarterlies
• Frequent speaker internationally (Aspen
Institute, Forbes, INMA, NAB, CES, IAB)
• MGI lead research in big data, internet, etc
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Digital globalization:
The new era of global flows
MCKINSEY GLOBAL INSTITUTE
UNCTAD
April 19th, 2016
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An increasingly, but still not fully, connected world
Emerging
Developed
Size of circle represents
$ value of flows in 2014
Connectedness score, 2014
70
65
60
Netherlands
Singapore
55
United States
50
Germany
45
Ireland
United
Kingdom
40
35
China
France
30
Belgium
25
Saudi Arabia
Russia
20
South Korea
Switzerland
Canada
15
Mexico
Ukraine
10
India
Vietnam
5
0
0
Sweden
Austria
Spain
Malaysia
Thailand
Portugal
Turkey
Italy
Kuwait
Australia
Japan
Norway
Denmark
Brazil
Indonesia
10
Greece Czech Republic
Finland
30
40
20
United Arab Emirates
50
60
70
Qatar
80
140
Per capita GDP, 2014
$ thousand, purchasing power parity, current international dollar
SOURCE: IMF; McKinsey Global Institute analysis
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Data is the new major flow
Bandwidth
Gigabits per second (Gbps)
<50
50–100
100–500
500–1,000
1,000–5,000
5,000–20,000
>20,000
45x larger
100% = 211 Tbps
2014
20051
100% = 4.7 Terabits per second
(Tbps)
EU
EU
NA
NA
AS
AS
ME
ME
AA
LA
OC
AA
OC
LA
+$2.8T
SOURCE: TeleGeography; McKinsey Global Institute analysis
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Data becomes the foundation of higher connectdeness
top 20 countries in data flow
Total connectedness score, 2014
70
65
Singapore
60
Netherlands
55
United States
Germany
50
Ireland
45
United Kingdom
40
35
France
30
Belgium
25
20
Switzerland
15
Sweden
Austria
10
Czech Republic
Denmark
Finland
Brazil
5
Slovak Republic
0
0
100
Data connectedness
SOURCE: IMF; McKinsey Global Institute analysis
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Globalization: Then vs. now
20TH
CENTURY
Tangible flows of physical
goods
21ST
CENTURY
Intangible flows of data and
information
Flows mainly between advanced
economies
Greater participation by emerging
economies
Capital- and labor-intensive flows
More knowledge-intensive flows
Transportation infrastructure is
critical for flows
Multinational companies drive
flows
Flows mainly of monetized
transactions
Ideas diffuse slowly across borders
Innovation flows from advanced to
emerging economies
Digital infrastructure becomes
equally important
Growing role of small enterprises
and individuals
More exchanges of free content
and services
Instant glow access to information
Innovation flows in both
directions
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Thank you
@ mckinsey_mgi
McKinseyGlobalInstitute
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