Technological Disruptions in Cloud Computing - A Case Study of McKinsey and Company

This report explores the issue of technological disruptions in cloud computing, focusing on security, costs, governance, and control in the case of McKinsey and Company. It provides recommendations for effective verification of SaaS and training of staff, as well as the importance of communication and stakeholder involvement in decision-making. The report also discusses the technologies used by McKinsey and Company and the impact of digital disruption.

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Report on technological disruptions in Cloud Computing- A case study of Mckinsey and
Company
Name of the student
Name of the university
Author note

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Executive summary
Technologies are the means through which the companies bring innovation into the business
operations. If the technologies seem to be disruptive, then it obstructs the productivity,
compelling the personnel to encounter delays in the orders and supplies. This report picks the
issue of security, costs, governance and control in case of Mckinsey and Company.
Recommendation of verification of SaaS is effective in terms of controlling the identity and
the location of storing and processing the data. If this is done according to the legislative
requirements, illegal instances and scandals can be averted. Training the staffs about the
judicious use of the technologies is assistance in terms of sustaining the resources for the
crucial times. Effective communications are needed for undertaking appropriate decisions
regarding solving the issues and implementing the decisions. Involving the stakeholders and
shareholders in this process reflects consultative decision making style, enhancing the
collative approach towards dealing the problems.

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Table of contents
Introduction................................................................................................................................3
Overview of the company......................................................................................................3
Technologies used by Mckinsey and Company.....................................................................3
WCA framework on McKinsey and Company......................................................................4
Insight into the digital disruption...........................................................................................4
Recommendation........................................................................................................................6
Implementation Plan..................................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10
Bibliography.............................................................................................................................11

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Introduction
Professional ethics is one of an essential parameters, which reflects the cultural
diversity of the workplace. In this, attempts are made by the personnel to digitalize the
business according to the requirements posed by the clients and the customers. Implementing
security cookies and policies is assistance in terms of gaining trust, assurance and loyalty
from the customers. Exploitation of the technological resources compels the personnel to
encounter disruptions in the business operations (Kietzmann, Pitt and Berthon 2015). This
assignment attempts to develop a report on the scenario of the workplace of Zara before and
after the case of technological disruption. This is through the consideration of Work Centred
Analysis (WCA) framework.
Analysis
Overview of the company
Founded in 1926, Mckinsey and Company has achieved accolades and glory by
emerging as America’s most popular management consultancy firm. It operates as
incorporated partnership, assisting the private and public sectors in undertaking management
decisions. This is through the means of qualitative and quantitative analysis. According to the
statistics, McKinsey and Company accumulates 80% of the world’s largest corporations. As
per the annual report of 2018, the annual revenue is $10+ billion. The major drive behind this
is the hard efforts of 27000 billion employees operating in the outlets across the globe
(Mckinsey.com 2019).
Technologies used by Mckinsey and Company
In order to influence the purchasing power and decision of the clients and customers,
Mckinsey and Company makes use of technologies like cloud computing, driveAgile and
DevOps. The performance of these technologies is measured through the ratings on the Likert

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Scale. Optimizing the operational costs proves beneficial for the Company in terms of
developing best technological practices. One of the positive points in this direction is the
Technology Assessment, which helps the personnel to assess the effectiveness,
appropriateness and feasibility of the technologies in terms of the identified and specified
objectives. Strategic approach in this direction seems fruitful for deciding on the investments,
which can be made for achieving strategic growth. Mention can be made of the peer
modelling, discussions and resources, which acts as an agent in terms of revolutionizing the
business operations. Along with this, Digital Infrastructure Assessment through Cloud
Cyber Security, acts as a cornerstone towards upgrading the standards and quality of
technologies (Mckinsey.com 2019).
WCA framework on McKinsey and Company
Figure 1- WCA matrix of McKinsey and Company before the technological disruption
(Source- Mckinsey.com 2019)
• Customers of Mckinsey and Company includes Electronic Industry,
Agriculture, Automobiles, Chemicals, and Telecommunications among others. The
company achieves accolades and glory by providing upgraded digitalized business
Custom er
s
(Electroni
c Industry,
Ariculture
,
Autom obi
les,
Chem icals
,
telecom m
unications
and
others)
Products ( D igitalized business solutions)
Business process
Participants (Private and public sector industries)
Inform ati on technology (cloud com puti ng, driveA gile and D evO ps and
TechO ps)

