Transforming network infrastructure for high performance

Accenture EnterpriseNetwork Solutions Delivering innovative networkingservices to achieve high performance

The era of next-generationnetwork servicesOver the next few years, the enterprisenetworking capabilities of most Global 2000 companies and majorgovernments will undergo revolution-ary change. The impetus: newtechnologies that are enablingopportunities for operational efficiency,exciting offerings, better service and growth. To achieve and maintainhigh performance, enterprises will beretooling their overall technologyinfrastructure, and dramaticallyreducing their use of private networksand replacing them with next-generation enterprise networks basedon Internet Protocol (IP) technologies.The coming “era of IP” will see theconvergence of voice, data and video,as well as the implemeation of always-on, ubiquitous, IP-based wirelesscommunications systems.

This dramatic change is being driven by several forces:

1. Opportunities for new services.Commoditization of traditional productsets, such as point-to-point bandwidthcircuits, WAN services, traditionalanalog phone systems, etc. means thatorganizations are looking forinnovations to drive growth andenhance services.

2. Support for a mobile, dispersedworkforce and customer base. Mobileworkers and customers create newchallenges and opportunities in thenetwork space.

3. The imperative to reduce operatingcosts. The IP-based, next-generationnetwork simplifies the overall infra-structure and provides more cost-effective, standards-based capabilities.In addition, cost reductions can beobtained by re-sourcing existingservice contracts to providers withlower cost structures.

4. The need to support new operationalinitiatives through increased networkcapabilities. Next-generation networksalso provide enhanced services andcapabilities such as multi-channelcontact services and unified messaging.

The IP network architecture is a plat-form for innovation in both businessand government. For example,networks supporting mobile computingenable new products and services forcustomers, and better citizen servicesin areas of public safety, public welfare,public health and homeland security.

5. Competitive pressures. Companiesand governments will be looking toachieve and maintain competitiveadvantage or a superior position byexploiting the new technologycapabilities and offerings of the IP era.

6. More cost-effective technologies.Telecommunication providers areaggressively pushing toward moreefficient, cost-effective and future-proof technologies such as Voice overIP (VoIP) or IP telephony.

7. Consolidation and integration.Businesses and governments alike facethe need to consolidate and integrateservice networks (such as Public SafetyNetworks) to allow more responsiveand cost-effective customer andcitizen services.

a network infrastructure that positionsthem for leadership in the IP era.

At Accenture, we believe companiesand governments have now embarkedon a journey from their current state oflegacy network technologies, such asframe relay and ATM, to a converged,all-IP infrastructure. This evolutionaryprocess will proceed along threephases, as shown in the diagram above:

• Rationalization: In this first phase, organizations will identify areas where their network could be rationalized, consolidated, transformed and optimized as part of an overall Network strategy. Rationalization can also include short term “quick wins”, such as network expense management and contract renegotiation, to reduce cost in the near term.

• Transformation: Here, organizations leverage new technologies in line with their Network strategy to fundamentally transform the network to provide better service with additional functionality required to build future business capabilities. This network trans-

formation significantly reduces network costs, and may include outsourcing strategies.

• Enterprise Integration: Using networks deployed previously, this phase consists of implementing new network functionalities, such as VoIP/IP telephony and wireless, to provide new business capabilities. From this phase emerges a next-generation network fully integrated with the business and operational requirements of the organization.

...if these benefitsare to be realized,most organizationsmust takeimmediate andaggressive action.

The Payoff: Implications of the IP eraThe radiating economic impact of theIP/broadband era will be enormous, asconsumers, citizens and businesscustomers make a number of changesto take full advantage of the benefitsof these new technologies. At themost basic level, people will spendmore on their monthly network feesdriven by people purchasing newequipment—computers, modems, Wi-Fi(wireless fidelity) LANs, digitalcameras, CD burners and MP3devices—better suited to broadbandcapabilities. The growth of Voice overIP (VoIP) or IP telephony means thingslike mobile handsets will be able totake advantage of the Wi-Fiinfrastructure.

