IDC PlanScape: Application Portfolio Modernization and Rationalization
This IDC PlanScape presents a comprehensive capability-driven approach for modernizing and rationalizing the application portfolio. It enables organizations to boost agility, reduce costs, enhance compliance, and innovate faster through a more modern, optimized portfolio of applications aligned to key business capabilities. However, the current context also brings headwinds to this strategic priority. IDC's January 2024 Future Enterprise Resiliency and Spending Survey, Wave 1, reveals that approximately 20% of organizations plan to shift budgets from app modernization to GenAI projects. So making the business case and explaining why application portfolio modernization and rationalization (APMR) are important will be crucial."As the business environment becomes increasingly complex, CIOs must adopt a comprehensive capability approach to operationalize application modernization and rationalization," says Serge Findling, adjunct research advisor with IDC's IT Executive Programs (IEP). "Application rationalization isn't about discarding the past; it's about streamlining the present to build a foundation for a future-proof, efficient application ecosystem."
Please Note: Extended description available upon request.
IDC PlanScape Figure
Executive Summary
Why Is APMR Important?
What Is APMR?
Elements of Application Portfolio Management
Technical Debt
Portfolio Relationships
Modernization and Rationalization Capability
Governance
Processes
Talent
Technology
Data
Who Are the Key Stakeholders?
How Can My Organization Take Advantage of APMR?
Initial Rationalization Process
Application Modernization and Rationalization as a Continuous Process
Inventory: Create/Maintain Application Inventory
Assess: Assess/Analyze Applications' Health
Rationalize: Identify Applications for Retirement, Consolidation, or Modernization Based on Predefined Criteria and Prioritization
Plan: Develop a Detailed Road Map and an Implementation Plan, Considering Dependencies, Resources, and Risk Mitigation Strategies
Modernize: Execute the Modernization Plan, Leveraging Modern Technologies, Cloud Computing, and Agile Methodologies
Operate and Optimize: Continuously Monitor and Optimize the Modernized Application Portfolio, Ensuring Alignment with Evolving Business Needs and Emerging Technologies
Advice for Technology Buyers
Related Research
Research Assistance
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