Last century's financial evaluation models are inappropriate for the business technology (BT) era. AD&D leaders are unable to justify a fundamental shift in their business applications strategies in terms of fixed upfront investment and predictable, measurable financial returns. This report describes how to make the business case for application portfolio renovation. It explains why "doing nothing" is not an option and then analyzes the costs and benefits of three alternative renovation strategies: consolidation, upgrading, and gradual replacement.