Against a backdrop of constant change, 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. In many cases, 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 technical debt, digital immigrants must confront the enormously complex task of rearchitecting their business without creating disruptions that could compromise product or service quality. This process often begins with application portfolio analysis.
Application portfolio analysis includes 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 absolutely essential to support the business’ capabilities. This also helps in the reduction of technical debt. 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 IT 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 recently partnered with CAST to help clients easily take control of their application portfolio, monitor software health, cloud readiness, complexity, and cost with code-level analytics. This new partnership can significantly help IT leaders manage organizational change and application portfolio rationalization by providing information to assist with:
Advanced IT rationalization – Make informed decisions on applications to keep, merge, retire, or reprioritize according to your context and objectives
Cloud migration – Assess the cloud readiness of your application portfolio
IT health and risk monitoring – Quickly understand portfolio health and monitor software risk over time
This new integration enables you to quickly and objectively measure the software health, risks, complexity, and cost of your application portfolio – in days – giving you an exclusive insight into application strengths and weaknesses before any investment, rationalization or retirement decision is made on an IT asset.
Check out our other blog posts on managing critical IT challenges or contact us today to learn more about MEGA’s integration with CAST Highlight.
Erik Oltmans, an Associate Partner from EY, Netherlands, spoke at the Software Intelligence Forum on how the consulting behemoth uses Software Intelligence in its Transaction Advisory services.
Erik describes the changing landscape of M & A. Besides the financial and commercial aspects, PE firms now equally value technical assessments, especially for targets with significant software assets. He goes on to detail how CAST Highlight makes these assessments possible with limited access to the targetâ€™s systems, customized quality metrics, and liability implications of open source components - all three that are critical for an M&A due diligence.