IT Operating Model Keeps Things Nimble

Creating a Global IT Operating Model that Fosters Agility and Innovation

Managing an increasingly complex, shared services global operating model may require CIOs to rethink the core elements of their IT organizations. Developing an agile approach to architecture, sourcing, workforce skills and governance will allow technology leaders to position IT as a strategic partner that helps drive business growth.

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Many IT organizations have evolved from discrete, project-oriented technology providers to multi-sourced, multi-location services businesses. IT operations are increasingly characterized by a smaller but more dispersed workforce, complemented by multiple sourcing partners that deliver a variety of capabilities.

However, as many businesses centralize governance and control to support global operations, the increased organizational complexity has placed new demands on how CIOs manage and run the IT function. Increasingly, IT organizations are expected to be flexible, responsive and innovative in supporting the business growth agenda—all while continuing to aggressively manage costs.

The very sourcing models that helped CIOs improve IT’s efficiency and cost structure may now be hampering the flexibility that many IT organizations need to deliver cloud-based and other emerging services to the business. The ability to strategically use sourcing relationships to provide value to the business is one of the key differentiators between high-performance businesses and those that are simply trying to keep up.

As growth returns to the agenda, CIOs need to turn their attention from cost-cutting to growth, with agility and innovation coming to the fore. How can IT organizations achieve excellence in these areas?

Managing an increasingly complex, global shared services model—characterized by the integration of historically independent business functions such as finance, procurement and marketing—requires a rethinking of everything from core IT architecture to IT skills. Fortunately, CIOs have many tools to help them improve the IT organization’s flexibility and effectively support the business growth agenda.

Increasing an IT organization’s agility while simultaneously balancing efficiency with innovation requires changes to four key organizational elements:

• Evolving the IT architecture. High performers have mapped out transition plans that take into account short- and medium-term business needs and then match the right architecture components to those needs.

• Building flexibility in IT sourcing models. With the IT architecture agenda in place, IT organizations can fine-tune their sourcing model, not simply to improve cost efficiencies but also to use external capabilities more effectively to drive innovation and growth. IT organizations will require people as skilled at managing relationships as they are at writing code. 

• Adapting the IT workforce. Shared services models are forcing CIOs to take a fresh approach to their workforce. Accenture research shows that high-performance businesses are seven times more likely than other IT organizations to have invested in new technology skills development and three times more likely to be addressing skills development for application and technology architectures and information management.

• Running IT as a business. As IT workforce competencies evolve, CIOs must move from managing a technology organization to managing a business. 

Contact Accenture to learn how we can help you position your IT organization as a strategy partner in driving the growth agenda on the road to achieving high performance.