How to Modernize IT – While on a Budget Andy Kyte

How to Modernize IT –
While on a Budget
Andy Kyte
Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with written approval from Gartner. Such approvals must be requested via e-mail: vendor.relations@gartner.com. Gartner is a registered trademark of Gartner, Inc. or its affiliates.
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How to Modernize IT –
While on a Budget
Andy Kyte
Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with written approval from Gartner. Such approvals must be requested via e-mail: vendor.relations@gartner.com. Gartner is a registered trademark of Gartner, Inc. or its affiliates.
The Problem, Simply Stated
"You can't get a quart
jug into a pint pot."
Available
Capacity
Work to Be Done
Key Issues
1. How can the scale of an IT modernization
program be estimated?
2. How should applications be prioritized for
IT modernization?
3. What management regimes should be applied
to each category of application?
Why Estimate?
Estimates Inform Management Priorities.
IT Management Focus Is Slow to Change.
The Wedding Estimating Problem
• Him (Thinks) – "Our parents, brothers & sisters,
a couple of friends, quiet ceremony, buffet …."
• Her (Thinks) – "The horses must be really white
to match the bridesmaids' lilies …"
• User – "Upgrade" (Thinks) – "Fix a few bugs,
a few new screens and reports"
• IT – "Upgrade" (Thinks) – "Recustomize,
re-engineer processes, redesign organizational
structure, change menus and workflows …."
Beware of any estimate
where there is no agreed specification.
Estimating:
A Process of Continuous Refinement
Images from Google Earth
Inventory:
A Process of Continuous Refinement
• Define the "unit of inventory"
• Identify the units of inventory
• Classify:
- Top 10 – Individual Planning Activities
- The Rest – Cluster Planning – Strategy Templates
• Develop the CBR perspectives:
- Cost – TCO across the planning horizon
- Benefit – Business value delivered (utilization as proxy for value)
- Risks – Stack integrity, skills, vendor
• "Traffic Light" for action: green, amber, red
• Make "inventory" a process, not a project
Cluster Planning Demands More Than
One Perspective
The Platform Cluster
The Business Cluster
F
C++
Lotus Notes
COBOL
S
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A
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RPG/400
SAP
Hyperion
E
S
H
R
A
N
C
E
P
R
O
D
U
C
T
I
O
N
E
T
C
.
.
.
Strategy Templates for Application Clusters
Business Clusters
• Form a useful basis for
governance groups
• Can be process-based or
functionally based, but
decide on one or the other
• Should concentrate on
requirements and desired
results, not on technology
Platform Clusters
• Strategy templates provide
a default life cycle for
applications dependent on
the platform
• Develop methodologies for
managing the applications
in the cluster
• Create virtual competency
centers to oversee the
cluster activities
Application Portfolio Management "Lite"
Costs
Benefits
• Operational Load Costs
• Measures of Usage
• Support and Maintenance
• Measures of Usefulness
• Direct License
• Software Infrastructure
Inventory
• User Satisfaction
Technology Clusters
Functional Clusters
Geographic Clusters
Business Unit Clusters
Risks
• Direct Threats to Viability
• Better Alternatives
• Stack Instability Threats
• Loss of Confidence
Technical Integrity
TIME for Application Portfolio Management
Tolerate
Invest
Eliminate
Migrate
Business Value
Application Strategy:
Create Options, Not Mandates
Option 1: Do Nothing
Option 3: SaaS
Costs
Costs
Benefits
Benefits
Risks
Risks
Option 2: Upgrade
Option n: nnnnnnn
Costs
Costs
Benefits
Benefits
Risks
Risks
Management Blends Options Into
Investment Portfolio
Application
App 101
App 102
App 103
App 104
App 105
App 106
App 107
App 108
App 109
App 110
Cluster 201
Cluster 202
Cluster 203
Cluster 204
Cluster 205
Cluster 206
Cluster 207
Cluster 208
Option 1 Option 2 Option 3 Option n
Use PPM to
allocate capacity
efficiently.
Capacity
"Tolerate" Applications:
Low Input Application Management
• Focus on Operational Efficiency:
- Use "Drop-a-9" on Operational KPIs
- Challenge Availability Requirements
- Simplify BCM Requirements
• Facilitate User "Best Practice" Exchange:
- Avoid "Whinge Sessions"
- Recognize and Reward Positive Contributors
• Use "Life Support" Maintenance:
- Minimum Intervention
• Set Midterm Transitions to Either "Invest" or
"Eliminate."
"Migrate" & "Eliminate" Applications:
Life Support Application Management (1)
1)
Create a Project Team
2)
Create & Maintain a Risk Assessment
• Probability
• Impact
3)
Identify Temporary Alternatives
4)
Review the Contract
5)
Form Alliances
• Other Users
"Out of support" is not "the end of the world."
"Migrate" & "Eliminate" Applications:
Life Support Application Management (2)
6) Buy Time
• Negotiate Extension
7) Reduce Use
• Geography/Business Unit
• Features/Functions
8) Freeze the System
9) Ensure Excellence in Application Housekeeping
10) Develop a Permanent Solution
"Out of support" is not "the end of the world."
"Invest" Applications:
Plan for All the Drivers
Functionality
Architecture
Attributes
Get Into the Applications Process Gym
Inventory
Governance Model
Finance Model
Architecture Selection
(Re)Sourcing
Project Initiation and Review
Validation and Release Management
Recommendations
9 Identify the "top 10" individually managed
applications.
9 Develop application clusters to deal with the rest
of the applications portfolio.
9 Ensure all application strategies offer multiple
options.
9 Use "TIME" to triage applications and clusters.
9 Use PPM to optimize the use of scarce
application change resources.
Gartner Reduces IT Cost in Four Distinct Ways
Visit gartner.com/economy now to
see exactly how Gartner takes
cost out of IT
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How to Modernize IT –
While on a Budget
Andy Kyte
Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with written approval from Gartner. Such approvals must be requested via e-mail: vendor.relations@gartner.com. Gartner is a registered trademark of Gartner, Inc. or its affiliates.