1. Running head: STRATEGIC IT TRANSFORMATION AT ACCENTURE CASE STUDY 1
Strategic IT Transformation at Accenture Case Study
Art Perez
San Francisco University
Information Technology Policy and Strategy
MSIS 625
Dr. Helmut Bühler
April 28, 2015

2. STRATEGIC IT TRANSFORMATION AT ACCENTURE CASE STUDY 2
Executive Summary
Anderson Consulting’s success yielded the formation of Accenture. Accenture had the
difficult task of creating an information technology (IT) network infrastructure from scratch.
This was a difficult process for an average company, but as an IT consulting firm; Accenture had
a significant interest in ensuring they “walk the walk” and achieve the type of infrastructure they
would recommend their customers utilize.
Accenture had to outweigh the pros and cons to every decision from the type of
applications to utilize to the type of hardware they would purchase. This was also compounded
by the fact that Accenture only had one year to use their former partner’s legacy infrastructure
before being cut off completely. How do you connect 75,000 people with 600 global
applications, 1506 local applications, and multiple technology platforms? This paper will outline
the highlights of this successful and profitable transformation.

3. STRATEGIC IT TRANSFORMATION AT ACCENTURE CASE STUDY 3
Problem Statement (Defining the Issues)
In 2001 Andersen Consulting separated from its parent company, Arthur Anderson in
order to become Accenture (Jefferey, 2010, p. 1). As a rebranded firm, Accenture now faces the
transitional phase of building its own information technology (IT) infrastructure that would be
able to support its global business demands as a leading-edge technology consulting company
(Jefferey, 2010, p. 1). This huge undertaking fell under the responsibility of Accenture’s chief
information officer, Frank Modruson (Jefferey, 2010). With only one year to implement the
upgrade, critical decisions ranging from the type of software, hardware, personnel skillsets, and
scalability had to be considered to provide a robust, scalable, and dependable IT infrastructure
(Jefferey, 2010).
In 2010, Accenture has 356 global applications, 86% customer satisfaction, 180,000
employees, and a 2010 annual revenue of $21.6 Billion (Jefferey, 2010, p. 18). How did
Accenture accomplish this, read on and it will be explained.
Data Analysis
In 1913, the firm Arthur Andersen accounting was created to meet the requirements of
the Federal Reserve System tax regulations (Jefferey, 2010). By 1954, the firm had expanded
globally and differentiated its accounting consulting practice from its accounting auditing
practice (Jefferey, 2010). In 1989, Arthur Anderson split into two separate entities know as
Anderson Consulting and Arthur Andersen (Jefferey, 2010). Soon, representatives from both
organizations were trying to vet and offer their services to the same executives and prospective
clients. This led Anderson Consulting to seek complete autonomy from the Anderson parent
company in December 1997 (Jefferey, 2010, p. 2). An arbitration panel took almost three years

4. STRATEGIC IT TRANSFORMATION AT ACCENTURE CASE STUDY 4
to reach the separation terms. Anderson Consulting would have to pay $1Billion to Anderson
and give up its name in order to get its independence (Jefferey, 2010).
A $175 Million rebranding marketing campaign launched the new firm Accenture on
01/01/01 (Jefferey, 2010, p. 2). Accenture raised $1.7 Billion with 12% of it IPO offering on July
19, 2001 (Jefferey, 2010, p. 2). Now Accenture has to take its 75,000 employees and $11 Billion
in annual revenues and create its own IT infrastructure (Jefferey, 2010, p. 2). Accenture “prided
itself on advising its clients on advanced technologies and best practices in IT implementation”
motivating them to have the best IT infrastructure that would align with its business strategies
(Jefferey, 2010). Accenture sought to implement the most fiscally viable, globally accessible,
and agile network that would best suit its needs.
Many key strategies were followed in the decision-making process. The priority-based
strategic decision forced IT spending choices based on sound budget needs, return on investment
(ROI), non-political influences, future IT needs based on stakeholder recommendations and user
needs, and quantifiable metrics that would prove its effectiveness (Jefferey, 2010). A steering
committee chaired by C-level executives from the business strategic, financial, operational, and
technical would by the project decision makers on IT spending (Jefferey, 2010).
Other factors considered in purchasing IT were the service level agreements (SLAs)
made available by each product line (Jefferey, 2010, p. 4). This led to the first major decision;
platform selection. Microsoft was chosen by Accenture with the intent to have a “common”
reliable global platform to connect its 600 global and 1500 local applications to function on a
single platform (Jefferey, 2010). There was fear that a single vendor would put Accenture at the
risk of unfair leverage liability of renegotiating future contracts and licensing, but the Microsoft
brand was perceived as the most financially sound and the single platform offered sufficient

