Reimagine IT As a Transformation Engine for Your Business
JOURNEY TO NEW IT Reimagine IT as a Transformation Engine for Your Business Digital leaders of today know— BUSINESS IS AT A TURNING POINT Digital-native companies are fundamentally transforming every major industry—from retail and energy to media, healthcare and travel. Confronted by large-scale digital disruption, enterprises must adapt quickly and lead in the “New” by reimagining and elevating IT as a strategic core business function.
2 JOURNEY TO NEW IT Today, as digital technologies mature and transform the core of DIGITAL-FIRST every industry, large organizations struggle to compete with digital- from-the-start companies because their complex, tightly coupled IT landscape is based on aging technologies. Digital-first companies COMPANIES have invested heavily in technology platforms to create a data-driven enterprise that provides business insights that enhance the customer ARE STEALING experience. Nimble new entrants are leveraging new channels, scaling at an unprecedented pace, stealing market share and rewriting the THE SHOW rules of the game.
Until recently, organizations could Digital players are also changing how companies interact with achieve competitive advantage consumers, who increasingly expect a best-of-breed, personalized through scale, cost structures, brand and branded experience 24/7. Digital leaders are looking across power and customer relationships. industries and geographies to find possibilities that digital transformation can offer. They’re also looking for new best practices: retailers look to financial services for security protocols and how to manage customers’ personally identifiable information (PII), while bankers look to retailers for their e-commerce and customer experience expertise. It’s a brave new world where the best organizations continually strive for transformative improvement.
3 JOURNEY TO NEW IT ARE YOU READY TO COMPETE?
To ensure market relevance, every company needs to reassess the strategic role of technology.
Many companies with rigid legacy systems, siloed data, old economy to turn their legacy systems into atomic workforce skills and outdated operating models can’t compete with microservices that will significantly shorten digital-first companies with emerging technologies that scale quickly, time to market for new customer-facing can be consumed on demand and enable data-driven business services and save hundreds of hours per decisions. If companies want to keep up with digital disruptors, they year through re-usability. must redefine IT and its partnership with the business. To reposition IT as a transformation engine, It’s up to corporate leaders to create competitive muscle for their leaders should strive to change how IT organizations by delivering new forms of business value from engages with the business. Accenture legacy assets while also taking advantage of emerging technologies is calling this foundational state of and best practices. AT&T1, for example, partnered with Accenture readiness “New IT.”
4 JOURNEY TO NEW IT All about realizing value from technology innovation and the introduction of flexible controls. NEW IT FIGURE 1 New Models, Efficiencies, PURPOSE New Costs & Funding, What is new IT? New IT Defined New Rules & Controls
New IT is a different way of conceiving, Change to a NEW IT operating model designing and deploying technology across with new capabilities, evolved ecosystem NEW OPERATING relationships and new IT talent. an enterprise (see Figure 1). New IT helps MODEL Multi-Speed Model, Culture & Talent, unlock unrealized streams of business value Governance, Ecosystem Management by optimizing a company’s current IT estate while simultaneously innovating with a set of A decoupled, agile, future-ready architecture and an integrated new technologies such as hyperconvergence, ecosystem and critical enablers for NEW IT. NEW ENTERPRISE automation, cloud, artificial intelligence (AI), ARCHITECTURE Lean Delivery, API Architecture, Collaborative Organization, advanced algorithmic analytics, Augmented Digital, Data & Agile Architecture and Virtual Reality, Internet of Things (IoT), 3D printing or blockchain. New ways of working focus on scaled agile development, lean operations, innovation and intelligent automation.
NEW METHODS Agile, DevOps, Innovation, Design Thinking TOOLS
Foundational new technologies pave the way for businesses to unlock new potential streams of value; however they rely heavily on the evolution of EA methods and operating models to unlock their true potential.
