Slide deck used for my speech about Applications Retirement at HP Software Universe, December 1, Barcelona.

1. Session ID: IM-WE-1630
©2010 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

2. Application Lifecycle Modernization
and Retirement:
Sustaining Business Innovation in the Face of
Mounting IT Complexity
Speaker Name: Ron Tolido,
Date: December 1, 2010; 16:30 to 17:15
Session ID: IM-WE-1630
©2010 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

3. Agenda
– Preview of the upcoming Applications
Landscape Report
– Continuous rationalization at the heart of
the lifecycle
– Spotlight: applications retirement

4. About the upcoming Applications Landscape Report
Objective: To understand how different companies approach strategies around IT
applications, and to gauge specific knowledge around how applications are
structured, rationalized and retired across different company sizes and geographies
USA: 30 quantitative, 2 qualitative
interviews
Europe: 51 quantitative, 10 qualitative interviews
(UK, Germany, Benelux, France, Spain)

5. CIO’s Top 3 Priorities
#1: Create business value
#2: Improve business efficiency through IT systems
#3: Cut overall costs for the business
Other 6%
Create value for business 60%
Create better business alignment 26%
Improve flexibility of IT systems 22%
Increase quality of applications 11%
Innovate new applications 16%
Increase productivity 33%
Improve efficiency through IT systems 52%
Cut costs of IT 22%
Cut overall costs for the business 46%
0% 10% 20% 30% 40% 50% 60% 70%

6. Most effective way to cut costs and increase value is
through rationalization of the IT Portfolio
– Today’s application landscapes are perceived as complex and poorly structured
– Mergers and acquisitions result in redundant application functionality
– Custom legacy systems become outdated and create a burden for IT
– Many companies are retaining data beyond its usefulness
““The applications state is a mess… because this 300 year old
organization has grown through various mergers and acquisitions,
each of which brings a new set of applications”
“
- CIO UK, Insurance Company

7. IT Supports Many Redundant Applications and
Systems That are Not Business Critical
Only 4% of survey respondents say that every IT Half of all large IT organizations carry the burden
system in their portfolio is business critical of maintaining more applications than is
necessary for the business
40% say that half or more of their IT systems are
vital to the business How would you rate the appropriateness of the number of
applications across your company?
100%
5
–
severely
lacking
in
the
What percentage of your company’s applications are 90%
number
of
applicaGons
that
considered mission-critical? 80%
the
business
requires
4
–
fewer
applicaGons
than
30% 70%
the
business
requires
25% 60%
50%
3
–
just
the
right
number
of
20% applicaGons
40%
15%
30%
2
–
more
applicaGons
than
10%
20%
the
business
requires
5%
10%
1
–
far
more
applicaGons
0% 0%
than
the
business
requires
100% 71-99% 51-70% 31-50% 11-30% 1 to 10% 0% Small
Medium
Large
Enterprise

8. Companies are Losing Control Over Custom-Built
Applications What percentage of your company’s applications are
custom-developed?
– Before the recession, companies invested heavily in 35%
custom systems to support unique business needs 30%
25%
– As a result, nearly half of all IT applications now are 20% Large
15% Enterprise
custom-built, especially in large companies
10%
– With constricted budgets and smaller IT staff, it is 5%
0%
expensive to maintain custom apps
– Old legacy systems are becoming a burden on IT
“ Our biggest challenge is to get off the old, flaky, unsupported legacy applications and
migrate the business onto a much smaller number of strategic applications.
“
- CIO, UK, Insurance Company
HP Confidential

9. Most Companies Keep Application Data Beyond its
Usefulness Which of the following statements best fits your
company’s experience of data retirement or archiving?
70%
– Most companies have data 60%
retirement policies in place, 50%
40%
but follow them less that 50%
30%
of the time 20%
10%
– Companies tend to avoid 0%
deleting any data – mostly for “We keep all data “We keep just the right “We lose data
beyond its expiration amount of data to frequently and it seems
compliance reasons date or usefulness, just support both business like we have a data
in case” and regulatory black hole in our
requirements” company”

