The Effective Strategic IT Transformation at Accenture

The challenges of planning and implementing the right information technology (IT), as illustrated in this case study (Jeffery, 2010), are demanding because IT is complex and requires a well-defined plan of execution. This paper analyses the strategies implemented at Accenture that allow for the transformation of its IT. Additional analysis takes place regarding the approach taken to define the IT architecture.

The Effective Strategic IT Transformation at Accenture

Accenture is a management consulting, technology services, and outsourcing firm focused on providing corporations guidance to adopt efficient business processes that enhance operational performance. The present systems information architecture at Accenture is so efficient that it should be considered a model to follow regarding transformation of information technology (IT) infrastructures. According to Mark Jeffrey (2010) such strategic overhaul started in 2001, when Anderson Consulting, now Accenture, separated from its parent firm Arthur Andersen. With this move came the challenging opportunity to design and implement its IT architecture.
Due to the fact that Accenture provides business services around the world, it is imperative for its employees to have remote access to the firm’s resources on-demand from anywhere. Although, this might not seem like a challenging endeavor in 2012, at the beginning of the century effective mobile communication wasn’t as common. Despite Accenture being a refined company, it's the information systems had grown over time as technology progressed with an unclear architecture or design (Jeffery, 2010).
As the chief information officer (CIO) of a company, one should take the approach to architect and effective IT platform for the present and the future. This requires analyzing and understanding the options and the organizational culture of the company (Galliers, 2009). Accenture’s CIO Frank Modruson took on the challenge by developing a well-structured plan that fit in the company. The single-vendor approach and outsourcing of its non-critical IT support, adapted by Accenture, was a rather ambitious tactic with great potential and risk. The strategy was quite comprehensive and its implementation was gradual, which did not get fully implemented in one year as preferred. This was effective to some degree, by 2010, only 14 percent of Accenture’s IT personnel worked directly for the firm (Jeffery, 2010).
Sometimes explaining a business strategy can be illustrated in more simple terms. There were many potential options to consider when Accenture had the opportunity to architecture its information system from the ground up. It is easier to describe such situation by using the analogy of a homeowner who happens to be general contractor. He needs to look for a new house because where he lives is only available for one more year. His options are buying a similar house, buying the house and make some improvement while maintaining the same structure, or tear down the house and build it new house with the latest amenities and technology. Building his own house will allow him to exercise his skills and illustrate his capabilities as a general contractor.
This is comparable to the choices given to the Accenture CIO. The options were to keep the same outdated IT architecture, enhance the current architecture, or completely redesign it. The main consideration is the fact that Accenture is in the business of providing organizational guidance and solutions regarding processes and application of technology to business. Accenture as a rebranded company would benefit from representing structured processes and effective information systems within its internal architecture and business philosophy.
Structuring an effective IT foundation in short period of time becomes very challenging on a variety of ways. One is the fact that change is difficult for people. For instance, as the implementation of service level was introduced to the existing Accenture IT teams, they might have perceived such tactic as threat to their business. This is due to the fact that service level is a system to measure performance regarding efficiency and cost, which was opposite to the conventional IT support protocol. This required IT staff to deal with customers and provide satisfactory services. In addition, it generated a dollar value to the services rendered by IT.
During the development of Accenture’s IT architecture, choosing between a single or a variety of platforms to run its business processes was a pivotal decision. The goal was to find out if Accenture needed the best performing tools for every aspect of its business or if a robust uniform platform that meet its business requirements and needs. Being able to have the best available applications for every aspect of its business is not only expensive but also cumbersome to maintain and administrate, not to mention the possible lack of cross-compatibility. On the other hand, having a single platform capable to provide the desired products effectively makes up a fluid architecture with low IT cost and compatibility. This allows for effective management but limits the quality of applications, although it positions Accenture with a strong influence on the company providing the platform. Moreover, choosing well-established companies like Microsoft and SAP with the capacity to provide quality products secured a fluid business process and a strong influence for future enhancements on their products.
Because of the nature of IT engagement model, Accenture allowed stakeholders to be part of the design of the governance mechanism while assuring performance and results (Ross, Weill, & Robertson, 2006). For instance, the concept of IT help desk “charge back”, where organizations within the company had to pay for every IT service. This approach produced optimal results by enabling transparency and accountability regarding IT expenses and services (Denne, 2007). This was enhanced by the “core light” strategy consisting of employing only 14 percent of its workforce to run the company and the 86% as borrowed employees from Global Delivery Network (GDN) (Jeffery, 2010). In theory, this is a great approach, but implementing it effectively without sacrificing could be challenging and possibly the main reason why it took longer than a year to implement.

Conclusion

The results from the IT transformation of Accenture provided the corporation uniformity regarding its business processes, while defining its identity as an innovative firm capable of producing results. Furthermore, promotion of unity and collaboration in enhanced due to the fact that Accenture is a global is a global firm with a common set of tools around the world. The approach was ambitious but with the firms skills it was expected to successfully implement a new IT architecture and governance. The actual realization is Accenture’s efficient IT architecture not only reduced expenditures but it also attracted more clients.

The Starbucks Example of Social Media Strategy

Starbucks is a well-known company and brand worldwide. Customers love the environment and atmosphere of Starbucks franchises. What might not be obvious to customers and competition is the fact that Starbucks has effectively utilized social media to promote, enhance and launch products as well as services. In order to understand the foundations of it success it is important to understand the origins, culture and growth of Starbucks.

Starbucks Brief History and Background

Starbucks began in 1971 when three academics—English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker—opened a store called Starbucks Coffee, Tea, and Spice in the touristy Pikes Place Market in Seattle. The second Starbucks opened in 1972 after the purchase of a roaster from Holland, which established the coffee roasting operations.

