App Rationalization: Strategies for a Leaner and More Effective App Portfolio

In this article, we’re going to discuss some specific techniques for app rationalization and why Wavestone US believes we offer the most effective ways to make your app portfolio more cost effective and efficient.

What are the goals of app rationalization?

App rationalization is the process of assessing IT applications across the organization to identify those that should be eliminated, consolidated, optimized, or replaced. But in order to effectively streamline an app portfolio, it is important to understand what effective app rationalization looks like. App rationalization should ultimately lead to a more modern, flexible, and cost effective software development platform that can reduce overhead and leave room for growth.

In order to effectively embark on an app rationalization initiative, it is important to have a well-thought-out roadmap. At Wavestone US, we have identified several key strategies for effectively optimizing an application portfolio. Below are some of the most important of those strategies.

Identify low hanging fruits – Optimizing a large app portfolio can be overwhelming. It’s best to start with low hanging fruit. Look for items that are clearly unused and would be easy to remove from the portfolio. This allows the initiative to gain a footing and quickly realize benefits, encouraging further investment of time and resources in the effort.

Communicate with leadership – IT and business leadership have to understand what the app rationalization initiative is, why long used apps are being deprecated, and why they should invest in further efforts to optimize the portfolio. By communicating effectively, demonstrating value, and driving business goals, it is more likely that the initiative will be successful.

Locate consolidation opportunities – It is all too common that divisions within the company use multiple applications to perform the same task. These redundancies waste financial resources and overcomplicate support efforts. Eliminating the repeated apps can be an early way of optimizing the app portfolio.

Replace obsolete apps – For applications that are business critical but obsolete, it is important to identify newer, more effective alternatives for replacement. This will ensure that there are no gaps in service and allow the business to gain immediate gains inefficiency.

The Wavestone US approach

At Wavestone US, we have put together a framework that helps companies manage their application portfolios and transform their IT environments. This allows companies to implement these decisions using the appropriate tools and technologies and partnering with the right vendors. We work with companies to stand up relevant processes so they can use the framework to make and implement these decisions on an ongoing basis. In the past, this has allowed clients to reduce their application portfolio by 10-20%, transform legacy applications and make future decisions on tools, process and technologies. We have seen these decisions transform predominantly legacy shops into modern IT shops that are agile, cost effective and efficient.

Wavestone US helps clients execute transformation, including new organizational and business models to drive their business forward. We are always happy to discuss IT strategy with technology leaders at no charge and no obligation. A 30-minute telephone conversation with one of our principals may uncover breakthroughs and transformation strategies that Wavestone US can assist you with in your own organization. To learn more about what Wavestone US can do for your company, visit http://wavestone.us/capabilities.