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5 Ways to Evaluate the Costs, Risks, and Technology Efficiency of your Application PortfolioHow you can revolutionize your application portfolio management initiatives to drive IT transformation Step 2: Evaluation

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Common Concerns

Business leaders demand that IT leaders “do more with less” to free resources for innovation and growth.**

Reducing enterprise costs is a top priority for CIOs*.

40 to 80% of the total IT budget is dedicated to IT maintenance.

"With the reduction of our IT budget, our objective is to reduce the application portfolio from 800 to 500 applications."

"How to reduce the complexity and lack of transparency of our application landscape?"

* Gartner Executive Summary: Amplifying the Enterprise: The 2012 CIO Agenda – January 2012** The Application Portfolio Management Landscape - Combine Process And Tools To Tame The Beast. Forrester April 15, 2011

Support et maintenanceDéveloppement

Implémentation

0 21 3 4 5 6 7

Echelle de temps en années

Investissementici

Problèmes de coûts et de qualitéici

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Can you provide decision makers with consolidated information about your application landscape?

– Which applications cost the most? Do you know why?

– Which applications are redundant? – Are they based on reliable technologies? – What purpose does the application serve? Is

it of strategic business value or is it used for competitive advantage?

– Does it fall under SOX, or some other regulation?

– Which applications are dormant and which are active?

– Which applications have the highest/ lowest customer satisfaction?

– How do all of these align with both spending and strategic direction?

Business Financial

Technology Operational

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5 Ways to evaluate the costs, risks, and technology efficiency of your application portfolio

#1. Get a unique view of all of the different components of your application portfolio.

#2. Determine which of the applications are the most costly.

#3. Evaluate the alignment of applications with business needs.

#4. Identify applications’ technology efficiency.

#5. Provide business intelligence reports to make relevant decisions about the application portfolio.

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Get a unique view of all the different components of your application portfolio

A global information model allows you to depict applications with all necessary information and all application relationships in a central structure.

Integrating multiple perspectives – business, functional, costs – helps you make better decisions about the business value and technology efficiency of the applications to be removed.

The MEGA information model allows you to address the complexity of current application deployments.

#1

Application

BusinessLines

Technology

CoreSystems

Processes

Users

BusinessCapabilities

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Determine which of the applications are the most costly

Cost is a crucial factor when analyzing the application portfolio.

A cost model facilitates the assessment of the most costly applications.

It is possible to identify which applications add business value and where it is possible to reduce costs.

#2

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Evaluate the alignment of applications with business needs

A dedicated report (capability map) provides a clear understanding of the use of the applications to meet business needs.

Simple models provide stable and structural references to:

– define functional coverage of applications related to business challenges

– align the application portfolio with business needs

– provide information for outsourcing decisions (cloud)

This kind of model helps you iden-tify duplication, applications to be removed, and avoids the creation of redundant applications.

#3

Capability map example

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Identify applications’ technology efficiency

Rationalization and simplification of the application portfolio requires the optimization of technical components that support these applications.

– What are the risks associated with an obso-lete technology or the end of support by one supplier?

– Are the technologies compliant with the group recommendations as it relates to the technical framework?

– Do existing technologies facilitate the imple-mentation of simplifying operations and re-ducing costs while adhering to infrastructure standards?

#4

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Provide business intelligence reports to make relevant decisions about the application portfolio

Executives need consolidated information in order to grasp many different perspectives of a situation before they can make a decision. Graphical maps and diagrams facilitate the analysis of information and identify the best modernization options for your application portfolio (tolerate, innovate, migrate, or eliminate).

#5

Risqueset

coûts

Efficacitéet

sécuritétechnique

Valeur métier

Tolérer

Eliminer

Innover

Migrer

!

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For the next steps, see:

eBook: 4 ways to get a simple, organized view of your application landscape

eBook: 5 ways to organize the decision process and plan the transformation of your application portfolio

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MEGA: A global leader in enterprise architecture

Visit our website to learn more about our APM solutions:

www.mega.com/apm