In an ideal world, your application landscape should reflect your organization’s ambitions exactly. In reality, there’s a gap between these needs and what your application portfolio can address. Through strategic planning, organizations can bridge the gap.
Technology Modernization: a Crucial Business EnablerToday’s CIOs recognize that maintaining their legacy application landscapes means high costs and risks. Despite the clear need for action, many CIOs are intimidated by cost constraints and lack the ability to define a convincing business case to begin the rationalization process.
But times are changing. With new disruptive technologies, it’s no longer a question of “whether” to rationalize, but rather “when” and “how” to do it.
Crowded Application Landscape Stunts Digital TransformationBy driving technology-enabled change, companies can make significant gains in growth and profitability through digital transformation. In this edition, we surveyed 1,100 CIOs and top-level IT decision makers, all of whom helped us define new insights into the application landscape.
In addition, the findings of the report are also derived from the extensive work done by Capgemini’s Wide-angle Application Rationalization Program (WARP) CoE over the past four years, catering to over 150 clients and analyzing more than 30,000 applications, thus providing key industry benchmarks for critical IT metrics.
- IT plays a strategic role for business: beyond IT’s traditional role of driving costs down for the business, we now see the role of technology as a crucial enabler for innovation and renewal
- Mutual understanding between business and IT is key: The greater the understanding business has of IT, the higher the percentage of total savings that are directly utilized for funding business transformation.
- Reducing IT complexity is imperative: legacy technology itself often inhibits innovation. The most popular strategies for rationalization have become increasingly radical: enhancement, or even replacement.
- More extreme rationalization, possibly through standardized SaaS package solutions, can increase IT’s value to business.
- New technology drives business value: The next generation of technology drivers – Social, Mobile, Analytics and the Cloud – is fueling digital transformation.
Five Tangible steps towards a healthier application landscape
- Industrialize and standardize first, before looking to innovate
- Consider more radical rationalization scenarios
- Leverage the next generation of solutions
- Embed innovation in the application lifecycle
- Use fact and metrics to improve understanding between Business and IT
For detailed recommendations on how to maximize value from your IT application landscape, read the full report.