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Accenture Breaking Down Organizational Silos report - Jan 2013

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Accenture Breaking Down Organizational Silos report - Jan 2013

Accenture Breaking Down Organizational Silos report - Jan 2013

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  • 1. High Performance IT InsightsBreaking DownOrganizationalSilos with an AgileInfrastructure Model
  • 2. Introduction The Hunt for Flexibility In sum, while and Cost EfficiencyAs they pursue greater the technicalresponsiveness to a changingenvironment and more value from Agile infrastructure enables companies to provide infrastructure underpinningstheir investments in IT, globalcompanies can call upon a powerful services via shared pools of resources exist to make agile rather than with separate, dedicatednew approach: agile infrastructure. servers, storage, applications, and IT infrastructure possible,By imbuing the infrastructure staff, by utilizing cloud computingorganization with greater sharing, – the dynamic provisioning of IT many companiescoordination, and standardization,agile infrastructure allows capabilities from multiple providers attempting to adopt it (internal or external) over a network.companies to use fewer resources This model, in turn, directly impacts find that their serviceto achieve greater impact. both cost and flexibility. Free of the need to accommodate many peak models are not quiteYet implementing agileinfrastructure requires significant usage requirements at once, agile infrastructure means fewer idle, up to the challenge.change for most organizations, and under-used assets, greater scalabilitywhile the technology is available and increased responsiveness toto make the transition to this new changing conditions, and lowerapproach, IT service models often fixed infrastructure expenses. Agileare not ready. Whether it’s too infrastructure also can speed time-many functional silos, not enough to-market for new capabilitiescoordination, or poorly defined roles by allowing business applicationand responsibilities, companies developers to engage in real-timeoften face significant challenges self-provisioning, and by facilitatingto unlocking the value of agile the provision of resources for thoseinfrastructure. projects that are most critical at the moment.As we explore in the followingpages, companies can drive However, this degree of sharingflexibility, cost efficiency, and and coordination is not alwayshigh performance from agile easy for organizations to achieve.infrastructure, but first they must One reason is that so manystrengthen their IT service models infrastructure organizationsto allow managing a hybrid consist of vertically integrated,infrastructure environment that poorly coordinated operating silosinvolves internal and external dedicated to individual businessproviders and multiple platforms. units or technology stacks.They need to adopt a new Conversely, agile infrastructureorientation that balances business revolves around sharing resources,unit and enterprise value, with managing dependencies, andrevised and clarified roles, and with reducing complexity, and hence,an organizational blueprint that often requires organizations tokeeps IT infrastructure components achieve a higher level of operationalworking in unison. maturity in terms of predictability, coordination and transparency.2 Breaking Down Organizational Silos with an Agile Infrastructure Model
  • 3. Transforming the IT Figure 1: Agile Infrastructure Service ModelInfrastructure ServiceModel for agile CustomersinfrastructureIn Accenture’s experience, companies Solutionsseeking to implement agileinfrastructure can benefit from anew approach to their infrastructureorganization’s service model. This WANnew approach requires a sharpenedorientation around infrastructure Servicescustomers, solutions, services, and Private Cloudcomponents; a clarified roster ofinfrastructure management roleslinked to key IT infrastructure library(ITIL®) processes; and, ultimately, a Dedicated Virtual Network Componentsrevised organizational blueprint that Server Servermakes plain how the infrastructureorganization will operate to unlockthe power of agile infrastructure. Hosting is one example of an Infrastructure organizationsA new orientation infrastructure service that can commonly lack service managers as be delivered in this way. Under well, and therefore do not manageA service model optimized for the agile infrastructure model, a services with the critical commercialagile infrastructure starts with an hosting product manager adopts mindset described above.orientation around four key elements a commercial mindset, pullingof the company’s IT infrastructure: together computer, network, Furthermore, when the businessinternal customers, solutions, storage, and management functions partner role (which manages theservices and components (Figure into a cohesive service offering, relationships with customers of1). Customers include application determining the cost to the business the infrastructure organization) isdevelopment or maintenance of providing this service and the not well-established, infrastructuremanagers responsible for business volume required, and setting customers must work with multipleapplications, business operations pricing and service levels that component providers to constructofficers administering workplace generate maximum overall value their own solutions. A lack oftechnologies for their employees, for the company. For their part, focus on enterprise value is alsoand business managers providing components are the foundation common, with many infrastructureonline services to the company’s of the agile infrastructure organizations instead aligningexternal customers. These individuals service model: These instances of activities and resources with specificconsume solutions, i.e., configured infrastructure technology are used business units.common services and components to develop and deliver services andthat address specific needs. This solutions. The results of this type of approachprovisioning is an important point: can thwart the benefits promisedIn agile infrastructure, each solution In the typical, non-agile enterprise, by agile infrastructure. Foris configured specifically for a while many of these elements are example, a global bank with whichparticular customer, but the services in place, their roles and delineations Accenture worked had dedicatedand components that comprise it— often are not sufficiently clear business partners aligned to eachand their costs—are shared across or focused on enterprise value. business unit. In addition to thethe enterprise.3 Breaking Down Organizational Silos with an Agile Infrastructure Model 4
