Building an Application Strategy to reduce cost and complexity
As businesses grow the technology landscape becomes complex and costly. We help organisations undertake application rationalisation to reduce cost and increase agility
Application strategies should deliver tangible outcomes
Application Rationalisation involves convincing a large population of the business to change the way they work by migrating to new applications. This required business processes to be changed and users to be re-trained. It can be time-consuming and painful for the business.
Without a tangible outcome which will widely benefit the organisation, building momentum for business participation and support is very, very difficult. Developing the right set of outcomes is key. Compelling outcomes might include cost savings, measurable reductions in the time to market or launch of new digital platforms. Without such outcomes, application strategies are often seen as academic and fail.
Strategies should focus on supporting future needs
It is fairly easy to build an inventory of the businesses current applications and work out where duplication or lower-cost alternatives exist. The problem with this approach is that by the time this approach has been executed, the business has moved forward 12-18 months. The decisions made 12 months ago will be redundant and a lot of effort will have been expended on areas that are not the priority for delivering the business strategy.
A value-based approach is better. This identifies how the organisation's future strategy and revenue targets can be met through an optimised mix of current and new applications. This target application architecture should focus on creating value as well as reducing cost.
Technology can enable larger business cost optimisation
Optimisation of the application landscape can drive significant cost savings and lead to wider infrastructure and support cost savings. These are tangible and can be driven by a technology team. However, technology can enable much larger cost optimisation across core business operations and back office teams. New applications can drive the automation of manual processes and interactions with customers.
In global organisations, significant duplication exists if regional or country teams operate independently. This duplication provides flexibility close to the market but incurs additional costs. Significant savings can be realised where duplication activity can be delivered regionally or globally.
Determining a tangible business outcome is essential to drive strategy success
Rationalisation should consider future application needs, not just todays needs
In large global businesses, a trade-off between global and local processes is often required
Our team work with large and small businesses to build application strategies that support business growth. Our services include;
Optimisation of clients application and technology landscape, identifying the target set of applications to deliver the business strategy and rationalisation (cost-saving) opportunities.
Procurement of applications from Request for Information (RFI), request for Proposal through to contract negiottiation.
Development of detailed requirements and shortlisting of suitable applications with estimated costs ready for procurement.
Examples of the benefits we've delivered to clients
Retail: Developing a strategy to replace a Point of Sale system, implement online ordering and a loyalty scheme
This retailer wanted to build a truly omnichannel experience to better serve customers and increase revenue. Our team build a fully costed strategy to achieve this.
Logistics: Application Rationalisation to reduce technology cost and business complexity
Our client wanted to reduce complexity and cost. Our team developed an application strategy to rationalise the estate by more than 80%.