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: [email protected]. Gartner is a registered trademark of Gartner, Inc. or its affiliates. How to Participate Today Audio Announcement You have joined the audio muted using your computer’s speaker system (VoIP) by default. To call in, please select “use telephone” in your audio pane of the Webinar panel for the conference number and access code 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: [email protected]. 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 I A N L 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 Thank you for Participating! • Please submit your questions now using the Webinar Questions pane. • If you have additional questions, comments or requests, please follow-up with your Gartner Account Executive • If you need help with who that is, please e-mail: [email protected] • If you would like a copy of today’s presentation, contact your Gartner Account Executive or e-mail us at: [email protected] 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: [email protected]. Gartner is a registered trademark of Gartner, Inc. or its affiliates.