1. The CIO’s response to the Global Agenda Daniel Benton, Global Managing Director IT Strategy

2. CIOs are under pressure to respond to a changing agenda. 2 Copyright © 2012 Accenture All Rights Reserved. Business Relentless focus on cost Need for growth Increasing technology knowledge of stakeholders New business models Globalisation Technology New technology trends Maturing infrastructure solutions Evolving solution and services market Standardisation of architectures Customers Consumerization of technology Social media / collaboration Increasingly informed CIO

3. Accenture’s High Performance IT research suggests that successful CIOs focus on 3 things 3 Copyright © 2012 Accenture All Rights Reserved.

4. New technology trends give new options for addressing the agenda 4 Copyright © 2012 Accenture All Rights Reserved. Accenture’s 2012 technology vision identifies 6 key trends for enterprises Context-based services Social-driven IT Converging data architectures Industrialized data services PaaS-enabled agility Orchestrated analytical security

5. Cost reduction is again a key focus... and new technology provides new opportunities 5 Copyright © 2012 Accenture All Rights Reserved.  Aggressively prioritise projects  Software licence review – stage 1 Usage  Telecoms expense management  Business demand review  Review third party SLAs  Contract restructuring  Contractor usage and rate review  Automated password reset  Test and dev environment consolidation  Application rationalisation – stage 1 Redundant app switch off  Infrastructure rationalisation – stage 1 Cloud – test environments (PaaS)  Collaboration tools value capture  Security policy review  Minimise IT4IT travel / training  Other short term spend reduction Short Term & Minimise Reduction  Increased supplier off shoring  Increased outsourcing  IT workforce transformation  Retain organisation off shoring  Application/Infra rationalisation – stage 3 Architect for the cloud - SaaS Re-write legacy applications Next generation workstation  Variable workforce  Data centre rationalisation  Application rationalisation  Business controlled service (SasS) Re-Architect for Efficiency  Network transformation  Supplier rationalisation  Facilities consolidation  Infrastructure rationalisation – stage 2 Server consolidation Server virtualisation & automation Workstation virtualisation  Application rationalisation – stage 2 Application re-platforming  Software licence review – stage 2 rationalisation  Procurement process and controls  IT process improvement Process standardisation / industrialisation Lean 6 sigma Software development factories  IT4IT value capture Demand & portfolio management Service management Optimise for Efficiency 5-10% IT Savings 10-15% IT Savings10-20% IT Savings 3 months6 months12 months 24 months Short Term & Minimise Spend Optimise for Efficiency Re-Architect for Efficiency Cost saving IT Enabled Business Optimisation  Increased business process automation  Increased user self service  Customer interaction automation  Working capital reduction through increased MI transparency  More effective management through increased KPI transparency  Workforce efficiency by increased use of e-collaboration IT Enabled Business Optimisation 10-40% Savings For the business; IT costs might increase

6. Cloud is maturing, but the issue is how to take advantage. 6 Copyright © 2012 Accenture All Rights Reserved. Today 2015

7. Cost, technology and the business agenda are driving an evolution of the IT operating model. 7 Copyright © 2012 Accenture All Rights Reserved. Issue The IT function has evolved from an in-house function with its own IP to a multi-sourced, global supply chain using standard architecture solutions Cloud changes the model even further – does the business even need an IT function ? Most sourcing deals were put in place to optimise execution – they need to recognise the evolving solution set and allow for agility and innovation The retained organisation rarely has the skills needed to manage the new model Getting business relationship management right is key to staying in control What are people doing ? There are many “operating model-based” transformations underway The IT operating model needs to be designed, within the context of the EA We see a general shift towards centralisation / shared services The use of service integration / service brokers is increasingly an important part of the answer