From Vision to Results: Attaining High Performance through IT ...

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From Vision to Results: Attaining High Performance through IT ...

Technology

From Vision to Results:

Attaining High Performance

through IT Transformation


IT organizations face a number of

significant challenges, including rising

stakeholder expectations of IT, flat

or declining IT budgets, challenging

economic conditions, increased

globalization and the continual

emergence of new technologies.

To achieve high performance, IT

organizations need to work differently

and take advantage of technology in

new ways. Companies must identify

which IT capabilities are most critical

to the success of the overall enterprise,

and shape an IT organization and

capability that supports the business

in a cost-effective manner.

Figure 1. Typical IT Transformation Benefits 1

IT Capability

Strategic IT

alignment

Typical

% IT

Budget 1 Cost Savings Opportunities

IT transformation is an approach that

can help improve the performance of

the IT function via large-scale changes

to culture, processes and technology.

Accenture has extensive experience

with IT transformation programs,

and we have helped many leading

organizations use our approach to

achieve results more quickly than they

could have on their own. Importantly,

our IT transformation approach

typically is self-funding: By targeting

a number of quick wins early in the

implementation stage, a company

generally covers the cost of the entire

transformation in the first year of the

initiative.

1-2 • Management by strategic objectives

• Customer-oriented demand management

• Program management

IT governance 1-2 • Demand and project portfolio management

• Re-alignment and stop of projects

IT balanced score card

Architecture

and information

management

Solutions

delivery

Service

management

and operations

Information

and technology

security

Workforce

and resource

management

2-5 • Architecture life-cycle planning

• Architecture consolidation and standards

• Legacy system retirement

15-25 • Solution centers, project management

• Methodology, tools, institutionalized reuse

• Application development and maintenance

offshoring

40-50 • Service management and sourcing

• Data center, storage and output consolidation

• Network and desktop rationalization

2-5 • IT security policies and processes streamlining

IT security system consolidation

2-3 • Performance and skill management

• Vendor, contractor and contract rationalization

IT controlling and service charging

Total 100 10-30

Additional potential benefits of our

IT transformation approach include

(See Figure 1):

• Closer business/IT alignment

• A reduction in IT costs of more than

30 percent

• Redirection of a significant portion

of IT expenditures from nonstrategic

projects to strategic ones creating

new capabilities and business value

• Increased IT efficiency and

effectiveness

Higher quality IT services

• Smoother post-merger integration

• Faster time to market

% Overall

Savings 1 Qualitative Improvements

5-10 • Closer business and IT alignment

5-10 • Improved transparency

10-20 • Reduced architecture complexity

20-30 • Faster time to market

• Improved quality

• Increased service level compliance

15-30 • Smoother deployment

• Fewer incidents or problems

• Increased service level compliance

1-5 • Improved risk and security

monitoring

• Increased security compliance

• Fewer security breaches

10-20 • Enhanced workforce skills

• Improved workforce motivation

• Increased financial transparency

1. Percentages and benefits given are illustrative of results attained by companies. Actual percentages and benefits attained by a given organization

will vary based on industry and company profile, and may differ from those shown.

Source: Accenture analysis: post implementation value realization review.


Done right, IT transformation

enables a company’s IT organization

to execute the right processes more

efficiently and effectively, optimize

its technology sourcing strategy,

renew the company’s technology

base, simplify the existing application

architecture and develop new

capabilities. Companies that can

do all of this can not only achieve

compelling short-term results,

but also lay the groundwork for

long-term high performance by

creating IT organizations that are

able to learn and change as the

business evolves.

Transforming IT

for sustainable

business change

Accenture has applied its extensive

experience and capabilities to create

a unique IT transformation approach

aimed at improving the performance

of the IT function. Our approach

relies on tested methodologies

and tools to help companies quickly

and cost-effectively surmount the

challenges of IT transformation,

unlocking its full potential for high

performance. We take a collaborative

approach to IT transformation—

working with your team to jointly

make fact-based decisions targeted

at delivering business value.

Figure 2. Optimizing IT Investments with the Accenture IT Transformation Approach

Percentage

of IT

Spending

Current

strategic

investments

Tactical

spending

Maintenance

Operations

Current

IT Investments

New

value-based

investments

Alignment gap

Capability gap

Maintenance

Operations

Optimized IT

Investments

Accenture’s depth of IT

transformation experience helps

organizations rapidly achieve

high-value outcomes, balancing the

attainment of long-term goals with

quick wins. For example, working

with Accenture, companies often

achieve 5 to 10 percent savings

by systematically evaluating and

rationalizing their software,

hardware and service providers.

Our clients can make additional

gains by consolidating or eliminating

nonstrategic IT projects. Such

achievements not only provide

near-term financial rewards for

our clients, but also help fortify

organizational support for longerterm

elements of the transformation.

