IT Transformation & Effectiveness
Technology, IT organisations and IT departments have changed dramatically over the last decade in response to the growing consumerisation of IT and advancements in technology and innovation. Industry and technology changes are becoming more frequent and are being implemented at a much faster pace than ever before. At the same time the gap between IT and other parts of the business is closing fast, with the most successful CIO´s at the heart of defining an organisations´ strategy.
The list of challenges which the CIO must deal with is growing almost daily - omni-channel, digital & social, legacy modernisation, mobility, cloud, data & analytics, cyber & security and sourcing strategy to name just a few. There is an ongoing need for transformational activities to stay ahead of the curve.
In order to meet the ever-increasing demands of the organisation and its customers whilst balancing stability with cost reduction, CIOs are increasingly targeting enterprise-wide transformation over isolated value improvements. Transforming both the underlying technology landscape and the IT organisation that changes and runs this technology is providing CIOs with more bang for the buck and ultimately leading to more valuable, leaner and effective IT.
IT Transformation roadmap
An end to end process to deliver the full spectrum of transformation activities
IT Transformations are highly complex, often unpredictable and have a massive business impact. Failure rates are notoriously high and Deloitte is frequently engaged to turn around such programmes. Executive level buy-in, clearly articulated business outcomes, strong governance and inspirational leadership are just some of the critical success factors required to deliver game-changing IT Transformations.
The Deloitte IT Transformation proposition is comprised of ten areas as below, all backed by a global network, strategic vendor alliances and practitioners with experience across the full spectrum of transformation from strategy to implementation.
“Deloitte clearly understands the intersection of technology and business. Its client references were among the best we received.” –Forrester Research Inc, The Forrester Wave™: Business, Technology Transformation, Q3 2012 (19 July 2012)
IT Operating model
What is it all about?
An effective IT Operating Model is critical if business and IT strategies are to be successfully implemented. When defining an Operating Model, the function´s contribution to the organisation´s success will be impaired unless the different dimensions of the model (i.e. process, governance, performance management, location) align to the business and IT strategies, and are based on sound principles.
A cost reduction drive, convergence across business units, a move to shared services and/or outsourcing, strategic re-positioning, post-merger integration and new regulatory requirements are all business triggers that may require a company to review its IT operating model.
How can we help?
Deloitte Operating Model´s purpose is to enable the implementation of a corporate strategy or vision. It provides a clear representation of how and where the IT and business strategies of the organisation will be executed from several perspectives, including process, people and technology views.
What does it mean?
IT effectiveness assists clients in “operationalising” their strategies by formalising the tools and processes needed to understand how IT resources and programmes create and maximise business value. This proposition is suitable for clients across a wide range of sectors and geographies, and our starting point is to assess the effectiveness of the client’s IT function and then provide them with a prioritised roadmap of actions to support ongoing improvement.
When looking to improve IT effectiveness, we found that clients are typically seeking to do one of three things:
- Deliver more, e.g. deliver new, better capabilities to the business faster
- Enhance the quality of the IT capability by reducing quality issues
- Improve customer satisfaction or perception of IT
When addressing these challenges, our IT effectiveness proposition takes a multidimensional view of the IT capability, considering a range of IT effectiveness improvement activities such as: improving governance, embedding appropriate controls and enabling effective decision making; standardising processes; professionalising the ICT career pathways, enhancing organisational structures; and optimising the relationship with suppliers and supplier effectiveness.
How can we help?
Deloitte has developed a comprehensive IT effectiveness toolkit, including an overall IT capability model, a set of example processes, roles and governance structures, a capability assessment tool, a maturity model and a full set of performance metrics. This playbook is essentially a reference guide that can be used to facilitate consistent ways of working across organisations and to ensure that the IT organisation is applying good practices to the full scope of its remit.
We also have processes and tools, with over 100 individual deliverables, from toolkits to training packs, from methods and maturity models. Our Opportunity Assessment methodology consistently delivers executive-level teams with insightful, fact-based analysis of the root causes of issues. It helps them identify and agree on solutions and the roadmap to realise the associated benefits.
What is it all about?
Typically, IT averages around 5 per cent of the enterprise cost base in terms of Infrastructure. The traditional approach of targeting a handful of large vendor contracts to renegotiate prices or cutting headcount is often no longer sufficient. Instead organisations need a more complete ´toolkit´ when executing IT cost reduction to enable sustainable long-term benefits to be delivered to the business. To complement this a benefits management capability, which has the buy-in of all stakeholders, is critical to enable the full benefits to be realised.
How can we help?
Deloitte has an established IT Cost Reduction Method based on proven experience. It provides a repeatable, best-practice process framework for successful reduction of an organisation’s IT costs. The method covers the entire IT Cost Reduction lifecycle from the initial pre-programme assessment and initial planning down to delivery and tracking realised benefits.
This method is supported by a repository of tested tools, models, techniques and strategies that can be used to maximise savings and accelerate project timescales. This includes a hypothesis database, which is a continually updated repository of all of our IT cost reduction ideas.