Best Practice Report

CIOs: Reduce Costs By Scoring Applications

Lower Maintenance Costs And Change IT Demand Governance

January 10th, 2007
PM
Phil Murphy
With contributors:
Laurie Orlov , Lauren Sessions

Summary

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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