The CIO’s response to the Global AgendaDaniel Benton, Global Managing Director IT Strategy

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CIOs are under pressure to respond to a changing agenda.

Business• Relentless focus on cost

• Need for growth• Increasing technology

knowledge of stakeholders

• New business models• Globalisation

Technology• New technology trends

• Maturing infrastructure solutions

• Evolving solution and services market

• Standardisation of architectures

Customers• Consumerization of technology• Social media / collaboration• Increasingly informed

CIO

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Accenture’s High Performance IT research suggests that successful CIOs focus on 3 things

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New technology trends give new options for addressing the agenda

Accenture’s 2012 technology vision identifies 6 key trends for enterprises

• Context-based services• Social-driven IT• Converging data architectures• Industrialized data services• PaaS-enabled agility• Orchestrated analytical security

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Cost reduction is again a key focus... and new technology provides new opportunities

Aggressively prioritise projects Software licence review – stage 1 Usage Telecoms expense management Business demand review Review third party SLAs Contract restructuring Contractor usage and rate review Automated password reset Test and dev environment consolidation Application rationalisation – stage 1

• Redundant app switch off Infrastructure rationalisation – stage 1

• Cloud – test environments (PaaS) Collaboration tools value capture Security policy review Minimise IT4IT travel / training Other short term spend reduction

Short Term & Minimise Reduction

Increased supplier off shoring Increased outsourcing IT workforce transformation Retain organisation off shoring Application/Infra rationalisation – stage 3

• Architect for the cloud - SaaS• Re-write legacy applications• Next generation workstation

Variable workforce Data centre rationalisation Application rationalisation Business controlled service (SasS)

Re-Architect for Efficiency Network transformation Supplier rationalisation Facilities consolidation Infrastructure rationalisation – stage 2

• Server consolidation• Server virtualisation & automation• Workstation virtualisation

Application rationalisation – stage 2• Application re-platforming

Software licence review – stage 2 rationalisation Procurement process and controls IT process improvement

• Process standardisation / industrialisation• Lean 6 sigma• Software development factories

IT4IT value capture• Demand & portfolio management• Service management

Optimise for Efficiency

5-10% IT Savings 10-15% IT Savings 10-20% IT Savings

3 months 6 months 12 months 24 months

Short Term & Minimise SpendOptimise for Efficiency

Re-Architect for Efficiency

Cos

t sa

ving

IT Enabled Business Optimisation

Increased business process automation Increased user self service Customer interaction automation Working capital reduction through

increased MI transparency More effective management through

increased KPI transparency Workforce efficiency by increased use of

e-collaboration

IT Enabled Business Optimisation

10-40% SavingsFor the business; IT costs might increase

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Cloud is maturing, but the issue is how to take advantage.

Today 2015

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Cost , technology and the business agenda are driving an evolution of the IT operating model.

Issue• The IT function has evolved from an in-house function with its own IP to a multi-sourced,

global supply chain using standard architecture solutions• Cloud changes the model even further – does the business even need an IT function ?• Most sourcing deals were put in place to optimise execution – they need to recognise the

evolving solution set and allow for agility and innovation• The retained organisation rarely has the skills needed to manage the new model• Getting business relationship management right is key to staying in control

What are people doing ?• There are many “operating model-based” transformations underway• The IT operating model needs to be designed, within the context of the EA• We see a general shift towards centralisation / shared services• The use of service integration / service brokers is increasingly an important part of the

answer