Cloud, Platform & Ecosystem, Security, Big Data & Analytics, Robotic Process Automation, NEW Artificial Intelligence, Blockchain, IoT TECHNOLOGY
5 JOURNEY TO NEW IT FIGURE 2 Boost your business value e e of e e e I e e and purpose with New IT o f o New IT
When you approach technology strategically, its ROWT O E E TER E core objective becomes creating business value WIT NEW IT N UY from the boardroom to the back-office, and NEW IT ROWT from the employee to the customer experience. T IN To show how New IT can transform your business, Accenture has calculated the EE I ITI E I ITI E T TI E ERIEN E O ER TION projected value across digital levers. We project T T that New IT can have the potential to lift revenue NEW IT O T NEW IT TE NEW IT NEW IT O E for leading companies between 5-10 percent, RE U TION R ITE TURE E I ERY WOR OR E NEW IT with estimated cost savings ranging from 20-40 E I IEN Y IT T percent, within three to five years (see Figure 2). TI N
1 Based on Accenture e perience otential EBITDA1 improvement through Digital. Digital alue Lab: Identified means to improve client s performance by 20 2 Accenture Internal Benchmarking
6 JOURNEY TO NEW IT New Business and When you simplify your IT organization using tools such as Technology Collaboration Model AI, automation and workflow orchestration, you can better optimize your legacy systems and redirect investment to new technologies that unlock business value and drive “Accenture recently partnered with Loblaw, a North revenue growth. You can also more easily readjust budgets American food and pharmacy leader to redefine its IT when business conditions and priorities change. organization. To achieve its vision, the company’s IT function needed to become a strategic asset by improving Technology leaders who embrace the New IT philosophy business and technology collaboration that would enable will gain new metrics that tie technology directly to new business capabilities. The transformation required business objectives; that measure the real business impact teams to be structured around platforms and products, a on revenue, value delivered and end-user satisfaction; and strong focus on business outcomes, a clear plan for the when successful, that re-position IT as a strategic asset to execution of DevSecOps, and dependable environments with lightweight, highly automated architectures. This New the enterprise. IT for the company improves run cost efficiencies by 80%, which are delivered though intelligent automation and rapid recovery.”
Ugo Orsi, Vice President, IT Operations, Loblaw Companies Limited
7 JOURNEY TO NEW IT Lead with innovative business-aligned IT strategy to LAUNCH YOUR JOURNEY TO NEW IT
8 JOURNEY TO NEW IT FIGURE 3 e o o e of New IT
FIGURE 3 Key Components of New IT NEW IT NEW IT MUSCLE MODEL PACE
NEW IT PURPOSE
NEW IT FOUNDATION Four key components of New IT co-exist to help you launch your journey to New IT (see Figure 3). 9 JOURNEY TO NEW IT ESTABLISHING A FIGURE 1 NEW IT PURPOSE e w e o e o e f Positioning IT as a strategic business asset.
New IT leaders align and prioritize their resources to T N business objectives, to continuously look for opportunities T to create new business models, transform experiences and I industrialize operations quickly, efficiently and with agility. T N I IT IN Leadership also looks for ways to grow their core business I ITI MAKE A by getting more from their legacy technology. In parallel, WISE PIVOT cost savings from efficiencies gained allow reinvestment in technologies that add new capabilities and revenues. IN They’re positioning themselves to make a wise pivot by I ITI
ENTERPRISE VALUE RELEASE ENTERPRISE VALUE optimizing their legacy systems while adopting a digital T N model that embraces new technologies to drive business value at the timing and pace that makes sense for them (see Figure 4). Only technology leaders who laser focus on increasing their value and relevance to the business will have a seat in the C-Suite. TIME
10 JOURNEY TO NEW IT BUILDING A 2 FUTURE-READY IT FOUNDATION
With blurring industry boundaries and New IT transformations typically begin by unwrapping the customer expectations for instant gratification, monoliths to expose the functions of business. API and IT organizations need a digitally decoupled microservices not only provide the scalable real-time interactivity architecture that unlocks legacy data and but are at the heart of this architecture to integrate with legacy and emerging technology partner platforms resulting in open services in real-time for the consumer and for business and partner ecosystems. This New IT landscape is business leaders. powered by cloud and DevOps to deliver tremendous customer value, via new services in weeks versus months. Building on this core, enterprises can be on a path of Exponential IT.
