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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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.

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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.
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6. Thinking like a start-up
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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.
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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
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