Innovation Management Watch Summary | Sixty years of innovation: Key moments in business technology by McKinsey & Company
Mar 11, 2025
Over the past 60 years, technological breakthroughs have reshaped industries, driving unprecedented business transformations. This summary highlights key moments in business technology that defined innovation management.
The Birth of Modern Computing (1960s-1970s)
The 1960s witnessed the launch of IBM’s System/360, a revolutionary mainframe that introduced interchangeable software and peripherals, freeing companies from costly one-size-fits-all systems. Around the same time, Gordon Moore’s prediction of exponential transistor growth—now known as Moore’s Law—set the pace for semiconductor advancements, fueling computational power. In 1969, ARPANET, the precursor to the internet, pioneered packet-switching networks, ushering in a new era of digital communication.
The 1970s saw the first mobile phone call by Motorola, paving the way for wireless communication. GPS technology, initially developed for military applications, became a critical tool for businesses, enhancing logistics and real-time tracking. The decade also introduced database technology, with Oracle’s first commercial relational database enabling businesses to structure and retrieve data more efficiently. Intel’s 8080 microprocessor accelerated personal computing, inspiring pioneers like Bill Gates and Steve Jobs.
The Rise of Personal Computing and Networking (1980s-1990s)
By the 1980s, IBM’s 5150 personal computer, powered by Intel’s 8088 chip, made computing accessible to businesses and homes. Apple’s Macintosh, with its graphical user interface and mouse, set new standards for usability. The decade also saw Microsoft launch Windows 3.0, revolutionizing multitasking and software development. The rise of lithium-ion batteries promised longer-lasting, portable computing.
In the 1990s, Tim Berners-Lee’s World Wide Web opened the internet to the public, revolutionizing global communication and commerce. Legal frameworks like Section 230 of the Communications Decency Act protected online platforms, enabling the rapid growth of user-generated content sites. IBM’s Deep Blue defeated chess grandmaster Garry Kasparov in 1997, proving AI’s potential in strategic decision-making. Meanwhile, Salesforce pioneered Software-as-a-Service (SaaS), setting the stage for cloud-based business applications.
Cloud, AI, and Mobility (2000s-Present)
The 2000s marked the rise of cloud computing, with Amazon Web Services (AWS) revolutionizing IT infrastructure. The launch of the iPhone in 2007 transformed mobile technology, blending computing, communication, and internet access into a single device. Agile software development principles gained traction, emphasizing iterative innovation and cross-functional collaboration.
By the 2010s, AI-driven innovations took center stage. AlexNet’s deep learning breakthrough in 2012 accelerated advancements in computer vision, natural language processing, and automation. Tesla’s Model S redefined the automotive industry with electric vehicles and over-the-air updates. SpaceX made history by launching an all-civilian crew into orbit, expanding commercial space exploration.
The 2020s saw an AI explosion, with OpenAI’s ChatGPT setting new standards for generative AI. Businesses rapidly integrated AI into operations, optimizing decision-making, customer engagement, and automation. As companies embrace AI-driven strategies, the pace of innovation continues to accelerate, promising a future of seamless digital transformation across industries.
From early mainframes to AI-driven insights, the past six decades underscore the importance of adaptability and foresight in innovation management. The journey ahead will be defined by continued breakthroughs in computing, automation, and connectivity.
To dive deeper into how top companies are rethinking innovation systems, read the full McKinsey & Company report here.
This summary is based on the original article published by McKinsey & Company. All rights to the original content remain with the respective copyright holders.