However, if these benefits are to berealized, most organizations must takeimmediate and aggressive action. Mostcorporate networks today are complex,inefficient, costly and difficult tomanage, partly because networks werebuilt upon heterogeneous legacytechnologies. Rarely does one see acompany or government agency with

Time

Steps

Phase 3

Phase 2

Phase 1

Tomorrow driven by capability enhancement

Today driven by cost reduction

Next Generation Network Creation Convergence

Enterprise Network Transformation

Telecom Expense Management

IT Rationalization & Consolidation

Network Assessment

IP Everywhere

Phase 1: Rationalize, consolidate and optimize network infrastucture

Phase 2: Transform network infrastructure to create Next Generation Enterprise Network

Phase 3: Leverage Next Generation Enterprise Network capabilities

Accenture: Innovativenetworking services to achieve high performanceAccenture has the experience, assets and proven offerings to helporganizations achieve highperformance and lower their risk on thejourney to next-generation networks,and to the business capabilities andinnovations of the IP era.

With deep skills and knowledge–including industry-leading knowledgein mobile and wireless technologiesand applications–Accenture knowshow to begin from an industryperspective and then translate

business and strategic objectives intonetworking requirements. Workingfrom a broader infrastructureperspective, we have an end-to-endknowledge of the total infrastructurerequirements to help you achieve highperformance. We work closely withyour technology and businessorganizations to create networkingcapabilities that not only meet today’sneeds to reduce cost, but also addresstomorrow’s needs for enhancedbusiness and operational capabilitiesenabled by IP-based networks.

Accenture helps CIOs and other technologyexecutives answer their most pressingnetworking questions….

With the Accenture Network Assess-ment Offering, our experiencednetworking personnel work closelywith your network organization tounderstand your strategic goals, assessyour current environment, conduct agap analysis, identify potential costsavings and then work to jointlydevelop a network strategy unique toyour organization and its most criticalobjectives. With strong executioncapabilities and ability to deliver basedon insight into your organization andindustry, we then partner with you todeliver new solutions to close any gapsidentified.

Accenture Network AssessmentThe unique Accenture NetworkAssessment diagnostic includes areview of the three key areas of anenterprise’s Network: networkarchitecture, performance andoperations. Important steps of theassessment include:

1. Identifying how the business,technical and service-level requirements affect the networkenvironment.

2. Reviewing current networkinfrastructure and costs.

3. Creating total cost of ownershipestimates for current networkinfrastructure.

4. Conducting current networkinfrastructure gap analysis.

5. Identifying potential cost savings in the current network.

By leveraging the Accenture NetworkAssessment diagnostic, our clients gain a better understanding of where theirorganization’s communicationsnetwork stands in comparison toindustry standards, best practices andpossible risk points. Overallperformance improvements can bedramatic because the cost savingsidentified can be significant. Based onAccenture experience, a networkassessment can result in:

• 20 to 40 percent reductions in data communications expenditures.

• 20 to 30 percent reductions in voice expenditures.

How can I improve my networking capabilities? The journey to high-performance networking beginswith a deep understanding of your organization’slong-term business or strategic goals. From those,one can then conduct a realistic assessment ofwhere your networking capabilities stand incomparison to your requirements, industry standardsand best practices. Additionally, it is important toassess the possible risks your organization faces dueto your existing networking infrastructure.

Accenture and PPL At PPL, which delivers electricity tocustomers in Pennsylvania, the UnitedKingdom and Latin America, Accentureworked with company personnel toperform a diagnostic review of theirvoice and data network expenditures.Through interviews and documentationanalysis, the Accenture team helpeddetermine future requirements andconstraints for the networkinfrastructure, then provided anoverview and analysis of the currentnetwork infrastructure including:network architecture and design, coststructures, charge back models, servicelevels agreements and organizationalmodels. By teaming with Accenture,PPL was able to identify solutions witha potential cost savings of up to $3million annually.

Many telecom/IT departments find itdifficult to maintain a completeinventory of their network services,either for verification of an invoice orfor service level management, contractmanagement, and for the developmentand procurement of additional services.Financial departments at manyorganizations often cannot fullyunderstand invoices, and do not haveaccess to cost center information. They may also lack the telecomexpertise to allocate charges bynetwork component. In addition, thecomplexity of telecommunicationsprovisioning, billing and regulationsoften leads to billing errors.

Accenture Telecom Expense ManagementThe Accenture Telecom ExpenseManagement offering helps companiesand governments achieve highperformance by delivering cost savingsthrough proactive management oftelecom expenditures. With a provensuite of services, we help identify andcapture opportunities for cost savingswithin your network infrastructure.Working closely with our clients, wefocus on four key delivery areas: • Comprehensive audit• Contract review and renegotiation• Infrastructure optimization• Process and automation design

The Accenture Telecom ExpenseManagement offering helpsorganizations improve overallperformance through cost savings, riskreduction and increased serviceprovider accountability. Typical savingsrange from 10 to 20 percent of annualspending. In fact, Accenture is soconfident of these potential savingsthat we can create deal structures toshare both risks and rewards, includingpayment only after cost savings arerealized.

