©2010 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

Application Modernization & RetirementHow to sustain business innovation in the face of mounting IT complexity

Ron Tolido

Chief Technology Officer, Global Application Lifecycle Services, Capgemini

In collaboration with

Biggest Challenge to Business: Application Complexity

KTLO is choking innovation and consuming the bulk of the budget

Yesterday’s cutting-edge systems are today’s legacy applications

Application and data sprawl hampers business agility, flexibility and speed

Current applications require modernization to support revenue growth

Lack of planning and know how for data and application retirement

In collaboration with

Main Factors Contributing to Application Complexity

•Outdated and

disjoined IT systems

•Applications

supporting obsolete

business processes,

with no user base or

data growth

•Duplicate instances

of core applications

Lack of data

archiving practices:

•Keeping data

beyond its required

retention period

•Not deleting old data

before merging

redundant systems

•New and disjoined

software systems

coming from

acquisitions

•Silo’ed growth of

parallel systems,

applications and

resources

•Compliance

requirements

mandate the need to

retain data from

redundant systems

Sprawling

applications

landscape

Uncontrollable

data growth

Mergers and

acquisitions

Compliance

Requirements

In collaboration with

This requires building a new city in the old city…

In collaboration with

… with continuous rationalization at the heart of the lifecycle…

In collaboration with

Haussmannization: a bold approach to renewal

In collaboration with

Introducing WARP 1 - Wide-angle Application Rationalization

Program

An accelerated approach to identify rationalization and simplification

opportunities in the client’s application landscape and lifecycle, then

decisively act on it, backed by factual insight.

Provides baseline analysis of the existing state of applications

landscape and lifecycle

Combines industrialized scans of the application portfolio

and application context with an architected, business-oriented view

Builds on pre-defined rationalization patterns and ‘hypotheses’ to

speed up the process

Delivers a rationalization design, a business case and a roadmap for further

action in 7 weeks

In collaboration with

A further look at WARP 1…

PLOT SCAN CRAFT SOLVE

• Application Context, or ‘ambiance’ENGINE

AMBI

• Vision, Architecture and SolutionsSTREAM

PATH

• Business AnalysisSTREAM

BIZZ

• Business Case, Financial and ValueSTREAM

CASE

• Change Scenario’s and RoadmapSTREAM

PLAN

• Application PortfolioENGINE

APPS

In collaboration with

The logic of a WARP1 engagement

In collaboration with

Both ‘engines’ apply situational Lenses to validate the

hypothesis…

Application Portfolio Views

Baseline Portfolio Analysis

Portfolio Rationalization DesignTransformation Roadmap

Spider Chart

Solution Matrix

Ris

ks o

f Im

ple

men

tati

on

Business Benefits

Low High

Low

Hig

h

Implement

Major Incident

Management

Process

Performance

Assessment

and Tune Finance App

Sunset Current

Sales App

Merge CRM

& HR

SOA enable

ERP

Revamp HR

User Manual

Automate

Expense Reporting

Within Finance

Internationalize

CRM UI

For APAC

Automate Test

Workflows in

Rational

Implement

CLARITY for

Project

Tracking

Automate

Code ReviewWith

PMD

Implement STATS

PACK For Oracle DB

Monitoring

Conduct RAS on

CRM & HR

First 6 months

Productivity Flexibility

Imp

actf

ul

Next 12 months Next 24 months

Implement

Major Incident

Management

Process

Performance

Assessment

and Tune

Finance App

Sunset Current

Sales App

Merge CRM

& HR

SOA enable

ERP

Revamp HR

User Manual

Automate

Expense

Reporting

Within Finance

Internationalize

CRM UI

For APAC

Automate Test

Workflows in

Rational

Implement

CLARITY for

Project

Tracking

Automate

Code Review

With

PMDImplement

STATSPACK

For Oracle DB

Monitoring

Conduct RAS on

CRM & HR

In collaboration with

… with many different lenses possible (examples) …

In collaboration with

…. and four additional streams address critical success factors

for application rationalization…

PLOT SCAN CRAFT SOLVE

• Application Context, or ‘ambiance’ENGINE

AMBI

• Vision, Architecture and SolutionsSTREAM

PATH

• Business AnalysisSTREAM

BIZZ

• Business Case, Financial and ValueSTREAM

CASE

• Change Scenario’s and RoadmapSTREAM

PLAN

• Application PortfolioENGINE

APPS

©2010 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

Application Retirement: an Essential Part of the Lifecycle

In collaboration with

… decommissioning skills are sadly underrated in IT…

In collaboration with

… although growth depends on the right foundation …

In collaboration with

The case for Application retirement using data archiving and

records management

RETIRE

PLAN

The complete

application

lifecycle

DELIVER

RUN

Preserve access to the data for

compliance and reporting

Reduce the amount of historical

data and control application

growth rate

Merge and consolidate redundant

systems

When IT engineers build new software systems, they rarely think about what will

happen when these systems become obsolete and need to be retired…

In collaboration with

Retiring Application Data …

•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

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

Extract records that

are beyond

retention point

APPLICATION 2

(from acquisition)APPLICATION 1

Merge

Archive regularly to

keep growth

balance

In collaboration with

… and Retiring an Entire Application

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

DECOMISSIONEDAPPLICATION

Structured records

preserved for audit and

compliance

SRMD

Application shut down

Extract records into

a database

If the application is outdated, not being used to support a current

business process and its data is not growing by any significant means

In collaboration with

Understanding the impact of the Decommissioning hypothesis

PLOT SCAN CRAFT SOLVE

• Application Context, or ‘ambiance’ENGINE

AMBI

• Vision, Architecture and SolutionsSTREAM

PATH

• Business AnalysisSTREAM

BIZZ

• Business Case, Financial and ValueSTREAM

CASE

• Change Scenario’s and RoadmapSTREAM

PLAN

• Application PortfolioENGINE

APPS

In collaboration with

Discovery & Dependency Mapping + Universal CMDB -> know

your assets ...

In collaboration with

Confidential Case Study (manufacturing)

Client faced different challenges:Daunting number of applicationsUncontrolled IT application growth – approx 12 new applications added each monthComplex IT landscape – 50+ separate departments

Solution approach included:Metrics-based project portfolio management -using HP-PPM - and application portfolio assessment

Harmonized re-engineering framework to migrate and decommission legacy systems

Supported by specialized Centre of Excellence

Accelerated by industrialized ‘rightshore’ capabilities

In collaboration with

Best Practices & Conclusions

• Be BOLD in your hypotheses

• Trust but Verify: no improvement without deep insight

• Business alignment is key, not the Heat Map

• Decommission skills are sadly underrated

• Apply true Landscape and Lifecycle perspectives

• Remember how Haussmann did it…

©2010 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

Application Modernization & RetirementHow to sustain business innovation in the face of mounting IT complexity

Ron Tolido

Chief Technology Officer, Global Application Lifecycle Services, Capgemini