Key Takeaways
- Business Drivers for Rationalization:
- Improve efficiency by eliminating duplicate systems and fragmented processes.
- Enable transformation (e.g., ERP modernization, cloud migration) with a simplified IT baseline.
- Reduce risk by phasing out legacy, unsupported, or shadow IT systems.
- Drive innovation by reallocating budget from redundant systems to strategic technologies (AI, automation, etc.).
- Cost Transparency as the Foundation:
- Break down Total Cost of Ownership (TCO) into license, maintenance, support, and infrastructure costs.
- Use TCO insights to prioritize rationalization decisions (e.g., high-cost vs. low-value applications).
- Outcomes of Rationalization:
- Achieve direct cost savings and reduce application sprawl.
- Gain intangible benefits: agility, faster decision-making, and stronger IT-business alignment.