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Accenture Outlook: IT Governance: Spinning Into Control

Accenture Outlook: IT Governance: Spinning Into Control

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Published by Accenture
For today’s IT executive, the job has never been more difficult. The solution? Mastering a new set of capabilities focused on areas that are generally not part of traditional IT governance.
For today’s IT executive, the job has never been more difficult. The solution? Mastering a new set of capabilities focused on areas that are generally not part of traditional IT governance.

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Categories:Business/Law
Published by: Accenture on Feb 11, 2013
Copyright:Attribution Non-commercial

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03/26/2013

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The journal of high-performance businessThis article originally appearedin the 2013, No. 1, issue of 
Information Technology
IT governance:Spinning into control
 By Saideep Raj, Jack Sepple and Leslie Willcocks
For today’s IT executive, the job has never been moredifficult. The solution? Mastering a new set of capabilitiesfocused on areas that are generally not part of traditionalIT governance.
accenture.com/outlook
 
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Outlook 2013
Number 1
Is enterprise IT spinning out o control? It would be an exaggerationto say so. But it’s certainly true thatthe days are long gone when a centralIT department was able to controlall aspects o its company’s systems,applications, platorms and devices.Indeed, the locus or decision makingabout business applications is shitinginexorably to line executives. Thatcan be a good thing rom the standpointo speed to market and becoming moreagile in responding to opportunities.But rom the standpoint o traditionalIT governance, it’s a bit overwhelming.Ensuring compatibility and integrationand avoiding redundancy are now harder than ever. And it becomes dicult evento identiy and manage IT spending.Requests and IT capabilities are nowburied in dierent budgets all over the organization, not in a centralIT budget. As a result, IT executives are havinga harder time than ever delivering ontheir traditional charge: maximizingthe return on technology investmentand controlling spending, whileproviding the global enterprise witha coherent, integrated IT architectureand management structure and alsosecuring the company’s (as well asits customers’) data.
Culture shock
The battle continues, nonetheless,between centripetal and centriugalorces: IT executives want to retainsome sense o standardized andcentralized control. At the same time,almost unstoppable orces are spinningIT capabilities out toward the arthestreaches o the business. What’s neededis a way to keep things spinning
into
 control by somehow harnessing thatenergy while also avoiding a descentinto chaos.The centriugal orces pushing ITcapabilities out to the business areueled in large measure by two major IT trends: the consumerization o technology in the workplace and thegrowth o cloud computing.In 2011, the Accenture Institute or High Perormance surveyed more than4,000 employees in 16 countries andound that more than hal (52 percent)are using personal consumer devicesor work-related activities. An almostequal number (50 percent) are taking itupon themselves to create technology-based solutions to meet particular business needs. Wait or the IT department alone to makethings happen? Not likely. Forty-threepercent o employees in the study eelcomortable making their own tech-nology choices or use on the job. They appreciate the prospect o getting work done whenever and wherever they wantthrough devices and applications o their own choosing. That’s a big change or organizations in just a ew years in termso the amount o infuence employeesand the business are exercising over their use o devices and applications to meetenterprisewide goals. And then there is cloud computingand sotware-as-a service, which givebusiness or line personnel the ability to bypass the IT department and godirectly to service providers or theapplications they need. The implicationso this trend can sometimes be exag-gerated—or example, that it’s noweasy to tell a provider how many sotware licenses are needed, downloadan application and get to work. Or thatit’s common or business managers topull out their credit cards and purchasea ew hours o server time rom aninrastructure cloud provider.The reality is that it would probably be career-limiting or a businessmanager to make a major IT purchasewithout the sanction or knowledge o the IT group. However, it is undeniablethat the ready availability o applicationsand inrastructure on request hasmade the business more involved thanever in building IT unctionality.Indeed, a recent Everest Group study 
 
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ound that 64 percent o buyers o cloud solutions were business or lineunction managers and executivesrather than rom the IT unction itsel (see chart, above).
New complexity
The advent o the cloud signalssignicant changes in unctions androles or internal IT. For two decades,IT has been evolving rom a back-ocetechnical unction into a service-oriented provider that delivers criticalbusiness capabilities and is managedby business and technology leadersas a strategic business resource. A much-touted purpose o outsourcing,and now o the cloud, has been toaccelerate this process, reeing upinternal IT resources or more business-ocused and strategic tasks.But how can this complex environmentbe more eectively managed?Cloud computing and the consumeriza-tion o IT have the potential to creategreat value or organizations in every industry. Employees can work romanywhere and can meet customer demands or respond to operationalneeds as i they were at the oce.Businesses can reduce costs, createmore agile IT capabilities, simpliy procurement and accelerate thedelivery o IT unctionality on behal o the business. At the same time, organizations nowneed to think in new ways abouthow to manage IT in a coherent,comprehensive and cost-eectiveway, making technology, applicationand business services choices witha clearer eye on business value.
Increasing the power
So what’s needed to more eectively manage this new and more complex
Holding the power
The centrifugal force of cloud computing is pushing greater IT power out to the entirebusiness. Accordingly, more and more non-IT groups within an organization are nowinvolved in IT purchasing decisions. According to a 2012 Everest Group study, 64 percentof stakeholders involved in cloud-solution purchases were from outside the IT function.
Stakeholder involvement in cloud-solution purchasesBuyer responses, N=185
Source: “Evaluating Cloud Service Providers,” Everest Group, 2012
IT function
36%
C-level executives
28
Business units
21
Finance function
1564%

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