Against this backdrop where the customer exerts greater influence and control over the buying decision, organizations are compelled to rethink their relationship with customers, employees, and key stakeholders. This is an exercise in remapping business processes and the IT and applications that drive these processes. In contrast to new entrants who are unburdened by legacy IT and process debt, digital immigrants must confront the enormously complex task of rearchitecting their business without creating disruptions that could compromise product or service quality.
An essential component of this rearchitecting is an assessment of the technology that is being used to run businesses and deliver value to the customer. This exercise begins by creating an inventory of the applications you’re currently running. When business grows, either organically or through acquisitions, the application portfolio expands. As the cost and complexity of supporting an expanding IT portfolio increases, it’s necessary to rationalize and eliminate applications that are no longer essential to support the business’ capabilities. In the absence of modeling tools, this rationalization process can be a complex undertaking. Rationalization, however, is critically important to maintaining IT health; and it doesn’t have to be painful.
A recent Gartner report titled “How to Assess Your Current Application Portfolio Using Fitness and Value Review Processes” provides an excellent summary of why application rationalization is necessary, stating “Application fitness and value may deteriorate over time from business, operational or technical perspectives. This is especially true of the fast-changing demand from digital business that challenges application architectures and impacts application fitness and value.”
Whatever organizational changes your company is working through, how do you determine your application portfolio health and decide which applications to maintain, replace, retire, or consolidate? And as a CIO or CTO, how are you identifying investments in technology to support growth within your organization? A great first step is to develop an application roadmap strategy that leverages the current state IT portfolio and anticipates applications to support emerging business requirements brought on by market changes such as blockchain, AI, machine learning, augmented reality, etc.
An important goal of the rationalization is to eliminate redundant and non-value-adding applications, freeing up budget for new, business-critical work. If slowed down by legacy technology, you can’t keep up with rapid business transformation demands. Here’s the critical point: rapid transformation and an agile IT portfolio are a competitive advantage. While most organizations meet business demand with a strategy of continuous acquisition, this approach is not sustainable. Forward-thinking IT leaders will balance this with continuous, proactive application rationalization as a top priority.
MEGA has partnered with CAST, pioneer and world class leader in software intelligence and analytics, to help clients easily take control of their application portfolio, monitor software health, cloud readiness, complexity, and cost with code-level analytics. This partnership can significantly help IT leaders manage organizational change and application portfolio rationalization by providing information to assist with:
This integration enables clients to quickly and objectively measure software health, risks, complexity, and cost of their application portfolio – in days – allowing for an exclusive insight into application strengths and weaknesses before any investment, rationalization or retirement decision is made on an IT asset.