10. Reasons Why Applications Are Difficult to Maintain
– A mismatch between what has been developed and how it fits in with the wider organization.
– Insufficient testing for compatibility with existing systems.
– “Over-engineered” solutions that lead to extreme complexity and issues with maintenance
– Applications Management teams spread too thin with too many simultaneous projects
Which of the following best describes how the Application Development teams create maintainable solutions?
50%
45%
40%
35%
30%
25%
20%
15%
10%
5% 5% 47% 40% 8%
0%
“Application “Application “Application “Application
Development teams Development teams Development teams Development teams
always create solutions generally create create solutions that are generally create
that are easy to solutions that are easy a mix between easy and solutions that are
maintain” to maintain” difficult to maintain” difficult to maintain”
10 Footer goes here

11. Key Application Rationalization Strategies
Standardization
Consolidation
Other 7%
Migration Embed 7%
Consolidation 44%
Cloud Computing 25%
Standardising 59%
Simplifying 33%
Retaining 9%
Replacement 36%
Decommission 19%
Renewal 30%
Migration 40%
0% 10% 20% 30% 40% 50% 60% 70%

12. Nearly Half of All Applications Can be Retired
Almost half of surveyed IT executives estimate that up to 50% of their applications can be retired
Main reason for retirement – applications no longer support business needs
What percentage of your company’s applications could What is the top reason for retiring applications?
be retired?
60%
The cost of development is too high
50%
The cost of maintenance is too high
40%
There is a lack of qualified developers
to continue maintaining the
30% Large
Applications no longer link with other
Enterprise applications effectively
20% Applications are no longer business
critical
10% Applications cannot support business
needs
0% 0% 10% 20% 30% 40% 50% 60%
51-100% 21-50% 11-20% 6-10% 0-5%

13. The Barriers to Retiring Redundant Applications
“
– Cost of rationalization initiatives – especially in
difficult economic times
We’ve had limited success in decommissioning old
legacy systems because of complexity and cost
“
- CIO UK, Insurance Company
– Lack of immediate ROI – time horizons for
investment decisions are often short-term
70%
– Company culture and behavior - resistance to
60%
change 61%
50%
– Differences between regions 40%
– Lack of qualified developers to migrate retired 30%
application data and functions – especially for 20%
custom-designed systems 10%
18%
9% 7%
– Some companies do not consider retirement a 0% 5%
Lack of Incomplete Missing Inconsistent or Cost of
priority business buy-inbusiness cases architectural unreliable retirement
alignment applications services
intelligence

14. Savings made from application rationalization and
retirement projects are used for innovation
Development of innovative applications helps companies be more creative,
drive down costs and become more efficient
Where would you spend money saved from application rationalization and retirement projects?
Direct it back to owners/shareholders of
company
Distribute as bonus to IT staff
Transformational projects for IT
Development of innovative applications
Productisation and standardization of
applications
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

15. Continuous rationalization at the heart
of the applications lifecycle

16. So how to put continuous rationalization at the heart of the
applications lifecycle..?

17. … how to build a new city in the old city…?

18. Introducing WARP 1 …
ENGINE
AMBI • Application Context, or ‘ambiance’
STREAM
PATH • Vision, Architecture and Solutions
STREAM
BIZZ • Business Analysis
STREAM
CASE
• Business Case, Financial and Value
STREAM
PLAN
• Change Scenario’s and Roadmap
ENGINE
APPS • Application Portfolio
PLOT SCAN CRAFT SOLVE

