High-Quality PCB Equipment & Machines for Your Business

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Make gen AI work for you

On McKinsey Perspectives

DELIVERING ACTIONABLE INSIGHTS ON THE DAY’S NEWS

Brought to you by Alex Panas, global leader of industries, & Axel Karlsson, global leader of functional practices and growth platforms

Welcome to the latest edition of Only McKinsey Perspectives. We hope you find our insights useful. Let us know what you think at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com.

—Alex and Axel

Gen AI at work

In the news

•

Cautiously optimistic. The demand for gen AI skills is on the rise. On one entry-level job platform, the share of job listings citing gen AI grew more than threefold from 2023 to 2024, Axios reports. At the same time, employers are increasingly willing to prioritize candidates with gen AI experience even if they’re less qualified in other areas. While Gen Z employees are at the heart of this technological shift, many view gen AI with a blend of optimism and caution. [Axios]

•

Change agents. For tech companies and their investors, the effective implementation of AI agents—systems that can independently make choices and then act on them—is crucial to the future. While these agents are likely to boost revenue-generating capabilities and revamp business functions, the Wall Street Journal notes that adoption has been slow. One executive at a company that uses AI agents suggests that leaders should think of them as digital team members who require training and support. [WSJ]

In McKinsey’s latest state of AI survey, a majority of survey respondents feel their organizations aren’t following through on enough gen AI adoption and scaling practices.

On McKinsey.com

•

Your virtual coworker. AI agents are considered the next frontier of gen AI due to their ability to automate complex processes. These agents could eventually become skilled virtual coworkers that collaborate with and support their human counterparts, say McKinsey’s Lareina Yee, Michael Chui, Roger Roberts, and Stephen Xu. Human–machine collaboration also creates the opportunity for workers to augment their existing skills and introduces new roles such as AI ethicist and chief AI officer.

•

Playing catch-up. While employees are largely embracing gen AI, their leaders aren’t keeping pace by following good practices for adopting and scaling gen AI. In the latest McKinsey Global Survey on the state of AI, the results show that only about one-third of respondents—at both large and small organizations—report that their organizations are ensuring senior leaders are engaged in gen AI adoption, and only about a quarter say their companies effectively embed gen AI solutions into business processes. Setting bold AI commitments and investing in on-the-job gen AI training could help. To learn more about how leaders can encourage their workers to unleash new levels of creativity and productivity through gen AI, check out a recent edition of the McKinsey Quarterly Five Fifty.

Make AI work for workers

—Edited by Kanika Punwani, editor, Southern California

AI, data centers, and the energy equation: What leaders should know

Amid the AI boom, compute power is emerging as one of this decade’s most critical resources. Join our April 23 McKinsey Live virtual event to learn how business leaders can navigate the rapid build-out of data centers, the emergence of new technologies such as DeepSeek, and potential headwinds from the energy sector.

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Coupling and Cohesion: The Two Principles for Effective Architecture

͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

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Coupling and Cohesion: The Two Principles for Effective Architecture

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Every large system that spirals out of control starts the same way: small, functional, and deceptively simple. However, as the system evolves, things spiral out of control.

A feature is added here, a helper function squeezed there, and a “temporary” dependency for some urgent task that never gets removed. Months later, debugging requires going through five layers of indirection, and touching one module can break the entire system.

Behind the scenes of that slow collapse, two invisible forces often play tug-of-war: coupling and cohesion.

Most developers first hear these terms in textbooks or blog posts, often lumped into a “good design” checklist.

High cohesion: good.
Loose coupling: also good.

But beyond the concepts, the practical meaning often gets lost. What does coupling look like? When does cohesion break down in real teams? And why do some projects feel like a breeze to change, while others offer challenges with every pull request?

Coupling and cohesion aren’t abstract guidelines. They are practical engineering realities that define how easily code could evolve, how confidently teams could deploy, and how painful it becomes to onboard a new teammate or fix a bug under pressure.

In this article, we’ll attempt to understand coupling and cohesion in more realistic terms and how they might show up in different architectural styles and patterns.

Understanding Coupling...

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How can leaders tackle expanding trade controls and tariffs?

On McKinsey Perspectives

DELIVERING ACTIONABLE INSIGHTS ON THE DAY’S NEWS

Brought to you by Alex Panas, global leader of industries, & Axel Karlsson, global leader of functional practices and growth platforms

Welcome to the latest edition of Only McKinsey Perspectives. We hope you find our insights useful. Let us know what you think at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com.

—Alex and Axel

Coping with rising tariffs

In the news

•

Rising costs for automakers. Automotive tariffs introduced in April could drive up costs for US carmakers by as much as $108 billion, according to a study from the Center for Automotive Research. Reuters reports that Detroit’s Big Three alone could absorb $42 billion of that total. The study revealed that, on average, the Big Three may face nearly $5,000 in tariffs for the imported parts used in each US-made car—and about $8,600 for every imported car. [Reuters]

•

Small business challenges. As US business owners navigate a shifting policy landscape, many are grappling with the implications of new tariffs and determining how to respond, NPR reveals. One entrepreneur who produces a silicone splatter guard in Asia to keep consumer prices low now faces the prospect of significant price hikes due to rising import costs. Another entrepreneur said their company will scale back innovation amid shrinking revenues. [NPR]

To effectively address today’s radical uncertainty, business leaders can lean on a mechanism that many found essential to navigating the COVID-19 crisis.

