With information and communication technologies becoming less expensive and more pervasive, the digitization of the U.S. economy is accelerating rapidly. Companies that embrace and invest in the digital world are applying their ingenuity a new era of mobile connectivity over the Internet. Digital-savvy organizations produce innovative products and services, and unlock more efficiency from back-office and front-office processes.
As one would expect, some industries are thriving in the digital U.S. economy, while others haven’t been able to completely free themselves from old ways of doing business. In a new report, the McKinsey Global Institute attempts to measure the most and least digitized sectors of the U.S. economy with the new MGI Industry Digitization Index.
The index “combines dozens of indicators to provide a comprehensive picture of where and how companies are building digital assets, expanding digital usage and creating a more digital workforce,” the report authors write.
The report, “Digital America: A tale of the haves and have mores,” reveals that the best-performing sectors include information and communication technologies, media, professional services and finance and insurance.
Sectors struggling to adopt new ways of business in the digital age include agriculture and hunting, construction, hospitality, health care and government.
“The gap between the digital “haves” and “have-mores” is growing as the most advanced users pull away from everyone else. They have moved beyond expanding access and adding users; now they are focused on deepening engagement and capabilities,” the authors conclude.
Untold potential lies in a U.S. economy where all sectors embrace digitization, according to the McKinsey researchers. If companies are able to boost productivity and unleash more revenue streams using these three digital areas–online human resources platforms, big data analytics, and the Internet of Things (IoT), an additional $2.2 trillion could be added to the annual U.S. GDP by 2025, according to the report’s authors.
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