Reengineering The IT Operating Model to Embrace The Power Of The Cloud

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The document discusses how traditional companies have failed to realize the full potential of cloud computing by simply adopting the new technology without reengineering their IT operating models. It argues that in order to harness the power of the cloud, companies need more nimble models that prioritize experimentation and innovation over rigid command-and-control structures. Specifically, the document recommends that companies create self-contained "service teams" to plan, build, and deliver services in a collaborative way without organizational barriers like traditional incumbents have.

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Judith Jones received the Open Group award for Outstanding Contributions to the development of TOGAF 9 at 19th Open Group Enterprise Architecture Practitioners Conference Chicago - July 21-23, 2008. Former CEO of Architecting the Enterprise which has been a member of The Open Group for 6 years, she is personnally involved since 1997. As an active member of The Open Group and she is a major contributor and an editor of TOGAF 7, 8 and 9 as well as leading TOGAF projects for localisation, case studies, ADML, synergy and collaboration projects. http://www.opengroup.org/member/member-spotlight-jones.htm

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Your Challenge Organizations have to adapt to a growing number of trends, putting increased pressure on IT to move at the same speed as the business. The business, seeing that IT is slower to react, looks to external solutions to address its challenges and capitalize on opportunities. IT and business leaders don’t have a clear and unified understanding or definition of an operating model. Our Advice Critical Insight The IT operating model is not a static entity and should evolve according to changing business needs. However, business needs are diverse, and the IT organization must recognize that the business includes groups that consume technology in different patterns. The IT operating model needs to support and enable multiple groups, while continuously adapting to changing business conditions. Impact and Result Determine how each technology consumer group interacts with IT. Use consumer experience maps to determine what kind of services consumer groups use and if there are opportunities to improve the delivery of those services. Identify how changing business conditions will affect the consumption of technology services. Classify your consumers based on business uncertainty and reliance on IT to plan for the future delivery of services. Optimize the IT operating model. Create a target IT operating model based on the gathered information about technology service consumers. Select different implementations of common operating model elements: governance, sourcing, process, and structure.

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Reengineering The IT Operating Model to Embrace The Power Of The Cloud

1. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Reengineering the IT operating model to embrace the power of the cloud

2. Cloud winners and losers Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Massively scalable and resource-elastic businesses are clobbering incumbents. Why? Because many traditional businesses have failed to realize the full power of the cloud. They have simply taken the new technology and deployed it using their existing IT operating model.

3. Old models feature command-and-control service and delivery operating models, along with centralized structures that value rigor and certitude. Harnessing cloud — and the as-a-service muscle that comes with it — means reengineering the IT organization and the way the company operates. New models are nimble with experimentation and innovation at the forefront. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

4. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Removing the legacy shackles Companies need to manage their new high speed, digital organizations in an entirely new paradigm, driving a different mindset across the company culture.

5. 64% of executives believe independent service brokers or XaaS providers will deliver new capabilities faster than the internal IT organization. Those that succeed can beat start-ups at their own game by adapting to changing market conditions faster, while leveraging the value of scale that has always been at the heart of the enterprise organizational structure. 84% of executives believe the IT organization is shifting from a traditional service provider to a service broker and offering XaaS. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

6. Thinking like a start-up Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Most incumbents still operate with organizational structures that require interactions across multiple teams to plan, build and deliver services — from strategy and design, to implementation and run.

7. Incumbents need to create flat, self-accountable, delivery “service teams” that work collaboratively as self-contained units, without organizational barriers. In many cases, companies are beginning with an interim service-oriented structure within the legacy organization. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

8. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. New capabilities for cloud Companies need to create a workforce strategy to shape the future organizational structure, develop new IT capabilities and roles, hone individuals’ skills and shift the culture to embrace change. High priority capabilities and their associated roles include: Service Onboarding Account Management Strategic Vendor Mgmt Product Mgmt/Architecture Strategic Planning

9. LEARN MORE about how to create responsive, agile IT organizations with our full report: Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Reengineering the IT operating model to embrace the power of the cloud @AccentureStrat Follow us on Linkedin

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