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Positioning organizations to thrive in an evolving trade landscape
On McKinsey Perspectives
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by "Salesforce" <salesforce@mail.salesforce.com> - 10:32 - 21 Apr 2025 -
Enhance Efficiency with Our Innovative Combination Machine Tool
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by "Slina.e" <Slina.e@Yueli-machine.com> - 05:21 - 21 Apr 2025 -
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Russell actually put together a Masterclass with Jared Goetz (CEO of Zendrop) that will cover everything you need to know.
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[Big Announcement!] ClickFunnels Dropshipping is here!!
It’s the moment you’ve been waiting for!
ClickFunnels Dropshipping is finally here and ready for you to jump in and explore all the cool new features and tools.
This will open up a whole new Ecom world for you and your business. The possibilities are endless!
Russell actually put together a Masterclass with Jared Goetz (CEO of Zendrop) that will cover everything you need to know.
During this live masterclass/training, They will show you why funnels + dropshipping is the new model that’s crushing traditional stores.
You’ll learn how to pick from over 1.5 million winning products and get them in front of your perfect customers fast!
And you’ll see how to launch ClickFunnels Dropshipping store even if you’ve never sold a thing online before.
This is a 100% LIVE masterclass happening Thursday, April 24th @ 11AM PT | 2PM ET
This is big.
If you’ve always wanted to jump into dropshipping and Ecom, this is the masterclass you should attend.
Or… It’s a great training for you to see how you could leverage ClickFunnels Dropshipping in your existing business!
When you register, you’ll get a FREE Ecom store, AND all the training you need to get your entire ecom business up and running in just a few clicks!
REGISTER FOR THE CLICKFUNNELS DROPSHIPPING MASTERCLASS >>
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How Airbnb Powers Personalization With 1M Events Per Second
How Airbnb Powers Personalization With 1M Events Per Second
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Disclaimer: The details in this post have been derived from the articles written by the Airbnb engineering team. All credit for the technical details goes to the Airbnb Engineering Team. The links to the original articles and videos are present in the references section at the end of the post. We’ve attempted to analyze the details and provide our input about them. If you find any inaccuracies or omissions, please leave a comment, and we will do our best to fix them.
Modern digital platforms rely on personalization to stay relevant. However, personalizing an experience meaningfully, especially across a product as broad as Airbnb, requires understanding users while they interact with the app.
The task is difficult due to the following reasons:
User journeys are non-linear: A guest might view ten homes, bounce for a day, come back and wishlist three, then finally book one.
Engagement signals are fragmented: Searches, scrolls, views, and bookings each live in a different system.
Latency matters: Knowing that someone searched for a specific query is only useful if we can act on it within seconds, not after the fact.
Teams want insights: Not everyone wants to be a stream processing expert. Most product teams don’t want to learn Flink or Kafka to build features.
User Signals Platform (USP) is Airbnb’s answer to these challenges. This platform was built to:
Ingest and process user actions in near real-time with end-to-end latency under 1 second.
Store real-time and historical user engagement data in a way that’s queryable and durable.
Support both synchronous and asynchronous computation.
Expose a clean interface for the product team so they can define signals, cohorts, and behaviors without needing to write code.
Power personalization across Airbnb from home page listings to in-app notifications and customer support intelligence.
In this article, we’ll look at the architecture of the User Signals Platform along with the challenges faced by the Airbnb engineering team while trying to make it a reality.
Architecture Overview
There’s a reason most companies don’t have a robust real-time personalization platform: streaming architecture is hard to get right, especially when you care about both low latency and long-term correctness.
The User Signals Platform (USP) does this by combining a Lambda-style pipeline with an online query layer, built on top of a few battle-tested primitives such as Kafka, Flink, a KV store, and some disciplined design principles.
See the diagram below for the architecture overview:
At a high level, USP is split into two main components.
1 - Data Pipeline Layer
This is where the heavy lifting happens. The pipeline ingests raw Kafka events, transforms them into structured user signals, and writes them into a versioned KV store.
It includes:
Real-Time Streaming (Flink): Every user interaction (searches, clicks, views, bookings) gets processed event-by-event using Flink, not micro-batch jobs.
Offline Batch (Backfill + Corrections): If something breaks or if business logic changes, the system can reprocess historical events and reconcile the store without rewriting production pipelines.
This dual-path setup follows the Lambda Architecture model.
2 - Online Serving Layer
Once the data is processed and stored, they wanted a fast way to serve it to downstream services. The online serving layer took care of this requirement.
Here’s what this layer does:
It exposes an API for querying user signals by type, user, time range, etc.
