Accenture: From Arthur Andersen Split to Global Business ServicesAccenture, a leading global professional services company, has a rich history that dates back to the mid-20th century. Founded in 1951 as a consulting division of accounting firm Arthur Andersen, the company went through a split and rebranding process, eventually becoming the Accenture we know today.
This article will delve into the history of Accenture, its business model, mission, and reportable business divisions.
Brief History of Accenture
Accenture traces its roots to a consulting division of accounting firm Arthur Andersen, which helped businesses automate their financial processes using UNIVAC (Universal Automatic Computer). In the 1950s, the company branched out into management consulting and technology services and rapidly expanded its operations across the United States.
In the 1960s, the consulting arm of Arthur Andersen went global and established a presence in Europe, Asia, and South America.
Split from Arthur Andersen and Name Change to Accenture
The relationship between Arthur Andersen and its consulting division became strained in the 1990s, leading to a dispute over ownership. The consulting arm, fearing a conflict of interests, reached an agreement to separate from Arthur Andersen and became an independent entity in 2001.
The company then changed its name to Accenture, derived from “accent on the future,” to reflect the shift towards high-performance business and technology consulting. Accenture went public and debuted on the New York Stock Exchange with an initial public offering (IPO) of $1.7 billion, the biggest ever for a consulting firm.
Accenture Overview
Accenture’s Business Model and Service Delivery
Accenture is a professional services firm that offers a range of consulting, technology, and outsourcing services to clients in various industries. Its business model is based on delivering “as-a-service” solutions, which allow clients to access services on-demand and scale their operations as needed.
The company’s core services include strategy consulting, digital transformation, analytics, and software engineering. Accenture has also developed a suite of specialized offerings for clients in specific industries such as financial services, healthcare, and energy.
Accenture’s Mission Statement
Accenture’s mission statement is to “help clients create their future.” This reflects Accenture’s strong focus on using innovation and technology to help clients stay ahead of the curve and transform their businesses for the digital age. The mission statement is supported by Accenture’s core values, which include stewardship, integrity, respect, and best people.
Accenture’s Reportable Business Divisions
Accenture’s business is organized into five reportable segments: Communications, Media & Technology; Financial Services; Health & Public Service; Products; and Resources. Each of these divisions caters to specific industries, providing tailored services and solutions to clients.
The Communications, Media & Technology division offers services to media, high-tech, and telecommunications clients. The Financial Services division caters to clients in banking, insurance, and capital markets.
The Health & Public Service division serves healthcare, public service, and life sciences clients. The Products division provides services to clients in consumer goods, retail, and travel industries.
The Resources division caters to clients in the energy, utilities, and natural resources sectors.
Conclusion
In conclusion, Accenture’s history, business model, mission, and reportable business divisions provide a glimpse into how the company has grown to become a leading global professional services firm. Accenture’s focus on innovation, technology, and talent has enabled it to help clients achieve their goals and stay ahead of the curve in an ever-changing marketplace.
With a strong commitment to excellence and delivering value to clients, Accenture continues to be a trusted partner for businesses worldwide.
Accenture Financials
As a publicly-traded company, Accenture has a broad base of shareholders and ownership. As of 2021, the top shareholders of Accenture are financial institutions like Vanguard Group and BlackRock, which hold more than 10% of the company’s shares each.
Vanguard Group is the largest shareholder, owning 8.68% of the company. Other major shareholders include State Street Corporation, Capital Research, and Management, and Fidelity Management and Research.
Accenture’s revenue streams come from a combination of outsourcing, consulting, and technology services. The company derives most of its revenue from outsourcing, which involves providing clients with services like back-office support, application maintenance, and infrastructure management.
Accenture also provides consulting services to help clients with complex business challenges, such as strategy development, mergers and acquisitions, and digital transformation. The technology services Accenture provides include software development, cloud computing, cybersecurity, and analytics.
Accenture Value Propositions
The value propositions of Accenture are centered on accessibility, customization, and innovation that make it stand out among the professional services firms. Accenture has a strategic approach to making its offerings accessible to clients.
The company leverages its global network of professionals and resources to deliver services that are local, available 24/7, and delivered with speed and agility. This approach allows clients to receive services that are customized to their unique needs while benefiting from Accenture’s global reach and expertise.
Customization is a hallmark of Accenture’s service delivery. The company recognizes that every client is unique and that one size cannot fit all in terms of solutions.
That’s why Accenture takes a consultative approach to designing and delivering services that meet the specific needs of each client. This approach involves collaborating with clients to identify challenges and opportunities, developing custom solutions, and delivering measurable results.
