Several Trends Converge to Help You Rationalize Intelligently, Prepare for SOA
Zusammenfassung (Executive Summary)
Organizations have wasted untold millions on purported one-size-fits-all solutions to their legacy application issues: dump the mainframe; rip and replace; move it all to Unix; and, most recently, outsource it all. As they adopted these solutions, IT managers slashed application maintenance budgets to dangerous levels to fund these efforts. Despite those efforts, today, most organizations are no closer to a permanent solution than when COBOL was the predominant programming language and indexed file access methods were considered revolutionary technology. Several recent trends indicate that IT organizations are ready for a break with the past. Service-oriented architecture (SOA) is a viable "future state" target, and IT managers are now admitting that they will keep some legacy applications much longer. In combination, these two factors are driving vendors to offer complementary tools and services to enable application reuse, and they are heightening interest in application portfolio management (APM) tools to create application metrics and visibility into IT activity. The stars have finally aligned to enable knowledge-based application rationalization and modernization.
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A Tool for Comparing the ROI of Enterprise Applications
Zusammenfassung (Executive Summary)
Historically, choosing a packaged enterprise application, (e.g., enterprise resource planning or ERP, customer relationship management or CRM, or supply chain management or SCM) or assessing the benefits of existing systems began and often ended with analyses of the costs to implement, deploy, and maintain them. However, a pure cost-oriented approach like total cost of ownership (TCO) does not allow an organization to measure the full economic impact of the investment. By measuring not just cost and financial benefits, but also risk or uncertainty as well as future flexibility, enterprises can establish a more inclusive and accurate picture of the return on investment (ROI). This document, the first in a series that examines the Total Economic Impact™ (TEI) of issues in adopting packaged applications, establishes criteria for a robust ROI analysis that is used to evaluate opportunities in vendor selection, consolidation, upgrade/migration, and software-as-a-service (SaaS) deployment scenarios.
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Dashboards Increase Your Capacity to Innovate and Rebalance IT Spending
Zusammenfassung (Executive Summary)
In a small number of firms today, IT management is using application portfolio management (APM) tools to shave 10% to 30% or more from the maintenance budget, achieving ROI within the first 12 months. These savings provide the opportunity to increase innovation capacity by 30% to 95%. Detailed application metrics allow IT management to discuss spending in business terms with system stakeholders, resulting in greatly improved business/IT relationships in these firms. CIOs of mediumsize to large organizations really can’t afford not to make APM a top priority in the next budgeting cycle. However, APM implementations require significant commitment from senior executives, and they also require a six-figure financial investment, dedicated staff, and will disrupt the status quo as they reset spending priorities. CIOs must build a compelling business case that details cost, benefit, flexibility, and risk to garner the support of executive management.
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