Talks directly to the KV store for sub-second lookup performance.
Performs lightweight query-time logic when needed (for example, filtering and session computation).
The Signal Lifecycle
Here’s how an individual user action flows through the system:
User performs an action (for example, searching for a specific type of house in a certain location.
The app emits a Kafka event with the details of that interaction.
Flink picks it up, applies a developer-defined transform, and converts it into a structured signal.
The signal is written to the KV store with a versioned timestamp (append-only).
It’s also emitted to another Kafka topic, so downstream jobs (like segmentation or session analysis) can subscribe and react.
Product features query the store in real-time. For example: “What did this user search for in the last 10 minutes?”
That’s the main loop. It sounds simple, but a lot is happening under the hood to make it safe, fast, and reliable.
See the diagram below:
Key Engineering Decisions
A few important architectural decisions the Airbnb engineering team took while building the USP were as follows:
1 - Flink Over Spark
Airbnb chose to use Flink instead of Spark.
Spark uses a micro-batch model. Instead of processing events as they arrive, it groups them into small batches (say, every 2 seconds) and runs them through the pipeline.
That’s fine for dashboards. But if your downstream use case is real-time product personalization, a few seconds of delay can feel like a lifetime. Imagine opening the Airbnb app, searching for “Paris”, and seeing homepage recommendations that still reflect your last trip to Kyoto.
The Spark model created delays that broke the user experience. Worse, those delays weren’t easy to tune away.
Flink, by contrast, is natively event-driven. It processes each event as it arrives. That gives:
Lower end-to-end latency
Better control over event time semantics
Cleaner handling of stateful operations, like windowed aggregations and stream joins
As a trade-off, Flink had a steeper operational curve. However, for use cases where personalization needs to react in-session, not post-session, it was the appropriate choice for Airbnb.
2 - Append-Only Data Model
In stream processing, it is difficult to guarantee that an event will be processed exactly once. Even with Kafka and Flink’s best efforts, things can get retried, reordered, or replayed.
So, instead of fighting that, Airbnb leaned into it. They made every write to the KV store append-only, with a processing timestamp as the version. There are no in-place updates, and idempotency is handled by versioning.
This simplifies:
Reprocessing/Backfills: They can replay events without worrying about overwriting the wrong thing.
Debugging: They can trace what happened when, with a clear sequence.
Correctness under failure: Crashes and retries couldn’t corrupt the data.
The trade-off was spending more on storage costs, but saving a ton on operational complexity.
3 - Config-Driven Developer Workflow
One of the most underrated engineering challenges isn’t building the system. It’s making it usable for the rest of the company.
USP tackles that head-on by giving developers a config-first interface to define their signal logic.
Here’s how it works:
Engineers define new signals via a YAML-style config that contains details about the Kafka source topic, the transform class, and signal type
They implement the transform class, which is essentially a small Java or Scala function.
Next, they run a setup script.
The script autogenerates the necessary Flink job configurations, batch backfill scripts, and monitoring YAMLs. This pattern standardizes signal definitions across teams and reduces boilerplate and manual configuration.
User Signal Types
When a user interacts with Airbnb (searches, clicks, or saves a home), the behavior emits a bunch of raw events. Most of them are meaningless on their own. But with the right structure and filtering, they become User Signals: queryable, composable, and rich with context.
USP makes it dead simple for engineers to define, transform, and consume these signals, without writing complex stream processing jobs from scratch.
See the code example below for a signal definition and the transform class.
Source: Airbnb Tech Blog There are two core signal types:
Simple User Signals: A direct mapping from a Kafka event to a signal.
Join Signals: A real-time join of two Kafka sources using a shared key.
User Signals
These are the building blocks. Each user signal represents a stream of recent activity (searches, views, bookings, wishlists) attached to a user ID and timestamped for querying.
Engineers use a config file to define a new signal, and the heavy lifting happens in the transform class.
A few things to note:
Validation is built in. Signals can reject noisy or malformed events up front.
Transformations are composable. Every signal becomes a structured object and something the product logic can use.
Join Signals
Sometimes, a single event isn’t enough. Maybe, there is a need to join them. For example:
A page view with a user session
A click event with a listing metadata update
A wishlist add with trip intent signals
Rather than batch-processing this later, USP supports Join Signals: real-time stateful joins between two Kafka streams using a shared key.
To support this, a Join Signal configuration needs to be written. Under the hood, Flink does the join in real-time. RocksDB acts as the state store to hold intermediate join keys, and the result is a merged signal with richer context: ready to feed into ML models, personalization rules, or session-based analysis.
