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.
