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Wave 3: Re-architect to Wave 4: Drive IT-enabled
future-proof business value
The third wave involves enabling IT to For wave four to succeed, CIOs must be
plan ahead to handle the challenges the well positioned to help the enterprise
business is likely to face tomorrow. In areas deliver reduced sales, general and
ranging from mobile applications to cloud administrative cost as well as enabling top-
computing services, or support for personal line growth through IT. Convergence of the
devices, IT organizations are being forced to business and IT, in terms of capabilities and
rethink their operations’ strategy to position governance, enables increased flexibility.
themselves for future complexities. Costs and services can be modified in
response to changing conditions using more
To achieve such flexibility and agility,
automation, increased user self-service and
simplification of the business architecture
much-improved management information
is required. While IT must adopt a
to help identify and address the causes
cost-effective approach toward all
of inefficiency.
elements of the business architecture,
the business should be treated as a true By implementing the first three waves
partner. Management of end devices, of cost reduction in parallel, CIOs can
software, the third-party supply chain transform their IT function into a lean,
as well as associated IT applications and efficient operation, while securing
infrastructure, must be reviewed in the additional business benefits. These waves
light of the need to continue to deliver are iterative, ongoing processes through
more output with reduced financial input. which organizations can continue to
Further, recent business requirements for innovate and drive further cost reductions.
the rapid delivery of apps and applications
demands a fundamental change to the IT The business case for IT investment
operating model. is easier to prepare than ever before,
due to reduced up-front costs and
the ability to rapidly deploy new
technology capabilities.
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Powering the business with IT Digital technologies are challenging
industry leaders in ways that have not been
Accenture estimates that, as a proportion
experienced before. Whether as a result
of total corporate spending, IT ranges from
of competition from players in adjacent
less than one percent to around 15 percent;
industries—or even unrelated industries—
a significant component of sales, general
there is now a distinct risk for the revenue
and administrative cost.
streams of any business.
In the past, CIOs have controlled IT costs
The greatest challenge for technology
at the same time as building flexibility and
leaders is not the removal of cost from
agility into the IT operating model. Now,
existing operations, it is where to invest the
they can help their organizations achieve
resultant savings. Although the solution
far larger cost reductions by extending
may lie with technology, the relationship
the same benefits across the enterprise.
between technology investment and
Innovation and automation are key. CIOs
profitable growth is a complex one for
can go beyond innovations such as cloud
any business.
to exploit trends, such as the Internet of
Things and cognitive computing. Here is where technology leaders and their
IT departments can excel; by powering the
It should be noted that CIOs who deliver
business with IT there is value not only for
tangible benefits across the enterprise can
the organization, but also for the whole
both strengthen their own standing in the
industry going forward.
organization and reinforce the case for
continued technology investment.
In today’s volatile and intensely competitive
world, it often becomes unexpectedly
urgent for organizations to realize
reductions. Only efficient and effective IT
organizations will survive to deliver the
required business savings.