Operations-as-a-Service (OaaS) is the logical culmination of a set of business and technology trends that have been converging for several years. Business Process Outsourcing (BPO) and IT Outsourcing (ITO) began in the 1990’s but evolved significantly over time, becoming more commoditised, incorporating sophisticated platforms and bundling more and more services. More recently, sourcing has blended with various forms of As-a-Service, most notably via integrated, cloud-based applications, or Software-as-a-Service (SaaS), alongside increasing levels of IT infrastructure delivered as-a-Service (IaaS). Advancements in data processing and computing intelligence (including, for example, predicative analytics and robotic process automation) have also become fundamental - allowing for a new class of data-driven business insights. This overall combination of proven business process management disciplines and intelligent, cloud- driven technologies is now known as Operations-as-a-Service.

1. The Untapped Opportunity
of Operations-as-a-Service
Russell Ives
Managing Director
Accenture Operations
16th June 2016
Accenture POV: Operations As A Service

2. The As-a-Service economy is here and APAC is
leading the way
46%
are planning to implement
new capabilities through
As-a-Service by mid-2017
8% of APAC
organisations have
already implemented a
core enterprise function
As-a-Service
62%
see it as critical for their
organisation to remain
competitive
Source: "Ideals of As-a-Services" Study, HfS Research 2015

3. As-a-Service: The intersection of Cloud, IT
Outsourcing and Process Outsourcing
Business
Processes
Applications &
Infrastructure
Cloud
Standardized
Consumption
based
Future
protected
Innovation
enabled
Scalable
Vendor
agnostic
Plug in
Outcome
oriented

4. 4
Evolution of Operations-as-a-Service
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Outcomes
& Insight
Business
outcome aligned ,
risk reward & gain
sharing
Embedded use of
providers tools
and analytics with
client platforms
Plus Industry
depth, insight
and innovation
All “offices”
with insight &
industry focus
Industry process
knowledge, analytic
insight, client
integration
4th Gen
Plus consumption
based pricing,
CAPEX to OPEX
Plus Cloud based
standardised
applications
Plus Platforms,
scalability and
flexibility
All offices,
integrated cloud
based platforms, IT
support
Plus leading edge
technology
capability
Operations
As a Service
5th Gen
Client
Objectives
Services
Commercial
Platforms
Capabilities
Offshore
FTE-based focused
on labor arbitrage
Client’s own
platforms
Plus global
capability
More back office
and industry
processes
Offshore migration
Ad hoc process
improvement
2nd Gen
Operational
Excellence
FTE-based with
SLA’s and limited
risk reward & gain
sharing
Client’s own
platforms plus
provider tools
Plus “noiseless”
delivery
Moving into the
“middle office”
Process
excellence,
6 sigma, use
of tactical tools
3rd Gen
Pioneers
Pioneering mega
deals with lift &
shift focus
Client’s own
platforms
Cost savings,
outsource non-core
functions
Financial Services,
F&A, HR
Migration of client
‘As-is’ capability
1st Gen
BPO As-A-Service

5. Operations-as-a-Service stack comprises 5 components
Copyright © 2016 Accenture All rights reserved. 5
Applications and Platforms
ANALYTIC
INSIGHT
INDUSTRY
EXPERTISE
Business Processes
Cloud
Security
Infrastructure

6. 6
Why move to Operations-as-a-Service
Copyright © 2016 Accenture All rights reserved.
What are the most significantdrivers in your move to the “As-a-Service Economy”?
Source: "Ideals of As-a-Services" Study, HfS Research 2015
Sample: Total = 716; Enterprise Buyers = 178; Advisors/Consultants = 176; Service Providers = 372
13%
17%
21%
23%
31%
39%
52%
53%
66%
Reducing the overall cost of
process delivery
More digitally-aligned operations
Access better data to improve
our business
Move to an outcomes-driven
sourcing model
Reduced reliance on manual
labour to deliver processes
Responding to disruptive
competitors
Ability to access, in “real time”,
more flexible pools ofskilled
labour
Pre-empting competitors in our
target growth markets
No more value to be found in
current sourcing model

7. 7
APAC leading the way to As-a-Service
Copyright © 2016 Accenture All rights reserved.
Source: "Ideals of As-a-Services" Study, HfS Research 2015 Sample: Total = 716; Enterprise Buyers = 178; Advisors/Consultants = 176; Service Providers = 372
How quickly will your core enterprise processes be delivered “As-a-Service”?
6%
2%
8%
6%
28%
46%
46%
44%
48%
46%
31%
31%
12%
9%
15%
13%
10%
We are already there Within 2 years Within 5 years Within 10 years Never
Asia Pacific
UK
North America
Europe

