Strategic IT Transformation at Accenture

Problem/Issue Statement

When Accenture was created/rebranded in 2001, it faced a critical decision on whether to continue using the legacy system from Arthur Anderson or take advantage of opportunity and created a completely new IT infrastructure. Accenture decided to accept the challenge and overhaul its information technology systems. Accenture adopted a one-platform approach, streamlined applications, sought out new vendors/supplies while greatly reducing the IT expenditures across the world. Accenture is very proud of this accomplishment since very few organizations of that size have successfully completed such a massive undertaking.

As a consulting company, Accenture wanted to implement its own advice by simplifying processes and technology whenever possible while also maintaining state-of-the-art industry leading IT infrastructure. 

However, Accenture is currently considering upgrading the IT governance system to Control Objectives for Information and Related Technologies (COBIT) to enhance its business standards and reporting.  COBIT 5 is being considered due to the countless regulations and compliance standards Accenture must comply with around the world. If adopted the system will help aid in measuring IT programs success, align with business goals and seek to ensure best practices is used. 

The symptoms of using the current IT governance system includes a lack sophistication to measure the successfulness of IT projects including tools, computer programs, may not align strategically with business goals and does not address the multitude of regulations and compliance standard that must be adhered to.  

If Accenture decides to implement COBIT 5, symptoms of this problem include training staff for accreditation on the system, creating a team to oversee that COBIT 5 is being used properly, costs involved with training or COBIT support and aversion to learning a new IT governance system. 

Implementing COBIT will affect Accenture globally, employees, IT infrastructure and most importantly how business is conducted. This would also involve assembling a high trained IT group to roll out/maintain the new COBIT 5 governance system and train all employees. 

Situation Assessment

     When Accenture implemented a new IT governance system during the IT overhaul an approval process, steering committee and yearly audits of IT projects were instituted.  During this shift in IT, Accenture also implemented a new IT Governance system to administer its IT decisions going forward. This new approach required high-level management and Accenture’s senior IT staff to work together to define the IT horizon for the fiscal year. The IT project selection philosophy changed drastically under this new system.  A formal process was established where IT projects were presented to the steering committee. All projects had to have a senior business sponsor, whose duty was to convince other members of the business value in the proposal. If a sponsor’s project was approved, he or she took responsibility for extracting the claimed value of the project.      IT initiative presented in the committee had to be accompanied by a clear ROI analysis    

     

          Approved projects were subject to an annual audit for three years. Audits sought to verify that the projected value effectively had been created; sought to calibrate Accenture’s ability to predict value creation in IT initiatives by comparing predicted value to realize value and learning from mistakes that created a disparity between two; audits sought to keep both business sponsor and IT team on their feet by proactively managing the project well after it was approved

 The decision criteria for implementing COBIT 5:

·        Must address the gaps not covered by the current IT governance system

·        Organization system for compliance and regulation of IT standards across the world

·        Evaluate, Direct and Monitor functions and processes within the company

·        IT valuation/effectiveness of projects

·        Address information security, provide business models

·        IT Assurance Framework

·        Align, plan and organize business goals of the company

·        Monitor and assess IT risk

List of Plausible Alternative Courses of Action

There are two courses of action identified and both options address the main problem in different ways:

Implement COBIT 5
PROS	CONS
One of the most commonly used frameworks to comply with Sarbanes-Oxley Addresses the governance and management of IT from an enterprise-wide perspective COBIT is based on all other IT best practices Used as a complimentary to other best practices -ITIL, TOGAF, ISO27000 and PRINCE2 Provides a comprehensive framework that assists enterprises in achieving their objectives for the governance and management of enterprise information and technology assets Non-technical and understandable management thinking Contains good practices, RACI charts, performance assessment and monitoring tools Includes implementation guidance Seeks to  evaluate, direct and monitor; align, plan and organize; build, acquire and implement; deliver, service and support and monitor, evaluate and assess	Training costs for experienced IT employees; workshops, in-house training with people who will be engaged in a roll out Costs associated with consultant costs Costs associated with materials including: COBIT 5: Enabling Processes, $135 non-members ISACA/ $35 members COBIT 5 Enabling Information, $135 non-members ISACA/ $35 members COBIT 5 Implementation, $150 non-members ISACA/ $35 members COBIT 5 for Information Security, $175 non-members ISACA/ $35 members COBIT 5 for Assurance $175 non-members ISACA/ $35 members COBIT 5 for Risk $175 non-members ISACA/ $35 members Annual membership dues and chapter dues Employee resistance to new IT governance system COBIT may not be as detailed in terms of how to do certain functions and is too board

