Applications Rationalization Assessment Identifies Millions in Savings

Opportunity

Opportunity

A global capital goods manufacturer’s application portfolio had grown un-checked to more than 4,000 applications across the enterprise and its multiple business lines over the decades. This happened through many acquisitions, several divestitures as well as market growth and business downturns that resulted in compounded duplicate applications.
The growth of the application portfolio and its many duplicate applications drove IT costs to uncompetitive dimensions with its business lines. The company asked ISG to assess its application portfolio management and rationalization practices and the overall potential opportunities to significantly reduce the cost of application management and optimize services.
Imagining IT Differently

Imagining IT Differently

ISG conducted the application rationalization assessment approach by assessing the company’s application repository, tool and information, the history of application rationalization by business segment, current initiatives and application rationalization tools, processes, procedures and reporting. 
ISG captured application rationalization findings, implications and gaps. We assessed recommendations and developed an application rationalization road map in alignment with the company’s application financial allocation and IT cost savings initiatives.
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Future Made Possible

  • The company received a complete assessment and recommendations of its application portfolio repository, current tools, processes, procedures and reporting.
  • It identified multiple application rationalization services options with a projected range of savings from $50 to $190 million per year based upon the approach and degree of transformation embraced. 
  • It received a range of application rationalization recommendations for tools and to address the gaps discovered during the assessment. 
  • The company also received a roadmap to assist in achieving its projected saving opportunities.