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Trends in IT

TransformationNiranjan PrasadPractice Lead, Information StrategyAccenture

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Good IT is seen and not

heard! This is possible

only by transforming IT

to integrate enterprise

data, standardize

enterprise services andenable applications to

perform seamlessly.

The success of any IT

transformation depends

less upon the availability

of technologies and more

on the business culture

in which IT initiatives are

being conceptualized and

executed. It is important

that these initiatives are in

keeping with the objectives

of business leaders at an

organization.

This article focuses on keytrends and best practices

in large IT transformation

initiatives.

Business DriversThe aim of all IT transformationinitiatives is to significantlyimprove the way corporate IT

departments operate and supportbusiness needs of organizations.In general, when we think of ITtransformation initiatives, whatcomes to mind are activitiesthat reduce cost, increase cross-functional roles, reorganize ITreporting structures and centralizeor decentralize resources.

Unlike in the past, where ITand business groups worked intheir respective silos, of latethe trend is for IT to play anactive role in helping executivesformulate business strategies,execute them and anticipate

future business direction andrequirements. This collaborationbetween the two entities is not

just desirable but necessary,especially for organization-wide ITtransformation initiatives.

Typically, the focus of ITtransformation initiatives is on:

Enabling business improvementactions are taken to help

increase the ROI, leverage newtechnologies or manage mergersand acquisitions

Enhancing IT operations

involves building capabilitiesto enhance delivery, increaseproductivity,and reduce IT cost aswell as risks

CIOs Perform aDifficult BalancingActThe technology landscape ischanging faster now than everbefore. We are seeing a move

away from stand-alone andfully integrated ERP systemsto coordinated or flexible ERPsystems. While this definitelyincreases the ability to mix andmatch products and services, itrequires advanced technical skillsin executing complex softwareintegration projects. In addition,with innovation in delivery models,

we are witnessing a move awayfrom client dedicated teams toa shared delivery model. Thesetrends, coupled with the dynamicworld of business are leading CIOsto ask themselves:

How do I manage to Deliver day-to-day services

Enhance quality of IT services Leverage global operating

models

Optimize technology sourcingstrategy

Meet heightened need for dataand insights

Manage merger integration toachieve desired synergies

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while controlling cost Deliver more with flat or

declining budgets

Maximize return on ITinvestments

Enhance efficiency, effectiveness,

productivity Simplify and standardize systems

...and preparing fortomorrow? Invest strategically in IT to

support growth and future needsof the business

Capitalize on new technologiesto gain competitive advantageand build new capabilities

Align IT objectives with businessgoals

An important objective of an ITtransformation initiative is to helpCIOs optimize cost and increasethe value of IT to business.

Accenture ITTransformationServiceTransformation projects areexpensive and complex, andtherefore, the risk of failurecould be high. This is where priorexperience of handling such

initiatives, especially on a largescale, can be a major factor inensuring the success of a project.

Accenture teams that provide ITtransformation services have deep

expertise and extensive experiencein both the IT and businessenvironmenta balance mostcrucial for successful execution ofsuch projects. They are, therefore,

able to quickly analyze clientIT functions, diagnose areas forimprovement, build a robustbusiness case for broader ITtransformation, shape a change

program and map a direct route tobusiness results.

Prior knowledge and experiencein implementing complex IT

(including application andinfrastructure) transformationprojects has helped shape our bestpractices as well as our capabilityand maturity model.

IT Transformation BestPracticesIT Transformation efforts are

large and complex, and involvesignificant investment. It ismandatory to have soundgovernance and risk management

practices to keep IT Transformationprojects on track.

The key practices at Accenturethat manage an IT transformationinclude:

Governance, Change Managementand People ManagementEnsuresdetailed project management ofdeliverables, effective changemanagement and communication,

sound feedback mechanism andclarity on how to handle mid-course correction in scope, visionand priorities or timelines.

Business AlignmentProvidesguidance for actively engagingthe business leadership of clientorganizations and aligning IT visionwith business priorities.

Risk Management StrategyGives

reassurance to client and thirdparty project stakeholders aboutunforeseen situations, which may

increase the project cost, expandits scope, prolong effort estimationor delay the delivery schedule.

IT Capability MaturityModelIT transformation projectsrequire an understanding of anorganizations maturity leveland its target ambitions. This isprecisely the reason why Accentureestablished the IT Capabilityand Maturity Model (ITCMM)astructured framework createdon the basis of extensive clientexperience. ITCMM defines the key

capabilities required within an ITorganization while providing a wayto understand the maturity acrossvarious dimensions. This provenand strategic approach helps ourteams maximize the value of atransformation project in favor ofclients.

Accentures ITCMM comprises the

following capabilities along withmetrics for managing and trackingperformance against each maturitylevel:

Strategic IT AlignmentFocuseson translating business vision andstrategies into IT investment andoperation plans and on measuringenterprise performance.

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