McKinsey Survey: Two Key IT Trends on CIO Agendas in 2007

Two trends in information technology, service-oriented architecture (SOA) and lean-manufacturing principles to data center operations, will become increasingly important to CIOs in 2007, according to a recent McKinsey survey of senior 72 senior IT executives in October 2006. 

In 2006, two areas of critical focus for CIOs have been software as a service (SaaS) and server consolidation and virtualization, according to an earlier McKinsey survey. As those technologies gain traction, CIO are now signaling interest in two further trends to improve efficiency and effectiveness in 2007. 

  • 64% of the respondents to the 2006 survey said they plan to implement service-oriented architectures in the coming year. Advocates of service-oriented architectures expect them to make IT more flexible, open, and efficient by facilitating communication and interaction between systems. 
  • 28% of the respondents said that they had already applied or decided to apply lean principles to improve their data center operations. Lean principles is not about technology, but rather a methodology applied to processes—originally in manufacturing operations but increasingly within services, including IT.

A data center for a typical large enterprise has hundreds of millions of dollars in capital equipment (server farms, mainframes, networking gear, and storage devices), consumes large amounts of electricity, and requires hundreds of highly skilled engineers and technicians to operate. Applying lean principles can help reduce waste and improve labor productivity by as much as 40% in some processes. 

Source: What's on CIO agendas in 2007: A McKinsey Survey (The McKinsey Quarterly), by Janaki Akella, Kishore Kanakamedala, and Roger P. Roberts

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