5 ways to

evaluate your it portfolio

MAIN CHALLENGES

48% of CIOs believe there are more applications than business requires1

1- Cap Gemini Application Landscape Report 20142- 2013 Forrester survey of IT leaders at 3,700 companies

At least 20% of IT’s current applications...” could be actually replaced or retired1

IT leaders say that 72% of their budgets are spent on replacing or expanding capacity, and supporting ongoing operations and maintenance2

48% 20% 72%

2

Many IT departments focus on maintaining systems and preventing breakdowns, instead of putting their efforts into new projects and innovation. IT costs have soared over time, while IT is experiencing increasing pressure to deliver more value to the business.

KEY QUESTIONS

Do I have the right applications to support

the business?

Business OperationsWhat are my operating costs?

Do my investments go to applications with the highest business value?

Which IT assets can be enhanced or removed to reduce costs?

Are my applications aligned with business

priorities?

Do I have enough resources to support new projects?

3

In order to address these challenges, companies should, at a minimum, be able to answer these questions...

5 STEPS TO EVALUATE YOUR IT PORTFOLIO

Evaluate IT assets through relevant criteria

Get a consolidated view of your IT

Portfolio

Understandyour operating

costs

Monitor applications’

underlying technologies

Assess application

alignment with business needs

01 02 03 04 05

4

To properly assess your IT portfolio, you need to get a consolidated view that includes evaluations from several perspectives, such as costs, business value and technologies used in applications. You may also need to add custom criteria relevant to the business and your organization.

GET A CONSOLIDATED VIEW OF YOUR IT PORTFOLIO

MEGA’s information model enables you to represent all the complexity of today’s application deployments.

You can represent every aspect of an application by

integrating multiple perspectives such as business value,

risks and costs.

It helps you make informed decisions about applications

to be extended, replaced or phased out.

Users

Core systems

processes

technology

ApplicationLines of

Business

businesscapabilities

01

5

UNDERSTAND YOUR OPERATING COSTS

Identify applications with the highest costs.

A detailed understanding of your costs enables you to plan and drive down costs, and allocate the right budgets.Cost reports provide you with a breakdown of costs by labor, service, infrastructure and license costs as well as a view of your costs over time. Other reports help you determine the most expensive applications so you can get a better understanding of where to reduce costs, while taking into account applications’ business value.

02

6

Top 10 Most Expensive Applications Application Cost Breakdown

ASSESS APPLICATION ALIGNMENT WITH BUSINESS NEEDS

Business capability maps provide a clear understanding of each application’s business value.They allow you to:

• Represent application functional coverage related to business challenges

• Align the IT portfolio with business needs

• Make informed decisions about investing or outsourcing (e.g. cloud)

• Identify duplicates and applications to be removed, as well as prevent the creation of redundancies

Business Capability Map

03

7

MONITOR APPLICATIONS’ UNDERLYING TECHNOLOGY EFFICIENCY

Rationalizing the IT portfolio also requires the optimization of technology components included in applications.

You need to know which technologies are used

in your systems, as well as vendor dependency

and technology obsolescence, to make the right

decisions about the evolution of your portfolio.

To simplify operations and mitigate risks, you also

need to monitor technology compliance with

company policy.

04

8

TechnologiesUsed Technologies by State

Used Technologies by Vendor Technology details

Technology Reports

EVALUATE IT ASSETS THROUGH RELEVANT CRITERIA 05

Business and IT leaders need consolidated information to drive the change.

The evaluation of your IT assets through cost, risk and business value enables you to decide which assets to invest in, tolerate, migrate, or phase out. You can also assess your IT assets through custom criteria relevant to your organization and determine the best options for change.

ie Tolerate

Year 1

Year 2

Year 3

Innovateor invest

Eliminate Migrate

business value

highlow

high

low

technicalefficiency

LOW

high

cost and

risk

9

Application Assessment

FOR THE NEXT STEPS, SEE:

eBook - Step 14 steps to bring visibility to your IT assets

eBook - Step 35 keys to transform your it portfolio and drive change

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for the next step, click on the image

for the next step, click on the image

TO LEARN MORE

Visit our website to learn moreabout our IT Portfolio Management solution

www.mega.com/itpm

www.mega.com @mega_int