  • 4. typical duties for this role, such as Figure 2: Key Agile Infrastructure Rolesaccount management and demand Abstraction Agile ITIL V3 -management, some of these Tiers Infrastructure Role Process Area ITIL V3 - Processrepresentatives were tasked with Solution Business Partner Service • Business Relationship Managementdeveloping detailed technical designs Strategy • Demand Managementfor custom solutions. However, Service Service Manager Service • Service Portfolio Managementthese designs often conflicted with Strategy • Financial Managementthe enterprise standards developed Service Design • Service Catalog Managementby the service engineers embedded • Supplier Managementin the infrastructure platform Service Engineer Service Design • Service Level Managementorganizations. Consequently, the • Capacity Managementproliferation of non-standard custom • Availability Managementsolutions became uncontrolled, and • IT Service Continuity Management • Information Security Managementthus the bank’s cost and complexitydramatically increased. Service Transition Service • Change Management Manager Transition • Service Asset and Configuration ManagementThe right roles to • Knowledge Management • Transition Planning and Supportunlock the power of • Release and Deployment Management • Service Validation and Testingagile infrastructure • Evaluation Production Continual • 7-Step Improvement ProcessOne way to help verify these four Assurance Manager Service • Service Measurementcritical elements are working Improvement • Service Reportingtogether to unlock the value of Component Platform Operations Service • Event Managementagile infrastructure is by putting Manager Operations • Incident Managementin place well-defined roles with • Request Fulfillmentclear accountability for specific • Access Managementinfrastructure processes (Figure 2). • Problem ManagementAccenture recommends viewingthese roles as mutually exclusive,and collectively exhaustive: Thereshould be no overlap between them manager and production assurance why agile infrastructure can fail toand together they should execute manager, all with specific, deliver value—is in the clarity andthe full range of infrastructure clearly segmented, ITIL-linked focus of the roles. The businessmanagement activities, responsibilities. Companies seeking partner, for instance, is the personencompassing all solutions, services, to implement agile infrastructure who is ultimately accountable forand components. also should put in place a platform resolving the dilemma between operations manager to handle the use of custom versus standardAs shown in the figure above, all aspects of service operations, solutions for the whole enterprise.each of these six roles is linked including event management, When his customers demandto a specific set of ITIL processes. incident management, request custom solutions, he must firstFor instance, the business fulfillment, access management, and verify the effort is truly justified.partner is responsible for working problem management. If customization is justified, thewith customers to set service business partner must be willing tostrategy, and to manage business As with the key infrastructure advocate within the Infrastructurerelationships and demand. In terms elements discussed above, many organization on behalf of hisof service, the agile infrastructure organizations already have several customers and lobby for themodel requires a service manager, of these roles in place. The key required resources.service engineer, service transition difference—and a common reason4 Breaking Down Organizational Silos with an Agile Infrastructure Model
  • 5. In many organizations, business Figure 3: Agile Infrastructure Organizational Blueprintpartners are in place, but theirroles have changed over time to Customers (App Dev. + Business + End User)encompass responsibilities like BR & Operational Units Enabling Unitsservice design and technical design. SLALikewise, it is common for other CIOmembers of the infrastructure Business partnerorganization to gradually acquire SLA Risk and Security SLA Service Delivery (led by Service Mgr)influence over and involvementwith service strategy. Yet it is only OLA Architecture Service Managerwhen each role—and their respective Servicesubordinate roles—enjoys a crisply Assurance Sourcingdefined set of responsibilities that Manager Production Service Engineer Assurancethe agile infrastructure model truly Finance Managerworks. Otherwise, resources get OLAstretched too thinly, or pulled in HRthe wrong directions—for example, Platform Operations Manager OLAcoming under the influence of a Processes and Toolsparticular business unit as opposedto serving the entire enterprise. SLASuch developments can disrupt Vendorsthe delicate balance that keeps BR: Business Requirement SLA: Service Level Agreement OLA: Operational Level Agreementagile infrastructure humming likea finely-tuned machine, and thatallows infrastructure organizations Indeed, as shown in the diagram, Consider, for instance, how the agileto do more with less. well-defined business requirements infrastructure operational blueprint (BRs), service level agreements depicted above could supportA blueprint for success (SLAs), and operational level better contractual agreements agreements (OLAs) help enable with vendors—for example, theClearly delineating components, global organizations to manage the purchase of long-term mainframeservices and solutions, as well as complexities, interdependencies, and services. Using the blueprint as aconfirming the right roles are in sharing required for adopting and roadmap, customers would commitplace, are essential prerequisites maintaining an agile infrastructure. to specific levels of demand for afor unlocking the benefits of For example, business partners set timeframe, which then wouldagile infrastructure. If these steps typically commit to a set of BRs be aggregated by the servicecomprise the “engine” of agile with their customers, and, in manager. The service manager theninfrastructure, then an agile return, negotiate SLAs with service would hand off this overall level oforganizational blueprint is the managers. Service managers then demand—to which each customerlubricant that helps keep all these negotiate OLAs with platform is held accountable—to the servicemoving parts working quickly and leaders. An effective blueprint puts management team, which wouldefficiently, thus boosting the agility accountability in the spotlight: determine the specific platforms andand cost-effectiveness of the overall Customers pay for unrealized computing power required to meetbusiness (Figure 3). forecasts, service managers are those needs. The service operations on point for missed SLAs, and team would then be accountable for production leaders are responsible procuring and managing the actual for confirming that operations can services and hardware required to sustain their OLA commitments. meet the enterprise’s overall needs.5 Breaking Down Organizational Silos with an Agile Infrastructure Model