How can I optimize spending while still enabling the business? Economic challenges today continue to vex networkingdepartments. Already challenged to cut costs without the benefit of falling telecom prices, CIOs also face other challenges.

Accenture and Reliant Resources Accenture has helped several majororganizations with cost reductions andprocess improvements that areimproving overall performance bysaving money and increasingmanagement capabilities. For example,Reliant Resources engaged Accentureto conduct a comprehensive telecomexpense management program for costreduction and avoidance. The workincluded a full audit, optimization andinventory assurance for over 150 sitesthroughout North America. Thanks tothis program, Reliant Resources saved35 percent, or $4.2 million, throughaudit and optimization, and anadditional $1.2 million throughcontract negotiations. Because of thesuccess of this telecom expensemanagement program, Accenture wasretained to re-design and implement aProcure-to-Pay process model forTelecom, which included developingand deploying an inventorymanagement tool.

Accenture Enterprise Network TransformationWith the Accenture Enterprise Network Transformation offering, we work with organizations to helpthem leverage new networktechnologies to fundamentallytransform and simplify their network.The result: better overall performancebased on higher service levels andadditional functionality required tobuild future strategic capabilities.

This Accenture offering containsproven assets and methods in five key areas:

1. Establishing the business oroperational requirements to drivethe entire network transformation.

2. Developing a strategic design thatresults in a single, integrated logicalenterprise network incorporating allnetwork elements.

3. Conducting a sourcing evaluation,which includes outsource dealshaping as well as the realization ofthe solution.

4. Performing a corporate networkupgrade / rationalization to identifyand replace older technologies, and to rationalize protocols andstandardize network devices acrossthe WAN/LAN.

5. Providing management andworkforce performance direction, to help our clients to evaluate andimprove their organizations,operations and personnel.

BenefitsThe Accenture Enterprise NetworkTransformation offering can improveoverall performance throughsignificant savings–from 10 to 30percent annually. In addition,transformation of outsourcing to anoperator can deliver 15 to 25 percentsavings. Enterprise networktransformation reduces costs byrationalizing the network infrastructureand by providing additional capabilitiesusing new technologies.

Network transformation can also:• Provide scalable and flexible

network services. • Enhance network security. • Improve network availability.

How can I transform my networkingfunction to reduce costs and enhance capabilities? The network architecture most commonly deployed inorganizations today attempts to integrate many different servicesand technologies. The result, however, is usually a communicationsenvironment that is complex, heterogeneous, inefficient anddifficult to manage. When organizations have assessed theirexisting network infrastructure, and also gained control of theirtelecommunications costs, they are ready to transform theirexisting network infrastructure into a next-generation IP network.This network is not only simpler, but more cost effective andflexible, because it is standards-based, and often founded upon an outsourced or co-sourced model.

The result: better overallperformancebased on higherservice levels andadditionalfunctionality

The joint Sainsbury’s-Accenture teamfound initially that the management of the existing corporate network hadbecome complex and reactive, withunclear service boundaries leading toservice overlaps, gaps and qualityissues. The existing network (both LANand WAN) was based on oldtechnologies and designs from multiplevendors, which limited the network’sscalability and made it even morecomplex to maintain and manage.

One key objective of thetransformation initiative at Sainsbury’swas to transform the networkingorganization into a network servicesmanager, to benefit from economies ofscale accessible to carriers. Accentureworked with the company to establishboard-level business relationships withthe selected telecom carrier, BT. Thejoint Accenture-Sainsbury’s team alsomaintained tight control of the designand implementation.

After a successful pilot of the newnetworking infrastructure, the teamproceeded with the wider rollout, withapproximately 117 sites migrated in

a week. The team migrated 630 sites in total with no impact to the stores’trading. The LAN rollout timeline wassynchronized with the deployment ofthe re-platformed point-of-salefunctionality. The upgrade wasperformed at the steady rate of 18stores per week.

The benefits realized by Sainsbury’sbecause of this initiative have beenimpressive. The company has alreadyreduced operating costs by 25 percent,while also enjoying improved servicelevels. By teaming with Accenture,Sainsbury’s now has a more flexible,scalable and manageable network. The company has doubled bandwidthto support re-platforming traffic, andnow enjoys flexible bandwidth to its200 largest stores. This networktransformation was an integral part of Sainsbury’s overall IT transformationwhich included outsourcing all aspectsof the food retailer’s informationtechnology infrastructure to Accenture.This strategy resulted in immediatesavings of more than UK £35 million(US$50 million) a year.