Innovation is at the core of Accenture’s value proposition. The company invests heavily in research and development (R&D) to stay ahead of the curve in emerging technologies and trends that are shaping businesses and industries globally.
Innovation is integrated into Accenture’s service delivery through investments in digital technologies like artificial intelligence, cloud computing, and data analytics. By offering innovative solutions, Accenture helps clients achieve their goals in new and creative ways.
Brand and Reputation
Accenture’s brand and reputation form an integral part of the company’s value proposition. Accenture’s brand is widely recognized as a symbol of excellence and innovation in the professional services industry.
The brand reflects Accenture’s commitment to quality, integrity, and exceptional service delivery. The company’s reputation is built on an unwavering dedication to providing clients with the highest level of service, creating value, and fostering long-term relationships.
Accenture’s reputation is also built on its strong commitment to responsible business practices. The company places high value on corporate responsibility and sustainability, and it has set ambitious goals in areas such as environmental stewardship and community engagement.
Accenture has been recognized globally for its efforts in these areas, including being named one of the World’s Most Ethical Companies by the Ethisphere Institute for 12 consecutive years.
Conclusion
In conclusion, Accenture’s financials, value propositions, and brand and reputation demonstrate the company’s commitment to excellence and innovation. By leveraging its global reach, customizing its offerings, and investing in emerging technologies, Accenture continues to provide exceptional services to clients across various industries.
Its brand reputation and commitment to responsible business practices make it a trusted partner for businesses worldwide. Overall, Accenture’s financial health, value proposition, and brand strength position it to remain a leader in the professional services industry for years to come.
Accenture Channels
Accenture uses a range of channels to connect with clients and stakeholders, including personal relationships, advertising, and social media. These channels vary in their degree of personalization and reach, but they all play an important role in building and maintaining relationships with key audiences.
Personal Relationships
Personal relationships are a key channel for Accenture, and the company’s professionals work closely with clients to understand their business needs and goals. Accenture’s approach to personal relationships involves developing trust and building long-term partnerships with clients.
The company’s professionals become trusted advisors, providing valuable insights, advice, and guidance to help clients achieve their goals.
Advertising
Advertising is another important channel for Accenture. The company uses a range of advertising strategies, including TV, print, and digital ads, to promote its brand and services.
Accenture’s advertising campaigns focus on themes like innovation, digital transformation, and high-performance business. The goal of these campaigns is to position Accenture as a leader in the professional services industry and to generate awareness and interest in its offerings.
Social Media
Social media is an increasingly important channel for Accenture, and the company has a strong presence across a range of platforms, including LinkedIn, Twitter, and Facebook. Accenture uses social media to share insights, thought leadership, and news about the company and its services.
Social media is also a key platform for engaging with clients, partners, and stakeholders, providing a space for conversation and collaboration.
Accenture Customer Relationships
Accenture places a strong emphasis on building and maintaining strong relationships with its clients, and its approach to customer relationships is focused on personalized assistance, collaboration, and the use of infographics and reports.
Personalized Assistance
Accenture provides personalized assistance to clients, helping them navigate complex business challenges and delivering customized solutions. This approach involves working closely with clients to understand their specific needs and goals, and developing tailored solutions that meet those needs.
Accenture’s professionals act as trusted advisors, providing expertise, insights, and guidance to help clients achieve their desired outcomes.
Collaboration
Collaboration is a key aspect of Accenture’s approach to customer relationships. The company works closely with clients to build partnerships and foster collaboration that leads to long-term success.
Accenture collaborates with clients to identify opportunities for improvement, co-create solutions that meet the client’s needs, and provide ongoing support and guidance.
Infographics and Reports
Accenture also uses infographics and reports as part of its customer relationship strategy. These materials are designed to present complex information in a clear, easy-to-understand format that helps clients make informed decisions.
Accenture leverages its deep expertise and knowledge to create high-quality infographics and reports that provide insights into industry trends, best practices, and innovative new solutions.
Conclusion
In conclusion, Accenture’s channels and customer relationships demonstrate the company’s commitment to personalized, collaborative, and informative support for its clients. By leveraging personal relationships, advertising, and social media, Accenture can reach a broad range of stakeholders and build strong connections with them.
Meanwhile, its emphasis on personalized assistance, collaboration, and the use of infographics and reports help clients understand complex information and co-create tailored solutions. Overall, Accenture’s channels and customer relationships reflect the company’s commitment to providing exceptional service and building long-term partnerships with clients.