  • 6. Conversely, without a blueprint market conditions, it found that specific delivery models within place, the service operations its infrastructure organization was common services across theteam typically ends up leading the failing to play its critical role. It enterprise. Accenture also cultivatedprocess. While this group has a deep had developed an expensive and involvement in the project fromunderstanding of the technology inflexible cost structure, with little employees at all levels—particularlybeing operated, it may not be as transparency: Projects required in process design—thus gainingfamiliar with aligning business dedicated hardware and software, valuable insights on neededneeds and technology imperatives, support groups were siloed with improvements while securing buy-inor formulating commercial- redundant resources, and the for the shift to agile infrastructure.minded service strategies. In organization was unable to spreadsome organizations, individual costs accurately and predictably As a result of these efforts,business partners may manage the among its users. Accenture helped empower thetransactions: While they understand bank to embark on a three-yeartheir own customers’ needs, they The absence of agile infrastructure total cost of ownership reductionmay not have an enterprise view of also thwarted the bank’s decision- initiative with a realizable 25demand or the in-depth technology making and time-to-market for percent cost reduction target. Just asinsights required to make the best services and products, particularly important, the bank also is on tracktechnical and operational decision. when new offers were complex to gain a better-integrated, moreNot having a clear blueprint in and required coordination among solution-oriented infrastructureplace also allows the loudest or multiple platforms and geographies. organization, with an improvedmost influential customers to Without an agile infrastructure governance structure that helps itdrive such decisions, once again and a clear operational blueprint make decisions that balance riskcompromising the levels of value in place, decisions were hampered with reward. And agile infrastructuredelivered to the overall enterprise. by overlapping, unclear roles and has positioned the bank to maintain responsibilities. The same lack of these advantages for years toAn agile infrastructure operational clarity and accountability meant come, with a consolidated serviceblueprint helps enable the that when the bank experienced portfolio, better visibility into rolesinfrastructure organization to work service outages, it was subjected to and responsibilities and whereas a well-oiled machine, utilizing unproductive firefighting and finger- offshore resources can add value, athe right roles to deliver services pointing rather than smooth and greater degree of industrialization,and support that reflect the overall rapid problem resolution. and sustainable reductions in itsenterprise’s needs. With the levels technology footprint.of sharing and streamlining that To help it address these challenges,agile infrastructure entails, this kind Accenture worked closely withof structure is critical to meeting the bank to implement the agilethe enterprise’s objectives. infrastructure model within the bank’s infrastructure managementAgile infrastructure function. This challenge was a formidable one: The bank had severalin Action thousand infrastructure employees and operations around the globe.Accenture’s recent work with To help the bank with the complexa major global bank illustrates task of implementing an agilehow this approach can help infrastructure globally, Accentureorganizations realize the potential worked closely with the bank tovalue of agile infrastructure. As the implement the agile infrastructurebank contended with intensifying service model in waves, graduallycompetition and worsening replacing fragmented, business-6 Breaking Down Organizational Silos with an Agile Infrastructure Model
  • 7. Conclusion Clearly, agile infrastructure has great potential to infrastructure customers, and implement a well- empower companies to do structured blueprint that more with less, and enhance supports accountability, the value that IT delivers trust, and coordination. to the business. Yet the With these elements approach relies upon more in place, leading sharing, tighter coordination, companies can make agile less slack, and more infrastructure a central standardization—all of which part of the pursuit of high are significant challenges for performance. many organizations. Transforming the IT service model is key to overcoming these challenges. Companies must create crisply defined About the author roles and responsibilities, Hakan Altintepe is a Senior achieve a careful balance Manager with the Accenture IT between enterprise value Strategy practice and is based in and service to individual New York. For more information, contact us at ATC_Infraconsulting@accenture.com7 Breaking Down Organizational Silos with an Agile Infrastructure Model
  • 8. About AccentureAccenture is a global managementconsulting, technology services andoutsourcing company, with more than249,000 people serving clients inmore than 120 countries. Combiningunparalleled experience, comprehensivecapabilities across all industries andbusiness functions, and extensiveresearch on the world’s most successfulcompanies, Accenture collaborateswith clients to help them becomehigh-performance businesses andgovernments. The company generatednet revenues of US$25.5 billion for thefiscal year ended Aug. 31, 2011. Itshome page is www.accenture.com.Copyright © 2012 Accenture.All Rights Reserved.Accenture, its logo, andHigh Performance Deliveredare trademarks of Accenture.Any third-party names,trademarks or copyrightscontained in this documentare the property of theirrespective owners.