Accenture delivers highperformance with EnterpriseNetwork Transformation at Sainsbury’sSainsbury’s, the major UK retailer, worked withAccenture on a sweeping enterprise networktransformation initiative that has deliveredsignificant high-performance business benefits tothe company. An aggressive new management teamat Sainsbury’s used this network transformation asone major tool to improve overall businessperformance in the face of falling profits, lowershare price and significant competitive threats.

The benefitsrealized bySainsbury’sbecause of thisinitiative havebeen impressive.

Although most IT organizations haveaccepted convergence as inevitable,the vast majority of FORTUNE 500®companies and large governmententities do not have a well-developedplan to move forward from atechnology, vendor or businessinvestment perspective.

Accenture Network ConvergenceWith the Accenture NetworkConvergence offering, our experiencednetworking personnel work closelywith your organization to improveoverall performance by deploying anetwork convergence solution. Thissolution can reduce total cost ofnetwork ownership, and also providean opportunity to exploit newtechnologies to offer more advancedofferings to customers and citizens.Thanks to the proven assets within thisoffering, Accenture can provide itsclients a continuous view of thepossibilities presented by suchtechnologies as wireless networks andVoIP services/IP telephony. Importantly,we also help clients design ways to

take advantage of the capabilitiesthese technologies create. Today, manyorganizations fear that they lag behindtheir competitors and peers because ofprevious years’ budgetary constraints.Accenture helps organizations catch upwith the market to leverage emergingtechnologies and exploit newcapabilities to achieve highperformance.

BenefitsWith this offering, Accenture canimprove overall performance bydelivering substantial cost reductionsand operational efficiencies. Theseinclude:

• 10 to 25 percent reductions in capital expenditures, primarily through consolidation.

• 20 to 40 percent reductions in operational expenditures, through lower voice network costs and reduced maintenance of separate telephony and data networks.

• Two to five percent increases in operational efficiency, through new communications services and messaging capabilities.

Accenture and Brighthouse Networks Accenture worked with BrighthouseNetworks to help the company developa new enterprise voice infrastructureto improve the overall customerexperience through a best-in-classapproach. Standards-based equipmentenabled Brighthouse to build upontechnology advances—such as callprocessing, call signaling and networkquality of service—that will enablecontact center agents to takeadvantage of new capabilities. Benefitsto Brighthouse have already beensignificant. Overall, Brighthouseexpects to realize a net benefit of $1.9million, representing a 12 percentreturn on its investment.

How can I capitalize onconverging networkingtechnologies? Over the next few years, most organizations will beintegrating IP communications as they transformtheir underlying network infrastructure. Enterprisenetwork technologies are converging on the IPprotocol to provide next-generation networkservices to enterprise customers, citizens and users.

Outsourcing the network alongwith other major functions canensure that organizations areproperly:

• Leveraging assets, scale and global sourcing to achieve cost-effective delivery, and the next increment of savings from their infrastructure.

• Getting to the end state quicker. Once organizations determine wherethey want to take their infra-structure, they can best leverage outsourcing to quickly reach their destination.

• Controlling the end-to-end value chain during ongoing operations, so that the underlying delivery vehiclescan achieve the greatest performance from both applications and business processes.

Accenture Network ManagementAs part of an integrated outsourcingoffering, Accenture provides secureand optimized network managementthat helps improve overallperformance. We leverage aggregatedpurchasing, centralized resourcemanagement, global best practicesand the industrialized capabilities ofour integrated Command Center andGlobal Network Operations Centers tohelp organizations maintain lowercosts, continuously improveproductivity and take advantage ofevolving technologies over the longterm.

Accenture provides planning, designand analysis, implementation andmigration and ongoing managementfor technologies that provide secure,real-time and asynchronous voice anddata communications within andbetween client locations and toexternal entities. These include:

• Data services: LAN, WAN, remote access, IP services, predictable performance, application aware networks and facsimile services.

• Voice services: Office telephony, telecom expense management, interoffice telephony, personal communications and voice messaging.

• Audio, video and data conferencing services.

• Security services: firewall management, intrusion detection, identity management and security policy.

The Accenture Network ManagementOffering can help companies achievehigh performance in several ways:

• Lower support costs through simplified networks, global sourcing and reduced management resources.