5. STRATEGIC IT TRANSFORMATION AT ACCENTURE CASE STUDY 5
flexibility and growth scalability with all the Microsoft family software available (Jefferey,
2010). Other cost benefits in using Microsoft servers reduced the 400+ Novell file servers to 50
Microsoft servers and increasing the email client capability from 440 to 2500 (Jefferey, 2010).
On the hardware end, HP and Cisco was chosen for network-related equipment (Jefferey,
2010). Other cost-reduction options were implemented in the form of server virtualization
reducing with email servers from 250 to 115 (Jefferey, 2010, p. 6).
The final piece was opting for SAP as its financial accounting software (Jefferey, 2010).
Even though it was not a Microsoft product, the partnership worked well and improved relations
between SAP and Microsoft yielding excellent tech support SLAs (Jefferey, 2010).
The main thing Accenture tried to ensure would not implement was customized platform
applications. It accomplished this by implementing a requirement to meet 2-tier criteria process
before approving customized applications. They are; (1) is the requirements of critical
importance to the business, and (2) is an outside vendor NOT able to meet the requirement with
existing applications (Jefferey, 2010).
Once the IT infrastructure was in place, Accenture strategized to run its IT like a
business. They offered varied email services and cost based on their storage needs (Jefferey,
2010, p. 7). It also provided tech support rates based per each phone call and a separate rate per
technical support visit (Jefferey, 2010). It also outsources many of its services, only keeping 14%
of its overall IT staff on permanent payroll (Jefferey, 2010, p. 8). It also analyzed its business
operational costs and moved operations to locales that provided an improved ROI and that the
savings would pay for the investment within three years (Jefferey, 2010).
Accenture also invested in training its own staff to handle many of the day-to-day
operations instead of having to pay for an outsider to come in and correct IT discrepancies

6. STRATEGIC IT TRANSFORMATION AT ACCENTURE CASE STUDY 6
(Jefferey, 2010). When they transitioned SAP, Accenture has 2,500 core uses trained up and
ready to handle the new application issues (Jefferey, 2010).
Other cost reduction and efficiency goals were implemented to enhance production and
improve ROI such as;
- A 10% IT annual cost reduction initiative
- Clear financial ROI presentations for all project proposals
- Three annual audits of working projects to verify fiscal projections
- Management business sponsorship of projects to ensure IT team stays “on their feet”
- Making senior IT leaders Managers and encouraging ideas and innovation
- Global collaboration with “follow daylight” hand-off processes
All these, and many other, improvements led Accenture to run IT like a business as a
nimble and flexible IT department with some of the “lowest per-employee cost in its sector,
without sacrificing the quality or inventiveness of the technology tools” offered by its consultant
and its clients (Jefferey, 2010, p. 13).
Recommendations
I feel that Accenture did a remarkable job transitioning from its legacy infrastructure to
“walking the walk” and creating a superior IT infrastructure from scratch (Jefferey, 2010). I do
not have any recommendations to improve on the Accenture process, but I would like to discuss
the strategy of the Accenture case study and compare it to the Elements of a Successful IT-
Enabled Process noted in the article “Investing in the IT” (McAfee & Bryonjolfsson, 2008).
They cover a wide span. Accenture’s one system approach unified all 75,000 employees
and provided a common foundation for everyone to work from.

7. STRATEGIC IT TRANSFORMATION AT ACCENTURE CASE STUDY 7
They produce results immediately. The SAP implementation allowed for a transparent
fiscal review of operating expenses to all stakeholders and it provided a robust reporting
capability.
They are precise. Having every employee working off the same application increases his
or her ability and proficiency in that system, thereby improving precision.
They are consistent. Working off the same application will yield similar results.
They make monitoring easy. Everyone had complete access to the review of all global
applications.
They build in enforceability. Strict project proposal guidelines and detailed follow on
oversight was implemented to ensure fiscal projections and deadlines/goals were met (McAfee &
Bryonjolfsson, 2008).

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Figure 1. IT Transformation Results

9. STRATEGIC IT TRANSFORMATION AT ACCENTURE CASE STUDY 9
References
Jefferey, M. (2010). Strategic it transformation at accenture. Kellog School of Management,
KEL471(), 1-12. Retrieved from https://cb.hbsp.harvard.edu/cbmp/context/materials
McAfee, A., & Bryonjolfsson, E. (2008, July-August). Investing in the it: That makes a
competitive difference. Harvard Business Review, 98-107. Retrieved from
http://www.hbr.org