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Accenture’s IT Transformation
1. Accenture’s IT Transformation
The journey to high performance
Presented by:
Lincy Joseph
Vineet Sansare 05
Neha Sharma
Deepak Popalkar
Paramita Saha
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2. Agenda
• Brief Overview
• Business Challenge
• Defining IT Strategy
• Enterprise Resource Planning
• Internal Outsourcing
• Communication enhancements
• High performance delivered
• Results
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3. Brief Overview
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Accenture’s Information Technology (IT) organization delivers high performance IT
capabilities that enable more than 261,000 Accenture professionals serving clients
in more than 120 countries to work anytime, anywhere.
Accenture’s journey to high performance IT began back in the year 2000.
The initial stage of the transformational change involved aligning Accenture’s IT
operating model with Accenture’s go-to-market strategy and instituting a strong IT
governance model.
More than ten years later, the results are impressive: Increased efficiencies,
stunning cost reductions and a 300+ percent return on Accenture’s
transformational IT initiative.
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4. The Business challenge
• In the late 1990s, the company was expanding rapidly, entering new
markets, and enhancing its global delivery capabilities.
• The systems were ill-suited to the global enterprise that Accenture intended
to become.
• Mobility was becoming increasingly important as employees worked flexibly
from office, home or client premises.
• With so many employees always on the move, Accenture needed the latest
technology solutions and a robust messaging and collaboration platform.
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5. Defining IT Strategy
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Create a strong, central IT governance
Align Accenture’s IT operating model with the company’s go-to-market strategy.
Run IT like a business based on a managed services approach.
Consolidate, standardize and centralize operations
Focus the workforce strategy on variable resources and low-cost locations
Strengthen IT performance measurement processes
Communicate successes and benefits realization at every opportunity
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7. Enterprise Resource Planning
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Another step in the transformation journey was to implement an Enterprise
Resource Planning (ERP) system based on SAP technology, which better integrates
core business functions such as Finance and Human Resources, and reduces
Accenture’s technology costs.
The SAP Financials implementation was an ambitious undertaking to replace more
than 450 different finance applications around the world with integrated SAP
modules.
The decommissioning of old financial applications alone saved Accenture more
than US$12 million.
Accenture subsequently transitioned human resource systems to the same SAP
platform, multiplying the savings.
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8. Internal outsourcing
• Internal outsourcing was a key element of the transformation, allowing the
CIO Organization to extend its capabilities, standardize delivery and drive
rapid, cost-effective implementation.
• Accenture sourced business application, development and maintenance to
the Accenture Global Delivery Network, a network of offshore, near-shore
and onshore resources.
• In addition, Accenture outsourced the delivery of infrastructure services and
messaging and collaboration products to Accenture Infrastructure
Outsourcing
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9. Communication enhancements
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Beginning in 2007, Accenture has introduced a family of collaborative tools ranging
from unified communications platforms and high-definition videoconferencing to
business networking tools, all designed to help Accenture professionals work
smarter and deliver results more effectively than ever before.
Accenture colleagues are finding subject matter experts faster, tapping the
company’s intellectual assets to create solutions and allowing clients to tour
offshore delivery centers on the other side of the world just by visiting the closest
videoconferencing location.
When it comes to delivering work, teams are collaborating more closely with
reduced communications costs, interacting more frequently with clients without
the need for travel and mobilizing the global resources of Accenture to help clients
achieve high performance in all areas of their organizations.
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10. High performance delivered
• Accenture has enjoyed dramatic growth since 2001, as employees increased
by 248 percent (from 75,000 to 261,000) and revenue increased by 143
percent (from US$11.44 billion to US$27.9 billion). Despite this
expansion, Accenture’s total IT costs fell substantially over the period, as
measured by several key metrics:
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IT costs as a percentage of net revenue fell by 64 percent.
IT spend per person was cut by 73 percent.
Global applications fell from 600 to 246.
Local applications dropped from 1,500 to 249.
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11. Results
• Accenture’s IT transformation has resulted in improved decisionmaking, enabled better business analysis and planning, reduced total cost of
ownership, eliminated redundancies, and consolidated purchases of
products and services.
• From 2000 through 2010, Accenture invested approximately US$1 billion in
its transformational initiative.
• Over the same period, Accenture calculates that it has saved US$3.5 billion
in IT costs, netting an impressive 300+ percent return on its transformation
program.
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Accenture is a global managementconsulting, technology services andoutsourcing company, with more than261,000 people serving clients in more than120 countries. Combining unparalleledexperience, comprehensive capabilitiesacross all industries and business functions,and extensive research on the world’smost successful companies, Accenturecollaborates with clients to help thembecome high-performance businesses andgovernments. The company generated netrevenues of US$27.9 billion for the fiscalyear ended Aug. 31, 2012. Its home page iswww.accenture.com.The initial stage ofthe transformational change involved aligningAccenture’s IT operating model with Accenture’sgo-to-market strategy and instituting astrong IT governance model. With this solidstrategic and governance foundation in place,the IT function then moved to consolidate,centralize and standardize IT operations,introduce a managed-services approach withrigorous performance metrics, and take anaggressive approach to outsourcing.
The initial stage ofthe transformational change involved aligningAccenture’s IT operating model with Accenture’sgo-to-market strategy and instituting astrong IT governance model. With this solidstrategic and governance foundation in place,the IT function then moved to consolidate,centralize and standardize IT operations,introduce a managed-services approach withrigorous performance metrics, and take anaggressive approach to outsourcing.
The initial stage ofthe transformational change involved aligningAccenture’s IT operating model with Accenture’sgo-to-market strategy and instituting astrong IT governance model. With this solidstrategic and governance foundation in place,the IT function then moved to consolidate,centralize and standardize IT operations,introduce a managed-services approach withrigorous performance metrics, and take anaggressive approach to outsourcing.
The initial stage ofthe transformational change involved aligningAccenture’s IT operating model with Accenture’sgo-to-market strategy and instituting astrong IT governance model. With this solidstrategic and governance foundation in place,the IT function then moved to consolidate,centralize and standardize IT operations,introduce a managed-services approach withrigorous performance metrics, and take anaggressive approach to outsourcing.