Application Portfolio Rationalization Declutter your application … · 2020-02-12 · Application...
Transcript of Application Portfolio Rationalization Declutter your application … · 2020-02-12 · Application...
Application Portfolio Rationalization
Declutter your application landscape
March 2016
Application Portfolio Rationalization (APR)
High IT complexity slows down business by limiting flexible
reaction to changed client expectations and requirements
Negative impacts include…
• Business growth limited through IT limitations
– time to market too slow
• Inconsistent user and client experience
• Media breaches, inefficient operations
• High and increasing IT cost
• Need to retain legacy know how
• Inappropriate CTB/RTB ratio
• Lack of coherent data
• High IT and business risk
• Decreasing quality of IT application support,
inacceptable service levels
• Need to maintain legacy know how
High IT complexity means…
• Applications & technologies
– Many
– Disparate
– Outdated
– Redundant
• Misalignment between
business need and IT
capabilities
“Good reasons” include…
• Managing IT in “silos”
• Incomplete M&A
integrations
• Lack of architecture
governance
• Rushed implementation
A long history of
“good reasons”…
…has led to high IT
complexity…
…which is negatively
impacting the business.
© 2016 Deloitte Consulting GmbH 2
APR Placement
Rationalization is often embedded into comprehensive strategy
or efficiency initiatives
© 2016 Deloitte Consulting GmbH 3
Window
of
Opportunity
Window
of
Opportunity
New CIO / COO
New Business or IT Strategy
Cost Cutting Initiative
Reorganization of Business / IT
M&A Divestiture
Evolved standard software
APR Focus and Roadmap
The strategic context determines the focus of APR and the
journey to achieve its objectives
APR Focus
• Enable adoption of emerging
technologies and service delivery
concepts
• Increase flexibility, agility, and risk
adversity
• Meet / align with business needs
• Meet strategic IT objectives
• Make room for innovation
• Increase flexibility, agility, and
risk adversity
4
short-term
long-term
APR
Roadmap
medium-term
© 2016 Deloitte Consulting GmbH
Retire low value
applications
Centralize
scattered
functionality
Standardize to
common platforms
and versions
Modernize high
value but aging
applications
Transform
towards SOA
• Develop Target
Architecture
• Calculate future
TCO • Cluster
applications (4R
Framework)
• Cost Benefit
Analysis • Application Score
Card
• Retirement
Business Case • Application
Inventory
• Calculation of
current TCO
APR Approach 1/2
Deloitte applies a 4-step approach based on a quantitative
method to evaluate application value
© 2016 Deloitte Consulting GmbH 5
Solution
Design
Target
Picture
As-Is
Analysis
Evaluation
1
2
3
4
• Functionality &
Architecture
• Maintainability
• IT-Security & Risks
• Reliability
• Scalability
• Infrastructure
APR Approach 2/2
Based on their Business and IT fitness, the applications are
mapped to the 4R-Framework
© 2016 Deloitte Consulting GmbH 6
Business-FIT IT-FIT
Strategic Value
Business value, flexibility, time to market,
strategy compliance, extensibility, number
of users and clients, transaction volume
Functionality &
Architecture
SW architecture, COTS vs. proprietary,
interfaces, modularization, complexity, plat-
form (HW, MW), operating system adapt-
ability / customization, suitability to purpose
Functional Fit
& Ergonomics
Functional scope, requirements coverage,
user friendliness, complexity, operational
efficiency, SLA compliance
Maintainability
Testability, flexibility, adaptability, coding
conventions, release and maintenance
cycles, maturity, years in production
Compliance Legal and regulatory compliance,
adherence to industry standards
IT-Security &
Risks
IT compliance, authorization,
authentification, technology risks, sensitive /
personal data
Financials Total cost of ownership, maintenance cost,
cost and effort of changes Reliability
Error tolerance, availability, stability, defect
rate, frequency of outages, recoverability
Risks Financial risks, strategic and regulatory
risks, business risks, operational risk Scalability Scalability (vertical, horizontal)
Quality Error number and frequency, performance,
user satisfaction, information quality Infrastructure
Expandability, degree of automatization,
support and service quality
IT
Fitness
• Strategic Value
• Functional Fit &
Ergonomics
• Compliance
• Financials
• Risks
• Quality
#9
#8
#7
#6 #5
#4
#3
#2
#1
High
Low
High Low
#15
#14
#13 #12
#11
#10
Rationalize
Business-Value
IT-C
on
dit
ion
Retain
Retire Re-platform
Application cost #n Application ID
4R-Framework
Business
Fitness
APR
Roadmap
Opportunities?
Next Steps?
© 2016 Deloitte Consulting GmbH 7