The approach that Starbucks used creating the brand was to provide a quality product. When Starbucks first started out, it depended mainly on word of mouth to attract customers into the door; in the present Starbucks uses social media. Once new customers arrived, it was the level of quality of the roasted beans along with the rich flavors of its brewed coffee that would impress them and kept them coming back or more (Gamble & Thompson, 1999).

In 1981, Howard Schultz met with Jerry Baldwin and Gordon Bowker who shared with him some of the quality samples of the Sumatran flavor coffee roasted from the finest Arabica coffees. Schultz was impressed with the operations of Starbucks and wanted to join. After months of negotiating, in 1982 Schultz was hired on as Director of Marketing and oversaw the all of the retails stores. With Schultz’s marketing driven business plans and competitive ideas, in 1990 Starbucks expanded its headquarters in Seattle with a total of eighty-four stores (Starbucks, 2011). Today there are over 16,858 Starbucks locations globally. In 1996, it opened its first non-North-American store in Tokyo. Over the years, Starbucks has created the image of a strong retailer, roaster and brand of specialty coffee in North America and the world.

Strategies and Plans

According to Gallaugher & Ransbotham in “Social Media And Customer Dialog Management At Starbucks”, the approaches and plans implemented by Starbucks are the essential the factors that make Social Media Strategy (SMS) successful. The factors for realization address aligning social media with its culture and strategy, organizing based on structured roles, guiding execution based on professional principles, practicing consistency and allocating adequate resources and activities.

Innovation

Social media has been around for a while, becoming a common via of communication for millions of people around the word. This media makes up one quarter of user time (Gallaugher & Ransbotham, 2010). It allows companies and the general public to expand their communication to reach greater audiences more effectively than old fashion communication. It is common that companies hesitate to adapt new technology due to cost, lack of resources, limited architecture, or dullness (Galliers, 2009). Even though organizations value customer feedback, many have not been proactive at adapting the social media environment for customer interaction. Social media provides an effective and direct way of communication with customers. This can be seen when social media allows identifying the strengths and weaknesses of products and services offered by listening to customers suggestions, which is due to the 3-M framework that social media provides. The 3-M framework consists of the following: Firm to customer (Megaphone), customer to firm (Magnet), and customer to customer (Monitor). This framework consists of reaching out to big audiences, attracting customers, and engaging customers to make note of the firm’s products. In order to adopt social media and it 3-M framework a formal strategic information systems plan is critical for true realization (Gallaugher & Ransbotham, 2010).

The fact that Starbucks’ CEO has been an advocate for technology displays the firm’s full support to fulfill the initiative of utilizing social media to promote the brand. Moreover, the Business System Planning (BSP) practice involves top-down planning with bottom-up implementation, which relies on a well-defined methodology and leadership support for its success (Galliers, 2009).

The effectiveness of the chosen methodology to be implemented by a firm relies on availability of resources, well-defined processes and definition of desired output. Allocating adequate financial and human resources, along with time, enable proper project effort and analysis for success. It is imperative to outline operative processes based upon actual analysis and findings, leading to prosperous results centered on a comprehensive, applicable and well-executed plan.

Because working in teams requires every player to be on the same page, it is necessary to generate delimited specification and methodology that leads to the ultimate goal. Putting adequate research analysis upfront allows for complete documentation and planning, which reduces redundant effort during implementation. Furthermore, diligent analysis allows accounting for issues and barriers by formulating possible solutions and workarounds. This enhances implementation by ensuring that a plan is executed step by step. Upper and functional management as well as implementers need to have a clear understanding of the plan and its priorities for successful execution. This entails appropriate scheduling, coordination, implementation, and completion of a plan. The use of social media relies heavily on an integrated architecture that not only allows brand identifications, but also provides full compatibility and communication among the different social media portals adopted and implemented by the firm (Galliers, 2009).

In order to successfully execute a project, appropriate time, tools and operators are essential for successful completion. This entails adequate allocation of computer support, timing, training, and financial resources. It also requires organizations to focus on the ultimate goal, by willing to allocate sufficient resources without of expecting immediate results. In addition, a new plan and methodology requires appropriate training of current personnel or additional work force, which should be prioritized. Therefore, if the company does not have team members with the necessary skills a plan should be established to meet such criteria. The overall resources needed are a requirement that management should include in their company’s budget.

Megaphone, magnet and monitor may have their own functionality, but they complement each other. From the 3-M framework, monitor might be the most successful due to the fact that it provides an inexpensive way to provide quick responses to customer complaints, suggestions and requests. Likewise, monitor produces useful data that would otherwise be purchased from a marketing information firm such as J.D. Power and Associates.

Generally, customers go online to review a product and see what other have to say about it before making a big purchase, which now a day is very common. Overall, Starbucks has effectively adapted social media as a tool to decipher what costumers think of its products. One possible issue that Starbucks might have regarding the use of social media might be the fact that it heavily relies on it to understand its customers. This approach overlooks other current or potential customers that are not interested or engaged on social media networks. At the end of the day, active social media users do not necessarily represent the overall pool of current or potential customers.

Bibliography

Gallaugher, J., & Ransbotham, S. (2010). Social Media and Customer Dialog Management At Starbucks. MIS Quaterly Executive , 9 (4), 197-212.

Galliers, R. (2009). Strategic Information Management, Challenges And Strategies In Managing Information Systems (4th Edition ed.). New York, NY: Routledge.

Gamble, J. E., & Thompson, A. A. (1999). Starbucks Corporation. New York, NY: The McGraw-Hill Companies.

Starbucks. (2011, August). Starbucks Company Timeline. Retrieved January 18, 2012, from Starbucks: http://assets.starbucks.com/assets/aboutustimelinefinal72811.pdf