Maintain current IT Governance System
PROS	CONS
No additional training costs or materials No employee resistance to new system Current system is efficiently operating and has been since the IT overhaul in 2001 Steering committees have been effective in decision making since inception which reduced IT costs, implemented new philosophy for the IT department (IT as a business rather than a cost center) Continue their existing value chain and reporting systems that virtually revolve around the clock while ‘following the sun.’	Measuring techniques and tools may not be all encompassing and may fall to subjectivity Is not as sophisticated as COBIT, lacks models for oversight and monitoring Does it properly measure and evaluate risk? Is current system all encompassing? Gaps in current IT governance system

 Evaluation of Alternatives

 

When evaluating the two courses of action, it is important to analyze which option will align with Accenture’s decision criteria, accommodate future growth and be cost effective. The pros and cons of both alternatives: implement COBIT 5 or maintain current IT governance should be analyzed and evaluated. Accenture should decide if COBIT 5 will effectively fill in the gaps of their current IT governance system or if it will be too broad. Accenture should also analyze if COBIT 5 provides better tools in monitoring, measuring and assessing IT projects. The costs involved implementing COBIT 5 including training costs, consultant fees, roll out costs and materials should also be evaluated.

The evaluation relates to the decision criteria developed because it analyzes whether COBIT 5 can effectively fill in the gaps of the current system or provide new insights in monitoring and assessing IT projects.  COBIT 5 will be all encompassing and not just limited to the IT functions.

Accenture can be imaginative in this decision since the real value of COBIT 5 cannot be assessed until it is implemented.  The Accenture needs to determine if COBIT 5 can add value to the current operating processes and determine if that value is worth the training costs, material costs and new system costs.

Recommendation

After considering both courses of action, I believe the quality and logical recommendation is to maintain the current IT governance system. With an investment that will incur high employee training costs, consultant fees, materials costs, loss of productivity, and possible backlash from employees, the risks associated with implementing COBIT 5 outweigh the benefits.  

Even though COBIT 5 is used worldwide and incorporates industry-proven best practices and applications, Accenture’s current model already has these practices and standards in place that prove to be working effectively.  COBIT 5 may be redundant to what Accenture already has in place. For example, COBIT 5 seeks to have a greater control over IT governance and regulations/standards. Accenture has already addressed these issues through their steering committees, project sponsors and ROI auditing process. In addition, a number of other COBIT 5 standards were covered during Accenture’s IT restructuring which include linking IT processes to the business objectives through processes such as IT support on a per need basis through an internal customer. Furthermore, I believe Accenture’s current IT governance system addresses most of the key functions offered by COBIT 5 and implementation is not needed at this time.

Presentation

·         If I were presenting as a consultant to the class, I would state that I have been commissioned to identify the benefits and drawbacks involved with implementing COBIT 5 to the IT governance system. I would discuss the costs and training involved with COBIT 5 and provide insight into what the framework can offer Accenture. I would discuss the current IT governance system’s functionality and overall successfulness. I would provide examples of controls already in places such as the ROI audits and project sponsors. 

Visual aids to be used in presentation:

• PowerPoint presentation for benefits and drawbacks of each course of action;
• Decision criteria for Accenture; and
• Recommendations for maintain current IT governance system

I would “sell” the current IT governance system by stressing it is a successful system that Accenture implemented in 2001.  Accenture’s current IT governance system addresses most of the key functions offered by COBIT 5 and implementation is not needed at this time. The company would not be incurring additional costs for COBIT 5, redundancies would not be present and training costs would not be incurred. 

·         Other Delivery Consideration to Keep in Mind:

• Pros and cons of both courses of action
• Obstacles with implanting COBIT 5 including learning curve, training costs and consultant fees.