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Driving High Performance IT: Tweak, Transform or Trash?
Frank Modruson November 2011

Copyright © 2011 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

What’s Going on Here?
 What do these things have in

common… – My old furnace – The Chicago ―L‖ – Managing corporate IT

Copyright © 2011 Accenture All Rights Reserved.

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Consumerization of IT
―Consumers today are the No. 1 users of semiconductors; they passed over IT and government in 2004. That‘s a big change…Today, most of us are focused on the consumer market as drivers.‖
Intel CEO Paul Otellini Oracle OpenWorld November 13, 2007

iPod

Blackberry

Days

Netbooks iPhone 4S: 1 day

iPhone 4G: 1 day iPhone 3G iPad: 28 days

iPad 2: 2 days

Year Introduced
Copyright © 2011 Accenture All Rights Reserved.
Sources: Morgan Stanley, C-Net News, Reuters

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A Snapshot of Changing Technology
1960’s Computer Infrastructure 2010’s

Mainframes

Minicomputers

AS/400

PCs and Laptops

PDA Phones

Computer Platform

1/Company

1/Location

1/Deck

1/Person

Ubiquitous

Networking

Tapes and disks

Hard-wired

Individual Corporate Networks

LANs, Internet

WANs, wireless

Computer Languages

Assembler and COBOL

Assembler and COBOL

Fortran, PL, Pascal

Visual Basic, Perl, JavaScript, C

Web

Data

VSAM

Information Management System PBX office

Relational Database First cells appear

World Wide Web

Cloud

Telephony

Few; calls through switchboards

Cell phones proliferate

VolP Corporate Voicemail disappears

Copyright © 2011 Accenture All Rights Reserved.

4

A Snapshot of Changing Technology
1960’s Computer Infrastructure 2010’s

PCs and Laptops

PDA Phones

Computer Platform

1/Person

Ubiquitous

Networking

LANs, Internet

WANs, wireless

Computer Languages

Visual Basic, Perl, JavaScript, C

Web

Data

Relational Database

World Wide Web

Cloud

Cell phones proliferate Telephony

VolP Corporate Voicemail disappears

Copyright © 2011 Accenture All Rights Reserved.

5

Tweak, Transform or Trash?

―The farther backward you can look, the farther forward you are likely to see.‖
Winston Churchill, 1874-1965

Copyright © 2011 Accenture All Rights Reserved.

6

Accenture Today: 236,000 Employees, $25.5 Billion in Revenues



Vigo Lisbon

Copyright © 2011 Accenture All Rights Reserved.

7

Accenture’s IT Journey
‗99 ‗00 ‗01 ‗02 ‗03 ‗04 ‗05 ‗06 ‗07 ‗08 ‗09 ‗10 ‗11 ‗12 ‗13

Collaborative Ecosystem • Universal video inside Accenture • Cross-company video • Cloud computing • Consumerization of IT • Virtualize everything

Effectiveness • • • • • Network Transformation Integrated Forecasting Migrate Avanade to ERP Opportunity Management Engagement Contract Delivery Management

Efficiency • • • • • • Establish IT strategy & governance Align with the business Run IT like a business Centralize, rationalize & standardize Global single-instance ERP Low-cost locations

Establish IT • Separate • Build base technology capability

Copyright © 2011 Accenture All Rights Reserved.

8

Before and After
2001
75,000 $11.44 Billion 67% Baseline Baseline Baseline 0 600 1,500 Multiple Not Measured
Copyright © 2011 Accenture All Rights Reserved.

2011
Employees 236,000 $25.5 Billion 92% Down 17% Down 61% Down 70% 3,900

Revenue % of Satisfied Sponsors
IT Spend in $’s IT Spend as % of Revenue IT Spend per person Sourced IT Staff Global Applications Local Applications

247
242 One 124%
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Technology Platforms
Benefits Realized

The Return on Accenture’s IT Investment

Copyright © 2011 Accenture All Rights Reserved.

10

Collaboration Counts!

60,000 video endpoints 100 Telepresence Locations

250 Roundtable units for team collaboration 236,000 Custom Portals

Copyright © 2011 Accenture All Rights Reserved.

11

Lessons Learned
 Leave the past behind—transform rather than tweak.  Find your long-term strategy.  Start with network transformation… cost-savings from

this will enable your on-going transformation.  We would have liked to go faster.  Stay the course.  You are never done.

Copyright © 2011 Accenture All Rights Reserved.

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Questions or Comments Frank B. Modruson [email protected] Read More: How Accenture Does IT

Copyright © 2011 Accenture All Rights Reserved.

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