Application Portfolio Rationalization

Improve efficiency, reduce costs, and increase business agility by optimizing your current application portfolio

Keep IT costs in check with a deliberate Portfolio Rationalization strategy

To strengthen your business’ IT approach, a portfolio rationalization strategy can evaluate your current application utilization, reducing redundancies and improving the overall effectiveness of your business processes. We start by building a road map to prioritize each application by its functional and technical quality. Then, we align applications to your business objectives in order to reach our end goal: saving costs, growing revenue, increasing efficiency, and enhancing business performance across your organization.

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Why invest in an Application Portfolio Rationalization strategy?

Why buy a car with a backup camera (and all the other bells and whistles) if you still resort to looking over your shoulder every time you back out of a parking spot? If your business doesn’t utilize portfolio rationalization, then you could be losing out on revenue due to unnecessary applications that aren’t serving your business any longer. We’re here to help you simplify your Application Storage Management (ASM), while saving you costs and other concerns by streamlining your IT assets. If any of these apply to you, it’s a sign you should start looking at portfolio rationalization today:

  • You have an accumulation of applications in your system that have slowed down
  • You’re paying for applications you no longer need
  • You want to migrate to the cloud and/or move applications to the Cloud, but don’t want to do a complete overhaul
  • Top 20% of areas are consuming 80% of the company’s resources
  • Your current system is too complex and overwhelming
  • Onboarding and mergers are a hassle
  • You have security concerns as a result of too many unused/outdated applications
  • You’re paying for applications you no longer need
  • Top 20% of areas are consuming 80% of the company’s resources
  • You have an accumulation of applications in your system that have slowed down
  • You want to migrate to the cloud and/or move applications to the Cloud, but don’t want to do a complete overhaul
  • Your current system is too complex and overwhelming
  • Onboarding and mergers are a hassle
  • You have security concerns as a result of too many unused/outdated applications

Business benefits of Portfolio Rationalization

Due in part to the COVID-19 pandemic, there have been greater business and industry shifts that make application portfolio rationalization a more pressing concern.

Ongoing economic uncertainty is increasing cost pressures for organizations across industries. That’s why many businesses are prioritizing investments in driving operational efficiency and minimizing IT spends by streamlining their application portfolios.

–  A Comprehensive Approach to Application Portfolio Rationalization, Cognizant

Because businesses often continue to add applications to their system in order to keep up with the competition, they end up investing unnecessary resources in IT initiatives. Portfolio rationalization can clean this all up, by helping companies like yours become “curveball-proof.” This is done by divesting resources you don’t need and focusing on the ones that will help take your IT team forward to build that business agility. Technology leaders today have a unique opportunity to deliver more value. So now is the time to get your house in order. The benefits of investing in portfolio rationalization will lead to many positive changes in both the short-term and long-term.

  • Reductions in Total Cost of Ownership (TCO)
  • Maximized ROI
  • Improved efficiency
  • Accurate financial data collection to present to stakeholders
  • Business and IT alignment leading to a more streamlined experience for employees, users, and vendors
  • Reductions in Total Cost of Ownership (TCO)
  • Maximized ROI
  • Improved efficiency
  • Accurate financial data collection to present to stakeholders
  • Business and IT alignment leading to a more streamlined experience for employees, users, and vendors

Our Application Portfolio Rationalization process

Portfolio rationalization is one of the first steps to optimizing your application usage

It’s not just a solution to a problem you may not even realize you’re having, it’s actually a strategy that requires a comprehensive approach. We analyze your applications, compare your usage to your current and future operating models, and create a roadmap to identify what will be most efficient for your business and your budget going forward. Here are the main aspects of a successful portfolio rationalization engagement, and what it will look like for your business. We’ll bring you more efficiency and cost-savings while minimizing your concerns about security and complexity within your organization.

Application Portfolio Rationalization process

Discover

Identify and inventory your existing data to see the true cost of each application and the value for your business.

Analyze

Analyze the technical and functional quality of your current applications, to see what’s serving your business budget-wise and functionality-wise.

Review

Reevaluate your business’ goals, needs, and budget to align your costs to your business value.

Plan

Create a roadmap to consolidate and simplify the applications in the portfolio to reduce redundancies, improve effectiveness, and save on support costs.

Engage

Develop a business case to show the impact on efficiency and effectiveness of business processes, as well as the time it will take to break even on the cost of the portfolio rationalization initiative.

Insights on Portfolio Rationalization

Accelerating ROI Impact

Accelerating ROI impact from application portfolio rationalization

Application portfolio rationalization benefits different stakeholders for different reasons. But the main thing that CIOs need to care about is aligning IT resources to support the business agenda. Forrester Research Analyst, Phil Murphy, reveals why a traditional “bottom-up” portfolio rationalization approach fails to get us to that goal. Learn how a “top-down” approach can not only deliver better ROI, but drive collaboration between IT, Finance, and business unit executives.

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