Most application leaders, or whoever is accountable for the organization’s software assets, come to a point where they are presented with the challenge of application rationalization (App Rat). Sometimes this comes from within IT as an effort to address neglected technical adequacies; sometimes this is more top down as an effort to reduce software costs or enable some initiative that is held back by an overly complex application environment. Regardless, App Rat can solve a lot of different problems and open a lot of doors, which is why it should be viewed as a mainstay process of any IT department. However, it is rarely the quick and easy solution that many suggest.
A simple description of application rationalization is that it is a decision-making framework applied to your applications. It can be customized for several use cases, but simply put, it helps support decisions regarding the ideal future state of your applications and the effort required to get there.
So what is a decision-making framework? It’s a rules-based system that supports the decision-making process for a specific objective. It can be viewed as consisting of four main components:
Applying this model to App Rat:
This visual illustrates the object, inputs, and output of App Rat.
1. The Object
Often the biggest and most upfront hurdle in App Rat is agreeing on what is the application. Some take a more technical perspective and view every single individually deployable unit as an application. Some take a functional perspective and only consider what the user interacts with. Others see a line item on their budget that needs to be managed accordingly. Applications can be broken down many ways. It is essential to establish a shared definition between those doing the assessment and those who ultimately sign off on a decision. Those who do not, start poorly and fail quickly.
2. The Inputs
To make valuable use of App Rat, you require specific, accurate, and up-to-date information. This will likely include some representation of value, cost, health, and overlapping functionality with other applications depending on the goals of rationalization. That decision-making framework only generates helpful or meaningful outputs when you apply appropriate information. Otherwise, you will likely misinform decision makers on the best possible option and undermine the purpose of this effort altogether.
This is how App Rat can become one large data collection initiative if you let it. Most organizations ignore or struggle to maintain basic application information, especially in overly complex environments where establishing less-tangible data points like business value is challenging. The real value of App Rat comes when applied regularly and as part of an ongoing practice of application portfolio management, where best practices are modified to work within an IT team’s capacity and access to information.
3. The Rules & Outputs
The more complicated the decisions you are trying to support, the more data points you require, and the more rules or logic you need to build within the decision-making framework. If you are executing App Rat as a part of general governance function, such as monitoring the lifecycle of applications and ensuring cost is justified by an application’s value, then it can be straightforward. However, if you’re applying App Rat to enable some larger transformative initiative, like a large migration to the cloud or legacy modernization, you need more specific data and visibility deeper into the application stack to understand the full picture of software components, databases, or even infrastructure.
Some application portfolio management vendors, like CAST Highlight or LeanIX, have built-in features so their App Rat framework supports cloud transitions.
This is why you need to carefully craft a rationalization framework to support those more-complex decisions you are trying to make. Info-Tech recommends your time and effort is better served on discovery efforts and architectural modeling than building or customizing an elaborate App Rat tool.
Too often App Rat is applied with hopes of automating the decision-making process. Many believe this will bring ease and speed up realization of the benefits or that it may remove the accountability from any unintended consequences associated with the results.
That’s not how it works.The true purpose of rationalization is to make decisions:
It should even be noted that rarely are the results of App Rat for a specific application a mystery. Those familiar with an application and the goals for the portfolio could most likely tell you the most appropriate disposition or action for an application. Beyond a framework to better understand your applications, the real the purpose of App Rat is to:
There are many vendors that offer a simple approach to rationalization. But if your needs are outside of the simple approach, finding the right tool to perform rationalization is not your largest obstacle. You need to build in the processes of collecting the right information and crafting your own analysis.
Lean IX and Apptio have partnered to produce an integrated solution that better informs the strategic decision-making process with improved visibility into an application’s total cost of ownership and alignment to business capabilities.
From the business architecture perspective, agility is the ability to quickly change structurally and operationally to react to external changes or to create new business value. Enterprise architecture comprises business and service/application architecture – therefore, it needs to provide an environment for harmonized agility at each level.
This note outlines some of the fundamental KPIs that you should measure to show the success of the enterprise architecture team. It also discusses how you measure them and visualize the result.
The application portfolio management (APM) tool space can be a confusing one, as many software vendors offer their own take of what APM is. Enterprise architecture, application management and project portfolio management tools offer an APM use case, but these are often quite skewed the primary function of the tool.
Application rationalization fails when the chosen framework does not match your scenario or the goals for your application portfolio. This note looks at how to apply application rationalization during an M&A.
Measuring technical debt is important, but more important is communicating the implications of this problem in terms of risk to business capabilities. Cast Highlight tools are used for application portfolio management (APM), specializing in applying code analytics to business decisions regarding your organization’s applications.
Many application rationalization tools and frameworks miss the true benefits of this practice, as they only assess the individual application without consideration for its redundancies. Infusing an enterprise architecture perspective, as seen with LeanIX, will generate the bigger savings you are looking for.
MEGA International announced the launch of its HOPEX Information Architecture solution, enabling various stakeholders to share the same level of information to make collaborative, informed decisions about the governance of data.
Enterprise architects want to collaborate with businesses in real-time to design and create models, but due to geographical constraints, this is not often possible. Many enterprise architecture (EA) tools simply don’t allow the parties/teams to view changes in real-time.