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, thus driving modernization and long-term IT efficiency.
Application portfolios often grow quietly, leading to a tangle of overlapping technologies that are underutilised. This guide addresses the strategic liabilities created by software sprawl, which can negatively impact everything from cybersecurity to cloud migration feasibility. By applying a disciplined approach to managing application assets, organisations can avoid escalating costs and inefficiencies.
The six-step framework begins with establishing governance and setting the scope, building a complete inventory of existing applications, and scoring them based on business value, technical fit, and total cost of ownership. This iterative and scalable approach integrates future-state planning and includes practical tools like questionnaires and decision matrices for implementation.
Key Points
- A structured six-step framework for application rationalization, from scoping and governance to migration strategy.
- Comprehensive methodology for evaluating applications based on business value, technical fit, and total cost of ownership (TCO).
- Practical tools such as questionnaires, scoring models, and inventory templates.
- Governance models to ensure buy-in and informed decision-making across the organisation.
- Real-world case studies demonstrating successful application rationalization efforts.
Why should I read this?
This article serves as a practical blueprint for CIOs and IT leaders aiming to bring strategic clarity to fragmented and legacy-heavy IT environments. It provides a methodical process for identifying, evaluating, and managing enterprise applications with a focus on reducing costs, improving operational efficiency, and aligning technology portfolios with business strategies. By following this guide, decision-makers can transform application portfolios into assets that support competitive advantage, rather than burdens that hinder progress.
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