Whilst pondering over her plan, Jeanne was faced with the ‘CIO’s Dilemma’: to manage competing imperatives for growth, innovation, and new capabilities on the one hand, and to continue cost reduction and to improve efficiency on the other.
Jeanne was recently appointed as a CIO. As a newly hired and valued member she understood the company culture and structure, had a passion for complex systems, and a vision for digital transformation.
She wanted to make things happen!
The board accepted her plan for modernization of the
IT department. However, the CFO refused to grant extra funding because the IT budget was already too big. Therefore, Jeanne had no choice but to source funding from her existing budget.
Whilst pondering over her plan, Jeanne was faced with the ‘CIO’s Dilemma’: to manage competing imperatives for growth, innovation, and new capabilities on the one hand, and to continue cost reduction and to improve efficiency on the other.
Jeanne decided to cut costs and stay focused on the applications portfoliobecause she knew inefficiencies were there.
Every application had been used for a particular business process, so any change there would affect existing business processes. The CEO encouraged Jeanne to be part of the working group for standardization of business processes.
The application portfolio assessment
has been created
INDIVIDUAL APPLICATIONS ARE BEING ASSESSED AND EVALUATED. EVALUATION STAGE CONSIDERS THE BUSINESS VALUE DELIVERED AND THE TOTAL COST OF OWNERSHIP (TCO).
An assessment revealed a functional duplication across the portfolio because applications had been operated with overlapping features. Jeanne included business functions leaders into the business process standardization exercise.
After simplifying and standardizing business processes, the company’s portfolio of supporting applications had to be simplified. Jeanne aligned changes to applications with changes to business processes. The final decision on which apps should be decommissioned was based on multiple factors, including: business value, total cost of ownership (TCO), IT strategy, and overall business strategy.
The application portfolio had been segmented, and the roadmap was developed for modifying or decommissioning particular applications.
Application portfolio segmentation provides
a clear picture of evalution results
All applications are segmented into four groups:
eliminate, migrate, tolerate, and invest.
Tolerate
Invest
eliminate
Migrate
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