Reengineering The IT Operating Model to Embrace The Power Of The Cloud

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The document discusses how traditional companies have failed to realize the full potential of cloud computing by simply adopting the new technology without reengineering their IT operating models. It argues that in order to harness the power of the cloud, companies need more nimble models that prioritize experimentation and innovation over rigid command-and-control structures. Specifically, the document recommends that companies create self-contained "service teams" to plan, build, and deliver services in a collaborative way without organizational barriers like traditional incumbents have.

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Reengineering The IT Operating Model to Embrace The Power Of The Cloud

1. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Reengineering the IT operating model to embrace the power of the cloud

2. Cloud winners and losers Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Massively scalable and resource-elastic businesses are clobbering incumbents. Why? Because many traditional businesses have failed to realize the full power of the cloud. They have simply taken the new technology and deployed it using their existing IT operating model.

3. Old models feature command-and-control service and delivery operating models, along with centralized structures that value rigor and certitude. Harnessing cloud — and the as-a-service muscle that comes with it — means reengineering the IT organization and the way the company operates. New models are nimble with experimentation and innovation at the forefront. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

4. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Removing the legacy shackles Companies need to manage their new high speed, digital organizations in an entirely new paradigm, driving a different mindset across the company culture.

5. 64% of executives believe independent service brokers or XaaS providers will deliver new capabilities faster than the internal IT organization. Those that succeed can beat start-ups at their own game by adapting to changing market conditions faster, while leveraging the value of scale that has always been at the heart of the enterprise organizational structure. 84% of executives believe the IT organization is shifting from a traditional service provider to a service broker and offering XaaS. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

6. Thinking like a start-up Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Most incumbents still operate with organizational structures that require interactions across multiple teams to plan, build and deliver services — from strategy and design, to implementation and run.

7. Incumbents need to create flat, self-accountable, delivery “service teams” that work collaboratively as self-contained units, without organizational barriers. In many cases, companies are beginning with an interim service-oriented structure within the legacy organization. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

8. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. New capabilities for cloud Companies need to create a workforce strategy to shape the future organizational structure, develop new IT capabilities and roles, hone individuals’ skills and shift the culture to embrace change. High priority capabilities and their associated roles include: Service Onboarding Account Management Strategic Vendor Mgmt Product Mgmt/Architecture Strategic Planning

9. LEARN MORE about how to create responsive, agile IT organizations with our full report: Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Reengineering the IT operating model to embrace the power of the cloud @AccentureStrat Follow us on Linkedin

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