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solutions to these customers. These aspects makes customers as the sources, adding
value to the products. The company adheres to an integrated structure for providing
the solutions to the customers. This is through the means of technologies, which
revolutionizes the business operations, enhancing the standards and quality. Typical
example of this lies in the cloud computing, driveAgile and DevOps and TechOps.
Variation in the technologies adversely affects the purchasing decision and power of
the clients and the customers (Mckinsey.com 2019). IT experts are hired for
inspecting the systems. Acting according to the legislative requirements is assistance
in terms of averting the instances of cybercrimes like malfunctions, virus attacks and
interventions.
Insight into the digital disruption
Cloud Computing helps Mckinsey and Company to store massive data, which reduces
the worries and concerns regarding the security. Flexibility in the software is assistance in
terms of averting the instances of data leakage to the third parties. Better decision making
processes towards reducing the operational costs proves beneficial in terms of improving the
standards and quality of the workflow. However, one of the biggest challenges, which the
Company faces in Cloud Computing service is security. As a matter of specification,
defective processing of the cloud computing compelled the personnel to encounter difficulty
in tracing the locations, in which the data is to be stored or processed. As per the arguments
of Gualandris and Kalchschmidt (2015), this inability aggravates the complexities in
implementation of governance and control. The immediate results of this are data breaches,
compromised credentials, broken authentication, and hacker intervention among others.
One of the related issues in this is the cost, which makes it difficult for the personnel
to estimate the quantities. This is a further difficulty in preparing the budgets. In such a
scenario, the placing more workload on the cloud is an addition to the problems, adding to the

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lack of resources and expertise. As a matter of specification, it has destroyed the balance
between the operations and the tools. Apart from this, governance and control is adversely
affected due to the complexities in the cloud computing service. On the other hand, Gonzales
(2016) opines that lack of proper control over positioning, de-positioning and infrastructural
operations is problematic in terms of exercising the governance, control and compliance to
the risk management plans.
Based on the identified issues of cloud computing, the revised WCA matrix of
Mckinsey and Company stands as follows-
Fig 2- WCA matrix for McKinsey and Company after the disruption of Cloud
computing services
(Source- Weber, Thomas and Stephens 2015)
• As a result of the digital disruption of the cloud computing, McKinsey was compelled
to encounter the instances of customer turnover in case of the automobile industries.
As a result of this, the business strategies revolved around satisfying the customers
Custom
ers
(Agricul
ture,
Teleco
m m uni
cations,
Chem ic
al
industri
es
am ong
others)
Products (D igitalized business
solutions)
Business process
Partners (Private sector industries)
Inform ation technologies (D evO ps, TechOps and
DriveAgile)

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through DevOps, TechOps and Drive Agile. However, the personnel encountered
difficulties in storing bulk data regarding the revenue and profit margin. Here, 3c
model can be infused in this context, as the customers turned to other companies like
Deloitte Consulting, Accenture and Boston Consulting Group among others for
getting quality digitalized solutions for their business (Gonzales 2016) .
Recommendation
In order to solve the issues of cloud computing, the personnel of Mckinsey and
Company need to indulge in decision-making process. This can be done through the means of
decision support systems. Involving the stakeholders and shareholders in the planning process
would be effective for reaching to the appropriate decision. Interactive sessions would
unleash the intelligence of the personnel in terms of experimenting with the choices and
decisions regarding solving the problems with cloud computing services. In order to reach
the penultimate stage of the implementation, the company personnel need to incorporate
models, which would help in delving deeper into the root cause of the issues. Mention can be
made of Analog model, which can help the company personnel to create two dimensional
charts, structure, authority, relationship mapping through different colors. This would
enhance the awareness about the prospective of the blueprints created.
Attempts need to be made for improving the infrastructure. Typical examples of this
are-
 Verification of SaaS provider for ensuring the security in identity management,
authentication and access control mechanisms. Compliance to the database privacy
and security laws would be beneficial in enhancing the security in a proper manner.

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 The operational costs can be optimized through the execution of financial analytics
and reporting. In this, automating policies of governance and management reporting
prove to be an effective solution for controlling the issues in cloud computing.
 Hiring IT experts and specialists would seem fruitful in terms of keeping the costs in
control. Irrational approach towards this direction would compel the company to
encounter customer turnover. One of the solutions can be opting DevOps tools like
Chef and Puppet for monitoring the patters of using the resources. These tools would
further act assistance for optimizing the expenses behind governance and security.
 Complying with the standards and protocols of Data Security Acts would act
assistance for the personnel in terms of averting the risks of Data breaches, hacker
intervention and data leakage to the third parties. Taking assistance from the IT
experts and specialists would be effective in terms of avoiding illegal scandals and
issues.
 Acquiring strategic information systems would be beneficial in terms of achieving
competitive advantage. This can be done through the existing scratch or through the
joint ventures and partnerships with the research and development team. Assessment
of the systems needs to be incorporated within the operations. Within this, the
conditions are-
1. Alignment with the identified goals and objectives
2. Collaboration with the competencies of the other functional units
Implementation Plan
The way in which the decisions would be implemented, would reflect the kind of
management to be followed for restoring normalcy in the business environment of McKinsey
and Company. Involving the stakeholders and shareholders in the decision-making and
planning process would reflect consultative decision and management style. The managers