19. … delivering 3 key deliverables to kick-off any
rationalization initiative …

20. Both ‘engines’ apply situational Lenses to validate the
hypothesis…
Spider Chart Application Portfolio Views
High
Risks of Implementation
Sunset Current Performance
Sales App Assessment
Automate Test
Workflows in and Tune Finance App
Implement STATS
Merge CRM Rational PACK For Oracle DB
& HR Monitoring Implement
Conduct RAS on CLARITY for
CRM & HR Implement
Major Incident Project
Tracking
Internationalize Management
CRM UI Process Automate
SOA enable
For APAC ERP Expense Reporting
Automate
Code ReviewWith Within Finance
Low
Revamp HR
User Manual PMD
Low High
Business Benefits
Solution Matrix Baseline Portfolio Analysis
Productivity Flexibility
SOA enable
Internationalize ERP
CRM UI
For APAC Merge CRM
& HR
Sunset Current
Performance Sales App
Assessment Automate
and Tune Expense
Automate Finance App Reporting
Impactful
Revamp HR Code Review Within Finance Conduct RAS on
User Manual With Implement CRM & HR
Implement PMD Major Incident
STATSPACK Automate Test Management
Implement Workflows in
For Oracle DB CLARITY for Process
Monitoring Rational
Project
Tracking
First 6 months Next 12 months Next 24 months
Transformation Roadmap Portfolio Rationalization Design

21. and 4 streams address critical success factors…
ENGINE
AMBI • Application Context, or ‘ambiance’
STREAM
PATH • Vision, Architecture and Solutions
STREAM
BIZZ • Business Analysis
STREAM
CASE
• Business Case, Financial and Value
STREAM
PLAN
• Change Scenario’s and Roadmap
ENGINE
APPS • Application Portfolio
PLOT SCAN CRAFT SOLVE

22. … with many different lenses possible (examples) …

23. Spotlight: Applications Retirement,
applying database archiving and
records management

24. Decommissioning skills are sadly underrated in the
applications lifecycle …

25. … although growth depends on the right
foundation …

26. The case for application retirement using data
archiving and records management
PLAN Preserve access to the data for
compliance and reporting
The complete
RUN
applications Reduce the amount of historical
lifecycle data and control application
growth rate
DELIVER
RETIRE Merge and consolidate redundant
systems

27. Retiring application data …
Typically a result of acquisition:
Duplicate systems that have no user population but cannot be retired
Large applications with old transaction history growing up to 5%/ month
Merge APPLICATION 2
APPLICATION 1
(from acquisition)
Extract records that
Archive regularly to are beyond
keep growth retention point
balance
• Remove historical data that’s beyond required retention period before pushing records into the
new system
• Build regular archiving practices to keep application growth in balance
• Archive up to double the rate of growth

28. … and retiring an entire application
If the application is outdated, not being used to support a current
business process and its data is not growing by any significant means
Retired
Application SRMD
Extract records into
Structured records
a database Application shut down
preserved for audit and
compliance
Remove the need to support obsolete systems (up to 20% annual savings)
Free up 50-90% of IT personnel and redirect them to more strategic projects

29. Using WARP 1 to validate the Retirement hypothesis
ENGINE
AMBI • Application Context, or ‘ambiance’
STREAM
PATH • Vision, Architecture and Solutions
STREAM
BIZZ • Business Analysis
STREAM
CASE
• Business Case, Financial and Value
STREAM
PLAN
• Change Scenario’s and Roadmap
ENGINE
APPS • Application Portfolio
PLOT SCAN CRAFT SOLVE

30. Discovery & Dependency Mapping : know your
assets ...

31. Project & portfolio management: understand your
assets ...

32. Best Practices & Conclusions
• Be BOLD in your hypotheses
• Trust but Verify: no improvement
without deep insight
• Business alignment is key, not
the Heat Map
• Retirement skills are sadly
underrated
• Apply true Landscape and
Lifecycle perspectives
• Remember how Haussmann did
it…

33. Come visit the Capgemini Booth right after this session for
several exciting events:

34. Didier Grimaldi
Didier Grimaldi
Application Lifecycle Services
Application Lifecycle Services
Capgemini Spain
Capgemini Spain
Tel : +34 91 732 8461
Tél : +34 91 732 8461
Mob : +34 609 720 440
Mob : +34 609 720 440
didier.grimaldi@capgemini.com
didier.grimaldi@capgemini.com
Ron Tolido
Application Lifecycle Services
Capgemini
Tel : +31 6 54 360 787
ron.tolido@capgemini.com