Accenture Key Resources
Accenture relies on a diverse range of key resources to deliver its services effectively. These key resources include digital marketers, big data specialists, web developers, and data scientists.
Each of these resources plays a critical role in enabling Accenture to deliver innovative solutions and drive meaningful outcomes for its clients.
Digital Marketers
Digital marketers are an essential resource for Accenture’s success. In today’s digital landscape, marketing has evolved to become a data-driven and technology-centric discipline.
Digital marketers at Accenture have expertise in areas such as search engine optimization (SEO), content marketing, social media marketing, and digital advertising. They help clients develop and implement digital marketing strategies that drive brand visibility, customer engagement, and revenue growth.
Big Data Specialists
In an era where data is increasingly recognized as a valuable asset, big data specialists are instrumental in Accenture’s ability to derive meaningful insights from vast amounts of data. These specialists have expertise in data architecture, data management, data analysis, and machine learning.
They develop sophisticated data models and algorithms, leveraging tools and technologies that enable the efficient processing, aggregation, and analysis of data. Big data specialists help reveal patterns, trends, and predictive insights that inform strategic decision-making and drive business performance.
Web Developers
Web developers are an essential resource within Accenture’s technology services division. They possess advanced skills in web development languages and frameworks, such as HTML, CSS, JavaScript, and various content management systems.
Web developers collaborate with clients to design and build websites, web applications, and e-commerce platforms that provide engaging user experiences and drive business growth. Their expertise ensures that clients have robust and well-optimized digital assets that effectively serve their target audiences.
Data Scientists
Data scientists are key resources within Accenture’s analytics and artificial intelligence capabilities. They possess a unique combination of statistical and computational skills, enabling them to extract meaningful insights from complex and diverse datasets.
Data scientists at Accenture leverage advanced analytics techniques, machine learning algorithms, and data visualization tools to uncover hidden patterns, make accurate predictions, and generate actionable recommendations. Their expertise helps clients harness the power of data to optimize operations, improve decision-making, and drive innovation.
Accenture Key Activities
One of Accenture’s key activities is the development of problem-solving services for its clients. The company’s exceptional problem-solving capabilities differentiate it in the professional services industry.
Accenture’s teams of experts work closely with clients to understand their challenges and design tailored solutions that address specific business needs. Accenture’s problem-solving approach involves a combination of data-driven insights, industry expertise, and a deep understanding of emerging technologies.
The company leverages its diverse pool of talent and resources to develop innovative strategies that help clients transform their operations, drive growth, and achieve lasting success. In addition to problem-solving, Accenture’s key activities also include the delivery of a wide range of services across its reportable business divisions.
These services span various industries and encompass strategic consulting, technology implementation, change management, and ongoing operational support. Accenture’s professionals engage with clients at every stage of the service delivery lifecycle, from initial requirements gathering and analysis to implementation, training, and post-implementation support.
Moreover, Accenture’s key activities also encompass continuous learning and innovation. The company invests heavily in research and development to stay ahead of industry trends and emerging technologies.
By fostering a culture of innovation, Accenture continually explores new ways to solve complex business challenges and deliver value to its clients.
Conclusion
In conclusion, Accenture’s key resources, including digital marketers, big data specialists, web developers, and data scientists, are integral to the company’s ability to provide innovative solutions and drive meaningful outcomes for its clients. These resources bring deep expertise in their respective areas, enabling Accenture to deliver sophisticated marketing strategies, derive valuable insights from data, build user-centric digital assets, and develop advanced analytics capabilities.
Furthermore, Accenture’s key activities, which center around problem-solving and delivery of a range of services, demonstrate the company’s commitment to addressing clients’ unique challenges and providing comprehensive support throughout the service delivery process. Through its key resources and activities, Accenture continues to be a leader in the professional services industry, empowering clients to achieve their strategic objectives and drive sustainable business growth.
Accenture Key Partners
Accenture collaborates with a network of key partners to enhance its capabilities and deliver value-added solutions to its clients. These key partners include technology companies, web service providers, and software companies.
Through strategic partnerships, Accenture is able to leverage the expertise and resources of these companies to augment its service offerings and provide comprehensive solutions to a broad range of clients.
Technology Companies
Technology companies are important key partners for Accenture. These companies provide cutting-edge technologies, tools, and platforms that enable Accenture to deliver innovative and transformative solutions to its clients.
By partnering with technology companies, Accenture gains access to the latest advancements in areas such as cloud computing, artificial intelligence, Internet of Things (IoT), and cybersecurity. This collaboration allows Accenture to incorporate state-of-the-art technologies into its service offerings, helping clients harness the power of digital transformation and stay ahead in a rapidly evolving business landscape.
