A Revolution in Interaction.Pdf
STRATEGY A revolution in interaction Pat Butler is a principal and Anupam Sahay is a consultant in McKinsey’s London oƒfice; Ted Hall is a director, Lenny Mendonca is a principal, and James Manyika isaconsultantintheSan Francisco oƒfice; Ali Hanna is a director in the Stamford oƒfice; and Byron Auguste is a consultant in the Los Angeles oƒfice. Copyright © 1997 McKinsey & Company. All rights reserved. 4 THE McKINSEY QUARTERLY 1997 NUMBER 1 A new study of interactions reveals how pervasive they are As they increase, answers to fundamental questions about integration, scale, and scope will change What will happen when workers can carry out their jobs in half the time? Patrick Butler Ted W. Hall Alistair M. Hanna Lenny Mendonca Byron Auguste James Manyika Anupam Sahay HE MODERN WORLD ECONOMY is in the early stages of a profound change in the shape of Tbusiness activity. Two centuries ago, dramatic shiƒts in the economics of transformation – of pro- duction and transportation – precipitated the Industrial Revolution. An upheaval of equal proportions is about to be triggered by unprecedented changes in the eco- nomics of interaction. Interactions – the searching, coordinating, and monitoring that people and firms do when they exchange goods, services, or ideas – pervade all econ- omies, particularly those of modern developed nations. They account for over a third of economic activity in the United States, for example. More than that, interactions exert a potent but little understood influence on how industries are structured, how firms are organized, and how customers behave. Any major change in their level or nature would trigger a new dynamic in economic activity.
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