For CIOs (Length: 16 pages)

January 10, 2007

CIOs: Reduce Costs By Scoring Applications

Lower Maintenance Costs And Change IT Demand Governance

This is the sixth document in the "Application Management Strategies For Legacy Applications" series.

by Phil Murphy

with Laurie M. Orlov, Lauren Sessions


Executive Summary (This is a document excerpt)

As long as IT spends the majority of the IT budget for "lights on" operational and maintenance activities against existing applications, CIOs will be criticized by business executives for their inability to respond fast enough to new business needs. IT management can no longer afford to manage its application portfolios blindly but must introduce some transparency and insight into the portfolio. An application scoring mechanism is a first step toward creating better application transparency, providing actionable, objective information about each application that will, in turn, enable better decisions about the proper fate of each application. Application scoring mechanisms give CIOs a rating mechanism that can help them reallocate maintenance dollars to the highest-priority applications while starving commodity applications. These actions will eventually reduce the percentage of the IT budget allocated to maintenance from 80% to perhaps 60% or less, freeing funds for IT innovation.

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TABLE OF CONTENTS

NOTES & RESOURCES

itemLights-On Maintenance Costs Are Out Of Control

itemScoring Applications Enables Comparison And Evaluation

itemAdd Governance Changes And Collection Tools For Success

recommendations

itemTrade Top-Line Budget Increases For A Rationalization Program

WHAT IT MEANS

itemVisibility Has A Dark Side

In October 2006, Forrester conducted an online survey of 221 IT execs to learn more about their application maintenance practices.

Related Research Documents

itemIT Execs Boost Focus On Business In 2007

October 25, 2006, Trends

itemEvaluating Your IT Operations Organization

August 14, 2006, Best Practices

itemCIOs Must Target Legacy Applications With A Maintenance Renaissance

June 22, 2006, Trends

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Analyst: Phil Murphy
Technology: Application Development, Application Development Processes & Tools, Application Strategy & Selection, Architecture & Technology Strategy, Budgeting & Forecasting, CIO Role, Economy, Governance, Risk, & Compliance, IT Management, IT Spending & Budgeting, Packaged Applications, Recession, Security & Risk
Geography: Asia Pacific, Europe, North America