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5 Ways to Evaluate Your IT Portfolio (EN)

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Read our new eBook to learn in 5 steps how to effectively evaluate your IT portfolio and cut your costs down.

IT costs have soared over time, while IT departments are experiencing increasing pressure to deliver more value to the business. To streamline your IT portfolio and reduce costs, you need to assess it through a consolidated view of your IT assets that includes several perspectives, such as costs, business value and technologies.

Download our eBook to learn how to:
- Better understand your operating costs
- Facilitate your decision-making regarding your IT assets and budgets
- Drive the change with consolidated information

Published in: Software
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5 Ways to Evaluate Your IT Portfolio (EN)

  1. 1. 5 ways to evaluate youritportfolio
  2. 2. MAIN CHALLENGES 48% of CIOs believe there are more applications than business requires1 1- Cap Gemini Application Landscape Report 2014 2- 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.
  3. 3. KEY QUESTIONS Do I have the right applications to support the business? Business Operations What 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...
  4. 4. 5 STEPS TO EVALUATE YOUR IT PORTFOLIO Evaluate IT assets through relevant criteria Get a consolidated view of your IT Portfolio Understand your 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.
  5. 5. 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 Application Lines of Business business capabilities 01 5
  6. 6. 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
  7. 7. 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
  8. 8. 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 Technologies Used Technologies by State Used Technologies by Vendor Technology details Technology Reports
  9. 9. 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 Innovate or invest Eliminate Migrate business value highlow high low technical efficiency LOW high cost and risk 9 Application Assessment
  10. 10. FOR THE NEXT STEPS, SEE: eBook - Step 1 4 steps to bring visibility to your IT assets eBook - Step 3 5 keys to transform your it portfolio and drive change 10 for the next step, click on the image for the next step, click on the image
  11. 11. TO LEARN MORE Visit our website to learn more about our IT Portfolio Management solution www.mega.com/itpm www.mega.com @mega_int

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