Web Service Providers
Web service providers play a crucial role in Accenture’s digital initiatives. These partners provide the infrastructure, hosting services, and technical support necessary for Accenture’s digital solutions to thrive.
Through partnerships with web service providers, Accenture can deliver seamless and scalable digital experiences to its clients across various platforms and devices. These collaborations ensure that Accenture’s digital solutions are reliable, secure, and optimized for performance.
Software Companies
Software companies are key partners for Accenture, particularly in the development and implementation of enterprise software solutions. By partnering with software companies, Accenture gains access to a wide range of industry-specific software applications, platforms, and tools.
These collaborations enable Accenture to deliver tailored solutions that meet the unique requirements of its clients across different sectors. Through its partnerships with software companies, Accenture can leverage pre-built software components, accelerate implementation timelines, and ensure that its clients have access to the most up-to-date software solutions available in the market.
Accenture Cost Structure
Accenture’s cost structure is composed of various cost elements that are essential to its operations. These include administration costs, sales and marketing expenses, and subcontractor and compensation costs.
Administration Costs
Administration costs encompass the expenses associated with managing Accenture’s operations and support functions. These costs include salaries and benefits for administrative staff, office rent, utilities, and other overhead expenses.
Efficient administration is crucial for ensuring the smooth running of the organization and supporting the delivery of services to clients.
Sales and Marketing Expenses
Sales and marketing expenses are essential for promoting Accenture’s services and acquiring new clients. These expenses cover activities such as advertising, market research, sales force salaries and commissions, client engagement events, and branding initiatives.
Sales and marketing efforts are aimed at enhancing Accenture’s visibility, generating leads, and building relationships with potential clients. These expenses are crucial investments in Accenture’s growth and market positioning.
Subcontractor and Compensation Costs
Subcontractor and compensation costs are an integral part of Accenture’s cost structure. Accenture often utilizes subcontractors and external consultants to deliver specific services or expertise to its clients.
These costs cover the fees, wages, and benefits paid to subcontractors and external consultants who work on client projects alongside Accenture’s own employees. Compensating Accenture’s talented professionals is also a significant part of the cost structure, ensuring that the company attracts and retains top talent to deliver exceptional service to clients.
Conclusion
In conclusion, Accenture’s key partners, which include technology companies, web service providers, and software companies, play a crucial role in enhancing the company’s capabilities and enabling the delivery of comprehensive solutions to its clients. Through strategic partnerships, Accenture can leverage the latest technologies, infrastructure, and software applications to drive innovation and digital transformation.
Additionally, Accenture’s cost structure is composed of various elements, including administration costs, sales and marketing expenses, and subcontractor and compensation costs. These costs are essential for the smooth functioning of the organization, supporting the delivery of high-quality services, and driving business growth.
In summary, Accenture’s partnerships and cost structure are key components of its overall business model, enabling the company to maintain its position as a leading global professional services firm and facilitate the success of its clients in an ever-changing business landscape.
Accenture Competitors
Accenture operates in a highly competitive marketplace, where it faces competition from a range of companies offering similar services. Some of the key competitors of Accenture include McKinsey & Company, Boston Consulting Group, Bain & Company, Tata Consultancy Services (TCS), Price Waterhouse Coopers (PwC), IBM, Deloitte, and Genpact.
These companies are renowned in the professional services industry and compete with Accenture for market share and client engagements. McKinsey & Company, Boston Consulting Group, and Bain & Company are all prestigious management consulting firms that offer a wide array of strategy and management consulting services.
They are known for their deep industry expertise, rigorous analytical methodologies, and strategic insights. These companies attract clients seeking comprehensive strategic advice and guidance to drive organizational transformation and growth.
Tata Consultancy Services (TCS) is a global IT services and consulting company that competes directly with Accenture in the technology services space. TCS has a strong focus on digital transformation, providing clients with services ranging from software development and system integration to cloud computing and data analytics.
TCS leverages its global delivery model and extensive domain expertise to deliver end-to-end solutions to clients across various industries. Price Waterhouse Coopers (PwC) has a diverse portfolio of services, including consulting, tax advisory, assurance, and digital transformation.
PwC competes with Accenture primarily in areas such as strategy consulting, risk management, and digital innovation. PwC’s strengths lie in its deep industry knowledge, extensive global network, and multidisciplinary approach to problem-solving.
IBM is a global technology company that offers a broad range of services, including consulting, software development, hardware, and cloud infrastructure. IBM competes with Accenture in areas such as digital transformation, IT strategy, and enterprise software solutions.