User Segments
A User Segment is a logical group: a cohort of users who match a behavioral pattern or intent.
In most systems, user segmentation is a batch job. You run a SQL query once a day, label users as “engaged” or “likely to churn,” and hope that snapshot is still relevant tomorrow.
That doesn’t cut it when your product needs to react to user intent as it forms.
Airbnb’s User Signals Platform flips the script. With User Segments, engineers can define dynamic cohorts that update in near real-time, triggered by live user actions, not stale offline data.
The segment is defined by:
A triggering condition (for example, a search or a wishlist add).
A start time.
An expiration time, which removes the user if they go inactive or meet some end condition.
These segments are recalculated on the fly, based on live signals flowing through the system.
Let’s say they want to target users who are actively planning a trip: people who are more likely to book in the next few days.
Here’s how segmentation might look:
A user enters the “Active Trip Planner” segment when they perform a search on Airbnb.
They stay in that segment for up to 14 days, unless they make a booking earlier.
Every time they search again, the expiration window resets, keeping them in the cohort.
This segment powers things like trip recommendation modules, push notifications (for example: “Still looking for a beach house?”), and custom homepage experiences. Since it's built on streaming logic, updates happen within seconds of user activity, not hours later after a batch job finishes.
Session Engagements
Most personalization systems are great at long-term memory: what you searched for last week, which cities you’ve favorited, and what kind of stays you usually book.
But they often miss the recent stuff.
Session engagements feature of the USP fixes that. It lets the platform answer queries like:
“What is the user focused on right now?”
“What kinds of listings are they engaging with in this session?”
“Are they actively evaluating, or passively browsing?”
Instead of looking at user behavior in aggregate, session engagements look at bursts of activity within a session window covering short, meaningful slices of time that capture a user’s current goal or intent.
See the diagram below:
Session engagements are powered by Flink streaming jobs that ingest transformed signals (from upstream user actions), group them by user ID, and process them in windowed intervals using two patterns:
Sliding Windows
They are fixed-size windows that advance by a smaller step.
For example, a 10-minute window sliding every 5 minutes. It is useful for rolling insight, such as “What kind of listings is this user clicking every 10 minutes?”
Session Windows
These are dynamically sized windows based on inactivity gaps. For example, start a session when the user clicks and close it after 30 minutes of silence.
This is useful for natural interaction clusters, such as listings viewed in a single burst of planning.
Flink Stability with Hot Standby
One of the most critical pieces of a real-time stream processing system is operational resilience. You can have the smartest signal logic, the fastest queries, the cleanest data pipeline, but if your jobs stall when a server crashes, it will cause trouble.
Airbnb hardened its Flink deployment against exactly this kind of failure, with a simple but effective strategy: hot standby Task Managers.
Rather than waiting for Kubernetes to create new pods during failure, the team pre-provisions extra Task Managers that sit idle but are ready. These hot standbys are kept warm and registered with the Flink JobManager, so when failure hits, they can pick up tasks immediately.
See the diagram below:
This helps achieve zero cold-start lag for task reassignment and faster recovery time (seconds instead of minutes). There is also a lower event backlog risk with this setup.
Conclusion
Airbnb’s User Signals Platform isn’t a prototype. It’s a production-grade engine powering critical personalization across one of the largest travel platforms in the world.
Here’s what the system is doing today in terms of scale:
Processing over 1 million events per second.
100+ Flink jobs in production.
70K queries per second on the USP service layer.
In a way, USP is part of the core Airbnb infrastructure, running across dozens of teams, all contributing their signal definitions, segments, and use cases.
Even with all this machinery in place, the team sees room for growth, especially in how they handle asynchronous compute. The plan is to go further in smarter pipeline-level orchestration, pluggable execution backends, and end-to-end compute graphs.
It’s tempting to look at systems like this and focus on the streaming tech. But what makes the User Signals Platform successful isn’t just Flink or Kafka or RocksDB.
It’s the design choices such as:
Embracing append-only data for resilience
Hiding complexity behind clean developer abstractions
Treating operational resilience as a first-class concern
The philosophy also matters: real-time data isn’t valuable unless it’s usable. Teams across the company can define signals, derive insights, and deploy personalized experiences without becoming stream engineers.
References:
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by "ByteByteGo" <bytebytego@substack.com> - 11:35 - 21 Apr 2025 -
A leader’s guide to managing tariff-related uncertainty
Leading Off
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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 Leading Off. 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
Tariffs are top of mind for business leaders as policies and market conditions continue to shift. How can leaders make sense of this uncertainty to mitigate risks to their businesses and seize potential opportunities? To start, developing a better understanding of tariffs and their likely effects—in both the short and the long term—is critical. This week, we look at how leaders can prepare their organizations to navigate this challenging and fast-changing environment.
