Application Portfolio Management. Offer overview
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- Job Manning
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1 Application Portfolio Management Offer overview
2 CIOs often forget that their Application legacy is their next rationalization opportuny Knowledge on application lanscape is barely developed and available Huge number of applications High level of diversity among applications Many functional overlaps not properly handled Decommisioning roadmap is not shared between IT and business that makes it difficult to share with CxOs How to manage the application roadmap at an executive level? How to design the right choice on the IS operating model? How to evaluate the rationalization business case? How to steer the IS transformation plan? Most of CIOs don t the efficiency levers on which they sit? 2
3 Based on our market experiences, we have developed a framework to help clients accelerate the transformation of their IS into an industrial model that results in savings Main components Application rationalization and industrialization framework Benefits Assess application portfolios and IT organization by benchmarking them with industry good practices Design a target IS operating model quantifying related savings Build an overall transformation plan and its associated business case Detail the target IS operating model and application rationalization plan Realize rationalization opportunities and implement the industrialized IS operating model It brings in sustainable IT efficiency improvements quickly and is operational excellence driven It is a bottom up approach with involvement of client personnel, ensuring data validity and commitment It is a standardized offer with a proven and scalable methodology It address both rationalization and industrialization since they are part of an industrialized IT operating model It includes a transformation plan outlining how the rationalization will be accomplished and the industrialized IT operating model will be set up It includes a business case based on data validated by the client Bottom line: Implemented correctly, industrial models can bring TCO reductions of up to 30% 3
4 Our application portofolio management methodology is a 8 to 12 weeks workstream tooled with a real time web portal Data Transformation Plan IS Dashboard & steering Set-up and Data colleciton 6 weeks Application Portfolio Analysis 2 to 4 weeks Roadmap desing 2 weeks Followup The Links portal provides Simple and clear views of the apps legacy Complete automation of reports and analysis Real time analysis capabilities Business case simulation on top of which we add: Our deep knowledge on IS industrial models for Application development and maintenance Our benchmarks and best practices 4
5 The understanding of the Application landscape and the identification of critical points is eased by our full set of visual reports Distribution of application by domains depending on their age (color) and the number of FTE (size) Benchmark based on industry best practices (Capgemini Group) 5
6 Ad hoc or live analysis can be made and shared through the online LINKS portal About LINKS Generates real time categorization and analysis according to best practice criteria Allows the client to manage the portfolio over time Scalability and benchmarking opportunities are provided Allows us to manage client contexts independently in order to ensure confidentiality One APA Engine to facilitate deployment of new functionalities Infrastructure is virtualized to take advantage of cloud flexibility for capacity planning management Distribution totale La taille des cercles est proportionnelle au nombre de ETP associé 6
7 Indusrialization levers analysis the application portfolio analysis is completed by a set of interviews to evaluate and score the current IS operating model 1. Consolidation Consolidation Score = 56 / Global IT Efficiency scoring (period N and Period N-1) Objective is to maximize volumes of FTE to amortize cost structure and to create critical mass wherever it is possible Size of operational teams 8,7 FTE is smaller than best practices of 12. Number of operatinal managers (project leadess ) reporting to same N+1 is 6,6 (best practice 7) Average number of suplier per domains is important (4,3 vs. Best practices <3)
8 Appendix 8
9 In summary, a number of deliverables are achieved throughout the assessment 1 Criteria based ID card of applications for each IT or business domain 2 Application portfolio analysis and efficiency scoring 3 Application portfolio profiling and benchmarking 4 Industrial IS operating model 5 Transformation map and business case 9
10 Capgemini Group have supported clients in various industries to assess their application portfolio and realize identified rationalization and industrialization opportunities Background References Our proven approach Discussion Snapshot of references AM rationalization roadmap and IT sourcing Challenge & objective A global automotive company (brand of Volkswagen) had only one single outsourcing contract for AD and AM They wanted to internalize core applications and diversify IT sourcing based on cluster management as well as rationalize Approach Review of the whole application map (650) Design and implementation of IT sourcing model and roadmap Results Set up of interna IT project and maintenance team for core apps Rationalization roadmap (currently 400 applications) IT sourcing to 3 main providers (Capgemini one of them) Industrialized operating model, AM Challenge & objective One of Europe s largest banks wanted an industrialized operating model for all AM related activities and to reduce running costs Approach Tool based mapping and analysis of applications for three business domains (~150 applications) Design of industrialized operating model and business case Results Overview of current application landscape and analysis of the project portfolio and legacy applications at global level Description of the target industrial model for AM 10% cost saving potential for the application portfolio What have we supported our clients with? Reduced TCO for applications by 15 % Challenge & objective MSD (a Merck company) was looking for opportunities to simplify their application portfolio and reduce TCO by 15% Approach Tool-based review and analysis of application portfolio (~800) Analysis of governance structure Effort analysis per application cluster (FTE and cost) Results ~90% of overall IT spending consumed by the top 20 applications; significant savings achieved by rationalizing them 45% of applications in a domain primary candidate for cut The number of applications could be reduced by 15% Application rationalization and industrialization Challenge & objective A leading manufacturer of semiconductors wanted to reduce running cost of IT by up to 20% in 3 years Approach Analysis of current and design of new IS operating model Tool-based analysis of application portfolio Implementation of proposed roadmap Results A committed transformation plan with associated business case to meet 20% savings year 3 and reducing number of applications up to 15% Capgemini is currently implementing new IS operating model 10
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