Understanding Application Rationalization

Objectives

After completing this lesson, you will be able to:
  • Understand application rationalization strategy.
  • Evaluate the data in the workspace.

Introduction

Before we start

This learning journey consists of two parts:

I. The instructor-led on-site session

II. This self-paced learning journey

To complete this learning journey, you need access to a demo SAP LeanIX workspace. It includes theoretical content, practical tasks to be completed in the demo workspace, and an online assessment at the end of each section. Upon successful participation and completion of both parts, you will receive an SAP LeanIX badge.

Demo workspace login credentials:

To access the workspace, use this URL: https://demo-eu-2.leanix.net/AppRatEnablementDemoV4

user name: certification@leanix.net

pass: Demo_LeanIXAcademy

What is Application Rationalization

Application rationalization is the strategic process of optimizing and streamlining an organization’s application portfolio to achieve key business objectives, such as improving efficiency, reducing complexity, and lowering costs. However, to be truly effective, this process must be tailored to the specific needs and goals of the organization.

Efficiency improvements, for example, should be clearly defined in terms of their impact on employees and the strategies needed to achieve them. Likewise, reducing complexity may involve retiring outdated applications, optimizing server utilization, or enhancing data storage. A successful application rationalization strategy requires a deep understanding of the organization's unique landscape, ensuring that every action taken aligns precisely with its objectives.

Now, it's time to take action—begin your own application rationalization initiative to drive meaningful improvements in your organization.

Evaluate Data

Let us start with evaluating the data in the workspace. In this phase, the manual assessment of applications takes place, guided by utilize Gartner's TIME Model—Tolerate, Invest, Migrate, and Eliminate. Refer to the provided illustration to determine the appropriate TIME classification for each application, considering both functional and technical fit.

For instance, if an application exhibits an 'inappropriate' technical fit and a 'insufficient' functional fit, it becomes a prime candidate for 'Elimination.' This valuable insight is stored in the 'TIME classification' attribute within the portfolio strategy section of the application fact sheet.

This data enrichment can happen in e.g., a workshop with the responsible application owner.

Matrix illustrates how you can determine the TIME classification of the application based on its technical and functional fit.

Hands-On: Evaluate Data

After completing the assessment for each application, it's time to derive insights from the gathered data.

Your task to be conducted in your workspace: Examining your assessed applications through an application landscape report.

  1. Open the inventory and get an overview of the different fact sheet types stored in there. Use the filtering of fact sheet types to only show a certain fact sheet type e.g., Applications.

    Note

    The number on the right displays the amount of fact sheet stored in the inventory.

  2. Navigate to the reports tab and select the report type Landscape and open the Application Landscape Report.

  3. Change the view to TIME classification.

    Note

    This changes the overall color-code of the report and allows you to focus on TIME classification.

  4. Open Settings and change the clustering from business capability to TIME classification and apply.

    Note

    The report is now clustered according to the TIME classification dimensions and shows the application per assigned TIME dimension.

  5. Change the Layout Mode to Rolled Up.

    Note

    Depending on whom you are going to show the report, different layout modes are useful. For instance, when presenting an overview of all the assessed applications to your senior management, you may want to apply a more rolled-up, less detail-heavy report version.

  6. Click Eliminate to get details about all applications classified as 'Eliminate' according to your TIME assessment.

Note

Make sure not to change the filtering of the report for now, as you might need it to answer the assessment questions at the end of this section.

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