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Infrastructure Transformation

Run IT like a business

By now it’s clear to most business leaders that their technology infrastructure is fundamental to the effective delivery of products and services. But at the same time, these leaders have also given the lion’s share of their focus to the business applications and data, despite the fact that infrastructure accounts for a significant portion of the overall IT spend. This may be changing quickly, though, as technology infrastructure increasingly receives board-level attention.

Many would say this shift can’t happen fast enough. Today’s COOs and CIOs are regularly wrestling with the complexity that comes with challenges such as variablizing fixed costs, reducing time to market, harnessing greater computing capability, defining alternate operating models, improving reliability and performance, and managing risk and regulatory scrutiny. Technology infrastructure lies at the center of these issues — and holds the ability to drive competitive advantage while enabling an increasingly mobile and discerning workforce.

Positioning your technology infrastructure to enable business objectives requires a lot more than technology. It also takes a deep understanding of business issues, an ability to establish and run a technology services business, and the capacity to build trust with business partners and effectively leverage vendor relationships.

Learn more about Infrastructure Transformation

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Tough questions

Many companies are shifting their approach, running their technology infrastructure as if it were a standalone business. They invest in their infrastructure just like they would any business, and they expect it to deliver products and services with the transparency and service quality that they’ve come to expect from external providers.

Running infrastructure like a business requires answering some tough questions. How quickly can your technology organization scale to achieve evolving business goals and embrace opportunities? What risks is your business exposed to today due to your technology infrastructure? Do your business leaders have the technology they need to be effective? Are you attracting and retaining top talent? Are you keeping pace with technology innovation? Are you getting the most out of your technology assets?

The answers to questions like these have a direct impact on business results. And in many cases, the answer lies in transforming the technology infrastructure to enable leading performance.

How we can help

Positioning your technology infrastructure to enable business objectives requires a lot more than technology. It also takes a deep understanding of business issues, an ability to establish and run a technology services business and the capacity to build trust with business partners and effectively leverage vendor relationships.

That’s where Deloitte can help. Our Infrastructure Transformation team brings together a deep, global network of experience across technology, strategy, risk, financial advisory, tax and human capital to change the way our clients run their technology infrastructure organizations.

Deloitte brings a suite of transformational capabilities to our engagements designed to help clients in their efforts to achieve business objectives. Clients benefit from heightened agility, a reduced tolerance for risk, ability to scale and increased service quality across:

  • Data center facilities, infrastructure and automation
  • Desktop, voice, collaboration and messaging
  • Server, storage, mainframe and network
  • Architecture, engineering and operations
  • Internal and external customers and stakeholders
  • Financial metrics, operating model, sourcing and location strategy

Our core capabilities are centered around:

  • Asset optimization
  • COO functions
  • CTO functions
  • Data center transformation
  • Labor reengineering
  • Workplace transformation

Bottom-line benefits

Many companies are shifting their approach and running their technology infrastructure as if it were a standalone business. Potential benefits include:

  • Ability for the enterprise to quantify tangible business benefits, both in the reduction of operational costs and the risks mitigated as a result of the consolidation
  • Ability to scale the infrastructure based on fixed and variable business cycles
  • An operationally proactive and agile enterprise, ready to support potential merger, acquisition and divestiture activity
  • Clear view of the costs and level of effort involved to consolidate and rewire the current technology infrastructure
  • Heightened efficiency and agility as driven by cost and regulatory pressures

Four ways to get more value now

Here are some steps you can take toward transforming the way your organization manages its technology infrastructure:

  • Business first. The infrastructure operation should be treated like a ‘business within a business,’ with a clear alignment to supporting corporate strategy. It should have the agility to adapt to changes in that strategy or shifting business priorities. This requires operating on the basis of trust and transparency.
  • Sum of the parts. Choose the appropriate operating model, aligning capabilities by business, product, geography, or function, for effective delivery of products and services. Don’t overlook tax, security and staffing components in your decision-making.
  • Performance matters. To get the most out of your investments, you should consider optimizing your assets across critical dimensions including innovation, service quality, responsiveness, risk management and cost competitiveness.
  • Orchestra of equals. Operating an enterprise-class infrastructure requires managing a complex mix of business partners, regulators, vendors and competitors. Each has differing priorities and is likely to need customized engagement models to maximize results.

Infrastructure Transformation in action

A global insurance company embarked on a five-year plan to aggressively expand its international business through organic and inorganic growth. To enable that growth, the client retained Deloitte to help strengthen its core technology infrastructure. Deloitte helped the client scale-up, streamline operations and reduce complexity, while reducing risk and maintaining country autonomy.

Deloitte was engaged by a global bank to develop a 5-10 year roadmap for their global data centers that addressed corporate growth, cost leadership, risk management and service quality. Deloitte also led a subsequent and much broader data center and infrastructure transformation effort that significantly reduced costs across the data center footprint, server, storage and network environments, reducing redundancies and P&L savings of $1B+ over a five-year period.

A government agency with more than 130,000 users, faced with limited funding for its workstation refresh, sought creative approaches to support a more mobile and flexible workforce. Deloitte established a proprietary refresh model, enabling the client to move toward a customized refresh approach based on user profiles and their computing requirements.

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As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

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  • Technology Strategy & Architecture
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Contact us

  • infratransformation@deloitte.com

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