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In 2001, Accenture, one of the world's largest global management consulting, technology services, and outsourcing companies, launched a major IT transformation to support company growth in the years ahead. At that time, IT supported 75,000 employees and hundreds of disparate systems around the world. In 2003, the company standardized on two platforms -- Microsoft for all desktop and server applications, and SAP for ERP -- and outsourced applications wherever it made sense.

Today, there is one central system for human resources and new employee recruitment, and SAP has replaced more than 200 different finance applications. The IT organization now supports 129,000 employees around the world and has cut IT spending by 30 percent. However, the audited return on expected benefits from IT projects has grown to 124 percent. Meanwhile, company revenues have gone from $11.5 billion in 2001 to $16.6 billion in 2006.

Frank Modruson, Accenture's chief information officer, attributes a solid governance structure for the IT organization's ability to achieve high expectations for all projects. From time to time, Modruson counsels other CIOs about running IT as a business by setting up a governance structure rooted in the business. However, he says that while most companies like the idea of running IT as a business, they shy away from it for several reasons. "The key here is to look at IT as being a service or a service provider to the business," says Modruson, "and to explain IT to the business in a way that the business can make decisions about IT."

In this podcast, Frank Modruson, chief information officer at Accenture, talks about how a good governance structure can enable an organization to run IT as an agile, profitable business.

Resources

Infoworld CTO 25: Frank Modruson

Q&A: Accenture CIO Frank Modruson

Bio

Frank B. Modruson left Accenture to start medical school. A year later, he rejoined Accenture and has been with the company every since. In his current role as CIO, Modruson is still translating vision into reality with emphasis on the company's own technology infrastructure. His job is to ensure that Accenture's IT function is aligned with the direction of the business. Modruson earned a Master's degree in computer science from Pennsylvania State University and an undergraduate degree in computer science at Dickinson College. His free-time interests include volunteer firefighting, fly fishing, and spending time with his wife and four children.

Production Credits

Elizabeth Ferrarini, Producer
Dana Farver, Executive Producer, Communities Editor-in-Chief
Tom Parish, Audio Producer, Show Host
Kimberly Stone, Web Development Manager
Scott Ebner, Web Developer