Redirect spending to

strategic projects creating

new capabilities and

business value

Reduce spending on

non-strategic projects


Our approach is built on our IT

transformation delivery framework,

which helps companies see the

business benefits that IT transformation

can generate, the specific IT capabilities

they need to achieve their goals, the

work and investment required to

bring those capabilities to life and,

ultimately, the business value IT can

provide. In particular, our approach

helps organizations optimize their IT

investments by redirecting wasteful

or non-strategic spending to IT

investments that create new capabilities

and value for the organization. (See

Figure 2.)

The first stage of our approach, IT

opportunity assessment, is generally

completed in six to eight weeks and

can be an important first step to

broader IT transformation. This

fact-based assessment helps companies

quickly analyze their IT function;

diagnose areas for improvement; build

a robust business case for broader IT

transformation; and map a direct

route to business results.

During the subsequent three- to

four-month mobilization and design

stage, we work with companies to

create a vision for the future

organizational structure and

information architecture of the IT

function, the applications on which

the business will run, the infrastructure

that will support these applications,

and the governance that will guide

the IT organization’s decision making

for years to come. Once this design

has been created, we team with the

organization’s professionals to

mobilize the human, financial and

technological resources that will make

the design a reality.

The final stage of the transformation

is implementation. During this stage,

which can encompass an additional

12 to 36 weeks, we collaborate with

the organization to deploy the

recommended changes.

Accenture has used this end-to-end

approach to IT transformation to help

many leading global organizations

realize tangible business value. One

such organization is a large European

IT services provider that was grappling

with service delivery issues and

steadily rising costs. Working with

Accenture, the company decided to

undertake a transformation of its IT

operations, including operational and

quality management, transparency

and process control, organizational

structure, standardization and

consolidation of technology, sourcing

and technical architecture. With

Accenture’s help, the organization

has realized a cost savings of almost

20 percent across its IT organization.

Another IT transformation client is

a new financial services company

formed from the merger of several

European banks. The company spent

more money on IT each year, but its

IT performance continued to decline.

Accenture worked with the company

to create a comprehensive IT

transformation program aimed at

improving performance within two

years. As part of this effort, Accenture

helped the bank implement an annual

IT project planning process, a balanced

scorecard program, and a state-ofthe-art

IT project portfolio management

tool. Accenture also analyzed the

company’s IT spending and helped

cut expenses through benchmarking,

contract renegotiation, outsourcing

and reduced software licensing

requirements. To date, the

transformation has freed 10 percent

of the company’s IT budget for projects

that are generating business value,

and has helped the company achieve

€10 million per year in cost savings,

or 14 percent of its total IT budget.

A differentiated

approach focused on

fast results

Accenture’s ability to help companies

consistently achieve results such as

those described is rooted in skilled

people, experience and tools.

Accenture is a leading provider of

technology consulting, with a core

practice of IT strategy and

transformation professionals who

are skilled strategists as well as

experienced implementers focused on

helping companies across industries

and around the world optimize IT and

achieve real results. This specialist

team is backed by Accenture’s broad

technology and outsourcing team,

with more than 100,000 people

covering the entire range of technology

capabilities—from developing an IT

strategy to solutions for optimizing

IT infrastructure and applications to

systems integration and outsourcing—

and a global network of experienced

industry and business process

professionals.

Our consultants have provided

technology expertise to nearly two-

thirds of the Fortune 100 over the last

two years, and as a company we have

more than 20 years of experience

carrying out IT transformations in many

of the world’s leading organizations.

This track record has enabled Accenture

to develop powerful intellectual

property, methodologies and diagnostic

tools that minimize duplication of

effort and accelerate the attainment

of value.

Using Accenture’s IT transformation

approach, organizations can realize

the most compelling result of all:

an IT function that helps develop

the distinctive business capabilities

that are a building block of a highperformance

business.


Importantly, our IT transformation approach

typically is self-funding: By targeting a number

of quick wins early in the implementation

stage, a company generally covers the cost

of the entire transformation in the first year

of the initiative.


Copyright © 2010 Accenture

All rights reserved.

Accenture, its logo, and

High Performance Delivered

are trademarks of Accenture.

Accenture is a global management

consulting, technology services and

outsourcing company, with more

than 181,000 people serving clients in

more than 120 countries. Combining

unparalleled experience, comprehensive

capabilities across all industries and

business functions, and extensive

research on the world’s most successful

companies, Accenture collaborates

with clients to help them become

high-performance businesses and

governments. The company generated

net revenues of US$21.58 billion for

the fiscal year ended Aug. 31, 2009.

Its home page is www.accenture.com.

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