Case: Strategic IT Transformation at Accenture
Problem/Issue
Statement
- The problem presented in regard to the Accenture case is how the company plans to move forward with their current IT infrastructure. As the case points out, the company has made all the right decisions in building an efficient IT infrastructure and the next step is whether Frank Modruson, Accenture’s chief information officer, should adopt the COBIT 5 IT standards that would recognize the company as a world class organization.
- The distinction between the problems and symptoms within the case analysis are as follows:
- Main Problem: Currently, Accenture ha integrated a single global infrastructure, expanded their network bandwidth, and built new tools to help improve their operations and simplify its IT capabilities. Yet, the company is not recognized as a world-class organization in their field.
- Symptoms: The symptoms evident in the case revolve around the fact that although this company implemented SAP, became a ROI-oriented organization when it came to working on the IT budget, and having Windows as the main platform, the company is working in a field that is constantly evolving and changing. Plus, the company works with companies all over the world and having a standard IT process framework can ensure that the functions and services offered are aligned holistically.
- The scope of the problem involves the 200+ locations in over 54 countries in which Accenture has a presence. One must also take into account the various operating and industry groups that comprise the organization (link #1).
Situation
Assessment (Context of Problem and Decision Criteria)
·
The current state
of the organization (per the case) is reflected in the core values of running
IT like a business, managing a nimble and flexible IT department with low costs
and without sacrificing the quality of the technology tools used with their internal
and external customers.
·
With COBIT 5,
ISACA’s newest iteration of its management and governance of enterprise IT
(GEIT) framework. It is built on five principles and seven governance enabler
models. COBIT 5 is intended for enterprises of all types and sizes (link #2).
Below is a screenshot of the principles and enabler models offered:
·
Depending on what Accenture wants to focus on, COBIT 5 offers training
courses, literature, and accredited specialists to meet the challenges and
wants of the company’s IT future.
List
of Plausible Alternative Courses of Action and Evaluations
·
COBIT 5
o According to the company’s website, there are
self-assessment books and accredited companies designed to test those who wish
to be certified. I was unable to locate the costs, but there are various levels
and degrees that can be earned. However, one must be signed up to the local
charter, so I am not sure if Accenture would have to join every charter in each
city? COBIT 5 is currently the only business framework for the governance and
management of enterprise IT.
o According to the following site (link# 6), a few
reasons why a company would select COBIT 5 include:
§ Better alignment based on business focus
§ Clear ownership and responsibilities based on
processes
§ Eases IT Governance communication between stakeholders
and other parties
o COBIT’s Tangible Cost Management system allows a
company to view the benefits (both tangibles and intangibles (link# 6):
§ Tangible:
·
Current period
vs. previous period
·
% saving from
alternate options
·
Forecast
reduction in expense/ROI
§ Intangibles
·
Efficiency of
operations
·
Reduced incidents
·
High uptime
·
Link to business
objectives
§ As the company is now ROI-oriented when it comes to
determining the IT budget, COBIT would be a good tool that would benefit an
existing practice that is being used.
§ COBIT covers IT Governance whereas a company who uses
another standard might only be covering Corporate Governance. The screenshot
below shows all the functions/areas that COBIT provides Governance within.
o Most widely adopted approach for IT Service Management
in the world. The company’s website lists the following few benefits for
following this framework (link# 3):
§ Improved IT services
§ Reduced cost
§ Improved use of skills and experience
o From what I can see, it works very similar to COBIT 5
where one has to be accredited and take courses/exams to be classified as an
ITIL specialist. The ITIL structure works on a credit system where one has to
complete courses and requirements to obtain credits. Again, I am unsure where
to find the costs to partake in this endeavor for one’s organization.
·
ISO 12207
o “Establishes a common framework for software life
cycle processes, with well-defined terminology, that can be referenced by the
software industry. It contains processes, activities, and tasks that are to be
applied during the acquisition of a software product or service and during the
supply, development, operation, maintenance and disposal of software products.
Software includes the software portion of firmware.” (Link# 4)
o Again, I was unsure how to locate costs or how one
gets certified in this ISO?