8. Australian Universities adopt Procurement As-a-
Service to drive higher savings
Greater aggregated spend means higher savings for Australian universities
Copyright © 2016 Accenture All rights reserved. 8
University Procurement Hub is a new
way of delivering core procurement
services through aggregation across
universities with the flexibility for
universities to select additional services
to meet specific requirements as they
evolve
UPH provides a platform that transforms
how universities acrossAustralia can
source and buy everything they need
to meet their unique requirements
and delivers direct savings to support
the continuing excellence that’s the
hallmark of Australian higher education,
today and tomorrow
Critically, more aggregated spend drives higher savings for all participating universities, who will
benefit from improved process efficiency, spend visibility, effective spend analysis from richer data
and marketing intelligence to drive continuous improvement
Accenture Insight - Australia's University ProcurementHub

9. 9
Deutsche Bank has plunged boldly into the
As-a-Service economy
Accenture is helping Deutsche Bank transform its procurement operations
Copyright © 2016 Accenture All rights reserved.
Which enables benefits that include
Providing indirect procurement
operations and accounts payable
processing services
Maintaining its procurement
IT system
Automating the
source-to-pay process
Migrating the on premise procurement
IT platform to an on-demand, cloud-
based solution…
15 percent
operational savings in
procurementoperations.
15 percent
operational ITsavings
post migration.
Process automation
and the migration to a
simpler, standardised,
on-demand cloud solution.
Greater cost control, faster
procurementprocessing,
streamlined transaction
processes and an
improved user experience.

10. Rio Tinto migrates to cloud-based As-a-Service
The new information systems and technology delivery model incorporates:
Copyright © 2016 Accenture All rights reserved. 10
Pay-for-use pricing:
costs are fully flexible
and services are
scalable based on
business demand
Modernization of
enterprise resource
planning and
information
management
platforms
Consolidating and
hosting applications
in the cloud, managed
via the Accenture
Cloud Platform
Rio Tinto expects to directly benefit from significant
cost savings through increased business agility
and cost flexibility inherent in cloud services, and
from continued lower infrastructure prices in line
with cloud economic trends.
The solution is based on a platform for
innovation, including a co-located innovation
hub in Singapore, and a long-term
commitment to partnering.
Accenture Newsroom - Rio move to ground breaking As-a-Service in the cloud

11. 11
Operations-as-a-Service bundles capabilities under a
flexible commercial model aligned to outcomes
Copyright © 2016 Accenture All rights reserved.
2
Supports new business models
Pay for what
you use
Scale
quickly
Plug in
3
Delivers business outcomes
Innovate
faster
Drive
revenue
Reduce
costs
1
Transforms business services
Intelligent Agile Robust
Infrastructure
Cloud
Security
Applications
and Platforms
ANALYTIC
INSIGHT
INDUSTRY
EXPERTISE
Business
Processes

12. 12
What is holding back Operations-as-a-Service
Copyright © 2016 Accenture All rights reserved.
How significantare the following obstacles holding back your enterprise’s move to the “As-a-Service Economy”?
(% Highly Significant – APAC)
Source: "Ideals of As-a-Services" Study, HfS Research 2015
Sample: Total = 716; Enterprise Buyers = 178; Advisors/Consultants = 176; Service Providers = 372
15%
23%
23%
23%
23%
23%
31%
31%
31%
39%Missing definitions aroundbusiness outcomes
Lack of willingness from our service provider(s)
to cannibalize their existing revenuemodels
Outdate procurement & contracting capabilities
Lack of “change agent” leadership
Lack of a “burning platform” to do anything
radically different
Few available “plug and play” services
General inertia in our organization to change
from the status quo
Lack of support from our service provider(s)
to share risks/gains with us
We don’t have the talent in-house to evolvethe
current model
Lack of trust in service providers

13. 13
What will have the biggest impact on adopting
Operations-as-a-Service
Copyright © 2016 Accenture All rights reserved.
How much impact would the following actions have on helping you reach your desired “As-a-Service” end-state,if
you were to make them today?
(% Highly Significant – SVP & up)
Source: "Ideals of As-a-Services" Study, HfS Research 2015
Sample: Total = 716; Enterprise Buyers = 178; Advisors/Consultants = 176; Service Providers = 372
Invest in effective analytics tools & skills
Replace your existing (legacy) service
provider(s) with "As-a-Service" driven
providers
Identify/hire a transformational
leader/change agent
Accomplish creative problem
solving/"Design Thinking"
Write-off legacy IT investments and move
straight into cloud delivery of processes
supported by As-a-Service
Retrain existing internal operations talent to
redesign processes
Hire new operations talent to redesign
processes 39%
41%
44%
44%
56%
61%
61%

14. 14
As-a-Service critical success factors
Copyright © 2016 Accenture All rights reserved.
1 Get design thinking
Transform the operating
model, integrate your
provider, leverage
automation and
analytics.
2 Exit the cocoon
Get closer to your clients:
exploit intelligent
automation and analytics
insights to drive customer
centric innovation.
Get skills on both
sides of the fence
Ensure you have the
right skills inside your
organisation and
your provider.
Shared value and
cultural fit are critical.
3 Rewrite the rules
Retire traditional
rigid outsource
contracts and
replace with new,
dynamic, flexible
contracts that
encourage
innovation and
change.
4

15. accelerating the
As-a-Service economy
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