For Business Process Professionals

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	May 16, 2008 The ROI Of Packaged Apps Instance Consolidation A Total Economic Impact™ Analysis Validates Urgency For Instance Reduction by R "Ray" Wang with Sharyn Leaver, Chip Gliedman, Jon Erickson, Meghan Donnelly	Average: 8  (1 rating)

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Executive Summary

Common goals like improving integration among existing applications, upgrading packaged applications, and shifting to a business process orientation are pushing enterprises with multiple apps instances to reassess lingering consolidation opportunities. Organizations that embark on instance consolidation will likely see benefits in annual revenue uplift, operational efficiencies, regulatory compliance, and business/IT alignment that need to be balanced against the costs in license fees, annual maintenance, training, support, and testing. A Total Economic Impact™ (TEI) analysis shows that a reduction from three instances to one is likely to produce a significant return on investment (ROI) of 133.32% over 10 years, while consolidations from 10 instances to one can produce a staggering ROI of up to 379.91%. Business process and applications professionals can use Forrester's TEI methodology and values as a starting point to model the specific characteristics of their organization and a customized analysis of expected returns.

TABLE OF CONTENTS

• Firms Face Tremendous Pressures To Improve Packaged Apps Delivery
• Four Factors Determine The ROI Of Packaged Apps Instance Consolidation
• Calculating ROI For Packaged Apps Instance Consolidation
• Ten To One Delivers Exponential Savings; Three To One Delivers Strong ROI

RECOMMENDATIONS

• Add Instance Consolidation To Your Long-Term Packaged Apps Strategy
• Supplemental Material
• Related Research Documents

This is an excerpt

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