11 JOURNEY TO NEW IT BUILDING MORE “IT MUSCLE” 3 FOR YOUR BUSINESS To stay competitive, IT organizations continually Each of these technologies will reinvent business value chains and need to integrate new technologies into the customer experiences and unlock new potential streams of revenue business and develop centers of excellence in to help fund other components of the New IT model (see Figure 5). areas that: Fighting financial crime • Deliver new forms of business and customer value (e.g., automation, advanced analytics, cyber security, Accenture recently implemented an intelligent anti-money- cloud services, IoT); laundering and know-your-customer solution for a banking client. • Pilot emerging technologies The solution leveraged New IT technologies, robotic process (e.g., AI, drones, and 3D printing); and automation, AI and analytics as a service (AaaS) to help the bank increase compliance while reducing operating costs. The client saved • Monitor technologies that are still forming more than US$230 million over a few years, while reducing human (e.g., blockchain, quantum computing and robotics). intervention in its processes and scaling them for better reliability.
12 JOURNEY TO NEW IT RINTIN
FIGURE 5
O IN Bringing new, innovative RO OTI RONE technologies to AREHOUSE-BASED CONSU TION ADO TION unlock business RTI I I and customer value INTE I EN E AUTO ATION ITHIN AREHOUSES DISTRIBUTION NET OR S. INCREASED EFFICIENC THROUGH O TI I ATION OF TRANS ORT ROUTES
I I TION
E R Y INCENTI E-BASED CONSU TION ADO TION IOT ONITORING RODUCT USAGE CONSU TIONS
O NI NNE ON U ER E ERIEN E
I I I TION
I RU TI E IRE T TO ON U ER T OR E ERYONE OU ER I E AGILIT TO SCALE O I E B2B SALES SER ICE CONSU ER AR ETING I IT R ETIN T OR AR ETING CONTENT CONSU ER ENGAGE ENT ER
13 JOURNEY TO NEW IT DEVELOPING A NEW 4 WAY OF WORKING In the New IT approach, IT organizations need to transform their operating model to allow for more rapid innovation and iterative delivery.
This means:
• Using agile and lean methods to increase speed-to-market • Bringing business and IT teams together to iterate in rapid development cycles Creating airline agility • Utilizing adaptive, liquid workforce models Accenture partnered with a low-cost European airline to accelerate its digital transformation by introducing agile ways of working and • Taking a new approach to talent and investing shortening time to market for new developments. The airline drove to reskill workers 22 go-live moments in 18 months, had 25 percent more visitors to its • Collaborating with a broad ecosystem of New IT partners. site in the first two months of the platform go-live. They also realized 200 percent growth in online check-ins. Leading companies that have scaled agile best practices across their enterprise are now flexible enough to meet the ever-shifting priorities of the business.
14 JOURNEY TO NEW IT New IT drives sustainable growth LET’S GET STARTED! You have a once-in-a-generation opportunity to redefine your industry and business and become a digitally-enabled enterprise with IT as a strategic partner. In an era of disruptive change, organizational agility enabled by IT is your only defense.
15 JOURNEY TO NEW IT To get started on the journey to New IT, ask how Accenture can help:
NO. 01 NO. 02 NO. 03 Define a New IT vision Assess your Analyze opportunities and strategy organization’s to apply innovation to capabilities and create reduce costs, increase a digitally decoupled agility and support new architecture business
NO. 04 NO. 05 NO. 06 With New IT, you apply new rules to manage change at a Assess your operating Create a transformation Ensure security is sustainable pace and timing, model to identify areas roadmap and details on embedded everywhere striking the right balance between of the organization that how to deliver New IT to along the journey to growing the core business while need to transform your organization minimize cyber risk building and scaling the New. Let Accenture partner with you.
16 JOURNEY TO NEW IT Author About Accenture Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With 459,000 people serving clients in more than Theo Forbath 120 countries, Accenture drives innovation to improve the way the world works Senior Technology Consulting and lives. Visit us at: www.accenture.com Executive—North America [email protected]
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