Application Rationalization Guide: A Proven 6-Step Framework
This application rationalization guide delivers a proven 6-step framework to assess application value, reduce portfolio sprawl, and improve alignment between IT systems and business strategy. It includes tools for scoring applications, evaluating total cost of ownership, and building future-state migration plans, aiding in long-term IT efficiency and modernization.
Over time, application portfolios can grow quietly into a tangled web of overlapping technologies, leading to reduced agility and increased costs. This guide addresses the strategic liability of software sprawl by introducing a disciplined approach for managing application assets. The framework promotes informed decision-making regarding which tools should be invested in, retained, or retired, thereby optimising IT resources.
The six-step process begins with governance and scope definition, followed by inventorying existing applications. Applications are evaluated based on business value, technical fit, and total cost of ownership using a standardised methodology that promotes transparent, data-backed decision-making. This iterative process allows for scalability and strategic alignment, integrating future-state planning for cloud adoption or cost recovery.
This guide also includes practical tools such as sample questionnaires, scoring templates, decision matrices, and real-world case studies to illustrate successful application rationalization efforts.
Key Points
- A structured six-step framework facilitates application rationalization from governance to migration strategy.
- The methodology evaluates applications based on business value, technical fit, and total cost of ownership (TCO).
- Practical tools include questionnaires, scoring models, and inventory templates for effective application management.
- Governance models and stakeholder engagement strategies support informed decision-making across the organisation.
- Real-world case studies illustrate successful application rationalization and the lessons learned.
Why should I read this?
This guide is essential for CIOs and IT leaders aiming to streamline fragmented and legacy-heavy IT environments. By providing a systematic approach for identifying and managing enterprise applications, it helps organisations transition from maintaining systems to mastering them, ultimately enabling better alignment with business strategies and enhancing operational efficiency.
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