Accenture buys Australian creative consultancy firm 2nd Road

29 November 2016 Consultancy.com.au

Accenture has acquired Australian-based design consultancy firm 2nd Road. The acquisition boosts the firm’s presence in the design and creative space allowing it to better serve the holistic needs of clients in a rapidly changing business environment, according to the Accenture’s management team.

2nd Road is an Australian strategy, innovation and organisational systems consultancy firm. The firm, which is located in Sydney, mixes design and innovation with wider business consultancy techniques to meet the rapidly transforming needs of clients. The firm employs 22 people, including strategists, designers and influencers.

“I founded 2nd Road because I saw rising demand for something fresh and different to conventional management practices, and I knew that by bringing together the power of analytics and creative thinking, I could fill a gap in the market", said Tony Golsby-Smith, owner and Chief Executive Officer of 2nd Road.

Accenture buys  Australian creative consultancy firm 2nd Road

2nd Road, after 13 years of operating independently decided to join Accenture Australia. Accenture Australia is one of Accenture’s largest country organisations bring in approximately $1.5 billion in annual revenue. The addition will provide Accenture with additional capacity in the design sphere, which reflects a greater trend in the consulting scene worldwide. The move will provide Accenture with a new set of industry solutions to meet the needs of a disruptive business environment in Australia.

“Business leaders in all industries are facing unprecedented levels of disruption and technology transformation, which is driving a sense of urgency to do things differently. The acquisition of 2nd Road boosts our ability to use innovation to co-create the future state for our clients and design the strategies that will drive real change for them", explains Mark Knickrehm, Group Chief Executive at Accenture Strategy.

Accenture’s will integrate 2nd Road into its Strategy practices, and for the time being, 2nd road will continue to operate from its base in Sydney.

Luca Martini, a Managing Director at Accenture Strategy in Australia, commented on the acquisition, “Combining Accenture Strategy’s global capabilities and deep expertise at the intersection of business and technology, with 2nd Road’s innovation and design thinking powered approach to strategy, will help our clients get ahead of the transformation journey and gain competitive edge.”

Deals in the design space

In a bid to ramp up creative offerings, merger & acquisition activity in the design space has been on the rise in recent years. Examples of deals finished in the past year include, Deloitte Digital’s acquisition of Digital One (Poland); Accenture’s purchase of Chaotic Moon (US) and PacificLink (Hong Kong); Synechron’s purchase of Usable (US); Deloitte’s purchase of Heat (US); the deal between Capgemini Consulting and Fahrenheit 212 (US) and IBM’s acquisition of Resource/Ammirati (US).

Accenture Strategy has had a busy couple of years, recently picking up Kurt Salmon's retail arm and Javelin Group in May last year.

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Deloitte bolsters digital capabilities with The Terrace Initiative

19 April 2019 Consultancy.com.au

Global professional service firm Deloitte has bolstered its capabilities in the cloud computing domain through the acquisition of management consultancy The Terrace Initiative, which is based in Perth. The acquisition gives Deloitte access to Alchymy, which is a insight-driven digital portal. 

The Terrace Initiative was established in 2013 as a management consultancy, offering a wide range of services including organisational change management, project management, risk management and business analysis. The firm is based in Perth, with an additional office in Sydney.

The firm offers support with digital transformation and is adept at dealing with services in the Industry 4.0 domain, making it an enticing prospect for Big Four accounting and advisory firm Deloitte. Specifically, Deloitte is aiming to acquire capabilities in Alchymy, which is an insight-enabled change management platform.

Alchymy was devised to cope with the high-speed environment that is characteristic of the contemporary business environment. The firm is hosted in the digital domain, and delivers data-driven insights that are computed in real time on a singular dashboard for organisations.

Deloitte bolsters digital capabilities with The Terrace Initiative

Leaders have an overview of the progress being made in different areas of their organisation, with simultaneous identification of any barriers being faced in any domain. Alchymyst offers visual representation, which enables the quick deciphering of progress and issues, allowing for speedy action. 

The platform will significantly enhance Deloitte’s capabilities. Conditions of the transaction dictate that the joint CEOs at The Terrace Initiative – Melissa Bell and Corrie Scheepers – will join Deloitte at a Partner level, and will lead a new change management division. All roughly 50 The Terrace Initiative employees will also join the big four accounting and consulting giant.

The acquisition comes amid a period of expansion for Deloitte Australia. Since the start of this year, the firm has made a foray into the New Zealand market with its digital vertical, in addition to the acquisition of risk consultancy Converging Data Australia.

Managing Partner of Consulting at Deloitte, Kaylene O’Brien, said of the acquisition, “The digital age is driving organisational change at an unprecedented rate. Managing the human aspects of these changes is incredibly complex and generates large amounts of data that has traditionally been hard to capture and interpret.”

David Brown, Leader of Human Capital at Deloitte added, “The world of work is rapidly changing. The future of work, workers and the workplace are all being disrupted by technology, in a myriad of ways. Successful change initiatives and inspired cultures rely on agile, flexible and innovative leaders, and the effective use of data will become increasingly important.”