With the COVID-19 crisis still fresh in their minds, business leaders face a new global economic disruption and the questions it raises. Among them: How long might tariffs and trade controls be in place? What economic consequences will they have? When will we return to “normal”? Traditional forecasting and planning methods are not suitable to meet the moment as the tariff landscape evolves, say McKinsey’s Cindy Levy, Mihir Mysore, Shubham Singhal, and Varun Marya. Instead, they recommend that companies establish a geopolitical nerve center: that is, “a central hub that tracks new developments in global trade, plans across several horizons, and guides decision-makers on ways to mitigate the impact of the expanding tariffs and trade controls.” A nerve center should include cross-functional teams that can address the impacts of tariffs across the company over the short, medium, and long term. It should also be supported by a central planning team that uses analytics to enable fast decision-making. Many companies found nerve centers to be an essential resource during the pandemic—and a similar approach can be effective now, as “tariffs have emerged as the most urgent topic for many businesses and the world economy and will likely remain so for most of 2025,” the authors say.
That’s the share of every major region’s consumption of a critical resource, good, or service that is imported. According to McKinsey’s Jeongmin Seong, Michael Birshan, Olivia White, Sven Smit, and their coauthors in a report on changing trade relationships, “Even in sectors for which a region is a net exporter, it may still be dependent on imports for many crucial products.”
That’s McKinsey Partner Ziad Haider on why leaders need a strategy for engaging with their people during times of geopolitical instability. Understanding how to talk to employees about sensitive geopolitical topics is important to building organizational resilience during uncertain times. The goal, Haider says, “is to hold together the fabric of a global institution amid swirling centrifugal forces that threaten to rip it apart.”
A decade ago, many experts predicted that the global flow of goods, money, data, and people would continue to expand smoothly. Now, companies have to confront the reality that the world has become more fragmented, says Robert Hormats, a former US government official and adviser to many global companies. “Companies making big financial investments need to have both a degree of understanding of what’s going to happen over the next five to ten years and the agility and resilience to turn on a dime in the face of unexpected developments,” Hormats says in an interview with McKinsey Senior Partner Cindy Levy. He notes the importance of companies developing trusting relationships with countries beyond their home markets and learning how to work best with their governments. “This isn’t just about lobbying for what they want,” Hormats says. “It’s also about mutual education, in which both businesses and governments improve their understanding of the implications of existing and future regulation, including—but not only—around new technologies.”
Tariffs are not the only rapidly evolving area for leaders to focus on as they navigate the global trade landscape. A growing number of export controls is limiting movement of sensitive services and products—particularly technology—across borders, which affects industries such as mobile communications, semiconductors, AI, and quantum computing. It’s critical for companies to assess the impact of export controls on their global strategies, in terms of both risks and competitive advantages, say McKinsey’s Cindy Levy, Matt Watters, Shubham Singhal, and their coauthors. Steps can include considering whether to include sensitive technologies in product designs, reassessing supply chains of existing products, and ensuring that legal and compliance teams are properly trained on export controls. “Organizations that monitor and understand the implications of evolving export rules can seize opportunities and get ahead of less savvy competitors,” the authors say.
Lead by building geopolitical resilience.
— Edited by Eric Quiñones, senior editor, New York
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by "McKinsey Leading Off" <publishing@email.mckinsey.com> - 04:54 - 21 Apr 2025 -
Asia’s rise on the world stage
On McKinsey Perspectives
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
•
Cause for optimism. Despite ongoing geopolitical and economic uncertainty, government leaders and executives in Asia still have much to be optimistic about in 2025 and beyond, McKinsey Senior Partner Joe Ngai shares in a recent episode of McKinsey’s Future of Asia Podcast. India continues to see strong economic growth, while Japan’s economy is displaying encouraging signs of recovery. At the same time, geopolitics will stay top of mind for CEOs as East–West trading relationships evolve, Ngai explains.
•
Global powerhouse. Asia’s economies have emerged as the world’s new majority and now account for more than half of global growth, McKinsey Senior Partner Gautam Kumra explains. Consumers in Asia are also growing more prosperous: By 2030, more than two-thirds of the world’s middle-income households are expected to be in Asia, according to Kumra. Listen to the interview on McKinsey’s Future of Asia Podcast to understand critical themes around Asia’s future, including technology and trade.
—Edited by Belinda Yu, editor, Atlanta
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