• Lower bandwidth costs (30 to 65 percent) through better utilization.

• Flexibility to respond to business needs in a dynamic environment.

• A highly reliable and secure network infrastructure and predictable service.

How can I derive long-term, continuousbenefits from network transformation?Businesses and governments can further enhance the centralization and convergence of networks through outsourcing.

Accenture IP EverywhereFrom a networking perspective,ubiquitous access to information means“IP is everywhere.” Some studies havefound that more than 90 percent oforganizations either have or plan tohave wireless access as part of theircorporate network within the next fewyears. Yet moving forward costeffectively can be a challenge. TheAccenture IP Everywhere offering buildson innovative thinking and Accenture’swide range of experience and assets inthe emerging world of IP solutions. Theoffering contains two streams ofservices to help our clients deploywireless technology and enterprisemobile services to prepare for thecoming world of ubiquitous access:

• Our Wireless offering includesservices such as a review of wirelesscapabilities and security risks, and thedevelopment of a comprehensivewireless business plan for bothwireless infrastructure and mobileservices. The offering also includeswireless LAN implementation, and thedesign and deployment of enterprisemobile IP using a Wi-Fi infrastructure.

• Our Mobile offering services includethe design and deployment of amobile network and GPRS/3G-basedservices for Organizations. We alsohelp clients design and deployinfrastructure to support Hotspotservices, as well as next-generationVoIP mobile solutions integrating Wi-Fi/GPRS/3G.

BenefitsThe Accenture IP Everywhere offeringdelivers a number of important benefitsto organizations as they pursue amobile strategy, including:

• Reduced risks of implementation byleveraging Accenture’s experience andmethodologies, as well as a best-of-breed, vendor-neutral approach.

• Reduced operational costs by using a standardized wireless platform (Service Delivery Platform) across the organizations.

• More rapid delivery of value through faster deployment and a more viable business case.

How can I position my network to support moreadvanced business processesand applications? For decades, a common and compellingtechnological vision has been a world of anywhere,anytime access to all the information anorganization, consumer or citizen could wish for. This utopia is not here yet, but it’s on the way.Complete application mobility via wireless datanetworks has been more hype than reality.Nonetheless, the recent deployment of WLANs and2.5G networks has pointed the way to the future.Early adopters have demonstrated excellent returnon their investments in wireless data networks andmobility applications.

The Accenturedifference:Delivering high-performancenetworking servicesAccenture works closely with clientsusing a proven set of offerings, deep business and technology skillsand the combined resources availablethrough a broad range of allianceswith leading network vendors and all major service providers.

With these resources and assets,Accenture is helping organizationsfrom all industries and governmentsachieve high performance throughworld-class networking infrastructures.These new capabilities are producingmeasurable improvements in overallbusiness and operational performance.

Accenture creates networkinginfrastructure strategies thatcontinually optimize cost efficiencyand operational effectiveness. We identify areas of savings to justifyinvestments; on average, our clientssave between 15 and 25 percent onannual network costs. Importantly,Accenture offers deals based onbusiness-based outcomes, and we offer flexible business arrangements to suit any organization’s needs.

About AccentureAccenture is a global managementconsulting, technology services andoutsourcing company. Committed todelivering innovation, Accenturecollaborates with its clients to help thembecome high-performance businesses andgovernments. With deep industry andbusiness process expertise, broad globalresources and a proven track record,Accenture can mobilize the right people,skills and technologies to help clientsimprove their performance. With more than115,000 people in 48 countries, thecompany generated net revenues ofUS$13.67 billion for the fiscal year endedAug. 31, 2004. Its home page iswww.accenture.com.

Copyright © 2005 AccentureAll rights reserved.

Accenture, its logo, andHigh Performance Deliveredare trademarks of Accenture.

ContactFor more information on howAccenture can help your organizationachieve high performance throughadvanced networking capabilities,contact:

Jamie GyldenGlobal Enterprise Network Services Leadjamie.j.gylden@accenture.com +33 4 9294 7561

Eric DaumieresEnterprise Network Services Lead,Europe, Middle East & Africia eric.daumieres@accenture.com + 33 4 9294 7506

Michael KernEnterprise Network Services Lead,Americasmichael.d.kern@accenture.com + 1 650 213 2033

Nicholas MurrayEnterprise Network Services Lead, Asia Pacificnicholas.murray@accenture.com +613 9838 7112

Yasunari MoriEnterprise Network Lead, Japanyasunari.mori@accenture.com +813 5771 3107