Daily Archives: October 21, 2021

The Time for a Digital-First Strategy Is Now

Bringing your core, ecosystem and edge strategies together is necessary for market survival.
Equinix – Volume 5 of the Global Interconnection Index (GXI) confirms that the pandemic triggered a tectonic shift in increased demand for digital services and accelerated the need to digitize business models by several years. For digital leaders, experiencing years of growth in a matter of months increased their advantage as many implemented their digital-first strategies. For organizations taking a follower approach, where digital transformation was still mostly bound to physical limitations and fixed dependencies, and followers found themselves losing control over business throughput, supply chain, customer engagement and potentially their position in the market.

Digital-first means digital business and technology strategies must become indistinguishable with sustainability central, to close any organization performance gaps, expand opportunity and gain material reforms on digital transformation efforts. As part of this transformation, your digital infrastructure is designed to enable the business to be a disruptor and not one of the disrupted. more>

Updates from McKinsey

The 2021 McKinsey Global Payments Report
By Alessio Botta, Philip Bruno and Jeff Galvin – Last October, when we published McKinsey’s 2020 Global Payments Report, it was already clear that the pandemic’s economic impact would lead to the first decline in global payments revenues in 11 years.

One year later, the picture is unexpectedly positive—on the payments front—despite challenges. Payments revenue did indeed decline—to $1.9 trillion globally—but by less than we anticipated last fall. Indicators point to a nominal but geographically uneven rebound in 2021, bringing revenue back into the range of 2019’s record high. From there, McKinsey projects a return to historical mid-single-digit growth rates, generating 2025 global payments revenue of roughly $2.5 trillion.

The relatively muted 2020 topline numbers mask some important countervailing effects, however, which are poised to reset the scale of opportunity for payments players for years to come. The pandemic accelerated ongoing declines in cash usage and adoption of electronic and e-commerce transaction methods. Revenue gains in these areas were offset by tightening of net interest margins earned on deposit balances. All these trends are expected to outlast the pandemic. The contraction of net interest income—combined with technology breakthroughs and the impact of open banking and fintech innovation—has spurred the creation of revenue models that within five years will offer adjacent opportunities as large as the core payments revenue pool. more>

Car Makers Reap What’s Sown During Chip Shortage

By George Leopold – Despite optimistic predictions that auto makers have seen the worst of ongoing semiconductor shortages, sources closer to the technology supply chain maintain things will get worse before they get any better.

Industry consultant Semiconductor Intelligence downplayed auto industry assertions about the second quarter representing the “trough” of IC supply chain disruptions. Citing a growing list of auto production cutbacks stemming from the chip shortage, the market tracker countered in recent weeks that “the shortage of semiconductors for automotive applications is getting worse.”

It cited production cuts at Ford, GM, Hyundai, Toyota, the merged Fiat-Chrysler-Peugeot group called Stellantis and Volkswagen. more>

With extreme weather events and other disasters on the rise, how well are Americans prepared?

By Drew Desilver – Powerful stormswildfiresheat waves and other extreme climate-related events are projected to become more common and affect more people. According to a recent Washington Post analysis, nearly a third of Americans live in a county that was struck by a weather disaster this past summer, and around two-thirds live in places that experienced a multiday heat wave. In an April Pew Research Center survey, half of Americans said their area had experienced extreme weather over the past year.

Human-caused climate change will make extreme weather events more frequent and more damaging in the coming decades, according to the latest report from the United Nations Intergovernmental Panel on Climate Change. While the nations of the world struggle to agree on how to address the root causes of climate change, there are various ways people can prepare to deal with the immediate effects on a household level.

This analysis examines the prevalence of four specific tools to endure extreme weather in the United States: flood insurance, air conditioning, portable generators and home insulation. (As we’ll see, some of these tools may have their own climate impacts.) more>