Portfolio Optimization
IT organisations are constantly expected to deliver a dynamic and responsive operation that can effectively meet the demands of both the business and the customer. How this is achieved will vary between individual organizations, but initiatives will usually focus on ensuring innovation, speed and agility are fundamental capabilities that flow seamlessly from the underlying technical architecture. For some, this is the catalyst for SOA, for others an on-going series of change projects aimed at augmenting and refining the existing application estate.
That innovation and business agility go together is not in doubt, the only question is how the organization can fulfil this requirement.
It seems that not a month goes by without another corporation being in hot water over alleged irregularities. Legislation is continually being introduced to monitor and audit corporate behavior, and due diligence and compliance have entered the corporate vocabulary as business imperatives. For the CIO, this need for additional control and transparency is an investment challenge, often requiring the upheaval of established process and technology. Considerable effort has already been expended in this area, but finding and resolving instances of non-compliance, poor governance or undue business risk remain a significant priority.
Successful mergers, acquisitions and portfolio consolidation require timely assessment of value versus cost across the entire enterprise. Only then can an organization hope to create the solid foundation on which a successful platform for future growth, innovation and efficiency can be built. Only Application Portfolio Management can deliver the insight and levels of application understanding to build such a foundation.
Application Portfolio Management allows disparate elements to be compared in terms of value ratings, heath metrics and other key business and technical criteria.
By simplifying the IT landscape through consolidation and modernization, organizations are reaping the benefits of improved operational efficiency and business flexibility. This process of ‘application purification’ is also helping reduce risk and cost, through a dependency on fewer niche skills and hardware platforms. But you cannot simplify what you do not understand. Their starting point must always be an assessment of where the business value and complexity lies.