On McKinsey.com

•

Tariff turbulence. While geopolitical tensions have been rising over several years, the surge in trade controls and reciprocal tariffs has been sudden and intense. The effect on businesses is both significant and unevenly distributed—and will likely remain so, McKinsey Senior Partners Cindy Levy and Shubham Singhal and coauthors explain. In the automotive industry, for example, the amount of components sourced from different countries varies by car model, causing ripple effects throughout automakers’ supply chains. Many other industries are facing similarly complex disruptions.

•

A critical central hub. Amid the uncertainty, company leaders are struggling to anticipate what’s next. Traditional forecasting and planning methods fall short in today’s volatile environment. One emerging solution: a geopolitical nerve center—a central hub that monitors developments in trade, plans for different scenarios, and helps reduce the shock of tariffs and trade controls. Consider nine initiatives that can help executives track and mitigate the effects of tariffs across their operations.

Steer through unpredictability

—Edited by Belinda Yu, editor, Atlanta

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9 attachments 9 attachments

How global companies can succeed in India

On McKinsey Perspectives

DELIVERING ACTIONABLE INSIGHTS ON THE DAY’S NEWS

Brought to you by Alex Panas, global leader of industries, & Axel Karlsson, global leader of functional practices and growth platforms

Welcome to the latest edition of Only McKinsey Perspectives. We hope you find our insights useful. Let us know what you think at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com.

—Alex and Axel

Destination: India

In the news

•

Overseas operations. Drawn to India’s strong base of skilled young talent, large US enterprises are expanding their presence and business operations in the country, The New York Times reports. One multinational financial-services firm, for instance, employs 55,000 workers in five Indian cities, including Bengaluru, while two American retailers have campuses with up to 5,000 Indian workers. By 2030, India’s overseas business centers are projected to generate $100 billion or more, up from about $65 billion in 2024. [NYT]

•

Investing in India. Global businesses are eager to do business in India, a country that boasts a rapidly expanding economy and a population of 1.4 billion people. As Bloomberg notes, some of India’s most promising sectors include global capabilities centers, aerospace and defense, consumer goods, the digital economy, and infrastructure. The next 20 years could be decisive for India, with its enhanced infrastructure and a substantial number of billion-dollar companies that do business there. Those that don’t invest in the South Asian nation risk being left behind, experts say. [Bloomberg]

From 2021 to 2023, 984 international companies registered to operate in India, up from 320 between 2019 and 2021.

On McKinsey.com

•

Business hot spot. The world has taken notice of India’s promises and possibilities as a global business hub, thanks to the country’s skilled workforce, large consumer base, and improving infrastructure. Indeed, over the next decade, India offers many opportunities for multinational companies, explain McKinsey Global Managing Partner Bob Sternfels , McKinsey India Managing Partner Rajat Dhawan, and their coauthors. Yet companies in India may face complex regulations and other challenges. What sets successful global companies in India apart from the rest?

•

Competitive advantages. While some executives may simply see India as a site for low-cost operations, the country has more to offer. For example, India produces about one-third of the world’s STEM graduates, making it a top choice for multinationals seeking programmers or setting up global IT centers. The nation also has a vibrant and growing digital economy, with over one billion smartphone users as of 2024. What’s more, India’s digital consumers account for over 40% of global internet transactions. Discover the five factors shared by companies that are winning in India.

See the road map to success

—Edited by Belinda Yu, editor, Atlanta

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by "Kristof Fabiana" <fabianakristof707@gmail.com> - 10:01 - 15 Apr 2025

Join Us at Stratosphere 2025 – The Future of Digital Transformation Starts Here



Hi MD Abul, We’re excited to officially open registration for Stratosphere 2025, taking place August 25–27, 2025 in Denver, Colorado! What is Digital Stratosphere? It’s more than just another tech conference. Stratosphere 2025 is where the world’s leading digital transformation experts, CIOs, and change agents come together to explore enterprise technology strategies independent of vendors and sales pitches. This year’s theme: Mission: AI-Possible – Navigating the Future of Digital Evolution. We’re diving deep into how AI, cloud migration, ERP implementations, and organizational change are reshaping the enterprise landscape—what works, what doesn’t, and how to prepare. Why attend? Learn from real-world success (and failure) stories Network with executives and project teams driving transformation Get unbiased insights—no vendor fluff Attend expert-led panels and keynotes Meet Our Keynote Speakers: We’re bringing together some of the most respected voices in enterprise transformation: Jan Baan – Legendary ERP pioneer and founder of Baan Company, sharing his forward-looking vision on AI and business systems. Walker Reynolds – Influencer and Industry 4.0 evangelist, known for cutting through the noise around smart manufacturing and industrial data. Eric Kimberling – Founder & CEO of Third Stage Consulting, bringing 20+ years of digital transformation leadership and hands-on experience. Who should attend? This event is perfect for: • CIOs, CFOs, and executive teams • ERP and IT project leaders • Operations, finance, and change management professionals • Anyone planning or currently executing a major digital initiative Reserve your spot here: https://www.thirdstage-consulting.com/stratosphere-2025 Let us know if you have questions and we hope to see you in Denver! Best regards, Eric Kimberling


Third Stage Consulting 384 Inverness Pkwy Suite Suite #200 Englewood Colorado 80112 United States You received this email because you are subscribed to Marketing Information from Third Stage Consulting. Update your email preferences to choose the types of emails you receive. Unsubscribe from all future emails

by "Eric Kimberling" <eric.kimberling@thirdstage-consulting.com> - 06:02 - 15 Apr 2025

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