With its long-standing industry experience and expertise in emerging technologies like artificial intelligence and blockchain, IBM remains a strong competitor for Accenture. Deloitte is another major player in the professional services industry, offering a wide range of services including consulting, tax advisory, audit, and risk management.
Deloitte competes with Accenture in various areas such as strategy consulting, digital transformation, and technology implementation. Deloitte’s industry-specific expertise and strong global presence are key factors that contribute to its competitiveness.
Genpact is a global professional services firm that specializes in business process outsourcing (BPO) and digital transformation services. While Genpact primarily focuses on BPO, it also competes with Accenture in areas such as analytics, digital innovation, and process optimization.
Genpact’s strengths lie in its deep domain expertise and its ability to drive operational efficiencies for clients.
Accenture SWOT Analysis
Strengths
Accenture has several strengths that contribute to its success and competitiveness in the professional services industry.
One of its key strengths is its distinguished reputation.
Accenture has built a strong brand name over the years, known for its quality services, innovation, and client-centric approach. This reputation helps Accenture attract top talent and secure trust and loyalty from its clients.
Another strength of Accenture is its robust clientele connection. The company has a wide and diverse client base across various industries, ranging from Fortune 500 companies to government organizations.
This broad clientele provides Accenture with valuable insights into different industries and allows the company to cross-pollinate ideas and best practices across sectors. Accenture’s client-friendly environment is also a strength.
The company takes pride in fostering a collaborative and inclusive environment where professionals work closely with clients, understand their needs, and develop tailored solutions. This client-centric approach helps Accenture build strong relationships and deliver customized services that meet specific client requirements.
Accenture’s diverse capabilities are another strength. The company offers a wide range of services across consulting, technology, and outsourcing, enabling it to provide comprehensive end-to-end solutions to clients.
This breadth of capabilities allows Accenture to address complex business challenges, maximize synergies across projects, and deliver integrated solutions that drive meaningful outcomes for clients. Furthermore, Accenture’s professionals and experts are a significant strength.
The company attracts and retains highly skilled individuals who bring diverse backgrounds, industry knowledge, and technical expertise to the table. Accenture’s professionals are known for their deep domain expertise, innovation mindset, and commitment to solving clients’ most pressing challenges.
Weaknesses
One weakness that Accenture faces is the potential for poor coordination across its vast organization. Due to its global presence and a wide range of service offerings, ensuring seamless coordination and collaboration across different teams and projects can be a challenge.
Poor coordination may lead to inefficiencies, delays, and potential misalignment with client requirements. Another weakness of Accenture is its dependence on consultancy services.
While consultancy services are a core component of Accenture’s business model, heavy reliance on this service line may limit the company’s ability to diversify its revenue streams and maintain resilience during economic fluctuations. A potential overreliance on consultancy may expose Accenture’s business to risks associated with fluctuations in demand for consulting services.
Opportunities
There are several opportunities that Accenture can capitalize on to further enhance its market position and growth.
One opportunity lies in potential mergers and acquisitions (M&A).
Strategic M&A activities can help Accenture expand its capabilities, enter new markets, and acquire specialized talent or technology. M&A can also allow Accenture to stay at the forefront of emerging technologies and trends, giving the company a competitive edge.
Additionally, the rise of new green laws and regulations presents an opportunity for Accenture. As organizations increasingly focus on sustainability and environmental responsibility, there is a growing demand for consulting and advisory services related to green practices and sustainability strategies.
Accenture can leverage its expertise to assist clients in navigating these evolving regulatory landscapes and developing sustainability initiatives that align with their business goals. Furthermore, low inflation rates in certain regions can stimulate economic growth and increase investment in professional services.
Lower inflation rates can boost business and consumer confidence, leading to increased demand for services such as consulting, technology implementation, and process optimization. Accenture can seize this opportunity by leveraging its market presence and expertise to capture new clients and expand its service offerings.
Threats
One of the threats that Accenture faces is the irregular supply of exclusive items that may impact its service delivery. Accenture heavily relies on sophisticated technologies, software applications, and specialized tools to deliver its services.
Disruptions in the supply chain, issues with timely software updates, or the availability of exclusive licenses may pose challenges and hinder Accenture’s ability to deliver projects on time and within budget. Competition is another threat to Accenture.
The professional services industry is highly competitive, and Accenture faces intense competition from its peers, as well as emerging players and niche specialists. These competitors, such as McKinsey & Company, Boston Consulting Group, and Tata Consultancy Services, have establi