Wednesday, March 20, 2013
Urban World: A new iPad app for exploring an unprecedented wave of urbanization | McKinsey Global Institute | McKinsey & Company
Urban World: A new iPad app for exploring an unprecedented wave of urbanization | McKinsey Global Institute | McKinsey & Company The app also places urbanization in a historical context, using a view from space of the global nighttime distribution of light as a proxy for the global distribution of economic activity. Users can visualize the world’s shifting center of economic gravity during the past two millennia, to 2025. The app serves a purpose similar to a 16th-century map—a rough but helpful tool to help navigate the evolving urban world. The growth of some urban markets can exceed that of entire nations, which is why cities matter for strategy. Companies can use the data to compare the economic growth from different cities. For example, Vienna had roughly the same GDP in 2010 as Istanbul. By 2025, the scenario presented in the app shows that the GDP of Istanbul will be comparable to the entire country of Austria. Auckland (New Zealand) had roughly the same GDP in 2010 as New Delhi but, by 2025, the GDP of New Delhi will be almost as great as the GDP of the entire country of New Zealand. In 2010, 100 of the world’s largest companies headquartered in developed economies derived just 17 percent of revenue from emerging markets—despite the fact that those markets account for 36 percent of global GDP. Companies that neglect these new markets risk missing out as much as 70 percent of global GDP growth between now and 2025.