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need to ensure that the stakeholders and shareholders have individual access to the data
needed. Expert advice in this case would be fruitful in terms of enhancing the collaboration
between the team members. Segmentation of the implementation plan would be helpful in
terms of assessing the effectiveness, appropriateness and feasibility of the undertaken plans
and strategies. The initial phase is the intelligence phase, in which the primary activity is to
delve deeper into the root causes of the problem. Designing the possible alternatives for the
identified issues would be the next step, systematizing the processes of the decision-making.
In the process of implementing the solutions, the personnel of Mckinsey and
Company need to consider the issues of resistance to change, guidance from the top
management levels and training the users. In order to deal with resistance to change, effective
communication needs to be established with the stakeholders and shareholders. Providing
proper justification would reduce the doubts while acquiring the solutions. Explanation by the
trainers to the employees would result in reducing the knowledge gaps in case of the
employees. Consideration of statistics and data would enhance the awareness of the
employees regarding the intensity of the issue.
As a part of the strategic operational plan, questions need to be proposed to the
management regarding the need and urgency of the solutions through the support systems. In
this, reference can be cited of Change management theory proposed by Lewin for refreezing
digitalization into the business dynamics of McKinsey and Company.
Conclusion
Digital disruptions in the cloud computing services hampers the productivity in the
business operations of companies like McKinsey and Company. Typical example can be the
security issues, governance and control, which adds to the complexities in the data storage
and processing. As a result of these issues, the company has encountered customer turnover

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to the companies dealing in the provision of flexible digitalized business solutions to the
private and public sector industries. Developing support systems is beneficial in terms of
averting the instances of data breaches and leakages to the third parties. Proper management
backup plans are needed in terms of revolutionizing the business operations according to the
recent competitive trends of the market.

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References
Gonzales, A., 2016. The contemporary US digital divide: from initial access to technology
maintenance. Information, Communication & Society, 19(2), pp.234-248.
Gualandris, J. and Kalchschmidt, M., 2015. Mitigating the effect of risk conditions on supply
disruptions: the role of manufacturing postponement enablers. Production planning &
control, 26(8), pp.637-653.
Kietzmann, J., Pitt, L. and Berthon, P., 2015. Disruptions, decisions, and destinations: Enter
the age of 3-D printing and additive manufacturing. Business Horizons, 58(2), pp.209-215.
Mckinsey.com 2019. About us. Available at- https://www.mckinsey.com/ (Accessed on 25th
March 2019)
Mckinsey.com 2019. Our digital solutions assessment. Available
at-https://www.mckinsey.com/solutions/digital-20-20/our-assessments/technology (Accessed
on 25th march 2019)
Weber, M.S., Thomas, G.F. and Stephens, K.J., 2015. Organizational disruptions and triggers
for divergent sensemaking. International Journal of Business Communication, 52(1), pp.68-
96.

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Bibliography
Lu, Y., 2017. Industry 4.0: A survey on technologies, applications and open research
issues. Journal of Industrial Information Integration, 6, pp.1-10.
Rittinghouse, J.W. and Ransome, J.F., 2016. Cloud computing: implementation,
management, and security. CRC press.
Aljawarneh, S.A. and Yassein, M.O.B., 2016. A conceptual security framework for cloud
computing issues. International Journal of Intelligent Information Technologies
(IJIIT), 12(2), pp.12-24.
Botta, A., De Donato, W., Persico, V. and Pescapé, A., 2016. Integration of cloud computing
and internet of things: a survey. Future generation computer systems, 56, pp.684-700.
Hu, P., Dhelim, S., Ning, H. and Qiu, T., 2017. Survey on fog computing: architecture, key
technologies, applications and open issues. Journal of network and computer
applications, 98, pp.27-42.
Stergiou, C., Psannis, K.E., Kim, B.G. and Gupta, B., 2018. Secure integration of IoT and
cloud computing. Future Generation Computer Systems, 78, pp.964-975.