Strategic IT Transformation at Accenture Reflection

Memo

To:	Senior Management
From:	Allison DeLorenzo
Date:	March 5, 2014
Re:	Strategic IT Transformation at Accenture Reflection

This memo is prepared in response to the presentation held on Tuesday, March 4, 2014 with ConsultCube LLC, a United States consultant team, regarding whether Accenture should invest in and implement a completely new IT governance framework, COBIT 5 or maintain its current IT governance system. As stated in the presentation, the main criteria driving this decision are cost efficiency, regulatory compliance, risk and business process management, training, and flexible control. Accenture is currently using its own IT governance system that was created as a result of the re-branding from Arthur Anderson in 2001.  The current system consists of steering committees, project sponsors and an ROI auditing process. In addition, the current system is cost effective and has aided in the overall reduction in IT costs (i.e. approximately $8,000 savings per employee due to new infrastructure and IT governance system).

After listening to the consultants recommendation and analyzing the risks involved with both courses of action, I agree that Accenture should maintain its current IT governance system. 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.  The current IT governance system addresses 4 of the 5 main principles of COBIT 5 including risk/regulatory compliance analysis, monitoring and measuring IT projects. The fifth principle requires a decentralized management style which would change Accenture greatly. The system was specifically developed for Accenture whereas COBIT 5 is generic and can be applied to all industries.  By maintaining Accenture's current system, the company will avoid COBIT 5 material costs, exorbitant training costs, constultant fees and loss of productivity.   Lastly, the current system is flexible and can adapt as Accenture grows. 


One interesting fact that was discussed during the meeting was that at the present time there is no evidence of other IT companies comparable to Accenture that have implemented COBIT 5.  Due to this fact, there is no tangible measure of how a COBIT 5 accreditation will impact business and what the company can gain from it which further solidifies the recommendation to maintain the current governance system. 

I believe this recommendation to maintain the current governance system will aid in Accenture's future growth and IT cost reductions. Adopting COBIT 5 is not a prudent decision at this time.