BusinessForward

Information Technology

Analysis of Tech Application Portfolio Significantly Reduces Costs

Situation

As a $6 billion regional restaurant company continued to grow, their IT organization’s “Best in Breed” approach towards the technologies that they utilize was becoming a challenge. This practice often leads to a high volume of applications the organization must administer and support, resulting in an organization that is focused on “keeping the lights on” rather than providing strategic guidance and innovation. Further, the costs to maintain applications that were under-used or not used at all was impacting the business. In order for the IT organization to reduce their financial obligations and free-up resources, they had to inventory and analyze the applications they are currently using.


Solution

BusinessForward’s main focus provides an Application Portfolio Management solution. The team conducted an inventory of all applications used by the IT department. This provided them with the foundational view into redundant applications that can be removed from the current scope of support. In order to be successful, this rationalization had to answer the following four questions:

  1. How effectively is the organization using the application?
  2. Are there other available functions that the application can provide that are not currently being leveraged?
  3. Are multiple applications serving the same purpose for different users?
  4. Are there any unused applications that can be decommissioned?

Through our process, 110 applications were inventoried and analyzed. We were able to determine that the annual maintenance cost for “IT owned” applications was roughly $1.5 million.


Results

By removing quickly identified redundancies, the organization was able to lessen the amount of money spent on annual vendor fees and the amount of time spent on application support. In fact, the customer was able to immediately realize a $50,000 savings by eliminating redundant applications. Through continued rationalization, the customer expects to increase that amount.

The IT organization has gained capacity to better devote time towards innovating and growing with the changing needs of the business.


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