·
ISO 15288
o
“Intended to be employed in the acquisition, supply,
development, production, operations, maintenance, support, and disposal of
systems. In addition, the standard may be applied to system improvement.”
(Link# 5)
o Again, I was unsure how to locate costs or how one
gets certified in this ISO?
Recommendation
·
Personally, my recommendation would not be to invest in the training
and accreditation of COBIT 5. The improvements made within Accenture have led
to a new model of behavior and how the IT infrastructure is now handled. The
company is continuously working on improving practices and I do not see a need
to bring a “3rd party” into the fold. Sales have been strong for
Accenture, with revenue increasing between 2001 and 2010, along with reduced IT
spending, and greater benefits being realized. I can see how having the
certification in COBIT 5 (or any of the other alternatives) may be a strong
appeal for an organization to showcase and display, I just do not see a real
necessity. Accenture is doing strong in revenue, is expanding globally, and is
constantly looking internally on how to use best practices.
Presentation
·
For the presentation, I would use the aid of:
o PowerPoint Presentation to
explain COBIT 5 and the problem that Accenture is facing
o Comparison sheet between:
§ Accenture remaining the same
vs. integrating COBIT 5
§ COBIT 5 vs. alternatives
(e.g., ITIL, ISO, etc.)
o Feedback on other companies who
have adopted COBIT 5
o Outline benefits and steps
needed with COBIT 5
Follow-Up Post
Good morning Mr. Modruson,
After meeting with the consultants and having a few days to
reflect upon their presentation and the feedback you provided, I am still
unsure as to the right direction Accenture should venture to in regard to COBIT
5. One factor we have to remember is that every few years, ISACA has been
upgrading COBIT and COBIT 5 will not be the last version to hit the market.
Instead, while the approximate $50 million that the consultants estimate will
cost our company to fully implement COBIT 5 into our IT practice may not be
significant (in relation to the $21.6 Billion Annual Revenue), we do not know
the costs moving forward. So, if COBIT 6 comes out with an entirely new
framework, which would require re-training and re-certification that may be an
unknown expense over a few years.
I am more inclined to see the benefits of having our company
being compliant with COBIT 5 and being able to use this certification in our
company’s branding. While we are already ranked the best among the world’s
largest IT services in the following three key areas (see below), there is
still room to grow and differentiate.
- Lowest IT expense as a percentage of net revenue
- Lowest IT workforce as a percentage of headcount
- Lowest IT expense per employee
Much like companies being ISO certified with their
manufacturing facilities, being COBIT 5 certified is just another reason to
entice current and potential clients with utilizing our services. Plus, even if
costs are not a factor, we do not necessarily have to bring in temporary
personnel for three years during the “training years”. If we were to do so, we
could offer less than the recommended $15 million/year to further reduce costs.
While I do see the merit of COBIT 5 (and similar IT framework guidance), Accenture is already performing many of the suggested practices, including having a single platform throughout the organization and by already running IT like a business. My personal recommendation would be to send a few of the IT managers and/or supervisors to partake in the COBIT 5 three day training seminar and gather information about what they have to offer. From there, we can then further discuss if sending more for training or implementing it throughout the entire IT organization is in our best interests. Otherwise, those who attend can gather data and possibly begin to create a customized and slightly altered version of COBIT 5, but without all the external costs.
Thank you for meeting with me and please let me know if I can be of further help in the decision making process.
While I do see the merit of COBIT 5 (and similar IT framework guidance), Accenture is already performing many of the suggested practices, including having a single platform throughout the organization and by already running IT like a business. My personal recommendation would be to send a few of the IT managers and/or supervisors to partake in the COBIT 5 three day training seminar and gather information about what they have to offer. From there, we can then further discuss if sending more for training or implementing it throughout the entire IT organization is in our best interests. Otherwise, those who attend can gather data and possibly begin to create a customized and slightly altered version of COBIT 5, but without all the external costs.
Thank you for meeting with me and please let me know if I can be of further help in the decision making process.
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