Reduce Costs and Improve Supportability
Over the years, organizations tend to acquire more and more applications to meet the business needs or through mergers and acquisitions. However, they often don’t have the discipline or time/funding to remove older, obsolete, or duplicate applications. These older applications generally run on inflexible legacy systems and while their core functions are essential to running the business, they can be a major drag at the same time.
Today, approximately 70% of all application costs are spent on maintenance and support. This “keep-the-lights-on” spending takes away resources that could otherwise be used to innovate and help grow the business.
IT leaders must focus on continuous life cycle management of the application portfolio, conduct regular portfolio rationalization reviews, identify the applications with the worst performance in terms of meeting business needs in a cost-effective and reliable manner, and create an objective framework for assessing applications, and deciding whether to retire, consolidate, replace or modernize them.
Applications rationalization is the first and most critical step in transforming IT environments to help drive innovation. Applications rationalization helps organizations fully understand their applications portfolio and create an applications transformation roadmap, along with its supporting business case.
Many IT organizations are making transformation plans with a new technology refresh cycle for moving to virtualization technology, to converged infrastructure, or even to cloud. These technology strategies will be more effective if first consideration is given to the applications that run on them through a rationalization initiative.
For an independent, unbiased assessment of the application inventory, costs, resources, and value, organizations should consider partnering with an expert applications services provider. This will enable a more objective evaluation of the applications portfolio with a view that is not hampered by internal employees trying to protect their turf.
ComTec follows an analytical and structured approach for the application rationalization.
- Application Inventory Gather details such as business purpose, technology, business owner, support costs, etc. of both IT supported and business supported applications. The support cost should include internal IT costs, external services costs, licensing costs, hosting costs, and other support related costs.
- Application-to-Business (A2B) Process Mapping Map each application to business processes.
- Identify Redundancies Based on the A2B Mapping, identify applications that are serving the same business needs
- Functional & Technical Analysis Determine the “business value” by combining the functional quality and technical quality of each application. Survey the business users of applications to determine functional quality and IT technical support staff to determine how well each application meets expectations for technical standards and practices such as reliability, scalability, interface complexity, data integrity, and support risk.
- Application Dispositioning Based on the above steps, assess each application and decide whether to retire, consolidate, replace or modernize.
- Application Roadmap Create a target landscape and road map to consolidate and simplify the applications portfolio to reduce redundancies, improve effectiveness, and save on support costs.