For these specific reasons, IT departments have to constantly transform the IT landscape to remove redundancies and get rid of obsolete applications while incorporating new applications and improving existing ones. The difficulty is that many IT departments don’t have a clear view of the value and lifecycles of their assets, and are unable to make well-informed decisions about the evolution of their IT portfolio. They are also unable to properly prioritize transformation projects and have difficulty measuring the impact of transformation on their IT portfolio.
A 3-stage framework is recommended to effectively transform the IT portfolio: the first and second stages consist of creating an inventory and assessing IT assets. The third stage is about transforming the IT landscape based on the outcome of the first two stages.
There are 5 keys to consider when transforming the IT portfolio:
It is key to understand the lifecycle of each of your applications and get a clear view of when applications will be in preparation, in production or retired. For example, if you know when an application is planned to be retired, you can coordinate its replacement by identifying dependencies and the impact on the business, and take the appropriate actions.
To transform your IT portfolio, it is key to understand the value of your assets. To do so, you need to define criteria to assess your assets, such as costs, value for the business, technical efficiency, or other custom criteria that you think is relevant to your activity. You can then rank all of your applications from your portfolio and have a better view on which applications to invest in, tolerate, migrate or phase out.
With a clearer view of your IT assets, you can define a mix of transformation initiatives and compile them into different transformation scenarios. The idea is to create transformation scenarios that include a combination of multiple initiatives and each initiative can be turned on or off depending on the outcomes you want to evaluate. You can then get answers to questions like:
By doing so, decision-making is greatly improved and you are in a better position to streamline your IT portfolio.
Another key step in transforming your IT portfolio is to define assessment criteria, such as “risk of feasibility”, “risk on deadlines”, or “transformation costs”. You can then create reports that compare several transformation scenarios and pick the scenario that is most relevant to your organization and your strategic goals based on the analysis of these reports. By doing so, it helps you reduce both the technological and organizational risks of any transformation project.
By creating and comparing multiple transformation scenarios, you will be able to implement the best transformation plan for your organization while improving the overall decision-making process.
Ultimately, an IT portfolio management solution will bring visibility to your IT assets and help you improve agility to support new initiatives while taking control of costs. IT governance principles will be strengthened thanks to the inventory and the evaluation of your IT portfolio. You can seamlessly organize changes to your IT portfolio and improve alignment with LOB managers.
To learn more about the transformation phase of IT portfolio management, download our eBook: 5 Keys to Transform your IT Portfolio and Drive Change.